September 13,
2006 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on September 2006
Pier 1 has reported a net loss of $73 million for the second quarter ended Aug. 26.
Excluding unusual charges and the effect of the adoption of a new accounting system the loss would have been $29.3 million for the quarter, compared to a loss of $6.4 million during the second quarter last year.
Sales for the quarter dropped 12.5 percent to $370.7 million, compared to sales of $423.7 million in the year-ago quarter. Same-store sales fell 14.8 percent.
For the first six months of fiscal 2007, Pier 1’s net loss from continuing operations was $95.8 million. Year-to-date sales dropped 8.3 percent to $746.8 million from $814 million during the same period last year. Same-store sales for the six months dropped 10.9 percent.
Reported results in the second quarter included a non-cash charge of $24.6 million to establish a valuation allowance against the retailer’s net deferred income tax assets that arose in prior years.
Unusual charges reported during the second quarter included the following: A pre-tax charge of $4.6 million attributable to a labor litigation settlement and related costs; a non-cash charge of $3.1 million for store-level asset impairment charges; a $2.7 million for relocation and integration of the Pier 1 Kids’ headquarters and warehouse into Pier 1 facilities; and a non-cash charge of $2.7 million for stock-based compensation expense in compliance with SFAS 123R.
“Although we are well underway with our turn-around strategy, we are disappointed to report a significant loss for the second quarter,” said Marvin Girouard, chairman and chief executive officer. “We did have a number of one-time charges which impacted the quarter. Additionally, sales were soft in June and July, improved slightly in August, but our fixed costs were too much to overcome.”
Girouard said he expects the retailer to improve over the next few months as Pier 1 moves into its fall and holiday selling seasons.
“We have dramatically changed our stores and our merchandise assortments to present new, eclectic and differentiated collections that offer better quality products, compelling visual presentations and a superior shopping experience in an effort to attract new customers,” he said.
“With 100 days remaining until Christmas, we are focused on the all-important holiday season,” Girouard said. “We have planned increases in store-level inventory for decorative accessories, gifts and tabletop collections, although total inventory is being carefully monitored and is currently 15 percent below last year. We have an aggressive marketing program scheduled for the third and fourth quarters of this year and new visual presentations planned for stores that will feature a broad assortment of value-priced items.”
September 13,
2006 by in UnCategorized
By Home Furnishings Business in Leather Upholstery on September 2006
Guiseppe Desantis has resigned as general manager of Natuzzi. His resignation is effective Nov. 1.
Desantis will retain his position as vice chairman of the company’s board of directors.
Desantis resignation is the second executive change the company has announced this summer. In June, Natuzzi named Ernesto Greco cheif executive officer of the company, succeeding Pasquale Natuzzi in the position. Natuzzi, company founder, remains chairman of the board.
September 13,
2006 by in UnCategorized
By Home Furnishings Business in on September 2006
Eric Birnbach has resigned his position as president and chief executive officer of rug vendor Capel Enterprises.
Bruce Hric, who has been Capel’s chief financial officer since 1998, has been appointed acting CEO while a search is conducted to fill the position vacated by Birnbach.
While at Capel, Birnbach helped make the transition to third-generation management following the retirement of the three Capel brothers on in October 2005. During that time, Capel has re-merchandised its showroom, improved its quick ship program and indoor/outdoor rug collection, Capel Anywhere.
September 13,
2006 by in UnCategorized
By Home Furnishings Business in Case Goods on September 2006
Case goods major Stanley Furniture Co. announced Wednesday that it expects a third-quarter sales decline of between 8 percent and 10 percent compared to the same period in 2005, when it had record shipments of $85.6 million.
“Third-quarter sales to date have been weaker than previously anticipated, and we believe this is a result of overall industry conditions,“ said Jeff Scheffer, chairman, president and chief executive officer, in a release announcing the new forecast. “We have not seen any significant change in order trends since Labor Day, and we are projecting these business conditions to persist for the remainder of 2006 in our revised guidance.”
Stanley now anticipates third-quarter 2006 diluted earnings per share of between $0.27 and $0.29, down from a prior guidance of $0.38 to $0.41. The company earned $0.44 per share in the third quarter of 2005.
For the entire year 2006, sales are now expected to decline 4 percent to 7 percent from 2005 levels, and diluted earnings per share are now expected to be $1.24 to $1.32, compared to $1.77 for 2005. This guidance excludes any potential receipt of funds from tariffs collected by the U.S. government on wooden bedroom furniture imported from China.
Stanley plans to announce third-quarter operating results Oct. 16.
September 12,
2006 by in UnCategorized
By Home Furnishings Business in Upholstery on September 2006
Weiman Furniture will be moving its High Point Market showroom to D-1031 in the International Home Furnishings Center for the fall market.
Now owned by Interlude Home, the contemporary upholstery specialist will have more space to show new products. This market, the company will feature two new upholstery groups designed by Vladimir Kagan. A line of occasional tables designed by Kagan will also be shown. The additional space will also allow the company to show coordinated accessories.
The new showroom has been designed by Jim McDonald, Interlude’s showroom design director, and Otsu Design, an international design firm.
“Our new consultants and in-house designers have teamed up to create a spectacular showcase for Weiman’s expanded product line,” said Carl Philips, Weiman president.
Weiman will host an opening evening party on Monday, Oct. 16, beginning at 5 p.m. Guests will have the opportunity to meet Vladimir Kagan, and get a signed copy of his book,
The Complete Kagan.