Daily News Archive
Brought to you by Home Furnishings Business
July 20,
2006 by in UnCategorized 
By Home Furnishings Business in Las Vegas on July 2006
Bedding major Spring Air Co. has finalized the design of its planned 7,250-square-foot showroom on the 11th floor of Building 2 at the Las Vegas World Market Center.
The company will exhibit in the new showroom at the January Las Vegas market.
Strategic retail and showroom design firm GRID2 International worked with Spring Air to design the location, which features an upscale, hotel-like environment, including a handsome, user-friendly lounge, that Spring Air President Jim Nation said is ideally suited to showcasing the company’s bedding products, conduct business with accounts, and possibly inspire retail presentations.
“GRID2 has completed the design phase and construction is now underway,” Nation said. “It’s an interesting design that retailers may be able to make use of in their stores, and it’s an excellent format for us to present a number of our portfolio categories during the markets.”
Spring Air will be visiting next week’s show and is eagerly anticipating its participation in Las Vegas market, he added.
“Las Vegas is and will become the mattress showplace for the world,” Nation said.
July 20,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on July 2006
Three more Badcock stores in North Florida have converted to the Badcock & more concept, which offers consumers a brighter, more spacious shopping environment than the retail network’s older format.
Those location bring the total number of stores operating under Badcock & more to 210.
The store in Live Oak, owned by Gary Olive, a second-generation Badcock retailer, is a 26,609-square-foot location.
In Tallahassee, another second-generation dealer, Lela Brown, who owns the store with her two brothers, has converted their 11,549-square-foot store to a Badcock & more location.
Owners Pete Fortner and his wife, Edith Fortner, Badcock dealers for 28 years, also have switched to the new format at their store in Perry. At 28,130 square feet, the Perry Badcock & more location is one of the largest Badcock stores to date.
Mulberry, Fla.-based W.S. Badcock Corp., founded in 1904, operates more than 80 percent of its 300-plus locations across the Southeastern United States through a dealer-owned business model. In addition to furniture and bedding, the product offering includes appliances, electronics, accessories and floor coverings.
July 20,
2006 by in UnCategorized
By Home Furnishings Business in Bedding on July 2006
Foam bedding major Tempur-Pedic reported a 14 percent increase in second-quarter 2006 sales, compared to last year’s period, to $219 million, and a 25 percent increase in earnings per share over second-quarter 2005, up to $0.30.
U.S. retail sales were up 29 percent, while international retail sales rose 20 percent. Worldwide, mattress unit growth increased 17 percent, with domestic growth particularly strong at 22 percent.
“Tempur-Pedic International turned in another solid quarter of net sales and earnings in the second quarter,” said President and Chief Executive Officer H. Thomas Bryant. “We believe the initiatives we put in place to accelerate growth are gaining momentum and we are succeeding in our efforts to control costs. In addition, we continued to selectively add high-quality retail partner stores reflecting our strategy to ensure improved established-account and new-store productivity. We benefited from ongoing efforts to improve the overall financial strength of the business in the second quarter. Strong performance throughout our operations generated significantly improved mattress unit growth, working capital and productivity.”
Bryant noted that shipping began for two new high-end mattresses, GrandBed and RhapsodyBed, late in the second quarter, and that dealer interest in both models has exceeded expectations, leading to stock outs.
“As a result, we had to allocate new products to select dealers. We anticipate fulfilling these orders in the third quarter,” he said. “In July, we began shipping the redesigned Classic model following a successful close-out program on remaining inventory of the old Classic. Dealer and consumer interest for all of our new models continues to be strong and we currently expect to expand floor space throughout the second half of the year.”
Chief Financial Officer Dale Williams said that while Tempur-Pedic’s strategy for growth through retail and mattress share gains has been effective, the company continues to be affected by channel and product mix.
“Direct sales are down and pillow sales are flat versus prior year, which has negative implications for gross margin,” Williams said. “In addition, gross margin was slightly impacted by the close-out of the old Classic. However, initiatives to generate productivity improvements and cost reductions throughout our manufacturing and supply chain operations have yielded significant benefits. As a result of these initiatives, we currently expect gross margin to improve during the second half of the year.”
The company to expect full-year 2006 net sales to range from $940 million to $970 million, an increase of 12 percent to 16 percent over 2005.
In addition, Rick Anderson has been named to the new position of executive vice president and president, North America. Bryant said the move is a reflection of the continued growth of the viscoelastic bedding category Tempur-Pedic created 15 years ago. Anderson’s appointment, he said, helps ensure the business infrastructure and management team to support the company’s goal of becoming the world’s largest mattress manufacturer.
“Rick brings more than 23 years of global management, marketing and sales experience,” Bryant said. “In this new role, Rick will lead our North American sales and marketing organizations.”
Anderson joins Tempur-Pedic from Procter & Gamble after a long career with The Gillette Co., which became part of P&G in 2005. At Gillette, Anderson played a critical role, most recently as vice president of marketing for Oral-B and Braun in North America. Previously, Anderson was vice president of global business management for Duracell, overseeing consumer marketing, branding, product development and strategic planning worldwide.
“Tempur-Pedic is a brand I have long admired for its product innovation, customer loyalty and market development,” Anderson said. “Tempur-Pedic has outstanding products and technology, increasing brand awareness, and an industry-leading sales and marketing organization. I see strong prospects to build on the company’s momentum and enthusiastically look forward to being a part of Tempur-Pedic’s future.”
July 20,
2006 by in UnCategorized
By Home Furnishings Business in on July 2006
Quaker Fabric Corp. on Thursday reported second-quarter 2006 net sales of $42.9 million, down $37.8 percent from the prior-year period, and a net loss of $12.1 million. Quaker lost $10.3 million in second-quarter 2005.
Second-quarter 2006 results include $9.1 million of after-tax restructuring and asset impairment charges ($8.3 million of which were non-cash) associated with Quaker’s current restructuring activities. Excluding these charges, net loss for the period was $3.1 million.
Through 2006’s first six months, Quaker had net sales of $89.2 million and a net loss of $16.3 million, compared to last year’s net sales of $128.1 million, a net loss of $13.4 million.
“The 7.3% drop in our sales versus the first quarter of this year was disappointing,” said Larry Liebenow, president and chief executive officer. “At the same time, our second quarter margin performance, variable costs, fixed costs and SG&A expenses indicate a sequential improvement in our operating performance compared to the first three months of this year--reflecting the restructuring plan and cost-cutting measures we have put in place, and allowing us to remain in compliance with the financial covenants in our loan documents while we simultaneously continue working on our financial structure and focusing on restoring the company to profitability. Building sales continues to be one of our biggest challenges. Competition from imported fabric rolls and kits remains intense, and the second quarter of this year saw a 37.8 percent drop in our total revenues versus the comparable period of last year--with domestic and international fabric sales for the quarter of $34.9 million and $6.4 million, down 30.8 percent and 23.4 percent, respectively. Net yarn sales, at $1.6 million, were down 84 percent.”
Liebenow said Quaker is focused on achieving major long-term cost-structure reductions through the comprehensive consolidation of its manufacturing operations, which involves disposition of machinery and equipment no longer needed to support operations, and the sale of excess real estate.
“The successful sale of two of our idled Fall River area manufacturing facilities since the end of the first quarter, including the sale of our Somerset, Massachusetts plant earlier this month, are part of this overall plan,” Liebenow added.
Quaker will focus on domestic fabric markets least sensitive to imports; building profitable volume in the outdoor fabric, contract fabric and specialty yarns markets; and developing strategically important commercial relationships with a limited number of carefully chosen offshore fabric mills.
“Since the end of the first quarter, we have also made considerable progress in further developing the strategically important, offshore sourcing arrangement we put in place earlier this year with Zhongwang, including assisting Zhongwang with the installation of state-of-the-art finishing and post-finishing capability. Customer response to our outsourced products continues to be great,” Liebenow said.
“Between now and the end of this year, we will remain focused on effective execution of our restructuring plan, including - continued aggressive marketing of both our offshore fabric programs as well as the fabrics that it makes more sense, to us and to our customers, for us to make here in the U.S. - the consolidation of our Fall River manufacturing operations into fewer facilities - active marketing of our excess real estate and other assets - and implementation of additional substantial cost reduction programs,” Liebenow concluded.
Quaker Fabric Corporation is a leading manufacturer of woven upholstery fabrics for furniture markets in the United States and abroad, and the largest producer of Jacquard upholstery fabric in the world.
July 20,
2006 by in UnCategorized
By Home Furnishings Business in High Point on July 2006
Brian Casey, president of the International Home Furnishings Market Authority will articulate the Authority’s new “One Market, One Vision” strategy in a special presentation to industry executives at the annual Marketing Meeting of the American Home Furnishings Alliance next month in Savannah, Ga.
While there may be no better vehicle than a trade show as a way for manufacturers to reveal new strategies and products, Casey believes the industry is overloaded with markets.
“Across the board, the industry has sent us one clear message: We don’t need more trade shows,” he said. “What we need is a comprehensive market that provides all the tools necessary to grow an enterprise. The International Home Furnishings Market is the one market that brings all of the critical elements—products, people, ideas and access—together.”
Following Casey’s presentation, marketing executives in attendance will break into small groups for brainstorming sessions, allowing a learning opportunity, or a chance for peers to share successful techniques with each other.
“While we’re proud of our leadership position, we also know that our customers’ needs are continually changing,” Casey continued. “Our vision is to continue innovating to address their emerging needs and make each International Home Furnishings Market the best one ever. As I see it, it’s a new day in High Point, and we welcome fresh thinking, ideas and insights from all concerned. For this reason, I am very excited to be a part of the give-and-take at the AHFA Marketing Meeting. The event has a reputation for bringing together some of the best minds in the industry and I’m looking forward to thoughtful collaboration.”