Shares of Stanley Furniture Down in Premarket Trading After Cutting Guidance

NEW YORK (AP) —
Shares of furniture maker Stanley Furniture Co. fell in premarket trading Thursday, one day after the company lowered guidance due to weak sales.

Late Wednesday, the Stanleytown, Va.-based company cut its earnings per share forecast to 29 cents to 31 cents from previous guidance of 35 cents to 38 cents. The company also said it expects revenue to fall 8 percent to 10 percent.

Wall Street expected the company to earn 37 cents per share on sales of $80.3 million, according to a poll of Thomson Financial analysts.

“The weakness in sales that we experienced in the later part of the first quarter and into the early part of the second quarter has continued throughout the second quarter so far,” said Jeffrey R. Scheffer, the company’s chief executive. “We believe this is a result of overall current industry conditions.”

The lowered second-quarter view raises the prospect the company may lower its full-year guidance for a second time this year. Stanley Furniture said said it will provide third-quarter guidance on July 17 along with second-quarter results.

In April, when the company posted first-quarter results, Stanley lowered its full-year earnings and revenue outlook, citing softness in industry sales that began in the latter half of 2012 and continued into 2013.

In electronic premarket trading, Stanley shares fell $2.47, or 11 percent, to $19.99.