Daily News Archive
Brought to you by Home Furnishings Business
August 28,
2006 by in UnCategorized 
By Home Furnishings Business in on August 2006
The Home Depot will adopt a majority vote standard for the election of its board of directors beginning with the next election in May.
“Listening to our shareholders, learning from their feedback and maintaining ongoing dialogue are top priorities for The Home Depot,” said Bob Nardelli, chairman, president and chief executive officer. “At our shareholder meeting in May, the majority vote proposal was approved by 56 percent. By adopting a majority vote standard, the board of directors is reinforcing our company’s commitment to shareholder engagement and director accountability.”
The majority vote standard requires each director to receive a majority of the votes cast with respect to that director, providing for a greater level of accountability of directors to shareholders. Previously, directors were elected under a plurality vote standard, which meant that the candidates receiving the most votes would win without regard to whether those votes constituted a majority of the shares cast at the meeting. Contested elections will continue to use the plurality vote standard.
Under the laws of Delaware, where The Home Depot is incorporated, if an incumbent director is not elected, that director continues to serve as a “holdover director” until the director’s successor is duly elected and qualified. To address this potential outcome, the board has also adopted a director resignation policy in the company’s bylaws. If an incumbent director is not elected by a majority of the votes cast, the director shall offer his or her resignation to the board. The Nominating and Corporate Governance committee would then make a recommendation to the board on whether to accept or reject the resignation, or whether other action should be taken. The board would then disclose its decision within 90 days after the certification of the election results.
August 28,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
Restoration Hardware reported second-quarter 2006 sales of $179.3 million, a 24 percent increase over the prior-year period; and net income of $200,000, compared to a $2.5 million loss the same period last year.
Same-store sales increased 4.3 percent during the second quarter, which ended July 29, but were a little off from the prior year, when those sales were up 5.6 percent.
“We are proud to announce that for the first time in the company’s history, we were profitable outside of the fourth quarter,” said Gary Friedman, chairman, president and chief executive officer of Corte Madera, Calif.-based Restoration Hardware,” Company’s President, Chief Executive Officer and Chairman. “This milestone, and the strong customer response to our product offerings, validates our work to position Restoration Hardware as the premium home furnishings brand in the marketplace.”
While Friedman was pleased with performance, he anticipates more opportunities through initiatives that will launch in the second half of this year.
“Brocade Home, our new brand with decidedly feminine appeal, will launch with an innovative home catalog this September,” he said. “While our initial launch this fall is small in scope, we expect to develop a multi-channel retailing platform over the next several years. Customers can preview the brand and request a catalog through the Web site
www.brocadehome.com .”
“In addition, we will introduce our second category extension this holiday, the Restoration Hardware Gift Catalog. Supported by a unique assortment and fresh merchandising approach, the Gift Catalog, as well as a supporting web experience, will be an important addition to our holiday business.”
Restoration Hardware is raising its fiscal 2006 guidance to reflect the strong second quarter and the effect of new intitiatives. The company now expects operating margins of 1.7 percent to 2.2 percent; and, in the third quarter, revenue growth between 17 percent and 20 percent, mid-single digit increases in same-store sales, and direct-to-customer sales increases between 30 percent and 35 percent.
For the full year, Restoration Hardware anticipates revenue to grow between 19 percent and 23 percent; mid-single-digit increases in same-store sales; and direct-to-customer revenue growth between 40 percent and 45 perecent.
The company also announced that it has completed a voluntary review of stock option practices that was overseen by the Audit Committee of the company’s Board of Directors with the assistance of outside legal counsel. Restoration Hardware has determined that it used incorrect measurement dates with respect to the accounting for certain previously granted stock options, primarily during the years 2002 through 2004 as a result of lapses in documentation and deficiencies in option plan administration controls. The cumulative impact of the errors resulted in additional non-cash compensation of $0.6 million. The cumulative charge was reported in the current period since the amount of the stock option compensation expense attributable to each of the previous periods was not material to any previously reported historical period and is not expected to be material to the current fiscal year.
August 27,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
DeBasio Furniture, a 78-year-old furniture retailer with two stores serving greater St. Louis, has announced plans to go out of business.
A liquidation sale will start Thursday at DeBasio’s stores in St. Louis and Ellisville, and will continue until all merchandise is sold. Planned Promotion specialist Deere Park Associates is working with the retailer on the sale.
The decision to close DeBasio Furniture was based on trends in the furniture industry as well as the economy, said President Mike Noblot.
“In recent years it has become harder and harder for independent, family owned furniture retailers to compete with the national and international mass merchandisers,” he said. “At the same time, foreign manufacturers have greatly changed the nature of service and quality. Rather than having to compromise on quality, value, or service, we felt the time was right to make a graceful exit.”
Chairman John DeBasio Jr., son of the company founder, said the GOB sale will total around three acres of merchandise, with prices reduced up to 75 percent.
“It has been a wonderful 78 years, and the decision to close a family owned business is always a very difficult one,” DeBasio said. We love being a part of the community, and have been blessed to have great, loyal customers. ... If we have to close, we want to do it with a meaningful event, saying good-bye and thanks to our long-time customers.”
John DeBasio Sr., noting the boom in single family homes, opened the first DeBasio Furniture store in 1928. In 1987 a second DeBasio furniture store was opened on Clayton Road in Ellisville to serve the expansion into the West County area.
August 27,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
Less-than-truckload home furnishings transport specialist MGM Transport Corp. has added LTL services from Mississippi to Southern California and the Northeast.
“We are really excited about this recent expansion of our national coverage,” said Mike Caldiero, vice president of sales and marketing for MGM. “It represents our commitment to serving our customers across the country. By adding the Mississippi region, MGM now offers one of the widest pick-up ranges of any specialized furniture carrier.”
The addition of this new service area follows MGM’s recent expansion of direct pick-up services in the Midwest (from Indiana, Illinois and Michigan to Southern California and the Northeast); and the addition of a larger distribution center and warehouse in Southern California in Pico Rivera.
Caldiero said the addition of service from Mississippi was in direct response to customer requests.
In addition to broad national coverage, MGM Transport also offers weekly dedicated service from many locations, with the goal of giving customers faster transit times with less handling and less risk of damage. MGM utilizes technology such as bar coding, real-time online tracking, online proof of delivery and image retrieval, while offering its customers full EDI capabilities and single point of contact customer care.
August 27,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
The International Textile Market Association, sponsor of Showtime, announced today new members to the board of directors who will start their terms September 1st.
For the first time ever, the 11-member board will include two furniture industry representatives: Ann Hood, vice president of upholstery fashion, Century Furniture, High Point; and Penny Eudy, product manager of upholstery, La-Z-Boy Residential, Monroe, MI.
Last year, the ITMA board polled its members and agreed to move the dates for the twice-annual textile trade show; the first time such a change has occourred. The changes were made to better serve the procurement needs of the furniture industry.
The new ITMA board members are : Jason Earles, director of furniture sales-manufacturing for The Robert Allen Group, High Point; Robert Patton, national sales manager for P. Kaufmann, High Point; Thomas Notaro, vice president of sales and marketing for Wearbest Sil-tex Mills Ltd., Garfield, N.J.; Rocco Simone, senior vice president sales and marketing for Sunbury Textile Mills Inc., New York, NY; Natalie Scott, national sales manager, Cone Jacquards/ITG, Cliffside, NC; Ann Hood, vice president of upholstery fashion, Century Furniture, High Point; and Penny Eudy, product manager of upholstery, La-Z-Boy Residential, Monroe, MI.
All members of the volunteer board will serve a three-year term. Returning board members are Terry Cox, of Richloom Fabrics Group; Hal Hunnicutt of Glen Raven; and Steve Shelby of Conso Products Co. John Kearns, president of Hamilton Fabric Sales in High Point will assume the board presidency for a two-year term.
For more information, go to www.itma-showtime.com