American Woodmark Corp. posted a 25% increase in net sales to $111.4 million during its third quarter ended Jan. 31, the company reported today. The company also announced an improvement in net loss to $5.8 million, up from the $9.1 million net loss it posted during the year-earlier period.
The Winchester, Va.-based cabinet manufacturer also reported an operating loss of $9.3 million on the quarter, once again an improvement over the $14.6 million operating loss reported during third quarter 2009.
The company also saw gross profit improve to 10.9% of net sales, up from the 6.6% posted during the same period a year ago. So far, during the first three quarters of fiscal year 2011, the company's gross profit is 11.1% of net sales. The improvement in gross profit was attributed to labor efficiencies, favorable absorption of fixed overhead cost associated with higher sales volumes, all of which were offset by increased sales promotion costs.
American Woodmark produces cabinets under its own name for Home Depot, under the Shenandoah and Potomac brand names for Lowe's, and under the Timberlake name for homebuilders.