Daily News Archive
Brought to you by Home Furnishings Business
July 27,
2006 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on July 2006
Furniture Brands International reported second-quarter 2006 sales of $601.3 million, 1.2 percent over the same period last year, and net income of almost $17 million, a big jump over second-quarter 2005’s $9.6 million.
Year-to-date sales of $1.26 billion are slightly ahead of the first half of 2005, while net income of $47.2 million is more than a third above last year’s income through six months.
In a conference call discussing results, Furniture Brands Chairman and CEO Mickey Holliman said Lane had particularly strong business, and that Maitland-Smith was a solid performer in FBI’s high-end HDM division
July 27,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on July 2006
Full-line manufacturer and retailer Ethan Allen hit double digit sales increases in its 2006 fiscal year, reaching a record level of $1.07 billion, 12.4 percent ahead of last year.
Net income for fiscal 2006, which ended June 30, rose to $85.7 million from $79.3 million the prior year. This year’s figures include a $4.2 million charge related to the conversion of an Ethan Allen plant into a regional distribution center.
Wholesale sales increased 11 percent to $736.1 million in fiscal 2006, while, comparable Ethan Allen store delivered sales increased 1.3 percent over the prior year.
Fourth-quarter sales of $272 million were up 12.3 percent from the prior-year period, while net income rose from $19.5 million to $22.4 million.
“We are pleased with our results for the year and in reaching the milestone of $1 billion in annual sales,” said Farooq Kathwari, chairman and chief executive officer of Ethan Allen. “We believe that the continued progress being made by Ethan Allen is reflective of several initiatives undertaken in recent years, including the continued repositioning of our retail network; investments to increase the professionalism of our retail management team; the success of new product introductions; improved advertising and marketing programs; and faster delivery of our products to our customers. All of these initiatives have been undertaken with a common objective--a renewed focus on superior customer service.”
Looking ahead to fiscal 2007, Kathwari noted that business has slowed.
“In addition, we remain cautiously aware of the state of the economy and the threat of further increases in interest rates and fuel prices which could have an adverse impact on consumer spending and profitability,” he said. “Still, with the strategies we’ve recently implemented, we believe we have the opportunity to continue to grow our business. At the present time, we believe that fiscal year 2007 sales and earnings per share will increase 5 percent to 7 percent, and 10 percent to 12 percent, respectively.”
Ethan Allen has a network of 306 interior design centers in the United States and abroad, of which 139 are company-owned. The company has 11 manufacturing facilities, which include 2 sawmills, located throughout the United States.
July 27,
2006 by in UnCategorized
By Home Furnishings Business in High Point on July 2006
Retailer W.S. Badcock Corp. entered its first new state in 17 years with the opening of a 20,000-square-foot store in Danville, Va.
The Danville store is a key piece of Mulberry, Fla.-based Badcock’s expansion plans, which began last year when the company opened a distribution center in Mebane, N.C. The company has invested more than $15 million as it plans future expansion throughout Virginia and into Eastern North Carolina and Kentucky. Operating under the company’s new Badcock & More format, the location will serve as a flagship to entice potential dealers in Badcock’s efforts to grow it’s presence in the Mid-Atlantic region.
Initially, Badcock had looked at Danville as a possible location for the distribution center, but later realized it would be better suited for a retail store.
“When we came to Danville, we thought it looked like our kind of area,” said Don Marks, Badcock chief executive officer and president.
“It already has great retail development areas and we felt that there was still opportunity to bring our product, our prices and our style of service to Danville to give an extra choice in the home furnishings market.”
The Danville, Virginia store is a corporate-owned store, but the company is seeking a potential local owner. Seventy-five percent of Badcock’s more than 330 stores are owned by independent dealers.
“We have dealers that own as many as six Badcock stores, and in an area such as Virginia, which is new for Badcock and wide open in terms of available markets, there is that much more opportunity to build on the investment,” said Mike Whitten, Badcock’s director of dealer development. “One of the benefits to an entrepreneur looking for a business ownership opportunity is that because we have a dealership system, there are no franchise fees. We also consign all furniture to the dealers so they don’t have the overhead of purchasing product to fill a large showroom.”
Badcock plans to open two more Virginia stores in Lynchburg by early 2007. One will be a corporate- owned store, the other dealer-owned.
Badcock celebrated the Danville opening on Wednesday with a reception including local dignitaries, key executives and Badcock family members who traveled from the Florida headquarters.
July 26,
2006 by in UnCategorized
By Home Furnishings Business in Las Vegas on July 2006
According to a recent HFB survey, 36% of furniture retailers have yet to get their own website up and running. A handful of holdouts – 9% - are refusing to even look into having a site of their own. And yet, according to eBay, 69% of American households have internet access. Why does there continue to be such a divide between the industry and the internet?
Jeannie Reeth, eBay’s home & garden category spokesperson will lead a seminar at Las Vegas Market today at 1pm, PST, about online trends and how to get the most about out of the internet for your business.
HFB talked to Reeth, who said, “We’ll be talking to retailers about general e-commerce trends that we see, and share tips and tricks with them. The internet is fascinating, it you look at the charts, the number of businesses that are now using the web that didn’t before is peaking. We hit the hockey stick part of the curve. The conversations I had at high point this past year compared to what’s happening now is so different. Each year you see a real shift, people knew the internet was here, of course, now they’re saying, ‘we’re online!’ I hope we can help them be as successful as they want to be.”
July 26,
2006 by in UnCategorized
By Home Furnishings Business in Las Vegas on July 2006
International exhibitor and buyer attendance is on the rise at Las Vegas market.
Attendees from abroad came from 116 countries, compared to 80 countries at the January show, and account for 8 percent of total registrations.
Exhibitors throughout the show registered a dramatic increase of international buyers, especially from Europe, Australia, Mexico, Canada and the Middle East.
“International business is exploding in Las Vegas,” said Douglas Furniture’s Rick Parker. “Not only have we seen more international buyers this market than ever before, but we’ve written significant orders from these companies, the best numbers in the history of our business. This phenomenon has created the impetus for us to address the international market more seriously. We plan to pursue new export strategies and expand our international business as a result of what we’ve experienced here this week.”
Las Vegas Market officials reported that the 308 non-U.S. manufacturers showing here this week accounted for 20 percent of exhibitors. Almost half of those, 143, are from Europe; followed by Canada with 59 tenants, 19 percent of exhibiting companies; Latin America, 50 companies, 17 percent; and Asia with 55 companies accounting for 18 percent of the total international presence.
“Our international contingent is healthy and growing” said Tim Branscome, director of international business development for World Market Center. “The European presence in exhibitors is by far the greatest with exhibitors from Canada, Latin America and Asian showing in about the same percentages.”
The WMC is focusing on creating strategic alliances with trade fair organizers and associations around the globe to bring “shows within show” and significant brands to the U.S. market, many for the first time.
July’s Market includes the summer edition of Interior Lifestyle USA, which showcases high-end companies from 14 countries, including ideas, product lines and exhibitors from Europe’s Heimtextil and Ambiente shows.
From Germany, the Interior Trends exhibition by Koeln Messe spotlights four themes focusing on different consumer trends.
Other international groups keyed in on the Las Vegas market.
For example, 16 Brazilian companies combined for the 6,900-square-foot Brazilian Pavilion to showcase trend-setting styles in dining rooms, accent furniture, leather and fabric sofas, and home theater. Twelve Mexican manufacturers displayed original pieces of decorative art, gifts and handcrafts at Las Vegas Convention Center.
IDOT, or “Italian Design on Tour,” showcased 10,000 square feet of the best in Italian furniture design.
Branscome noted that international exhibitors have helped to drive the Market’s overall growth.
“They recognize Las Vegas Market as the leading trade fair in the U.S. with international appeal, and prefer the July show due to a number of conflicting European events in January,” he said.