Furniture Brands profits tumble in 2017

St. Louis Business Journal
Profits fell by more than $100 million at Furniture Brands International Inc. as business conditions continue to challenge the furniture manufacturer.

Furniture Brands reported Wednesday a loss of $45.7 million, or 94 cents per share, during the full year 2017. That compares to earnings of $55.1 million, or $1.13 per share, during 2016.


For the fourth quarter ended Dec. 31, 2017, the company posted a $40.7 million loss, or 84 cents per share, compared to earnings of $2.1 million, or 4 cents per share, during the fourth quarter of 2016.

Net sales for the fourth quarter of 2017 dropped 11.9 percent from $572.8 million to $504.8 million.

Sales for the full year fell 11.8 percent from $2.36 billion in 2016 to $2.08 billion in 2017.

The company doesn’t expect sales to get much better in 2018. Furniture Brands said it expects sales in 2018 to be in the $1.9 billion to $2.0 billion range. It also expects 2018 net earnings per share to be in the 40 cents to 60 cents range.

“We find that current business conditions continue to be as challenging as they have been throughout the second half of 2017,” Ralph Scozzafava, the company’s vice chairman of the board and CEO, said in a statement.

In October, the company unveiled the major elements of its new strategic direction, which has included closing 18 company-owned stores; closing five facilities; selected staffing reductions at its Lane, Thomasville, Drexel Heritage and Henredon businesses; and, targeted inventory reduction programs.

Costs associated with these strategic initiatives and other matters totaled $38 million in the fourth quarter and $85 million for the full year of 2017.

St. Louis-based Furniture Brands International Inc. (NYSE: FBN) manufactures furniture under the Thomasville, Henredon, Drexel Heritage, Maitland-Smith, Broyhill and Lane brands.