Stanley Furniture Lowers Revenue and Earnings Guidance

Furniture World Magazine

Stanley Furniture Company, Inc. announced that second 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 $83.6 million in the second quarter of 2005. Consequently, diluted earnings per share are now expected to be $.29 to $.31, down from prior guidance of $.35 to $.38, compared to $.44 in the second quarter of 2005. "The weakness in sales that we experienced in the later part of the first quarter and into the early part of the second quarter has continued throughout the second quarter so far," commented Jeffrey R. Scheffer, chairman, president and chief executive officer. "We believe this is a result of overall current industry conditions. We will provide third quarter guidance and update our full year guidance when we announce second quarter operating results on July 17, 2006," Scheffer concluded. 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.