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ST. LOUIS — Furniture Brands International posted a $3.1 million loss in the first quarter as sales declined 7.6% from a year earlier, hurt by snowy weather in January and February that affected retail business, officials said.

The loss reversed a $3.5 million profit a year earlier. Sales of $297.9 million in the latest quarter were down from $322.4 million a year ago.

"Our monthly sales trend improved each month as we progressed through the quarter," said Ralph Scozzafava, chairman and CEO. "Our newer product introductions are being received positively in the marketplace as we secure added distribution at retail and customers respond favorably to our tested product and brand building initiatives."

Retail sales at 65 company-owned stores in the quarter came to $39 million, up from first-quarter 2010 sales of $35.6 million at 72 stores.

One bright spot was Thomasville, where same-store sales at 46 company-owned stores jumped 17% from a year earlier. It was the fifth consecutive quarter of double-digit same-store gains for the brand.

In a conference call with analysts, Scozzafava said Thomasville is benefiting from advertising, new product and the offer of design help to consumers. "We've created a compelling proposition and it's reflected in the numbers," he said.

So why are total sales down? FBI officials said that unlike Thomasville, its brands at lower price points are more affected by economic variables like the price of gas, which can divert or postpone consumer spending.

"We remain focused on controlling costs, while prudently investing in profitably growing our business, and increasing the efficiency of our manufacturing and sourcing operations," Scozzafava said.

He said cost discipline and brand-building investments "are beginning to yield the intended results."

He also noted that the company is on track to complete its Indonesia plant expansion in the third quarter, and said its Mexican cut and sew operation shipped its first container in March, "well ahead of schedule. As these two projects ramp up to their full potential, we expect to achieve annual pretax savings of $10 (million) to $12 million in 2014."

Furniture Brands also refinanced its secured asset-based, $250 million revolving credit facility in April, which Scozzafava said gives the company "significantly more current borrowing capacity, as well as sufficient funding for the future, with a manageable increase in cost."

Tags:  posted january earlier quarter