Daily News Archive
Brought to you by Home Furnishings Business
October 16,
2008 by in UnCategorized 
By Home Furnishings Business in on October 2008
With economic pressures hindering consumer spending, retail sales continued to lag in advance of the holiday season, according to the National Retail Federation, which reported Wednesday that retail industry sales for September (excluding automobiles, gas stations and restaurants) decreased 0.7 percent seasonally adjusted from August, while increasing 1.4 percent unadjusted year-over-year.
September retail sales released Wednesday by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) were flat unadjusted over last year and down 1.2 percent seasonally adjusted from August.
Sales at furniture and home furnishing stores decreased 2.3 percent seasonally adjusted from the previous month and dropped 9.2 percent year-over-year unadjusted. Electronics and appliance stores declined 1.5 percent month-to-month seasonally adjusted while decreasing 2.1 percent unadjusted from September 2007. Apparel retailers also saw declines of 2.3 percent seasonally adjusted from August and dipped 2.0 percent unadjusted year-over-year.
As consumers continue to focus on necessities, health and personal care stores’ sales remained solid, increasing 0.4 percent seasonally adjusted from last month and 6.3 percent unadjusted year-over-year. Grocery stores also posted strong gains, increasing 3.8 percent unadjusted from September 2007, while decreasing 0.4 percent from August.
October 16,
2008 by in UnCategorized
By Home Furnishings Business in Case Goods on October 2008
Bassett Furniture Industries announced Thursday it will pay a quarterly dividend of 10 cents per share on Dec. 1, but, citing economic uncertainties, the company has suspended a decision on a 50 cent per share second special dividend it previously said it planned to make during 2008.
In a news release, the company that operates a network of 115 Bassett Furniture Direct stores said it has returned over $22 million to its shareholders during 2008 in the form of a 75-cent dividend paid in August and its regular quarterly 85-cent dividend. The source of this return of capital has been the liquidation of a significant portion of the company’s investment portfolio. Thursday’s announcement by the Bassett, Va.-based company said it is suspending action on the 50-cent special dividend due to unprecedented turmoil in the financial markets, additional erosion of home furnishings sales and general uncertainty about the possibility of conditions worsening.
“Despite these difficult conditions, we remain committed to our core retail strategies, are encouraged by the early results of our new prototype stores, and are confident we can gain market share through this period,” said Robert Spilman, Jr., president and CEO. “The actions taken by our board reflect a desire to maintain the strength of our balance sheet, to ensure we stay on solid terms with our lender, and to do what is in the best long-term interests of our shareholders.”
October 16,
2008 by in UnCategorized
By Home Furnishings Business in Bedding on October 2008
Furniture components maker Leggett & Platt, Carthage, Mo., saw third-quarter sales rise 3.7 percent to $1.13 billion, but as profits declined to $32.7 million from $65 million, the company cut its full-year outlook.
The company now expects full-year earnings of $1 to $1.10 per share, down from its July estimate of $1.10 to $1.40.
“The markets we serve weakened appreciably toward the quarter’s end, as consumers reign in spending during this unprecedented period of tight credit and high stock market volatility,” said CEO David Haffner. “On the other hand, we continue to successfully pass along higher raw material costs, and to gain market share as bedding manufacturers reduce their use of imported innerspring components. As a reminder, in late July the U.S. Department of Commerce announced preliminary duties on imported innersprings (from specific countries, including China) of between 116 percent and 235 percent.”
He said the company has concluded that its store fixtures business isn’t meeting profitability goals in its current form. Leggett & Platt plans to narrow the unit’s focus to “the ‘metals’ part of the fixtures industry, in alignment with Leggett’s core competency of producing steel and steel-related products.” It aims to eliminate additional store fixtures production facilities, reduce unit overhead, purge customer accounts with unacceptable margins, and trim annual trade sales between $250 million and $275 million.
Haffner also said, “Despite external economic and market issues, we are very comfortable with our strategic direction. ... We are absolutely committed to the continued execution of our plan, and believe our actions are reestablishing Leggett as a stronger and more profitable company. Our goal is to consistently generate total shareholder return of 12 percent to 15 cent per year, on average.”
October 16,
2008 by in UnCategorized
By Home Furnishings Business in Case Goods on October 2008
A new case goods and upholstery company, Pan Pacific Inds., is making its market debut in High Point next week.
Owned by two factory owners in China and Vietnam and managed and operated by industry veterans Leonard Frankel and Tim Connors, Pan Pacific will supply bedroom, dining room, accents and upholstery. The company will offer promotional to medium-priced products.
Some of the product offerings are collections that were part of Collezione Europa’s lineup. Collezione filed Chapter 11 in February and still maintains a staff of 10 employees who are working to collect receivables and settle service issues with customers.
Connors, vice president of sales and marketing for Pan Pacific, said the new company acquired six bedrooms, two dining rooms and 40 upholstery frames from Collezione, all of which it will supply to that company’s former customers. At next week’s market, the Pan Pacific is introducing five collections, a few casual dining groups and some accents.
“We’re hoping to learn from our last mistakes,” Connors said. “The A No.1 thing today is to ship the product.”
Connors said the company is working with factories that run smaller cuttings to get the product out to the retailers quicker. Pan Pacific is working with three Asian factories that handle leather and upholstery and four Asian factories for case goods. In addition to the imported upholstery, Pan Pacific contracts with a domestic upholstery producer to provide shorter upholstery delivery times.
Pan Pacific’s headquarters is located in its High Point Market showroom at 312 S. Hamilton Street. The showroom is a 15,000-square-foot contemporary space that Connors said shows the product off in a fresh environment.
The company does not have a warehouse, which Connors said has allowed the company to keep its prices low while other companies have had to implement across-the-board price increases.
In addition to Connors and Frankel, who is the president of Pan Pacific, the company’s management team includes Guy Ray, formerly of Softline, who is vice president of product development for upholstery; and Annie Kwok, product development for case goods.
Pan Pacific has some of the same sales representatives that worked with Collezione, but Connors said he is still looking to fill some territories.
October 15,
2008 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on October 2008
After failing to find a buyer, Linens-N-Things will begin going-out-of-business sales Friday at its 371 remaining stores in 48 states.
An announcement by the coalition of liquidators that purchased the company’s assets said $1 billion of inventory will be sold at discounts of up to 30 percent. When it filed for bankruptcy in May, Linens-N-Things operated 589 stores.
Shedding 200 under-performing locations failed to attract a buyer to keep the nation’s second-largest seller of linens, housewares and home accessories in operation.