Daily News Archive
Brought to you by Home Furnishings Business
June 20,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on June 2007
Pier 1 Imports, Fort Worth, Texas, reported a net loss from continuing operations of $56.3 million in its first quarter after losing $23.2 million in the same period last year. It was the company’s ninth money-losing quarter in a row as total sales declined 5.2 percent to $356.3 million. Same-store sales dipped 5.4 percent.
In a conference call, CEO Alex Smith said the company will eliminate its catalog and Internet operations. It will also shutter its Pier 1 Kids and outlets to focus on Pier 1. According to the company’s Web sites, it operates more than 30 Pier 1 Kids locations in the United States and 23 outlet stores. Its Web site, Pier1.com, will shift to a purely informational role. In addition, Smith plans to slash marketing costs by $50 million by halting TV advertising in favor of direct mail.
According to published reports that cite regulatory filings, Pier 1 has raised the number of stores it plans to close from 60 to 100.
In a one-page announcement issued in advance of the company’s conference call, officials said first-quarter margins were hurt by the company’s aggressive liquidation of modern craftsman merchandise. The company reduced selling, general and administrative expensive by $15.5 million from a year ago, including a $9 million reduction in marketing expenses.
“Earlier this year, we outlined six key business priorities aimed at returning Pier 1 Imports to profitability and beyond,” Smith said. “As planned, our results in the first quarter reflect the impact of changes that are a direct result of the speed with which we are executing our strategy.”
June 19,
2007 by in UnCategorized
By Home Furnishings Business in Las Vegas on June 2007
The Living Green Pavilion, which has filled all its space for the summer Las Vegas Market, will host a “Greenhouse Gallery,” a showcase of sustainable goods and designs selected by a jury of celebrity designers at its location in the Sands Expo temporary exhibit area.
On August 1 at 4 p.m., the pavilion’s organizers--Channel Logic, the Sustainable Furniture Council, and World Market Center--will hold a party to kick-off the GreenHouse Gallery.
Josh Dorfman, founder of retailer Vivavi, Brooklyn, N.Y. and author of the “The Lazy Environmentalist” blog, will host the event, which will celebrate the Greenhouse Gallery’s variety of goods selected by designers Tucker Robbins, Blake Covin, and Clodaugh.
Companies interested in submitting products for inclusion in the Greenhouse Gallery should send high-resolution pictures and descriptions to tim@channelogicusa.com for consideration.
June 19,
2007 by in UnCategorized
By Home Furnishings Business in Upholstery on June 2007
High Point, N.C. -based Culp, one of the world’s largest producers of mattress and upholstery fabrics, saw its sales increase 3.5 percent to $73.2 million in its fourth quarter. The company reported a net loss of $40,000 during the quarter, which carried $1.8 million in restructuring charges. A year earlier, Culp’s loss was $1.5 million.
For the fiscal year ended April 29, Culp reported sales of $250.5 million, a decrease of 4 percent. It had a net loss of $1.3 million after seeing a loss of $11.8 million the previous year. The company, which purchased International Textile’s Group’s mattress fabrics line in the third quarter, saw its mattress fabrics sales increase 15 percent for the year, while sales of upholstery fabrics sales declined 15 percent during 2007.
“Our fourth quarter performance marked a solid finish to a year of important strategic and operational changes at Culp,” said Frank Saxon, Culp’s CEO. “These results reflect the benefits of the aggressive steps we have taken this year to more effectively position Culp in the global marketplace.” He later said, “Although market conditions have continued to be extremely challenging in upholstery fabrics, we have worked hard to create a sustainable upholstery fabrics business model that will meet current customer demand. Our China platform has significantly enhanced our competitive position in the global marketplace. We believe we have achieved a solid leadership position in both of our businesses and look forward to the year ahead.”
Saxon said weak furniture demand will mean that first-quarter sales will be about the same as a year ago, and the company projects that net income will be in the range of 5 cents to 9 cents per diluted share, including restructuring and related charges.
June 19,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on June 2007
Leggett & Platt said Monday that several of its markets have “weakened considerably” over the past eight weeks, and, as a result, it trimmed its second-quarter earnings estimates. The company now expects second-quarter earnings to be in the range of 31 cents to 36 cents, which is 11 cents lower than it forecast in April.
The Carthage, Mo.-based company, which makes mattress springs, beds and industrial components, said quarterly sales are now expected to be about $75 million lower than previously thought. It predicts quarterly sales will decline 4 percent to about $1.3 billion. For the year, it expects earnings of $1.35 to $1.55 per share, a decline of 25 cents from its earlier forecast.
Leggett & Platt sold off its Prime Foam division in April, and on Monday company officials said “management is intently examining a few remaining underperforming operations, and may close those facilities.”
CEO David Haffner said the company does not see a major catalyst that’s likely to spur demand in the second half of the year.
“We understand that investors’ patience is running thin, and we are equally dissatisfied,” he said. “Status quo is clearly not acceptable. As part of the ongoing strategic review of our business portfolio that commenced earlier this year, we are critically analyzing likely changes to individual business models and to the portfolio itself.”
June 19,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on June 2007
La-Z-Boy posted net sales of $406.9 million for the fourth quarter ended April 28, a 9.4 percent decline from the $449.4 million posted during the same quarter last year.
Net income for the quarter hit $7.7 million compared to a loss of $10.3 million in last year’s fourth quarter.
Sales for the year were $1.62 billion, a 4.6 percent drop from $1.7 billion for last year. Net income for the year was $4.1 million, compared to a prior-year loss of $3 million.
“We continue to operate in an environment marked by extremely difficult retail conditions across the industry and have remained focused on running our operations with efficiency and ensuring our cost structure is in line with our revenue stream,” said Kurt Darrow, president and chief executive officer. “Despite significantly lower volume in both of our wholesale businesses, we mainted our operating margins this quarter, reflecting the disciplines established throughout our business.”
Sales from the company’s upholstery operations were $303.5 million compared with $341.8 million in the same period last year. For the full year, sales were $1.2 billion compared with $1.3 billion last year.
During the quarter, La-Z-Boy finalized the sale of Sam Moore to Hooker Furniture for $9.9 million and closed two factories.
Case goods sales for the quarter were $64.4 million, a 13.3 percent decline from $74.3 million during the same period last year. For the year, sales in the category were off 10.2 percent at $262.7 million, compared to $292.6 milion in the previous year.
During the year, the company sold American of Martinsville and said it was looking for buyers for Pennsylvania House and Clayton Marcus.
Retail sales for the quarter for the company’s chain of stores were $54.5 million, basically flat against the comparable quarter. For the year, sales climbed 3.2 percent to $220.3 million from $213.4 million, primarily due to additional stores. For the quarter, the retail segment posted a net loss of $7.9 million compared to a loss of $8.5 million in last year’s fourth period. For the year, the retail group posted a loss of $31.2 milion compared to $26 million last year.
“The external environment for home furnishings remains very difficult, and the first quarter is typically the company’s slowest period due to seasonal forces,” Darrow said. “While we have made progress in managing the cost structure of our wholesale businesses, we believe challenging conditions in the marketplace will prevail and we will continue to focus on matching costs to our revenue stream.”
Darrow said the company will no longer provide quarterly projections, instead relying only on annual guidance reports.
For fiscal 2008, Darrow said he expects a 5 percent to 10 percent deline in sales compared with fiscal 2007.