Stanley Furniture Expects Sales Decline For 2006

Furniture World Magazine

Stanley Furniture Company, Inc. announced that third quarter sales are now expected to be below previously anticipated levels due to continued weakness in retail furniture activity. The Company now anticipates a sales decline of 8% to 10% compared to record shipments of $85.6 million in the third quarter of 2005. Consequently, diluted earnings per share are now expected to be $.27 to $.29, down from prior guidance of $.38 to $.41, compared to record earnings of $.44 in the third quarter of 2005. For total year 2006, sales are now expected to decline 4% to 7% compared to 2005 and diluted earnings per share are now expected to be $1.24 to $1.32 compared to $1.77 for 2005. This guidance excludes any potential receipt of funds from the Continued Dumping and Subsidy Offset Act involving tariffs collected by the U.S. government on wooden bedroom furniture imported from China. "Third quarter sales to date have been weaker than previously anticipated and we believe this is a result of overall industry conditions," commented Jeffrey R. Scheffer, chairman, president and chief executive officer. "We have not seen any significant change in order trends since Labor Day and we are projecting these business conditions to persist for the remainder of 2006 in our revised guidance," Scheffer concluded. The Company plans to announce third quarter operating results on October 16, 2006. Established in 1924, Stanley Furniture Company, Inc. is a leading manufacturer of wood furniture targeted at the upper-medium price range of the residential market. Manufacturing facilities are located in Stanleytown and Martinsville, Va. and Robbinsville and Lexington, N.C. Its common stock is traded on the Nasdaq stock market under the symbol STLY.