Krause’s Sales Hit Record Levels

Krause’s Furniture Inc.’s first-quarter report Wednesday showed the company still wading in red ink. But sales hit record levels, and company executives and an analyst said they expect the nationwide maker and retailer of custom furnishings to finally break into the black by year-end.

Brea-based Krause’s, which has been working on a turnaround since 1996, posted a loss of $2.2 million, or 10 cents a share, for the quarter ended March 26. That compares with a loss of $1.9 million, or 9 cents a share, in the same period a year earlier.

The latest loss was in line with analysts’ forecasts and reflected costs for six new-store openings and development of the company’s electronic commerce plan, which could give Krause’s a lift in its climb to profitability.

First-quarter sales hit a record $39 million, an 11.7% jump over $34.9 million in the year-earlier period. The company said same-store sales, a key industry indicator, rose 5.8% in the quarter.

Krause’s is planning to open 20 new stores a year. The company is poised to begin making money this year, said Alex Woodward, an analyst with Black & Co. who was cautiously optimistic about the company’s prospects.

Krause’s stock closed unchanged at $2.38 in American Stock Exchange trading.