Daily News Archive
Brought to you by Home Furnishings Business
April 26,
2010 by in UnCategorized 
By Home Furnishings Business in Leather Upholstery on April 27, 2010
Some 1,650 British consumers will share $30 million compensation for chemical burns they suffered from Chinese-made leather upholstered furniture, Bloomberg Business Week reported Monday.
The problem was attributed to dimethyl fumarate, a fungicide, now banned in the European Union, designed to prevent mold on furniture.
The plaintiffs and a company that owns several furniture retailers reached the payout agreement. Legal action continues in 3,000 other cases.
April 26,
2010 by in UnCategorized
By Home Furnishings Business in Rent-To-Own on April 27, 2010
Rent-to-own furniture, electronics and appliance retailer Aaron's Inc. (NYSE: AAN), Atlanta, reported Monday that first-quarter 2010 revenue of $495.3 million, a record and a 4 percent increase over the prior-year period.
Net earnings from continuing operations increased 5 percent to $37 million, another record, versus $35.4 million last year. Same store revenues for first-quarter 2010 rose 4.4 compared with the first three months of 2009. Same store revenues also increased 2.9 percent for Company-operated stores open for over two years at the end of March 2010.
"As has been the case for a long time we are once again pleased with our quarterly results, which were at the high end of our expectations," said Robert C. Loudermilk Jr., president and CEO of Aaron's. "We have a very predictable, annuity type business that has performed well over the years in all sorts of economic climates. Our customer base remains large, the demand for our household furnishings is strong, and we believe the potential for continued growth still remains quite positive. We anticipate that 2010, our fifty-fifth year, will be another excellent year."
During the first quarter of 2010 the Aaron's Sales & Lease Ownership division opened 12 new company-operated stores and 9 new franchised stores. It also acquired three franchised stores and one store from an unaffiliated operator, and acquired the accounts of four third party stores. Seven company-operated stores and one franchised store were closed during the quarter. In addition, three Aaron's Office Furniture stores were closed.
As of March 31, the Aaron's Sales & Lease Ownership division consisted of 1,080 company-operated stores, 595 franchised stores, 11 company-operated RIMCO stores, and seven franchised RIMCO stores. The company also had 12 Aaron's Office Furniture stores. The total number of stores open at the end of March was 1,705.
Aaron's has updated its guidance for 2010, and current expectations include following:
* Second quarter revenues (excluding revenues of franchisees) of approximately $445 million.
* Fiscal year 2010 revenues (excluding revenues of franchisees) of approximately $1.85 billion.
* New store growth of approximately 5 percent to 9 percent over the store base at the end of 2009, for the most part an equal mix between company-operated and franchised stores.
April 26,
2010 by in UnCategorized
By Home Furnishings Business in economic news on April 27, 2010
Consumer confidence hit its highest level since September 2008 this month hitting 57.9, up from 52.3 in March. In September 2008, the index was at 61.4.
The Present Situation Index increased to 28.6 from 25.2, and the Expectations Index improved to 77.4 from 70.4.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.
"The Index is now at its highest reading in about a year and a half," said Lynn Franco, director of the Conference Board. "Consumers concerns about current business and labor market conditions eased again. And, their outlook regarding business conditions and the labor market was also more positive than last month. Looking ahead, continued job growth will be key in sustaining positive momentum."
Consumers appraisal of present-day conditions was more positive in April. Those claiming conditions are "good" increased to 9.1 percent from 8.5 percent, while those claiming business conditions are "bad" declined to 40.2 percent from 42.1 percent. Consumers appraisal of the labor market also improved. Those saying jobs are "plentiful" increased to 4.8 percent from 4.0 percent, while those saying jobs are "hard to get" decreased to 45.0 percent from 46.3 percent.
Consumers outlook was also brighter in April. The percentage of consumers expecting business conditions will improve over the next six months increased to 19.8 percent from 18.0 percent, while those expecting conditions will worsen declined to 12.6 percent from 13.6 percent.
Consumers were also more optimistic about the job outlook. The percentage of consumers anticipating more jobs in the months ahead increased to 18.0 percent from 14.1 percent, while those anticipating fewer jobs declined to 20.0 percent from 21.4 percent. The proportion of consumers anticipating an increase in their incomes declined to 10.3 from 10.8 percent.
April 26,
2010 by in UnCategorized
By Home Furnishings Business in Rent-To-Own on April 27, 2010
Rent-to-own furniture retailer Rent-A-Center (NASDAQ/NGS: RCII), Plano, Texas, reported a first-quarter 2010 revenue decrease of $9.8 million to $718.4 million.
The decrease in revenues was primarily attributable to the November 2009 divestiture of Rent-A-Center's subsidiary engaged in the prepaid telecommunications and energy business. Same store sales for the quarter ended March 31 were down 0.5 percent compared with the prior-year period.
Despite lower revenue, first-quarter 2010 net earnings were $51.5 million, as compared with $45.4 million for the same period in the prior year. The increase resulted from $3 million in pre-tax litigation credits.
Net earnings per diluted share for the quarter ended March 31, 2010 were $0.77, as compared to adjusted net earnings per diluted share of $0.65, when excluding the pre-tax litigation credit above, for the quarter ended March 31, 2009, an increase of 18.5%.
"We are pleased to report another quarter of outstanding results, as we exceeded our total revenues and earnings guidance," said Mark E. Speese, chairman and CEO. "This was primarily due to continued strong customer demand while maintaining a strong cost discipline. Due to the strong trends in our customer traffic, our continued focus on the customer's in-store experience as well as our expense management initiatives, we are pleased to announce increased earnings expectations for 2010 of between $2.60 and $2.80 per diluted share for 2010."
Looking ahead to the second quarter, Rent-A-Center expects total revenues in the range of $670 million to $685 million.
Store rental and fee revenues are expected to be between $588 million and $598 million; total store revenues between $662 million to $677 million; and same store sales to rise around 1 percent.
The company expects to open f to 10 new company-owned store locations in the second quarter; and to add financial services to approximately 20 rent-to-own store locations.
For fiscal 2010, Rent-A-Center expects total revenues in the range of $2.725 billion and $2.780 billion; store rental and fee revenues from $2.335 billion to $2.380 billion; total store revenues from $2.693 billion and $2.748 billion; and
same store sales to increase from between 1 percent and 2 percent.
The company expects to open 25 to 35 new company-owned store locations in fiscal 2010; and expects to add financial services to approximately 70 rent-to-own store locations.
April 26,
2010 by in UnCategorized
By Home Furnishings Business in Business Strategy on April 27, 2010
More than 60 attendees representing almost 30 retail companies gathered in Colorado Springs last month for the third "Colossal" meeting of Profitgroups, the retail performance group division of retail automation vendor and consultant Profitsystems.
The Colossal Meeting, with the theme "Thinking about Tomorrow Today - Prospering in the New Economy," brought together five performance groups into one two-day super-sized meeting. Meeting topics included: The 5 Keys to Unlocking a Lifetime of Demand with the Design Trade, Search Engine Optimization, Got Social Media, Get Business Success, What's New--Whats Next Version 12.0, and more. Speakers included Melissa Galt of Prosper by Design; David Lively of The Lively Merchant; Shelley Parlin, COO of Profitsystems; Rick Stark, former Profitsystems CEO; and Wayne McMahon, David McMahon and Chris Millet, who are all part of Profitconsulting.
"Exploration on how to increase profitability, industry insights, and best practices made this year's Colossal Meeting the most successful one to date," said Phyllis Zaepfel, vice president of Profitgroups and meeting facilitator. "The agenda was designed to not only educate the attendees on relevant and timely topics but also serve to rejuvenate and recharge our independently owned home goods retail store members."
Each day began with a full breakfast buffet, included a full day of presentations and panels, coupled with a networking lunch. Profitgroups' members continued networking with dinner and entertainment on the first evening.
"I have learned more about operating a profitable retail furniture company through Colossal than any other meetings or organizational events I have attended," said Mark Kruger, owner of Kelly's Furniture, Kirksville, Mo. "In addition to the educational aspect of these meetings, the contacts you make with like-minded business professionals have become invaluable."
"You always come away with many good ideas for both marketing and operations," said Patrick Young, owner of Patrick's Furniture Mart in Cape Girardeau, Mo. "It is easy to go back and take advantage of each idea that other business have implemented with great success. Stepping outside your store twice a year to meet with other retailers and examine your company, your books, your every aspect of your operation is invaluable to the overall success of your business."
This fall Profitgroups will hold individual meetings for each separate group. The agendas for these meetings will have different topics chosen to address the needs of each separate group. Some sessions, such as financial benchmarking, remain consistent for all meetings as this is an important metric used toward improving profitability.
For more information on participation in an upcoming meeting, contact Phyllis Zaepfel here, or call 800.325.2018 for more details.