Jennifer Folds Out Sales Increase

November 20, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on November 2007 Jennifer Convertibles, the largest specialty chain devoted to sofa beds, announced Tuesday that sales in its fourth quarter increased 3.9 percent to $37.5 million. The Woodbury, N.Y., company generated net income of $1.74 million versus $1.57 million in the same period last year.

During the company’s fiscal year, revenue decreased 2.2 percent to $136.6 million and net income totaled $3.97 million, down from $5.22 million.

“Our industry has been under extreme pressure for some time, which has impacted our comparable store sales numbers,” said CEO Harley Greenfield. “Despite this downturn in the industry we have been able to maintain our profitability due to cost cutting, supply chain management and adjusting our merchandising and advertising strategies.”

He said the company is optimistic about the coming year due, in part, to its opening of a 40,000-square-foot Ashley HomeStore in mid-June. He said the Ashley store will generate as much volume as 10 to 15 Jennifer stores, and, as a result, the company expects to open one and possible more Ashley locations in the coming year.

“These stores will add substantial revenue and increase profitability to our existing strong Jennifer model,” he said.