February 16,
2010 by in UnCategorized 
By Home Furnishings Business in Bedding on February 17, 2010
Art Van Furniture is putting the emphasis on sleep.
The Warren, Mich.-based retailer is rolling out its Pure Sleep store-within-a-store concept with a new emphasis on the way consumers buy mattresses.
Art Van Pure Sleep will debut Saturday, Feb. 20 with the retailer's first Sleep Expo, a free event in its Ann Arbor, Mich., store. The Expo will feature yoga instruction, reflexology sessions, massages, sleep experts, gifts and demonstrations of the Sleep To Live diagnostic system. Sleep expert Dr. Bradley Rowens with The Michigan Institute for Sleep Medicine will be on hand to answer questions related to sleep disorders.
Sleep To Live is the cornerstone of Pure Sleep. This technology fits the right sleep system to each individual. It offers a three-part solution including the right mattress and foundation for proper support and comfort, the correct pillow to ensure proper spinal alignment, and a mattress protector to provide a clean and healthy sleeping environment.
Pure Sleep is based on the free-standing Art Van Pure Sleep store that opened in Canton, Mich., last year.
"Our experiences from the past year have proven that our customers sleep better, and better sleep leads to more energy, more enjoyment of life and better health," said Kim Yost, chief executive officer. "We're bringing the science of sleep to the marketplace, and it's paying off for our customers."
With 70 percent of adults complaining of poor quality or inadequate sleep, the timing could not be better for this new sleep store. Art Van Furniture plans to open Pure Sleep boutiques in all 31 Michigan locations.
February 16,
2010 by in UnCategorized
By Home Furnishings Business in Financial Reports on February 17, 2010
La-Z-Boy Inc. (NYSE: LZB) reported net income of about $11 million for the third quarter ended Jan. 23, compared to a net loss of $64.5 million during the same quarter last year.
Sales for the quarter were $305 million, up 5.7 percent compared to $288.6 million during the third quarter of last year.
Third quarter results include income of $4.4 million from anti-dumping duties received on imports of Chinese wood bedroom furniture. That compares with $8.1 million in duties received in the third quarter of fiscal 2009.
For the nine-month period, the company reported net income of $18.9 million, compared to a net loss of $127.8 million in the same time frame last year. Sales for the nine months were $868.5 million, compared to $942.2 million during the same period last year.
Sales in the company's upholstery segment increased 17.6 percent to $234.3 million, compared with $199.2 million in the previous year's third quarter. Last year, the company shifted the reporting of its retail warehouse operations to the upholstery segment. The change impacted the timing of intercompany revenue and profit recognition for the upholstery group and resulted in a one-time reduction in last year's third quarter intercompany sales and operating income for the group. When accounting for the revenue adjustment, upholstery sales for fiscal 2010 third quarter increased 11 percent.
"Our results clearly demonstrate the efficiencies of our operations, particularly throughout the La-Z-Boy branded facilities, where we implemented the cellular production process and are achieving the benefits we envisioned," said Kurt Darrow, president and chief executive officer. "Going forward, we expect to further strengthen our operational efficiencies as our Mexico-based cut-and-sew center continues to increase its production. We are on plan to be transitioned by the end of fiscal 2010 and will begin to realize a portion of the estimated $20 million in annual savings during this fiscal years fourth quarter.
Third quarter sales for the company's case goods segment were $36 million, a 14.5 percent decline compared to $42.1 million during last year's third quarter.
Even on a double-digit decline in sales, we were able to generate a small profit, posting a 0.8% operating margin," Darrow said. "Although the case goods business continues to be impacted more severely than upholstery in challenging economic times, our team continues to refine its operations and
achieve efficiencies. We are on track to realize $5 million in annual cost savings, based on current volumes, from the manufacturing facility consolidation and the warehouse shift announced earlier this year. We completed the consolidation of the two manufacturing facilities into one in Hudson, N.C., and the associated transition of our warehouse facility is on schedule to be completed by the fiscal year end. A small portion of the cost savings from these initiatives was realized in the third quarter. Additionally, we are in the process of consolidating our American Drew/Lea and Hammary operations. The consolidation will be completed by the end of our fiscal 2010 fourth quarter and will garner greater operational efficiencies and allow us to better leverage the global supply chain.
Systemwide same-store sales for the fiscal 2010 third quarter increased 3.9 percent, while total written sales, including new and closed stores, decreased 1.9 percent. Retail sales for the quarter were $40.4 million compared to $40.5 million in the prior-year period. The retail group posted an operating loss of $4.1 million for the quarter, compared to an operating loss of $7.1 million during the same period in the prior year.
Our retail operation continues to make progress in what remains a difficult operating environment," Darrow said. "During the quarter, we improved the segments gross margin, demonstrated good cost disciplines and decreased our loss compared with last years third quarter. On the front end of the business, the sales team is focused on increasing the average ticket and close ratios and we have noted an increase in customer traffic into our stores. Throughout the course of the past year, our
marketing initiatives have remained robust with advertising designed to drive traffic into the La-
Z-Boy Furniture Galleries network of stores, and we believe La-Z-Boy is gaining market
share.
Looking forward, Darrow said there are a few positive signs out there.
"While we remain concerned about various economic factors, particularly unemployment and credit availability, we note some positive signs with respect to La-Z-Boys same-store-sales figures, the strength of our upholstery sales performance this quarter as well as continued progress in our retail segment," he said. "As noted earlier, while we will remain mindful of cost containment and controls, our entire organization is focused on driving sales throughout all three segments of our business as we continue to pursue market share gains to ensure La-Z-Boy Inc. maintains a leadership position in the industry. At the same time, we will continue to ensure that our balance sheet remains strong to allow for the greatest operating flexibility going forward.
February 15,
2010 by in UnCategorized
By Home Furnishings Business in Executive Changes on February 16, 2010
Victor Group has promoted Jack Eger to the new position of director of sales as part of a reorganization of the Saint-Georges, Quebec-based textile company's sales management structure.
Eger will be responsible for the management of the entire residential sales effort across all Victor brands.
"I am excited about this new challenge and looking forward to working with our customers and distributors under a new, streamlined management process that will help reduce the time it takes to get product out to the market," Eger said. "This new management structure will allow for greater collaboration with the product design team and give our salespeople the ability to provide customers with the products they are looking for in the most effective and efficient manner possible."
Eger was a partner at Craftex when Victor Group acquired the brand and catalog of products in March of 2009. Following the acquisition, Eger was appointed to the position of vice president of sales for the Craftex by Victor brand, where he assumed responsibility for the launch and subsequent sales efforts for the Craftex by Victor brand.
"Jack's background, experience and industry knowledge will be a tremendous asset to Victor as we look to continue our growth under this new management structure," said Charles Adams, chief sales officer for the Victor Group. "During his time at Craftex, Jack was very successful at helping the company forge strong relationships with customers and the distributor community. We are looking forward to him continuing that effort with Victor in his new position."
February 15,
2010 by in UnCategorized
By Home Furnishings Business in Community/Charitable Support on February 16, 2010
Norwegian seating manufacturer Ekornes Inc., whose U.S. headquarters are in Somerset, N.J., generated more than $280,000 in contributions to various charitable organizations through its second annual Charity of Choice promotion through its dealer partners.
"We are extremely pleased that 73 percent of our dealers chose to participate in this promotion," said President Peter Bjerregaard regarding the seven-week promotion. "When we can create a program that will help sell recliners and benefit organizations in need, its clearly a win-win situation for everyone."
The promotion ran in North America Nov. 27-Jan. 18, and asked consumers to donate $50 to the charity of the dealer's choice. In return the consumer received $200 off the purchase of a Stressless recliner. Ekornes and the dealers shared in the cost of the product discount.
"Ekornes Inc. sold over 5,550 recliners, for a total of $4.3 million during the promotional period," Bjerregaard said. "This is one of few times of the year that we run price-driven consumer promotions and it has exceeded our expectations."
The promotion was supported with national television advertising, in-store POP and advertising support materials for the dealers, including print ads, flyers and graphics for dealer Web sites.
"December is a hard time to get customers to come in," said Jeanne Kero, of Chelsea, Mich.-based Merkel Furniture. "I thought this promotion could be a waste of money and didn't put much advertising towards it. To my surprise, with the national Stressless advertising and the good will of our customers, we were able to donate $1,500 to Food Gatherers, our county food bank. We profited by selling 29 chairs. We even had one donation without a purchase.
"We were able to supply approximately 600 neighbors with a plate of food."
February 15,
2010 by in UnCategorized
By Home Furnishings Business in Retail Closings on February 16, 2010
A dwindling middle class in its market and economic recession are leading 36-year-old Danville, Va., retailer McGee Furniture to close its doors, the Danville Register & Bee reported Sunday.
Owner Daryl McGee also faces cancer, which contributed to the decision to close, which he said was made in conjunction with the store's six employees. A going-out-of-business sale starts Thursday to sell off $1.7 million worth of inventory. McGee also plans to sell the 16,000-square-foot building.
Business falling for the past three years. Along with the effects of the recession and a big-box retailer, a lot of McGee's customers left Danville after Dan River Inc. closed.
The closing also allows McGee to concentrate on treating his colon cancer, which was diagnosed last July.