COPPELL, Texas–Craftmade International reported a 21.7 percent decrease in quarterly sales to $20.8 million from $26.5 million in the prior-year quarter, primarily due to the decline in the housing market, officials said in its earnings statement and investors conference call this morning.
Net income for the quarter ended Dec. 31, 2007, was $482,000, down from $1.5 million for the prior-year quarter. Net income per share was 9 cents, down from 29 cents for last year’s second quarter.
Net sales decreased for both the mass-market TSI segment of the company and the Craftmade segment.
Sales of Woodard, the casual furniture manufacturer and importer that Craftmade acquired in early January, are not reflected in the results, but will be included in subsequent quarters, officials noted.
At the January Dallas Lighting Market, Craftmade showed a few key Woodard pieces to lighting showrooms. The company is putting together a group of Woodard products that complement Craftmade outdoor fans and lighting, for its sales force to take to Craftmade’s 1,600 lighting showroom customers to get retail placement for the upcoming season, James Ridings, Craftmade’s chairman and chief executive officer, said in the call.
Additionally, he said, “Woodard’s patio furniture stores don’t have anything on the ceiling,” which gives Woodard sales representatives an opportunity to sell Craftmade’s outdoor fans and lighting. “We picked up 2,600 accounts of opportunity,” Ridings said. Ridings added that Woodard’s hospitality clientele represents another opportunity for Craftmade.
Ridings, who founded Craftmade in 1985, announced his retirement, effective June 30. Ridings, who has served as a director since Craftmade’s inception, and as chairman and CEO since 1986, will keep his title as chairman of the board. The company is seeking a CEO successor.