Daily News Archive
Brought to you by Home Furnishings Business
November 14,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on November 2007
Williams-Sonoma, which operates Pottery Barn, saw positive signs in a 5 percent increase in revenues during a difficult third quarter, but officials expressed caution about the holiday shopping season, saying retail traffic has been down in October and the start of November.
Third-quarter net revenues totaled $895.1 million, and net income fell 7.1 percent to $27.1 million, or 25 cents per share. Same-store sales were up an anemic 1.1 percent, with Pottery Barn posting a 0.3 percent increase while Pottery Barn Kids increased 4.5 percent. The retailer operates 597 stores, and its Internet and catalogs accounted for $400.9 million of its sales.
Chairman and CEO Howard Lester said, “The home furnishings environment in the third quarter continued to be very challenging, particularly in the areas of the country where housing-related macro issues have had the greatest impact. Despite these challenges, however, we delivered positive top-line growth in all our brands and diluted earnings per share at the high end of our guidance. We are pleased with these results and believe they reflect what is unique about our business model – the strength of our brands, the power of our multi-channel strategy, and our proven ability to drive our business in difficult economic times.”
He said the company views its fourth quarter with “a heightened sense of caution” due to concerns the troubled housing market is having a greater impact on retail traffic than the company had previously anticipated. He called same-store results in October “disappointing,” even though the company posted an increase while many other retailers saw declines. Still, the company’s fourth-quarter guidance remains unchanged. Sales are expected to range from $1.387 billion to $1.417 billion, but Lester said the results will likely be near the lower end of that range based on lower-than-anticipated traffic in early November.
November 14,
2007 by in UnCategorized
By Home Furnishings Business in Leather Upholstery on November 2007
Natuzzi, Italy’s largest furniture manufacturer, reported a 10.9 percent decline in revenues during its third quarter, which resulted in a net loss of EUR 14.1 million. The company posted net earnings of EUR 0.8 million in the same period of 2006.
Revenues totaled EUR 141.3 million. The manufacturer, which operates 290 Natuzzi stores worldwide, said sales in the Americas declined by 19 percent during the quarter. The decline in Europe was 6.1 percent, and sales dipped by 8.4 percent in the rest of the world.
Chairman and CEO Pasquale Natuzzi said unfavorable exchange rates of the Euro against the U.S. dollar, in particular, had a negative impact. “The furnishings sector still continues to suffer from widespread weak business conditions in most major markets, particularly (in) the U.S., where sluggish economic activity and concerns about the credit situation have dampened the demand for discretionary spending,” he said. “We remain committed to investing in the repositioning of the Natuzzi brand and the reorganization of our sales activities, and we continue to be focused on the current restructuring process of our operations to regain competitiveness and profitability in the medium term.”
November 13,
2007 by in UnCategorized
By Home Furnishings Business in on November 2007
The American Home Furnishings Alliance unveiled an eco label program during its 2007 Annual Meeting in Charleston, S.C., last week. Called Sustainable by Design, the program will provide companies with a roadmap for implementing environmental policies and practices that lead to certification.
“Consumers’ attitudes toward ‘green’ products have moved from ‘tell me’ to ‘show me’ to, now, ‘prove it to me.’ It is no longer satisfactory to just market a product as ‘green.’ It must be demonstrated,” said Bill Perdue, AHFA’s vice president of environmental management, health, safety and standards. “So companies are faced with ‘verifying’ to the consumer that their implementation of sustainable business practices results in a meaningful ‘green’ product.”
The AHFA program is designed to facilitate continuous improvement by implementing sustainable business practices. It guides companies through measurable steps to reduce their environmental footprint at the manufacturing level and throughout their entire supply chain.
AHFA will develop a broad-based media outreach in 2008 to explain the program and generate editorial coverage that will help consumers understand and look for the Sustainable by Design logo. AHFA’s consumer Web site,
http://www.findyourfurniture.com, will provide further support for the program, explaining the label’s significance for consumers and offering a list of companies that have earned certification.
November 13,
2007 by in UnCategorized
By Home Furnishings Business in on November 2007
Kurt Darrow, president of La-Z-Boy Inc., Monroe, Mich., was elected 2008 chairman of the American Home Furnishings Alliance during the closing session of the organization’s 2007 Annual Meeting in Charleston, S.C., last week.
Bruce Bradburn, CEO of the Bradburn Gallery, Atlanta, has moved to first vice chairman. John Bray, CEO of Vanguard Furniture Co., Hickory, N.C., was elected second vice chairman.
Paul Toms, chairman and chief operating officer of Hooker Furniture, Martinsville, Va., moves to immediate past-chairman of the AHFA Board of Directors. The officers will assume their new posts on January 1.
Members newly elected to serve a three-year term on the AHFA Board of Directors include: Aminy Audi, L. and J.G. Stickley, Manlius, N.Y.; Rountree Collett, Bernhardt Furniture Co., Lenoir, N.C.; Jeff Cook, Broyhill Furniture Industries, Lenoir, N.C.; Bob Duncan, American Leather, Dallas; Greg Harden, Harden Furniture, McConnellsville, N.Y.; Carl Phillips, Interlude Home Inc., Trumbull, Conn.; and Jeff Scheffer, Stanley Furniture Co., Stanleytown, Va.
November 13,
2007 by in UnCategorized
By Home Furnishings Business in on November 2007
Online, non-travel retail sales jumped 19 percent to nearly $10 million in October compared to the same month last year, according to comScore, a leader in measuring digital information.
Furniture, appliances and equipment experienced a strong month, growing 105 percent versus last year, followed by computer software (up 76 percent) and event tickets (up 43 percent). Apparel and accessories, typically one of the largest online retail categories, grew 5 percent in October.
The October growth rate marked a slight decline from the growth rates observed earlier in the year. Retail e-commerce sales year-to-date through September grew at about 21 percent.
“October e-commerce activity often gives us a glimpse of what to expect during the holiday season,” said Gian Fulgoni, comScore chairman. “That online sales growth rates diminished slightly in October is not entirely unexpected, as many consumers are feeling the pinch of ballooning mortgages and gas prices, coupled with a decline in housing values. Even the rapidly growing online commerce sector appears to not be immune from these economic realities.”