Daily News Archive
Brought to you by Home Furnishings Business
October 19,
2008 by in UnCategorized 
By Home Furnishings Business in on October 2008
An Ethan Allen store in Vestal, N.Y., will close, the owner told the Sun-Bulletin (Binghamton).
“We’re going to start liquidating inventory in that store in the end of October or early November,” Frank Fratzola said in the report Friday.
The 8-year-old store didn’t have a large enough market to support what Fratzola called a marginally profitable operation.
Fratzola, owns Fratco Inc., which operates other Ethan Allen stores Dewitt and Dickson City, Pa. Those stores will remain open, Fratzola said, as they have larger markets to draw from including Syracuse, N.Y.; and Scranton and Wilkes-Barre, Pa.
October 19,
2008 by in UnCategorized
By Home Furnishings Business in on October 2008
Furnitureland South, Jamestown, N.C., has selected Icovia as its exclusive interactive room and interior design planning solution.
The world’s largest home furnishings showplace, Furnitureland South says it’s increasing its market share in an industry hit hard by the economic downturn. The retailer credits the increase to a boom in Web site traffic, international buyers and client referrals.
“Our Web site has become a vital tool for attracting new customers, particularly internationally,” said Jason Harris, executive vice president at Furnitureland South. “For customers who can’t visit our showroom, we need to provide an online shopping experience that allows them to (realistically) visualize their interiors furnished with our products. Although www.FurniturelandSouth.com has offered its own internally-developed room planning tool for years, we have decided to switch to the Icovia solution because it is easier to use and provides more features, such as the ability to design in metric for our international customers. We also expect that using Icovia will reduce IT costs and improve the overall customer experience.”
Furnitureland South has more than 1.1 million square feet of showroom space.
Founded in 2000, Icovia, Londonderry, N.H., has become an industry leader in online room planning solutions for retailers, manufacturers, interior designers and homeowners.
October 19,
2008 by in UnCategorized
By Home Furnishings Business in on October 2008
* Privately-owned housing starts decreased 6.3 percent in September, to a seasonally adjusted annual rate of 817,000, compared with August starts of 872,000. Measured against September 2007 results, starts fell 31.1 percent. September housing starts were the lowest in more than a year.
Measured against August results, housing starts were up 5.6 percent in the Midwest and 0.5 percent in the South, and fell 20.9 percent in the Northeast and 16.8 percent in the West. Year-over-year, housing starts declined 18.2 percent in the Northeast, 21.8 percent in the Midwest, 32.5 percent in the South and 40.4 percent in the West.
The number of completed privately-owned housing units increased 11.7 percent in September to a seasonally-adjusted annual rate of 1.097 million units, compared with August figures. Measured against September 2007 results, completions slid 20.4 percent.
Housing starts and completions are tracked by the U.S. Department of Housing and Urban Development and the U.S. Department of Commerce.
* On the gasoline front, retail prices continue to fall, down 86 cents in the last month. The average retail price per gallon of unleaded was $2.99 as of October 18, according to AAA’s Daily Fuel Gauge Report. According to AAA, gas prices averaged $4.11 a gallon three months ago for regular unleaded gasoline.
Falling gas prices reflect both declining consumption and plummeting oil prices. As of Oct. 17, the price per barrel of oil was $71.85, down more than 50 percent from mid-July’s price of $147.27 and down 17 percent from this time last year.
* Thirty-year fixed-rate mortgage rates spiked sharply last week, up more than half a percentage point, according to Freddie Mac. Freddie Mac, also known as the Federal Home Loan Mortgage Corp., also tracks 15-year fixed-rate mortgage rates as well as adjustable-rate mortgage rates.
Last week’s 30-year rate of 6.46 percent was an eight-week high, up from 5.94 percent the prior week. A year ago, the 30-year fixed rate was 6.4 percent.
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.
October 16,
2008 by in UnCategorized
By Home Furnishings Business in High Point on October 2008
The Sustainable Furnishings Council returns to High Point Market next week to celebrate its second year and to continue growing its membership base. This fall SFC announces a new member benefit, updates to their standard for recognizing Exemplary Members, and several educational and celebratory events.
“Seeing Green/Selling Green” is a new training program offered by SFC to train the staff of its members and their dealers. The goal of the program is to empower sales staff to sell based on members’ commitment, emphasizing facts and discouraging “greenwashing.” In turn, sales staff can educate their customers, helping the purchaser understand that they are getting not only a great product, but also contributing to the greater good.
The SFC has again partnered with SFC members Merchandise Mart Properties and Home Furnishings Business magazine to present a series of educational luncheon seminars during High Point Market. The “Lunch N’ Learn” series, generously sponsored by SFC members Vaughn-Bassett, Harden Furniture, GreenGuard, Fairmont Designs, American Leather, BioH Cargill, Antigua Furniture, and Naturescast, is an extension of the well-received program put on at the same venue for April market. Lunches are free and open to everyone, noon-1 p.m. in the seminar room of the EcoStyle Pavilion on the top floor of the Suites at Market Square, 1-848. The agenda includes:
• “Seeing Green,” Monday, Oct. 20: a summary of topical consumer research and a roundtable of manufacturers and retailers who have held SFC educational events in their showrooms. Participating companies include Williams & Sherrill of Richmond, Va., with South Cone; Gallery Furniture of Houston, with Four Hands; Stanley Furniture; Nowell’s Contemporary and Scandinavian Furniture of Cary N.C.; and La Difference of Richmond Va.
• “Green Upholstery,” Wednesday, Oct. 22: a guide to frames, foams and fabrics, presented by Chris Putnam of Putnam-Prichard EcoDesign and Patty Grossman of O Ecotextiles, featuring examples of excellent choices available on the market today.
• “Green Design,” Thursday, Oct. 23: a CEU credit green Interior Design course, presented by Victoria Shomer of Green Built Environments. This course will give a quick summary of the history of the green design and building profession, and what it means to practice green design today. The course will focus on indoor air quality issues, how to be sure to select the most sustainable and healthy materials and products, and how to run a green design business. The newest resources for materials and products, guidelines, protocols and testing methodologies will be included.
“I am pleased to be offering another series of strong educational programs and especially excited that we are now offering such good training for sales staff,” said SFC Executive Director Susan Inglis. “Our goal is to continue to provide the best educational programming in the industry free to all who attend Market.”
A general meeting and SFC second anniversary celebration will take place Sunday, Oct. 19 at 6 p.m. will kick off the start of this fall’s High Point Market at the South Cone showroom, on the fourth floor of Union Square. The event is free and open to all.
Other SFC co-hosted social events include: the MMPI Ecostyle Party, Thursday, Oct. 23, 6 p.m., Century Courtyard at Market Square, sponsored by MMPI; and Friday, Oct. 24 6 p.m., a special High Point edition of Green Drinks at Mill Village, sponsored by CABoom.
October 16,
2008 by in UnCategorized
By Home Furnishings Business in Bedding on October 2008
Tempur-Pedic International, Lexington, Ky., reported Thursday that its third-quarter profits fell to $24.1 million (from $38.8 million) as net sales dropped 14 percent to $252.8 million.
The company lowered its full-year expectations and has launched initiatives aimed as strengthening its “industry leading financial flexibility,” including repatriating foreign earnings and suspending its cash dividend, to reduce debt.
The company reduced total debt by $37.8 million during the quarter (to $518.8 million). It plans to repatriate approximately $140 million in foreign earnings, which involves a tax charge of approximately $13 million in the fourth quarter. It also will suspend its cash dividend and redirect those funds to reduce debt.
“During the third quarter we executed well,” said CEO Mark Sarvary. “The economic climate worsened and we responded quickly to improve earnings. We reduced our operating expenses and improved our balance sheet by substantially reducing debt. Having said that, we are facing the most challenging economic environment in memory, and we see no reason to assume the economic climate will recover in the short term. Therefore, we are taking actions now to further improve our financial flexibility and strengthen the business. I am confident that when the economic climate improves, this great company will be exceptionally well positioned.”
The company said it now believes fourth-quarter sales will fall below expectations, and it now forecasts that full-year sales will range from $930 million to $950 million, with earnings per share in the range of 90 cents to $1, which doesn’t take into account a potential tax charged tied to the repatriation of foreign earnings.