The Rowe Companies Announces Third Quarter Operating Results

Furniture World Magazine

The Rowe Companies (NYSE: ROW), a leading furniture manufacturer and retailer, today reported operating results for the third quarter ended September 1, 2002. Net shipments increased 3.8%, to $85.5 million, compared with $82.4 million for the same period last year. Gross profit margins increased to 33.1% for the third quarter, up from 31.6% for the same period a year ago. Net income for the third quarter amounted to $554 thousand, or $0.04 per diluted share, compared to a loss of $(1.1 million), or $(0.09) per diluted share in the same quarter of the prior year. For the nine-month period, net shipments increased 2.7%, to $247.5 million from $240.9 million for the prior year. Gross profit margins increased to 33.7% from 32.0%. Net loss for the nine-month period ended September 1, 2002 was $(113) thousand, or $(0.01) per diluted share. This compares to a loss of $(6.8 million), or $(0.52) per diluted share, for the corresponding prior year period. "Our Rowe Furniture and Mitchell Gold manufacturing operations continue to achieve sales growth and operational improvements despite a mixed economic environment. While results from our retail segment have not yet achieved our expectations, the combination of our retail operations under the Storehouse name, begun earlier this year, is essentially complete, which should enable us to improve our operating results," said Gerald M. Birnbach, Chairman and President. The Rowe Companies is comprised of Rowe Furniture, a major manufacturer of quality upholstered furniture; The Mitchell Gold Co., an upholstered furniture manufacturer serving some of the nation's leading specialty retailers; and Storehouse, Inc., a 60-store retail furniture chain doing business under both the Storehouse and Home Elements names.