Daily News Archive
Brought to you by Home Furnishings Business
July 19,
2007 by in UnCategorized 
By Home Furnishings Business in Bedding on July 2007
Leggett & Platt, Carthage, Mo., reported that sales in its second quarter declined 3 percent to $1.32 billion, and earnings per diluted share fell 29 percent to 33 cents per share from the same period of 2006.
“As we mentioned a few weeks ago, several of our markets weakened considerably during the quarter, resulting in a broad-based revenue decline,” said CEO David S. Haffner. “Given the limited visibility inherent in our markets, we are not forecasting a robust second half of the year. We have yet to see any significant catalyst that will appreciably increase demand; accordingly, our full-year guidance reflects continued market weakness for the remainder of 2007.”
Despite lower expected revenues, the company’s announcement said Leggett & Platt continues to have a strong balance sheet and cash flow. Officials expect the company to generate $650 million in cash during 2007, including proceeds of the divestiture of its prime foam division in March.
The company reported last month that it is in the midst of a strategic review of its business portfolio. It has engaged a national strategy consulting firm to provide an independent, thorough assessment of Leggett & Platt’s business units.
Haffner said, “We anticipate a transformation for Leggett & Platt during 2008 as we implement fundamental changes in our businesses. We believe these changes will significantly increase total return to our shareholders. We will share additional information about these initiatives in the coming months.”
July 19,
2007 by in UnCategorized
By Home Furnishings Business in on July 2007
Mohawk Inds. reported net earnings for the second quarter ended June 30 of $115 million, a 4 percent decline from $119.5 million during the same quarter last year.
Net sales for the quarter were $1.97 billion, 4 percent off from the $2.06 billion reported in the same quarter last year. During the quarter, the company paid off $208 million in debt, reducing Mohawk’s debt-to-capital ration to 38 percent.
For the first half of 2007, the company’s net earnings were $206 million, and sales for the first half of the year were $3.84 billion, a 4 percent decline from the $3.98 billion posted in the first six months of last year.
The company attributed the sales decreases for the quarter and year-to-date to slowing U.S. industry demand in residential new construction and redecorating business.
“Second-quarter earnings were ahead of our guidance for the quarter,” said Jeffrey S. Lorberbaum, chairman and chief executive officer. “The European business maintained its strong growth and performance partially offsetting the cyclical down turn in the U.S. Our U.S. commercial business continued performing better than our residential business. U.S. residential flooring is in a cyclical downturn with soft sales in the new home and consumer redecorating categories. During the quarter, Mohawk took another important step in its strategy to become a complete provider of floor covering with the announced acquisition of four wood manufacturing plants.”
July 18,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on July 2007
Richard Gerstein will join Sears Holdings as chief marketing officer for the Sears, Roebuck and Co. subsidiary.
Prior to joining the company, Gerstein was global chief marketing officer and senior vice president of U.S. business for Alberto-Culver Beauty. In his new position, Gerstein will be responsible for executing Sears’ brand marketing strategies and programs and reports to Maureen McGuire, Sears Holdings’ chief marketing officer. He joins the company Aug. 6.
“With Richard’s hiring, we add another seasoned executive to our bench of talent, and someone who has the creativity, talent and experience to help Sears reconnect with its loyal customers and attract former customers back to Sears,” McGuire said. “We started that work with the announcement in May of Sears’ new integrated marketing campaign. Richard will be charged with helping consumers better understand the unique products and services Sears offers that can inspire them to imagine and fulfill new possibilities for every chapter in their lives and to help improve the customer experience.”
July 18,
2007 by in UnCategorized
By Home Furnishings Business in Retail Technology on July 2007
MicroD, a Charlotte, N.C.-based specialist in product presentation, software and services, will showcase ePreVue-5, an online furniture visualization service for the Internet, at the “Launch Pad” in the Western Home Furnishings Association’s Retailer Resource Center at the Las Vegas Market in Building B, 16th floor. The market runs July 30-August 3.
MicroD, founded in 1994 by Manoj Nigam, president and chief executive officer, provides premiere online room planners and advertising tools to bridge the technology gap between manufacturers and retailers.
“At MicroD, we provide the resources for retailers to interact with customers before they even come to the store,” Nigam said. “According to the Wall Street Journal, over 80 percent of big-ticket purchases, including furniture, are first researched on the internet. It only makes good business sense to take advantage of this inevitable trend and provide a product, such as ePreVue-5, that’s easy to use and customize to unique preferences.”
People want to see the furniture on the Web and and find out how will it fit in their house and fit their need, he added.
“It’s then that they go to the store to validate what they viewed on the Web,” Nigam said. “Many retailers don’t have a Web site or don’t know how to put content on one. They might also struggle with how to maintain it. We’re going back to the retailers now and are making it easier than ever by creating the content for the retailers to use on their own Web sites.”
Gabberts Furniture CEO Jim Gabbert said the Minneapolis retailer sees definitive results when consumers can view our products on the store’s Web site.
“By being able to conduct their research and explore their ideas through ePreVue-5, they come to the store better prepared to purchase,” said Gabbert.
The Launch Pad, 40 square feet of prime space located within the Retailer Resource Center, is designed to support suppliers and manufacturers in the introduction of new products and innovative promotions.
July 18,
2007 by in UnCategorized
By Home Furnishings Business in on July 2007
The City of Los Angeles has proclaimed this coming Saturday, July 21, “Independent Retailer’s Day” to honor the city’s 85,000 independent retailers.
L.A. Mart currently is hosting the Gift & Home Furnishings Market, which runs July 17-24. The “Independent Retailer’s Day” proclamation will be made during the annual gift industry fundraiser for Gift for Life, which has raised more than $150,000 for amfAR, in a humanitarian effort to help those living with HIV and AIDS. More than 600 gift industry VIPs, L.A. Mart showrooms, and retail buyers purchase tickets to support this important cause. The gala fundraiser is held outdoors on the property of the L.A. Mart at 1933 S. Broadway in downtown Los Angeles.
“I would like to thank the L.A. Mart for serving the City of Los Angeles and our independent retailers for fifty years,” said Los Angeles Mayor Antonio Villaraigosa in a statement announcing that the city will honor retailers with their own day. “Los Angeles is the creative capital of the world, and through L.A. Mart’s support for our independent retailers, we continue to connect an array cultures and showcase the diverse talent this city has to offer. We are ahead of the next trend and we spawn new ideas, all while remaining a vital economic engine for the Southern California region. I encourage all Angelenos to help support our local economy and our diversity by shopping at their independent retailer on July 21.”
Merchandise Mart Properties Inc. manages the L.A. Mart.