Daily News Archive
Brought to you by Home Furnishings Business
May 25,
2006 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on May 2006
Eddie Bauer Holdings plans to explore strategic alternatives to increase shareholder value, including among others, a possible sale of the company.
The company has retained Goldman, Sachs & Co. as its financial adviser to evaluate and assist with a possible sale.
Eddie Bauer Holdings is the parent company that resulted when Eddie Bauer, Inc. emerged from the Spiegel, Inc. Chapter 11 reorganization in June. During the reorganization, the company closed its home stores, and opted to focus on the licensing end of its business for home furnishings.
Lane Home Furnishings holds the license for furniture from Eddie Bauer
In a statement, Eddie Bauer Holdings said there is “no assurance regarding the timing of, or whether, this process will result in any sale or other transaction.” The company does not plan to provide updates or make additional statements until the outcome of the process is determined
May 25,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on May 2006
Shares of Furniture Brands International jumped in Thursday afternoon trading after Credit Suisse upgraded the company’s stock.
FBI shares moved 5.7 percent to $22.57 on the New York Stock Exchange and trading volume more than doubled the stock’s daily average. Over a 52-week period, the stock has traded between $16.07 and $25.34.
Ivy Zelman, an analyst with Credit Suisse , upgraded the stock from underperform to neutral saying in a note to investors, “Although we still expect the retail environment to remain challenging given rising interest rates and a slowing housing market, we believe Furniture Brands’ current valuation is more reflective of these headwinds after its recent slide.”
Zelman expects the stock to hit $24 within a year.
May 25,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on May 2006
Restoration Hardware reported a first quarter net loss of $4.9 million for the quarter ended April 29, compared to a net loss of $3.1 million posted in the same period last year.
The retailer’s sales jumped 14 percent to $133.4 million compared to net sales of $117.5 million for the same quarter last year.
The loss included a $900,000 non-cash charge associated with the expensing of stock options, and the results did not include income tax benefit as a result of the company’s establishment of a valuation allowance against a net deferred tax asset. The loss for the first quarter of last year included a $2.1 million tax benefit.
“Our business continues to be healthy as sales trends accelerate in the second quarter” said Gary Friedman, president, chief executive officer and chairman. “We expect retail comparable store sales to increase in the mid single-digits versus a 5.6 percent increase last year and direct to customer sales to increase 35 to 40 percent against a 50 percent increase last year.”
For the second quarter, the company expects revenue growth of 17 percent to 20 percent over last year’s second quarter.
May 24,
2006 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on May 2006
San Francisco-based contemporary retailer Design Within Reach has adopted a Stockholder Rights Plan, intended to enable the company’s shareholders to realize the long-term value of their investments.
In a statement released yesterday, the company said the plan will not prevent a takeover, but should encourage anyone seeking to acquire the retailer to negotiate with the board of directors before attempting a takeover. The plan will expire in 2016.
Under the plan, the board of directors declared a dividend distribution of one preferred share purchase right on each outstanding share of Design Within Reach common stock. Subject to limited exceptions, the rights will be exercisable if a person or group acquires 15 percent or more of the retailer’s common stock or announces a tender offer for 15 percent or more of the common stock. Under certain circumstances, each right will entitle stockholders to buy one one-thousandth of a share of newly created Series A Junior Participating Preferred Stock of the company at an exercise price of $50.
The board will be entitled to redeem the rights $.001 per right at any time before a person has acquired 15 percent of more off the outstanding common stock.
The company said the plan is not in response to a specific effort to acquire control of the company, but instead is designed to assure the company’s shareholders receive fair and equal treatment should a proposed takeover of the company occur.
May 24,
2006 by in UnCategorized
By Home Furnishings Business in Leather Upholstery on May 2006
Italian leather upholstery specialist Natuzzi reported first quarter net sales of $226.5 million for the quarter ended March 31, compared with the $218.4 million reported during the first quarter of 2005.
Net earnings for the quarter were $8.2 million, compared to a net loss of $4.6 million in the first quarter of 2005.
During the first three months of 2006, upholstery net sales were at $201.4 million, up from $192 million reported for the same period last year. Net sales in the Americas were $76.8 million for the quarter, compared with $78.5 million reported in the same period last year.
The company reported that its sales to the Natuzzi-owned chain of Divani & Divani by Natuzzi stores and Natuzzi stores were $41.2 million, as compared to $39.3 million reported a year ago. During the quarter, the company opened six stores and closed 16 bringing the total number of stores to 280 at the end of the quarter.
“The positive performance achieved in the first quarter 2006 is an encouraging sign for the near future,” said Pasquale Natuzzi, chairman and chief executive officer. “However, we are aware that rising energy prices, the current unfavorable level of the Euro against the U.S. dollar, as well as upward trending interest rates, will continue to challenge consumers’ discretionary spending and, as a consequence, the furniture industry. In consideration of this we consider the current restructuring process of our operations and the improvement of retail activities fundamental for the competitiveness of the company.”