Daily News Archive
Brought to you by Home Furnishings Business
April 4,
2007 by in UnCategorized 
By Home Furnishings Business in Retail Technology on April 2007
Restoration Hardware executives have decided to shift the retailer’s strategy to focus on online and catalog business for future growth.
During a conference call Wednesday afternoon in which the company reported its year-end results, the company said it will shift the focus from retail sales to direct sales this year. The Corte Madera, Calif., retailer’s direct sales, which include online and catalog sales, were $244 million, or 34 percent of the company’s total revenue.
The retailer announced a $13.6 million profit for the fourth quarter ended Feb. 3, compared with a loss of $19.5 million during the same quarter last year. Sales for the quarter were $243 million, compared with sales of $191 million a year ago.
For the year ended Feb. 3, the company reported profit of $3.2 million on sales of $712.8 million. In the previous year, ended Jan. 28, 2006, the retailer lost $29.3 million on sales of $581.7 million.
Gary Friedman, chief executive officer said the company has no plans to open new stores this year and that the direct business will become the majority of the retailer’s business in the next three years.
Other strategies for this year include a new Bed & Bath catalog and a division to serve hoteliers, builders and the hospitality industry.
Next year, the company will introduce Restoration Hardware Kids focusing on a premium line of children’s home furnishings. The catalog and Web site are set to debut in the spring of 2008.
In addition, Friedman said the company continues to build its fashion home brand, Brocade Home, which was introduced last fall. The company recently introduced an e-commerce site at brocadehome.com.
Friedman said it would stop reporting same-store sales because they no longer will be an accurate measure of business because of the new focus on the direct channel.
April 4,
2007 by in UnCategorized
By Home Furnishings Business in Mattresses on April 2007
Fast-growing Furniture Row, Denver, announced Wednesday that it will be opening a four-store Furniture Row Shopping Center Saturday in Conway, Ark.
The company also announced it has launched an Internet storefront for its Denver Mattress Company brand,
www.denvermattress.com. Like most of the company’s complexes, the Conway, Ark., shopping center will contain Oak Express, Bedroom Expressions, Sofa Mart and Denver Mattress Company storefronts. Earlier this month, Furniture Row, which operates more than 330 storefronts, announced that it will double the pace of store growth this year. It plans to add as many as 20 Furniture Row shopping centers -- each of which holds up two four storefronts.
Calling Furniture Row one of the fastest growing furniture retailers in the country, the announcement said the company has opened eight to 10 Furniture Row Shopping Centers a year over the past four years and now operates in 31 states.
Wednesday’s announcement said the opening of a e-commerce Web site for Denver Mattress Company represents a “giant step forward in establishing a national brand identify” for the retail storefront that offers the company’s private label Doctors Choice mattresses. The site puts on emphasis on mattress education, including animation that shows the inner components of mattresses, and lists factors for shoppers to consider in making a purchase.
April 4,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on April 2007
Atlanta-based Haverty Furniture Cos. reported March sales dropped 11.6 percent to $66.1 million compared with $74.7 million during March 2006.
Same-store sales decreased 13.5 percent. Sales for the first quarter of 2007 decreased 8.6 percent to $191.1 million compared to $209.1 million in the same quarter in 2006.
Same-store sales for the first quarter dropped 10.4 percent.
“Our March sales were indicative of the persistent weakness in the retail furniture sector,” said Clarence Smith, president and chief executive officer. “Havertys has endured many challenging cycles over its 122-year history, and as we have in past difficult times, we continue to sharpen our focus on those aspects of the business within our control.”
April 4,
2007 by in UnCategorized
By Home Furnishings Business in on April 2007
New orders for residential furniture fell 7 percent in January 2007 compared to January 2006, to $2.02 billion, roughly in line with same-month declines of 6 percent in December and 8 percent in November. New orders were 8 percent higher in January than in December, largely due to the holidays.
That’s according to the March edition of Furniture Insights, a monthly survey of manufacturers and distributors published by the High Point accounting and consulting firm Smith Leonard LLC. The March addition appears later than usual due to the early High Point Market this Spring.
In January, some 45 percent of the participants reported increases in orders, compared to only 32 percent last year. Also for comparative purposes, January orders in 2006 were 6 percent higher than the January 2005 results.
January shipment of $1.87 billion were also 7 percent lower than January 2006, compared to a 5 percent decline in December over December shipments. Shipments were 9 percent lower than December shipments. These results were similar to last January 2006 compared to December. Backlogs increased 7 percent to $1.68 billion over December as new order dollars were higher than shipments in dollars. Backlogs were 7 percent lower than January 2006.
Receivable levels were 6 percent lower than January 2006, in line with the 7 percent decline in shipments. Receivables were 4 percent lower than December levels in spite of the 9 percent decline in shipments. Inventory levels were 6 percent lower than January 2006 levels and in line with incoming orders and shipments. Inventory levels increased 1 percent over December, but still appear to be in reasonable good shape considering business in general.
The number of factory employees was 11 percent lower than January 2006, but actually increased 1 percent over December levels.
Factory payrolls were 3 percent lower than January 2006. January 2006 payrolls were 8 percent lower than January 2005, and Smith Leonard indicated that could mean some leveling off with payrolls as companies adjust to current conditions.
Among economic indicators, there was a slight drop in consumer confidence in March, with the Consumer Confidence Index falling to 107.2 after rising to 111.2 in February.
Existing home sales rose again in February, reaching the highest level since last April, according to The National Association of Realtors. Existing home sales rose 3.9 percent over January but were still 3.6 percent below February 2006.
New home sales, though, fell 3.9 percent decline in February, and were 18.3 percent below February 2006 levels. Housing starts were 9 percent above January starts but were a whopping 28.5 percent below February 2006 starts.
April 4,
2007 by in UnCategorized
By Home Furnishings Business in on April 2007
Major ready-to-assemble furniture vendor Bush Inds., Jamestown, N.Y., announced yesterday that it will close its satellite plant in Little Valley, N.Y., which manufactures and finishes specialty parts for the company’s core furniture products.
Bush will consolidate Little Valley’s production at its main Jamestown factory.
“This is a continuation of our strategy that requires we leverage both the proven manufacturing capability of our domestic operations and the economies available to us through our global sourcing function,” said James L. Sherbert, Bush’s president and CEO, in an announcement. “Bush remains predominantly a domestic manufacturer, yet efficiency-forced consolidation is necessary.”
Sherbert said the action will yield a more nimble and aggressive company. Bush plans to fully close the Little Valley facility by the end of 2007. About half that plant’s 100 workers will be offered transfers to Jamestown, where the satellite closure also may affect a few administrative jobs.