STANLEYTOWN, Va. (AP) -- Stanley Furniture Co. said Wednesday that its loss widened in the first quarter, hurt by falling sales and hefty charges. The company also announced a plan to move some of its manufacturing overseas.
Results were lower than Wall Street had expected, and investors sent shares down $1.41, or 14.9 percent, to $8.03 in extended trading after the report. Earlier, the stock gained 61 cents to close at $9.44.
For the three months ended April 3, the furniture maker said its net loss was $19.1 million, or $1.85 per share. In the year-ago quarter, the company lost $2.4 million, or 23 cents per share.
The latest quarter included a $9.1 million charge for a drop in value of intangible assets and a charge of $1.3 million to establish a valuation allowance against gross deferred tax assets.
Analysts surveyed by Thomson Reuters projected a loss of 24 cents per share, but analyst estimates typically exclude one-time items.
Revenue fell 8.1 percent to $36.5 million from $39.8 million, less than the $38 million analysts predicted.
Stanley said results were lower partly because of the increased cost of moving revenue from overseas into the U.S.
The company also said it would move the majority of its Stanley Furniture adult product line from Stanleytown, Va., to several offshore vendors. Much of the Stanleytown facility will become a warehouse and distribution center.
The furniture maker said it will keep doing assembly and finishing work in its Martinsville, Va.-based facility, which is currently a warehouse.
Another product line, Young America nursery and youth products, will mostly still be made in Robbinsville, N.C.
Shares of Stanley Furniture have ranged from $7.13 to $13.48 over the past year.
