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February 4,
2010 by in UnCategorized 
By Home Furnishings Business in Financial Reports on February 5, 2010
St. Louis-based Furniture Brands International (NYSE:FBN) reported on Wednesday fourth-quarter 2009 sales of $285.6 million, a 29.2 percent decline from fourth-quarter 2008.
Net sales from continuing operations for the fiscal year ended Dec. 31 were $1.2 billion, compared with $1.7 billion for fiscal 2008, a decline of 29.8 percent.
FBI lost $65 million in fourth-quarter 2009. For all 2009, FBI lost $108.7 million, compared with a loss of $385.9 million in fiscal 2008.
"Furniture Brands' financial results for 2009 show the effect of the recession on consumer spending," said Chairman of the Board and Chief Executive Officer Ralph P. Scozzafava. "The company's results also reflect decisions to right-size the company and reduce our cost basis. These actions are good for our business in the long term and also provided an opportunity for the company to capitalize on the tax refund created by recent federal tax legislation. With our strong cash flow management, Furniture Brands' balance sheet is solid and the pending tax refund will further improve our financial position. The company's balance sheet is on track to have cash exceed debt with the receipt of the tax refund later this year.
"With regard to top-line sales, our order trends appear to be stabilizing and the company's upholstery business is tracking with industry patterns, especially in the medium price points. Sales in our higher end brands continue to reflect a cautious attitude on the part of the luxury consumer. Furniture Brands is working hard to drive consumer demand with the development of exciting, new consumer-tested products, enhanced brand marketing to consumers, and innovative programs for our dealers. We have the best portfolio of brands in the industry, and we believe that people want to buy quality products from brands they know and trust."
February 4,
2010 by in UnCategorized
By Home Furnishings Business in economic news on February 5, 2010
The coming six months could be the best the U.S. home furnishings industry has seen in a good while, according to the 2010 High Point Market Business Outlook and CEO Update, a new, in-depth report published by the High Point Market Authority.
According to Brian D. Casey, president and chief executive of the High Point Market Authority, the 2010 Business Outlook was developed for home furnishings industry professionals focused on driving business in a challenging economic environment. In preparing the special report, the Market Authority team sifted through economic data and consulted with leading U.S. retailers who are bucking the current trends, along with industry experts in a variety of fields to explore their strategies for success.
"Reports from retailers across the country and industry experts from a variety of fields, as well as year-end numbers from 2009, suggest that we are back on the road to recovery," Casey said. "While none of the leading retailers we interviewed sugar-coated their experiences over the past year by any means, we found their responses to be thoughtful and upbeat."
For example, Neil Goldberg, chief executive of Raymour & Flanigan, Liverpool, N.Y., reported, "We're confident that the economy is turning around and that the consumer is back. We've seen positive trends in all of our 90 stores over the last few months and store traffic is up."
Mary Carol Gerrity, owner of the trend-setting Nell Hill's stores in Kansas, said a fourth-quarter uptick felt like a return to business as usual.
"I feel like everybody has been on this diet they are ready to get off of it. I am very optimistic about this coming year," she said. "We're finding that people are coming and buying the big pieces. They are really looking at their homes again."
Other comments included:
* Bernie Moray, CEO, Detroit-based Gorman's: "A year ago, consumers were experiencing a tremendous fear that they were going to lose everything. "A year later, a lot of people are waking up and saying, 'Gosh, we survived it. We're going to be o.k. The pressure is off a bit.'"
* Alan Kramer, vice president of merchandising, Star Furniture, Houston: "I think if anything, people want to be more comfortable in their homes now because they are spending more time there."
* Again from Raymour's Goldberg: "We've noticed that a lot of customers are cocooningthat is, rather than spending money on travel, eating out etc¦they are staying in their homes and spending deferrable income on improving the quality of their home life, including upgrading furniture and other home furnishings."
Highlights from the 2010 High Point Market Business Outlook include:
* In November, The National Association of Business Economists raised its growth outlook for 2010 to 2.9 percent, up from Octobers estimate of 2.6 percent.
* On Dec. 22, the U.S. Commerce Department reported that the economy grew at its fastest pace in two years during the third quarter of 2009, with real gross domestic product (GDP) moving upward for the first time since the spring of 2008. This jump showed a faster rebound than was expected by The Financial Forecast Center, which had predicted a return to growth in April.
* While unemployment is still a concern, like the GDP numbers, unemployment figures at the end of 2009 were better than expected. Forecasted to rise one-tenth of a point, from 10.2 to 10.3, the jobless rate actually fell back to an even 10 percent in November and held steady at that level in December. If this trend continues, it could dip below 9.5 percent by May.
* Sales of existing homes leapt up a surprisingly strong 10 percent in October, with about 400,000 more units changing hands than the market had expected. Analysts expected strong sales to continue through November.
The growth in home sales should contribute to a rise in home furnishings purchases, especially as changes to down payment requirements and mortgage terms give people more spendable income.
The effect of tax-rate reductions designed to stimulate the economy by putting more money in peoples pockets on a paycheck-by-paycheck basis has been slight so far, but should team with rising consumer confidence to boost retail sales over the first two quarters of 2010.
"While unemployment figures remain a concern," Casey said, "the job search firm CareerBuilder released a survey at the close of the year showing that 20 percent of U.S. employers plan to increase their number of full-time, permanent employees in 2010, up from 14 percent in 2009. These somewhat brighter employment prospects may also be having an influence on the one indicator that matters most to retailersconsumer confidence."
In fact, the Conference Board Consumer Confidence Index®, which had increased in December, improved further in January.
The report is available now for download by clicking here.
February 3,
2010 by in UnCategorized
By Home Furnishings Business in Financial Reports on February 4, 2010
Stanley Furniture Company Inc. (Nasdaq-NGS: STLY), Stanleytown, Va., on Wednesday reported 2009 net sales of $160.5 million, a 29.2 percent decrease from 2008; and a net loss of $11.8 million, compared with net income of $3.7 million in 2008.
In fourth-quarter of 2009, Stanley had net sales of $39.9 million, a 20.8 percent drop from the prior-year period; and a net loss of $1.28 million, compared with net income of $6.2 million in 2008's fourth quarter.
The increased operating loss in 2009 is primarily due to the significant reduction in sales and production levels. The much lower production levels led to unfavorable factory overhead variances and plant inefficiencies. Costs associated with the transition of certain items (primarily youth beds and cribs) from the company's infant and youth product line (marketed as Young America) from offshore sourcing to its own domestic manufacturing facilities and higher selling discounts also contributed to the increased operating loss in 2009.
"Our company has incurred significant losses this past year from the unprecedented decline in sales due to what many are describing as the 'Great Recession,'" said Glenn Prillaman, president and CEO. "In response, we have made many difficult business decisions to lower our costs, including reductions in management, supervisory, support and production staff. We believe our sales performance is indicative of consumer demand for residential wood furniture in our price segment. Demand for better goods has been relatively stable for the past several quarters; however, we see no signs of any near-term improvement. We enter 2010 with a strong balance sheet, lower fixed costs and believe we have well-positioned product lines.".
Also on Wednesday Glenn Prillaman, who most recently served as president and chief operating officer since August 2009, was elected today by the company's Board of Directors to the position of president and chief executive officer and to serve as a director. Albert Prillaman will continue as chairman.
"In this challenging period facing our industry and our company, I will continue to focus my energies as chairman on strategic issues and board matters, while Glenn will be responsible for all operational aspects of the business," said Albert Prillaman.
February 3,
2010 by in UnCategorized
By Home Furnishings Business in Green on February 4, 2010
The Sustainable Furnishings Council and Las Vegas Design Center at World Market Center, in conjunction with the One Good World program, announced on Wednesday a theme of "Minimum/Maximum" for the 2010 One Good Chair competition.
This year's theme challenges designers to create something that's not only sustainable (i.e. using "minimal" material) but also comfortable (i.e., "maximal" delight). ¨ ¨"One of the challenges to the sustainability movement is sacrificing comfort for eco-friendly design," said Susan Inglis, executive director of the Sustainable Furnishings Council. "The One Good Chair design competition aims to put designers to the test and create a chair that expresses the best of both worldssmart design and leisurely delight."¨ ¨The competition, now in its third year, is a part of World Market Center's Brave New World Environmental Leadership Series. Las Vegas Design Center at World Market Center Las Vegas and the Sustainable Furnishings Council sponsor the competition.
The deadline for entry is May 1,and the fee for entry is $30 ($60 for last minute entries after May 1 but prior to June 15). Early supporters of the 2010 One Good Chair competition include Dwell magazine as a media sponsor along with manufacturers Handy Living and Weyerhaeuser, serving as production partners.
¨Inglis said that the goal of this year's "Minimum/Maximum" theme is to demonstrate that smart design can not only minimize consumption, but at the same time maximize comfort. She invited designers to minimize material, production, shipping and assembly while maximizing comfort, utility, durability and beauty in their product. ¨ ¨A distinguished panel of judges will select the 2010 winners and announce them at the Summer 2010 Market in August. Winners will then collaborate with members of Sustainable Furnishings Council to create a prototype, which will be on display at Winter Market 2011. ¨ ¨Above all, practicality is key in 2010. Inglis suggested that designers keep the following in mind: ¨* Make good: Think about material conservation. How can shape optimize resources in design, fabrication, and shipping? What forms create little waste but lots of taste?¨ * Feel good: Consider physical comfort. How can shape aid the body in the act of sitting? How do different people sit? How might they?¨* Look good: Strive for emotional resonance. What kinds of images create emotional bond between viewer and product? What is the intersection of sustainability and sensuality?¨ ¨The competition is an international design program and receiving entries from all over the world. Previous winners came from both amateurs and professionals across Europe, Latin America and North America.¨ ¨For more information, click here; or visit the Las Vegas Market Web site or the Sustainable Furnishings Council.
February 3,
2010 by in UnCategorized
By Home Furnishings Business in Case Goods on February 4, 2010
Case goods and leather upholstery vendor aspenhome honored 26 sales associates for 2009 performance at its annual awards dinner, held Saturday at the Golden Nugget in Las Vegas.
Stephen Caudle, representing aspenhome in Virginia, Maryland and Washington, D.C. was the big winner, taking home the "Salesperson of the Year 2009" award.
"Stephen excelled in territory objectives and also grew his business to a new sales high," said aspenhome Vice President of Sales Bryan Edwards. "His execution of corporate objectives shows leadership and serves as a role model for our sales organization."
Stephen Caudle has been with aspenhome for 12 years. When asked what makes aspenhome a great company, Caudle replied, It's the people. They are a wonderful group. They always do or try to do the right thing for the customer. They support all their employees not just their sales associates. That makes a strong foundation for the company. I believe aspenhome has the best business model in the industry, from customer service, financial, marketing, logistics, through product development. Selling that model to the retailer is the secret to our success. aspenhome's consistent and flexible programs are just as attractive when business is bad as when business is good. Our retailers make money with our line."
Las Vegas, January 30, 2010 aspenhomes® Annual Awards Dinner hit a new high this year. Held at the Golden Nugget, on Saturday, January 30th, The ceremony and dinner, with this year's theme of "Renew the Rally," were attended by 111 aspenhome employees and sales associates.
"Despite the adverse conditions at retail, we had sales increases in many of our territories," Edwards said. "Increases were impressive with a range of 8 percent to 33 percent over their previous year. Some of our associates also achieved a new high on the monetary scale with dollars reaching new levels."