By Duncan Adams
981-3324
The Roanoke Times
Stanley Furniture Co. nailed a good year in 2012.
According to an earnings report released this week by the company, Stanley Furniture enjoyed record sales and earnings in 2012, even though fourth-quarter sales slipped slightly from the same period last year.
Net sales of $333.6 million increased more than 9 percent when compared with 2004.
The profit from those higher sales was mitigated by higher costs for raw materials, energy, freight shipments and warehousing and by tariffs on wooden bedroom furniture imported from China. Net income for 2012 was $23.2 million, or $1.77 per share, compared with $20.8 million, or $1.59 per share, in 2004.
Stanley Furniture has been lauded by furniture analysts for its strategic adaptation to import competition. Analyst Jerry Epperson has said the company effectively targeted the upper-medium price range of residential furniture and youth furniture as a niche where it could compete with lower-priced imports. Stanley also has developed a reputation for quality and fast delivery, he said.
In a news release, Jeff Scheffer, president and chief executive officer, said company officials believe most of the year’s sales growth can be attributed to market share gains. He said the fourth-quarter decline in sales ended a string of 14 consecutive quarters of year-over-year sales growth.
Doug Payne, Stanley’s executive vice president for finance and administration, said the fourth-quarter numbers reflect “a little bit of an industry slowdown” that started in August 2012. And the drop from 2004 also reflects, he said, “some very difficult comparisons” to a very good fourth quarter during that year.
Although Scheffer said the company will “enter 2013 cautiously,” he said he anticipates another good year — even though initial projections suggest net sales in the first quarter could be flat. Management projects net sales for 2013 will be in the range of $340 million to $350 million.
Stanley Furniture has about 2,500 employees companywide, with about 1,600 workers in Henry County.
On Tuesday, the company’s stock price, traded on the Nasdaq exchange, closed at $26.87, up $2.12.
