While the industry-wide slowdown that began in late 2005 showed signs of abating in early 2007, business conditions worsened as the year progressed and we now find ourselves mired in the longest and deepest furniture recession in a generation.
Jeffrey R. Scheffer, President and Chief Executive Officer, Stanley Furniture

Stanley Furniture Company (Nasdaq-NGS:STLY) today reported Net Sales for 2007 of $282.8 million decreased 8.0% compared to 2006. Earnings per share decreased 61% to $.55 compared to $1.41 in 2006. Fourth quarter sales of $66.8 million decreased 5.4% from the final quarter of 2006. Earnings per share increased 20% to $.48 from $.40 in the fourth quarter of 2006.

"2007 was another challenging year for both the furniture industry and Stanley Furniture," commented Jeffrey R. Scheffer, President and Chief Executive Officer. "While the industry-wide slowdown that began in late 2005 showed signs of abating in early 2007, business conditions worsened as the year progressed and we now find ourselves mired in the longest and deepest furniture recession in a generation. Despite the challenging environment, we remain profitable and our financial position remains strong. I am confident we have a mission that differentiates us from the competition, a strategy that provides for profitable growth, and an enthusiastic and engaged management team that is preparing the Company for the eventual upturn in business. However, the guidance offered below for 2008 assumes that business conditions range from the current demand level to a modestly worse environment," concluded Scheffer.