Daily News Archive
Brought to you by Home Furnishings Business
November 18,
2008 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on November 2008
The Western Home Furnishings Association announced Tuesday that its 2009 Conference and Expo will take place May 17-19 in Hawaii at the Westin Maui Resort and Spa.
The event, which will include more than 16 educational seminars, is designed to provide attendees with the information and knowledge they may need during what’s been an extremely challenging environment for the furniture industry.
Tuesday’s announcement said some airline and hotel fees will be waived for those who book early, and more information on the special offers is available at the
www.whfa.org Web site.
“During challenging economic times it is extremely important for retailers to step out of their stores to acquire new ideas and perspective for their business. The 2009 Conference & Expo is the perfect opportunity for this,” said WHFA’s Executive Director, Sharron Bradley. “There is no better place than Maui to rejuvenate yourself and your business.”
In addition to 16 educational sessions, the 2009 Conference & Expo will include three roundtable sessions to help retailers reconnect while revitalizing and rethinking their businesses. WHFA is also introducing 20-minute Espresso Expo sessions served up with shots of macadamia nut espresso and fruit smoothie shots. The conference registration rate is $495 for members and $395 when groups of three or more register from the same organization.
The WHFA is the largest affiliate of the National Home Furnishings Association, representing more than 1,000 independent home furnishings retailers with 2,000 stores in 12 western states.
November 18,
2008 by in UnCategorized
By Home Furnishings Business in Motion Upholstery on November 2008
Lane Home Furnishings, Tupelo, Miss., announced Tuesday that it has promoted two company veterans, Joe Eames and Whitten Grisham.
Eames was named director of wood manufacturing, supply chain and corporate purchasing. He will be in charge of all purchasing activities for the manufacturing of upholstery and wood products and continue his current responsibilities. Eames, who joined Lane in 1979, had been director of wood manufacturing and supply chain. Over his 29 years with the company, he has served in a number of positions.
Grisham, who joined Lane in 1995, was named director of upholstery product development and sourcing. He had been in the marketing department as upholstery import manager. In his new role, Grisham will take a lead role in coordinating new upholstery product development between the sales, merchandising, product development and operational areas.
Lane, a unit of Furniture Brands International, is the world’s second-largest maker of recliners.
November 18,
2008 by in UnCategorized
By Home Furnishings Business in Upholstery on November 2008
La-Z-Boy Inc., Monroe, Mich., reported on Tuesday that its second-quarter fiscal 2009 sales fell 9.2 percent from the same period last year to $331.9 million. La-Z-Boy lost $53.7 million for the period ended Oct. 25, compared with loss of $9.9 million in the prior-year quarter.
“Over the course of the quarter, we experienced a progressive decline in sales trends, particularly in October, as sales deteriorated in conjunction with the turmoil in the global financial and credit markets,” said Kurt Darrow, La-Z-Boy’s president and CEO. “The economic landscape, coupled with the already weak housing market and historically low consumer confidence levels, required us to take aggressive action to realign our operating structure with the current rate of orders.”
That action included the recent 10 percent reduction in all levels of the workforce, or 850 employees; and the closure of 15 to 20 mostly dealer-owned La-Z-Boy Furniture Galleries after La-Z-Boy Inc. withdrew credit support; reduction of 2009 capital expenditures buy about a third; and aggressive reduction of overall operating expenses and inventories to be in alignment with today’s sales volumes.
Second-quarter upholstery sales did rise 8.1 percent, but decreased volumes negatively affected operating margins, which fell to 3.3 percent from 7For the fiscal 2009 second quarter, sales in the company’s upholstery segment decreased 8.1% to $248 million 7.1 percent in last year’s second quarter.
In the second quarter, the La-Z-Boy Furniture Galleries store system opened one new store, relocated and/or remodeled one and closed four, bringing the total store count to 330, of which 219 are in the New Generation format. For the remainder of fiscal 2009, the network plans to open 10 New Generation format stores (two new stores and eight will be either remodels or relocations) and, with the withdrawal of credit, it anticipates closing 15 to 20.
System-wide, same-store written sales were down 4.7 percent. Total written sales, which include new stores, were down 4.6 percent. Additionally, same- store written sales for October were down over 17 percent.
Commenting on the company’s business outlook, Darrow said: “The instability that continues to define the overall macroeconomic environment points to the likelihood of a protracted recession. We are particularly concerned with the inconsistency and lack of visibility of our incoming order rates coupled with the consumer confidence index falling to its lowest level on record. With that as a backdrop, the company deemed it prudent to suspend yearly guidance at this time. We will continue to run our business to improve profitability in this uncertain economic environment.”
November 18,
2008 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on November 2008
Pier 1 Imports, Fort Worth, Texas, issued a third-quarter guidance Monday that indicates same store sales will fall between 16 percent and 18 percent compared with the same period last year.
“The significant slowdown in consumer spending continues to affect our business. The deterioration in customer traffic that we reported for September continued into October, resulting in traffic that was down 10 percent below last year,” said Alex Smith, president and CEO in an announcement of the guidance. “Customers who are visiting our stores continue to respond well and we see meaningful improvements in both conversion rate and units per transaction. These increases are offset by the fact customers primarily shopped for ‘small treats,’ such as Halloween and holiday decor, and smaller home furnishings and furniture purchases, resulting in a lower average ticket.”
Smith went on to say that Pier 1’s merchandise margin rate remains healthy, and the company is optimistic about its inventory position. Pier 1 also will step up marketing activities for the holiday season.
He also said Pier 1’s balance sheet is strong in terms of liquidity, and the company remains focused on matching inventory and purchasing to match consumer demand.
“We are constantly evaluating the working capital needs of our company in this challenging environment,” Smith said. “Based on current trends, we anticipate no need to request cash advances under our credit facility for the foreseeable future.”
November 18,
2008 by in UnCategorized
By Home Furnishings Business in Advertising on November 2008
Time Inc. announced Tuesday that the housing downturn has led it to shut
Cottage Living magazine, which launched four years ago and reached a circulation of 1 million.
In a statement, Time Inc. Executive Vice President Sylvia Auton said, “The economic downturn has particularly affected the shelter market and while the brand was genuinely loved by readers and advertisers alike, the economy inhibited its ability to grow and therefore, sadly, we had to make the decision to close it.”
Newsstand sales fell 14 percent during the first half of the year and ad pages dropped 9.1 percent during the first nine months of 2008, officials said. About 38 jobs were cut with the closing.
Cottage Living launched in 2003 as part of a Southern Progress group that also includes
Southern Living. It’s been a tough time in the shelter magazine sector. Earlier this month, Hearst Corporation announced it would cease publishing
O at Home on a stand-alone basis and fold the title back into the Oprah Winfrey vehicle
O Magazine. A year ago, Conde Nast closed
House & Garden, which had a history dating back to 1901.