Steinway's Sales Up 14% in Fourth Quarter
On Mar. 5, Steinway Musical Instruments, Inc. (NYSE: LVB) announced revenues jumped 14% for the for the fourth quarter, ended Dec. 31, to $121.3 million, and overall gross margins improved 220 basis points from 30.4% to 32.6%. Operating income more than doubled to $15.6 million from $6.3 million in the prior-year period.
Worldwide piano sales for the quarter increased $4.8 million, or 7%. Demand continued to be strong overseas where fourth quarter unit shipments of Steinway grand pianos rose 7% and unit shipments of mid-priced pianos increased 16% over the prior-year period. Domestically, Steinway grand unit shipments declined 4% primarily as a result of soft sales at company-operated stores. Piano gross margins improved from 37.5% to 41.3% in the quarter due to a better mix of higher priced instruments.