From Home Furnishing Business
EDITOR’S NOTE Is it the Eye of the Storm?
We have just published our industry model for the first quarter of 2021, with an unprecedented 29.8% growth. Before you say it, yes, we are going to have some easy comparables for the next two quarters.
However, compared to the same quarter last year, the growth is even higher at 35.3%. Alongside the tsunami of sales was a significant increase in net operating income (13.19%) in quarter four and it appears that the first quarter of 2021 will be even higher. This month’s feature article discusses the factors that are driving the windfall. In my biweekly performance group calls (anticipating a return to in-person meetings by the end of the year) there are two camps.
The first camp’s belief is to enjoy the sunshine. The consumer demand may continue: driven by housing, interest rates, and consumer confidence. If not, we can address it then. The second camp is significantly less confident. The takeaway is to maximize performance now, but be aware.
The most important statistic is understanding your breakeven point. The table below calculates that statistic for top-quarter performers — more than $100 million in revenue. Enjoy the sunshine, move forward with confidence, and, to quote a performance group member: