Furniture Brands International announced its financial results for the fourth quarter and fiscal year ended December 31, 2010.
Net sales of $276.1 million for the 2010 fourth quarter declined 3.3% versus net sales of $285.6 million in the fourth quarter of 2009. Fourth-quarter 2010 retail sales at the 67 company-owned stores and showrooms totaled $38.8 million compared with fourth-quarter 2009 sales of $35.6 million at the company's 71 stores and showrooms. Fourth-quarter 2010 same-store sales at the 45 Thomasville stores that the company has owned for more than 15 months showed an increase of 15% from the fourth quarter of 2009. For the fiscal year, Thomasville same-store sales increased by 19% in 2010 compared to fiscal 2009.
For the 2010 fourth quarter, Furniture Brands reported a net loss of $44.7 million, or $0.82 per diluted share, compared to a net loss of $65 million, or $1.35 per diluted share, in the fourth quarter of 2009. Furniture Brands' gross margin for the fourth quarter of 2010 was 18.1% compared with 7.1% in the fourth quarter of 2009. Results for all periods include selected items that are detailed in a table attached to this press release. On an adjusted basis*, gross margin for the fourth quarters of 2010 and 2009 was 22.1% and 21.7%, respectively.
For the fiscal year ended December 31, 2010, the company reported net sales of $1.16 billion and a net loss of $39 million, or $0.76 per diluted share, compared to net sales of $1.22 billion and a net loss of $108.7 million, or $2.25 per diluted share, for the fiscal year ended December 31, 2009. Gross margin for the 2010 fiscal year was 23.8% compared to 18.8% for fiscal 2009. Adjusted gross margin* for fiscal 2010 was 25.5% compared with 23.1% for fiscal 2009.
At December 31, 2010, the company had a net debt* position of $25 million compared to net debt of $11.1 million at December 31, 2009. The company's cash position at year-end 2010 reflects the company's continued focus on expense control while supporting long-term investments in best-cost manufacturing capabilities in Indonesia and Mexico along with enhancements in information technology.
"In late 2007, Furniture Brands launched a strategic plan to better leverage the company's many strengths and to position it for improved financial performance," said Chairman and Chief Executive Officer Ralph P. Scozzafava. "The entire Furniture Brands team has produced meaningful progress in the midst of the most severe economic downturn of our lifetimes. The work has been challenging, and the results are impressive: gross margin has reached the highest level since 2004, SG&A expense is the lowest in more than a decade, and our balance sheet remains solid. Furniture Brands is a much different company today than in 2007, and one that is much better positioned to meet the demands of today's furniture customer. Significant operating leverage has been created as a result of the actions of the past three years and our balance sheet is strengthened."
Mr. Scozzafava concluded, "Tapping the real potential of Furniture Brands is simple -- grow profitable sales. We are doing the right things to grow our sales, and in 2011 we will do more of them. We reinvigorated the Lane brand in late 2010 through a national TV and print ad campaign and through the launch of 'Laneology' -- our name for the bundle of features and benefits that make Lane products among the very best in reclining furniture and also make Lane a great partner for our dealers. Broyhill continues to refresh its product line and bring more stylish, contemporary looks to the marketplace. The Perspectives collection launched last year is a great example of this trend, and it's on the way to surpass Broyhill's Attic Heirlooms as one of the industry's most successful casegoods collections. Thomasville is ramping up its new product pipeline and will build on the momentum that drove the 19% same-store-sales increase in 2010. We are excited to announce a new, more expansive Thomasville TV campaign that will launch in mid-2011. Last, but not least, the high-end consumer is back in the market for furniture and our industry-leading portfolio of designer brands are in high demand by the design trade."
Upcoming Investor Event
A conference call will be held to discuss fourth quarter results at 7:30 a.m. (Central Time) on February 3, 2011. The call can be accessed in Upcoming Investor Events on the company's website at furniturebrands.com under "Investor Info''. Access to the call and the release will be archived for one year.
About Furniture Brands: Furniture Brands International (NYSE:FBN - News) is a global operating company that is one of the nation's leading designers, manufacturers, and retailers of home furnishings. It markets through a wide range of retail channels, from mass merchant stores to single-brand and independent dealers to specialized interior designers. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Broyhill, Lane, Thomasville, Drexel Heritage, Henredon, Pearson, Hickory Chair, Laneventure, Maitland-Smith, and Creative Interiors.