February 7,
2007 by in UnCategorized 
By Home Furnishings Business in Bedding on February 2007
Houston-based Mattress Firm has signed a letter of intent to acquire a 15-store mattress retailer in Las Vegas in a deal that will expand Mattress Firm’s store count to nearly 370 stores in 20 states. The acquisition of the retail chain operating as Bedtime and Mattress Direct also will make Mattress Firm the largest mattress retailer in the greater Las Vegas area.
“This acquisition allows Mattress Firm to enter the fast-growing Las Vegas market and is another step in our overall expansion strategy that includes both organic and acquisition growth,” said Mattress Firm CEO Gary Fazio.
The Las Vegas acquisition comes about two weeks after Boston-based equity firm J.W. Childs Associates purchased Mattress Firm from majority owner Sun Capital Parters in a deal Mattress Firm management said will help the company grow to become a national brand.
February 7,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on February 2007
The 120-store Havertys Furniture chain reported Thursday that January sales decreased 3 percent to $64.9 million in January. Comparable-store sales decreased 4.4 percent at the Atlanta-based retailer.
“Our January started very slowly with weak business for the New Year’s holiday in many of the markets we serve,” said Clarence Smith, president and CEO. “The general trend for retail home furnishings sales remains sluggish. We have continued to maintain our pricing integrating and are focusing on adjusting our operating costs to meet the current business conditions.”
February 7,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on February 2007
Costco Wholesale, which operates 371 locations in the United States, announced Thursday that January sales rose 7 percent to $5.57 billion during the five-week period that ended Feb. 4.
Same-store sales at the Issaquah, Wash.-based chain were up 2 percent, which fell short of the 3.2 percent increase that analysts had expected, according to published reports. The company, which operates 133 locations outside the U.S., noted that the reporting period including one less day due to the timing of the New Year’s holiday. For the first 23 weeks of a Costco reporting period that ended Feb. 4, the company’s sales were up 9 percent to $27.8 billion.
February 7,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on February 2007
Retail bedding specialist Select Comfort Corp. reported net sales of $198 million for the fourth quarter ended Dec. 30, a 6 percent increase from $187.5 million posted during the same period last year.
In addition, the company reported net income of $10.8 million, a 32 percent decrease compared to the $15.8 million it cleared during the fourth quarter of 2005. Net income in the fourth quarter of 2006 included a $4.2 million asset impairment charge associated with teh company’s decision to adopt a fully integrated SAP Enterprise Resource Planning system to launch in 2008.
Annual net sales increased 17 percent to $806 million, compared to $689.5 million in 2005.
“Despite a challenging fourth quarter, we had a solid year with revenue growth of 17 percent and earnings growth of 23 percent on a like-for-like basis, adjusting 2005 for accounting rule changes related to stock option expense, while absorbing $6 million in asset impairment charges in 2006,” said Bill McLaughlin, Select Comfort chairman and chief executive officer. “This year’s results were in-line with our long-term targets and marked our fifth consecutive year of double-digit revenue and earnings growth.”
The company’s 2006 strategy emphasized distribution expansion. During the fourth quarter, Select Comfort opened 17 net new company-owned stores, increasing total stores at fiscal year-end to 442, compared to 396 stores at year-end 2005. New stores contributed 9 percent toward retail store sales growth, offsetting the 9 percent decline in same-store sales during the fourth quarter. The company’s retail partner program, which includes selected home furnishing retailers and specialty bedding retailers in the United States and Canada, added 95 doors in the fourth quarter, increasing the total to 822 doors at fiscal year-end, compared to 353 doors at year-end 2005.
The company’s long-term growth targets beyond 2007 include net sales growth of 15 percent or more and earnings growth of 20 percent or more.
For 2007, the company expects net sales between $900 million and $925 million and earnings between $1.02 and $1.09 per diluted share.
“Net sales trends are expected to improve throughout the year as growth initiatives and marketing programs take effect,” McLaughlin said. “We are pleased that operating improvements and margin gains are enabling us to sustain the company’s investments in growth and innovation.”
Select Comfort is working with McKinney + Silver, its new creative agency partner, to develop a new advertising and creative campaign that will be tested late in the first quarter. Media spending is forecasted to increase by 10 percent, with improved media productivity expected to gain operating leverage.
The company expects to open approximately a net of 40 new stores, relocate or expand 30 or more stores and expand its new store design test, growing its retail presence by approximately 9 percent.
The number of retail partner doors is expected to remain essentially unchanged for the year.
February 7,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on February 2007
Rebecca Miller has been named president of Minneapolis-based Gabberts.
Miller joined the retailer in January 2006 as vice president and general manager. In her new position, Miller is responsible for the strategy, vision, and overall operations of Gabberts.
Miller has more than 25 years of experience in executive management, sales and consulting positions, in high-end retail and luxury goods.
“Since 2006, Rebecca has led the Gabberts organization through an ambitious transformation, including overseeing the development of the new Gabberts store,” said Jim Gabbert, chairman of Gabberts Inc. “She is an accomplished and experienced leader who shares my vision for value and quality in both unique product offerings and how we serve our customers.”
The new Gabberts store will be unveiled in mid-February in the Galleria in Edina, Minn. The new Gabberts features an open floor plan with an easy-to-navigate showroom organized into three major lifestyle realms showcasing several view points, to help customers experience and visualize their individual style and choices.
Prior to joining Gabberts, Miller was president and co-founder of Imprint Strategies Group Inc., a consulting firm that specializes in strategic initiatives focusing on human capital, processes, product and solutions, moving expenses to investments.
Miller served as director of sales, national account team, for Target Corp. While at Target, she led the team responsible for building business-to-business relationships with Fortune 500 companies. Miller also was the director of the national account team for Jostens Inc. Miller also served as senior vice president, sales and client services for Right Management Consultants (now Manpower), and was general manager and national sales manager for FMP Studios Inc., an international commercial photo-illustration advertising studio. Prior to that she was vice president, general manager, for Morel Jewelers, Inc., a high-end jewelry retailer in the Midwest.