Burlington sales down 16% in 3Q
July 27, 2001,
Greensboro, NC — Stung by a widespread consumer slowdown and the sale of its area rug business, third-quarter sales of interior furnishings dropped off by more than a fourth at Burlington Industries Inc., falling to $83.6 million from $116.1 million last year, a shortfall of $32.5 million.
And hobbled by retail bankruptcies and slowdowns in its plants as it works down inventories, the home business recorded a loss of $5.1 million, reversing a year-before profit of $2.2 million.
Scoping out specific business segments, Peters said Burlington's core window business continued to get a boost from Martha Stewart, increasing the company's presence at Kmart and offsetting sales lost in the collapse of Wards. The bedding business continues to improve, said Peters, but is expected to remain "soft" until consumer spending improves.
With weakness in apparel acting as a further drag, overall sales tumbled by 16.4 percent, to $351.1 million from $419.8 million last year, a decline of almost $69 million. Slowing down its plants to work off excess inventories and putting heavy pressure on margins, Burlington posted a modest third-quarter profit of $1.5 million, virtually flat with last year.