Daily News Archive
Brought to you by Home Furnishings Business
August 2,
2007 by in UnCategorized 
By Home Furnishings Business in on August 2007
With many furniture shoppers expressing a preference for home products created in a more environmentally friendly way—with wood from sustainable forests—a group of retailers and manufacturers at the Las Vegas Market focused on how to fill those needs Tuesday during a panel discussion.
The event was presented by
Home Furnishings Business and co-sponsored by Foamex Reflex Natural, World Market Center and the Sustainable Furniture Council. Amy Chender of New York’s ABC Home said rising awareness of sustainability issues is making it easier to get suppliers to cooperate with the retailer’s green initiatives. “The vendor community is starting to take green much more seriously because of its growing importance to their customers,” she said.
Mike Italiano of Market Transformation to Sustainability urged the audience of about 75 retailers and manufacturers to embrace sustainable practices, saying there is a growing list of resources to assist companies in becoming more eco-friendly. “The climate is right. People want to make the shift and suppliers are eager to do it. It’s not as daunting as it might seem.”
Steve Freeman of Minneapolis-based Room & Board cited the Sustainable Furniture Council as an organization that is helping the industry move to more eco-friendly practices. “Room & Board strives to apply manufacturing and business principles that are environmentally responsible and ethical, and we see the Sustainable Furniture Council as a great opportunity to further such practices throughout our industry and put more players on the same page,” he said.
Evidence of the attention the issues are receiving is a new 15,000-square-foot Living Green Pavilion at the Las Vegas Market that highlights some of the more than 35 manufacturers at the show that have committed their companies to sustainable products and practices.
August 2,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2007
Haverty Furniture Cos. reported a second quarter loss of $1.4 million for the quarter ended June 30 compared to net income of $3.6 million posted in the same quarter of 2006.
Net sales for the quarter just ended were $187.1 million, an 11.3 percent decrease compared to sales of $211 million for the corresponding quarter in 2006. Same-store sales dropped 12.7 percent as previously reported.
For the six-month period, the company lost $520,000, compared to net income of $8.7 million for the same period in 2006.
“Severely weak sales volume early in the quarter created a difficult hurdle for us and produced a quarterly loss,” said Clarence H. Smith, president and chief executive officer. “We had noted in our May and June sales releases that with the double-digit sales declines we would not be profitable. Sales were especially poor in the first half of the quarter but we were heartened by the improvement in volume and return to profitability for June.
“The close management of our merchandise flow and clearance activity resulted in a reduction in inventory of $15.5 million or 13.1 percent as compared to year ago levels,” he said. “The increased clearance sales contributed to a 64 basis point reduction in gross profit margins versus the second quarter last year.”
Smith said the second quarter is typically the weakest of the year for the retailer, adding that he expects the company to return to profitability in the second half “as fixed expenses are leveraged with the seasonally higher sales volume anticipated.”
August 2,
2007 by in UnCategorized
By Home Furnishings Business in on August 2007
Norwalk Furniture Corp. has promoted two long-time employees to head its global sourcing operation and to oversee the company’s operations.
Bev Leibold has been named director of global sourcing for Norwalk, and Jeff Gross has been named executive director of operations.
Prior to her promotion, Leibold held a number of positions such as purchasing agent and fabric and leather inventory manager for the company. She has been with the company for nine years. Gross, who has worked with Norwalk for 18 years, had held a variety of positions, including upholstery team leader, cutting team leader, J. Raymond team leader and director of product development.
“Bev brings 30-plus years of experience to her new position, and Jeff, 18,” said Rick McKirahan, Norwalk president.
Prior to joining the Norwalk team, Leibold spent 21 years in purchasing and procurement at Fannie Farmer’s candy company. “Bev has done an outstanding job managing our procurement process and inventories, and, has ensured, time and again, that we have the highest quality fabrics and leathers available for our customers,” McKirahan said.
Gross will oversee operations, including manufacturing, product development and engineering, as well as the warehouse and other facilities. His primary focus, however, is operations enhancements, process improvement and synchronization between development and manufacturing.
“Jeff has an extensive background in upholstery, sewing, cutting, process improvement, new product development and design, as well as new brand introductions, particularly associated with our celebrity designers,” McKirahan said. “We’re confident that his broad experience, dedication to progress, leadership and commitment will enable him to provide significant contributions in his new role.”
August 1,
2007 by in UnCategorized
By Home Furnishings Business in on August 2007
A “sluggish economy” in the home sector continued to hamper Furniture Brands International in its second quarter as sales declined 11 percent to $535.2 million and net earnings declined 65 percent to $5.8 million.
The company’s earnings of 9 cents per share—after the impact of restructuring and special charges—exceeded the expectations of some analysts, according to published reports. Furniture Brands shares rose in the wake of the earnings announcement Wednesday.
Chairman and CEO Mickey Holliman, who announced plans last month to retire in May, said the sales decrease is a reflection of a lackluster retail environment.
“We are meeting this situation with fresh product offerings as well as promotions to keep our family of brands in the consumer’s eye,” he said.
He also said the company’s management has concluded a strategic review of the furniture industry and “how Furniture Brands can best deliver value to its shareholders.” Touching on every aspect of the company’s business—from raw materials procurement to the customer experience—the report will be presented to the company’s board this week.
August 1,
2007 by in UnCategorized
By Home Furnishings Business in on August 2007
Minneapolis-based Best Buy announced Wednesday it is selling environmentally friendly media consoles from Maria Yee of Santa Cruz, Calif., in at least 70 Best Buy Magnolia Home Theater stores in New York and Los Angeles.
The products are constructed from materials that include Bamboo Timbre, a patent-pending, eco-friendly product. The exclusive three-piece collection includes consoles designed for flat-panel TVs ranging from under 50 inches up to 72 inches.
All Maria Yee products are handcrafted using a proprietary process rooted in stringent environmental practices.
Mike Mohan, Best Buy’s vice president of consumer electronics, said, “Our customers are looking to complete end-to-end product solutions for their home entertaining needs, and the Maria Yee furniture line is an ideal fit that matches product design with function.”