Michael Hughes's questions to HG Holdings (STLY) leadership • Q3 2015
Question
Michael Hughes of SGF Capital requested more details on the new youth furniture line, including its current retail presence, backlog size, and 2016 outlook. He also sought to understand the production bottleneck, questioning why manufacturing the youth line would delay the adult line if the company uses multiple facilities.
Answer
President and CEO Glenn Prillaman stated that while he could not quantify the backlog for the new youth line, it was growing amid positive market reception. He clarified the production issue by explaining that although the company uses multiple factories in Southeast Asia, all new product introductions for 2015, for both the youth and adult lines, were being manufactured in the same facility. This concentration caused the large initial production run for the youth brand to create a bottleneck, delaying other new products.