St. Louis, MO, March 7--Furniture Brands International Inc., the largest U.S. home furnishings manufacturer, on Monday said it expects first-quarter profit will come in at the lower end of expectations as consumer demand begins to cool in the industry.
The company -- which markets brands such as Thomasville and Drexel Heritage furniture -- had previously expected earnings in the range of 45 cents to 49 cents per share. Analysts surveyed by Thomson First Call were expecting earnings of 47 cents per share when Furniture Brands reports results on April 27.
"This weakness in business is generally affecting both the middle-price companies and the upper-end companies, but it is more pronounced in the casegood business than in the upholstery business," said chairman and chief executive W.G. Holliman in a statement. "We continue to believe the weakness in consumer confidence is the primary driver of dampened demand in the furniture industry."
He said business conditions were relatively unchanged from January when the company issued first-quarter results. However, compared to a strong year-ago period, the company believes revenue will grow by a percentage in the mid-single digits.
Analysts project the company will report sales of $624.7 million during the first quarter, compared with $658.5 million a year earlier.
Also on Monday, Ethan Allen Interiors Inc. said it expects sales during the quarter will come in lower than Wall Street projections. There has been some concern throughout the furniture industry that a weakening pace of new home building will eventually eat into consumer demand.
The Danbury, Conn.-based company sees sales in the range of $225 million to $230 million -- below analyst expectations of $250.8 million. Like Furniture Brands International, Ethan Allen said it is facing tough comparisons with standout results posted in the year-ago period.
