Daily News Archive
Brought to you by Home Furnishings Business
August 17,
2006 by in UnCategorized 
By Home Furnishings Business in Upholstery on August 2006
Flexsteel reported fourth-quarter sales of $112.3 million, 6.2 percent increase over the prior year; and year-end sales of $426.4 million, up 4 percent, for the quarter and fiscal year ended June 30.
The upholstery major earned $1.5 million, or $0.23 per share, same as in the prior year. Net income for the entire fiscal year was $4.7 million, or $0.72 per share, a decrease of 21.9 percent.
The current year net income was adversely impacted by the recording of stock-based compensation expense of $0.4 million (after tax), or $0.06 per share. During the fiscal year ended June 30, 2005, the Company recorded a pre-tax gain on the sale of facilities of $0.8 million and a one-time favorable income tax adjustment of $0.7 million.
For the fourth quarter, residential net sales were $70.4 million, an increase of 4 percent from the prior-year quarter net sales of $67.7 million. For the fiscal year ended June 30, 2006, residential net sales of $267.7 million were up 2.2 percent over the prior year.
Fourth-quarter recreational vehicle sales of $20.1 million were up 9.6 percent over the prior year. For the fiscal year, those sales were down 6.9 percent to $73.4 million.
Net sales of commercial products increased 10.6 percent in the fourth quarter to $21.8 millio, and 23.1 percent for the year to $85.3 million.
Flexsteel expects soft residential sales through the first half of fiscal 2007.
August 17,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
Henredon will celebrate the opening of its first company-owned store with a grand-opening Thursday in Atlanta.
The new location is at 4550 Olde Perimeter Way, and features all three of the high-end vendors key brands: Henredon, Ralph Lauren Home, and Barbara Barry Realized by Henredon.
The event also will serve to benefit the Juvenile Diabetes Research Foundation’s Georgia Chapter.
August 17,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
Cost Plus Inc. today announced financial results for its second quarter ended July 29, 2006 and provided financial guidance for its fiscal third quarter and full fiscal year. (Oakland)
Cost Plus reported second-quarter 2006 sales of $215.3 million, a 6.2 percent increase over the same period last year, but lost $11.3 million in the period ended July 29. The Oakland, Calif.-based retailer had net income of $1.5 million in 2005’s second quarter.
Year-to-date, total revenue stands at $428.2 million, a 6.3 percent increase over the first six months of 2005.
The second-quarter 2006 net loss included $0.17 per diluted share due to the previously announced markdown charge taken to lower retail pricing on certain categories of home furnishings merchandise.
Same store sales for the quarter decreased 3.2 percent compared to a 1.7 percent decrease last year. Year-to-date same store sales were down 3.7 percent compared to a decrease of 1.8 percent last year.
“As we previously announced, both our total and same store sales results were within our guidance range,” said Barry Feld, President and CEO. “While we are not happy with the losses this quarter, we believe we are making the right strategic moves to position the company for long-term growth and success.”
The Company opened two new stores in the second quarter. As of August 17, cost plus operated 276 stores in 34 states, compared to 248 stores in 31 states at the same time last year.
Looking ahead, Cost Plus anticipates a third quarter loss of between $8.3 million and $10.1 million on sales ranging from $213 million and $221 million. The company plans to open 11 new stores in the third quarter and close two.
August 16,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
Pat Norton has retired as Chairman of La-Z-Boy Inc., a position he’d held since 1997. La-Z-Boy’s board of directors has elected private investor James Johnston as chairman for a one-year term. Norton, who’d served on the company’s board since 1981, will become chairman emeritus.
Johnston, 67, has been a director of La-Z-Boy’s board since 1991 and served as the chairman of the nominating and governance committee, and was also a member of the audit committee.
Johnston also serves as a financial consultant to various public companies and, earlier in his career, worked in financial management for Eastern Airlines and The Boeing Co. In his position as chairman of the nominating and governance committee, Johnston chaired executive sessions of non-employee directors.
“My colleagues on the Board and I are delighted Jim accepted our nomination to become chairman,” said La-Z-Boy President and Chief Executive Officer Kurt Darrow. “Elected with a unanimous vote, Jim brings years of experience to the position and, with great expertise and sound counsel, he will be a strong leader. As a board member for 15 years, Jim established himself early as a leader on the board, ultimately becoming the Chair of non-employee director executive sessions. With his depth of knowledge of our company, we have great confidence in his ability to work in tandem with management in navigating the changing industry landscape while being a voice for shareholders. We all look forward to working with him in his new role.”
Johnston is a native of Monroe, Mich., and earned a BBA and an MBA from the University of Michigan.
August 16,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2006
La-Z-Boy Inc. reported sales of $419.3 million for its first quarter of fiscal 2007, which ended July 29, a 2.3 percent decline from the same period last year, the company announced.
First-quarter net income for the period was $2.3 million, or $0.04 per share, compared to $3.2 million, or $0.06 per share, in the first fiscal quarter last year.
“We are encouraged by our ability to generate improved operating margins at the wholesale level on relatively flat volume during what is our historically slowest quarter due to seasonality factors,” said Kurt Darrow, president and chief operating officer. “While the environment continues to be challenging, we remain focused on our strategic objective of differentiating our brand through quality, style and service while offering customers choice, customization and quick delivery.
Additionally, growing and improving the performance of our proprietary store system is paramount to our longer term positioning in the marketplace.”
First-quarter upholstery sales were flat compared with the prior-year period, while the operating margin improved year over year from 4.9 percent to 5.8 percent. The La-Z-Boy branded business and England continued to outperform the smaller upholstery companies.
Case goods sales of $78.3 million were down 15.6 percent from last year’s first quarter, reflecting the difficult retail environment. The segment’s operating margin, at 3.8 percent, was relatively flat compared with last year’s margin of 3.9 percent on significantly lower volume.
Darrow said that the previously announced sale of the American of Martinsville contract company for $33.2 million resulted in a $1.3 million gain net of tax. Cash from the sale was used mostly for debt reduction.
For the quarter, the La-Z-Boy Furniture Galleries store system, which includes both company-owned and independent-licensed stores, opened one new store, relocated and/or remodeled six and closed four, bringing the total store count to 334, of which 159 are in the New Generation format.
“We are on track to open approximately 50 New Generation stores in fiscal 2007 and will add five new stores to the system in the second quarter, relocate or convert nine and close four,” Darrow said.
System-wide, for the second calendar quarter, including company-owned and independent- licensed stores, same-store written sales, which the company tracks as an indicator of retail activity, were down 5.5 percent and total sales, which includes new stores, decreased 2.7 percent.