Daily News Archive
Brought to you by Home Furnishings Business
December 21,
2008 by in UnCategorized 
By Home Furnishings Business in economic news on December 22, 2008
Privately owned housing starts fell 18.9 percent in November, to a seasonally adjusted annual rate of 625,000, compared with October starts of 771,000. Measured against November 2007 results, starts plummeted 47 percent.
The number of completed privately owned housing units increased 3.3 percent in November to a seasonally adjusted annual rate of 1.1 million units, compared with October figures. Measured against November 2007 results, completions fell 22.8 percent.
Housing starts and completions are tracked by the U.S. Department of Housing and Urban Development and the U.S. Department of Commerce.
The Consumer Price Index (CPI) decreased 1.7 percent in November, on a seasonally adjusted basis. The index for household furnishings and operations, which was virtually unchanged in October, decreased 0.2 percent in November.
Overall CPI was 213.060 in November and was 1.1 percent higher than in November of 2007.
CPI, tracked by the U.S. Bureau of Labor Statistics, measures the average change in prices over time of goods and services purchased by households. The index base is 1982-84 equals 100.
In November, employers took 2,328 mass layoff actions, according to the Bureau of Labor Statistics. This is an increase of 188 mass layoff actions from October, while the number of associated initial unemployment insurance claims decreased by 8,389 to 224,079.
In November of 2007, 1,329 mass layoff events were reported, with 198,220 associated initial unemployment insurance claims.
Each action involved at least 50 persons from a single employer.
In the home furnishings manufacturing segment, 22 mass layoff events were reported in November, up from 13 in October.
Weekly Review of Economic News (WREN) reports are summaries of recently-released economic statistical data that affect the home furnishings industry. WREN reports are compiled by HFB Research Editor Janice Chamberlain.
December 21,
2008 by in UnCategorized
By Home Furnishings Business in economic news on December 22, 2008
Aaron Rents, Atlanta, has raised its earnings guidance for 2009 after watching fourth-quarter sales rise at its more than 1,535 company-owned and franchised stores selling and renting furniture, electronics, appliances and accessories in the United States and Canada.
"Aaron's Sales & Lease Ownership results continue to be strong with growing same-store revenues and customer counts," said Robert C. Loudermilk, Jr., president and CEO of Aaron Rents. "Unlike many other specialty retailers, our business has been thriving in this economic environment. We give customers the ability to obtain necessary home furnishings through non-credit-based lease plans not available to them at traditional retail outlets."
"We expect same-store revenues for the fourth quarter to increase 5 percent to 7 percent compared to the fourth quarter of 2007," Loudermilk continued. "Our earnings guidance for the fourth quarter and fiscal year 2008 is unchanged, with diluted earnings per share for the year expected to be in the range of $1.60 to $1.65, excluding gains from fourth quarter store sales and any gain or loss on the previous announced sale of the Aaron's Corporate Furnishings division."
As previously announced, during the fourth quarter the company acquired Rosey Rentals LP, its second-largest franchisee with 35 stores in six states; and has purchased the accounts of 18 stores from several competitors, as well as buying one store and selling 11 stores to other operators. Aaron Rents also has merged 20 of its RIMCO stores into existing Aaron's Sales & Lease Ownership stores and is reevaluating the "wheels and rims" concept.
Aaron Rents expeccts to have approximately 1,045 company-operated stores and 500 franchised stores open by the end of 2008.
"We are altering our 2009 square footage growth plans somewhat, and expect to increase overall store growth next year approximately 5 percent to 9 percent over the store base at the end of 2008," Loudermilk said.
December 21,
2008 by in UnCategorized
By Home Furnishings Business in economic news on December 22, 2008
MFI, which was once Britain's biggest furniture retailer, is shutting down all 111 of its stores after failing to find a buyer for the flat-pack chain that entered a form of bankruptcy in November.
According to published reports, including one from the BBC, MFI grew to become Britain's largest retailer with product range that was heavy on flat-pack goods. However, the 44-year-old company struggled in recent years as large home products chains like B&Q and Homebase enlarged their furniture offerings and Ikea became well-established.
On Nov. 26, the company filed a form of bankruptcy as company officials said MFI was in the midst of "severe cash flow pressure" brought on by a general deterioration in the home market. A official told the Associated Press that customers waiting for furniture ordered before the collapse will receive refunds.
December 21,
2008 by in UnCategorized
By Home Furnishings Business in economic news on December 22, 2008
Steelcase reported net income of $0.4 million in its third quarter, which was slightly ahead of the office furniture maker's most recent estimates, but far behind the $31.2 million in net income in last year's third quarter.
The Grand Rapids, Mich.-based company, which announced recently it will idle up to 900 workers, said third-quarter revenue dropped 8.4 percent to $811.3 million. Its North American unit saw sales decline 11.4 percent.
"The impact of the recent financial crisis is being felt around the world and has significantly affected the demand patterns in our industry," said President and CEO James Hackett. "The restructuring actions we announced recently are designed to mitigate the shorter-term pressures on our profitability while continuing to improve the fitness of our business over the longer term."
Vice President and CFO David Sylvester said the sales downturn is expected to continue for several quarters, and the company predicts a loss of 4 cents to 10 cents in its fourth quarter, including restructuring costs. Sylvester said a strong balance sheet “will allow us to continue investing in growth initiatives that will further strengthen our leadership position coming out of this economic cycle."
December 21,
2008 by in UnCategorized
By Home Furnishings Business in economic news on December 22, 2008
Online retail sales are up 1 percent in December versus last year and sales-per-day have increased 5 percent to $643 million since Thanksgiving. But analysts predict point-and-click holiday sales will finish up lower due to this year's shortened shopping season, according to Reston, Va.-based comScore, which tracks the online retailing market.
From Nov. 1 through Dec. 19, online sales are down 1 percent to $24.029 million, but for the Dec. 1 to Dec. 19 period, sales increased 1 percent to $12.849 million.
"With five fewer days of holiday shopping between Thanksgiving and Christmas this year, there is increasing pressure on consumers to make their holiday purchases in time for Christmas," said comScore Chairman Gian Fuloni. "As a result, we've seen online shoppers continue to spend heavily even later into the season, with the most recent week including four of the top 10 spending days of the season."
The home, garden and furniture category is down 16 percent from a year ago. Top categories with strong spending increases include sports and fitness product (up 31 percent), books and magazines (18 percent), and videogames and related products (17 percent).