Atlanta, GA, September 13, 2006--Stanley Furniture Co., on Wednesday cut its profit and revenue estimates for the third quarter and full year, citing weak retail sales.
For the third quarter, Stanley said it expects profit of 27 cents to 29 cents a share, down from a prior projection of 38 cents to 41 cents a share, as sales fall 8 to 10 percent. For the full year, per-share profit of $1.24 to $1.32 a share is expected as sales decline 4 to 7 percent.
Analysts had expected profit of 39 cents a share on revenues of $82 million for the third quarter, and profit of $1.56 on revenues of $324 million for the year, according to Reuters Estimates.
A cooling U.S. housing market and higher interest rates have pressured furniture companies as consumers pull back from big-ticket purchases.
Furniture Brands International Inc., maker of Thomasville, Broyhill and Henredon brands, pared its quarterly earnings forecast last week, citing softer business trends. And Ethan Allen Interiors Inc. said sales, which had begun slowing in July, pulled back further in August.
Though some furniture analysts noted solid Labor Day sales in recent days, Stanley Furniture said in a statement that it has not seen any significant change in order trends and expects the weak business conditions to persist for the rest of the year.
