The Rowe Companies, a leading furniture manufacturer and home furnishings retailer reported operating results for its fourth fiscal quarter and fiscal year ended November 27, 2005.
Net shipments for the quarter increased 1.9 percent to $74.5 million, compared to $73.1 million for the comparable prior year period. Gross profit declined to 31.7 percent of net shipments, compared to 34.4 percent of net shipments for the fourth quarter of 2004, as manufacturing productivity continued below historical levels and the Company experienced price increases in a number of raw materials.
Selling and administrative expenses for the quarter were $28.5 million, compared to $25.7 million in the prior year quarter, principally due to higher retail selling expenses associated with increased sales volume and higher store occupancy expense from the addition of ten net Storehouse locations opened since August 2004. Interest and other income, net, increased from net expense of $275,000 in 2004 to $919,000 in 2005, due to higher interest rates on higher outstanding loan balances and reduced rental income in 2005.
Net loss from continuing operations was $(2.7) million or $(0.21) per share, compared to a net loss in the prior year period of $(522,000) or $(0.04) per share. Net loss for the quarter was $(2.7) million or $(0.21) per share, compared to a net loss of $(401,000) or $(0.03) per share in the same period of the prior year.
For the fiscal year ended November 27, 2005, net shipments were $299.4 million, an increase of $4.2 million or 1.4 percent from the prior year amount of $295.2 million. Gross profit declined to 31.4 percent of net shipments, from 35.1 percent for the 2004 comparable period, as a result of reduced manufacturing productivity, higher raw material costs and unfavorable transportation costs.
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