While we are disappointed with lower sales and earnings, we believe this is consistent with current industry-wide conditions.
Jeffrey R. Scheffer, President and CEO, Stanley Furniture

Stanley Furniture Company's sales for the first quarter of 2007 were $75.1 million, down 10.1% from the first quarter of 2006. Earnings per share of $.15 compares to $.43 in the year-ago quarter. Both sales and earnings were at record levels in the first quarter of last year.

The company said lower margins resulted from lower sales and production levels, operating inefficiencies and higher raw material and compensation costs.

“Our business has stabilized over the past few months and we experienced little change in overall sales trends since late last year”, commented Jeffrey R. Scheffer, President and Chief Executive Officer. “While we are disappointed with lower sales and earnings, we believe this is consistent with current industry-wide conditions.”

“Near term, we will continue to focus on controlling costs and inventories, and improving our product offerings. Longer term, we remain focused on reducing costs, eliminating waste, and improving productivity, quality, and service through our continuous improvement efforts applying lean business principles,” concluded Scheffer.