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March 19,
2006 by in UnCategorized 
By Home Furnishings Business in on March 2006
Retailer Williams-Sonoma Inc. said quarterly profit rose 6 percent, as higher sales of its housewares helped offset the impact of charges related to closing its chain of Hold Everything stores.
It also initiated a quarterly cash dividend of 10 cents per share, payable on May 24 to shareholders of record April 26, and authorized a stock repurchase program to buy up to an additional 2 million shares of its common stock.
Net income for the fourth quarter that ended Jan. 29 was $120.8 million, or $1.02 per share, compared with $113.7 million, or 95 cents a share, a year ago.
Excluding 7 cents per share in charges related to the closures, Williams-Sonoma, best known for its namesake cookware stores as well as the Pottery Barn home decor and furniture business, earned $1.09 per share.
Quarterly net revenue was $1.21 billion, up from $1.08 billion in the same quarter a year ago, while sales at stores open at least a year grew 5.8 percent.
Williams-Sonoma announced in January it would close the Hold Everything stores by the end of the year to focus on the more profitable Pottery Barn and West Elm home decor chains.
At that time, it said it would record accounting charges of 9 cents to 10 cents per share, with the majority in the fourth quarter and the remainder in the first two quarters of fiscal 2006, related to the closures.
On Monday, the company said it would incur a charge of 3 cents per share in the first half of fiscal 2006.
The company also said it expected fiscal 2006 earnings per share, excluding the Hold Everything-related charge, stock option expenses and rental costs during construction, of $2.15 to $2.19 on expected net revenue of between $3.897 billion and $3.968 billion.
On the same basis, the company sees earnings per share of 21 cents to 23 cents for the first quarter, 29 cents to 31 cents for the second quarter, and 38 cents to 40 cents for the third quarter.
The company said it plans to add 24 new retail stores this year.
March 19,
2006 by in UnCategorized
By Home Furnishings Business in on March 2006
After a seven-year hiatus, Sears Holdings Corp. is stepping back into the furniture business, a competitive market where the retailer failed before.
A line of bedroom, dining room and living room furniture will arrive in Sears stores next month, according to a company spokeswoman. The move dovetails with the launch of a private-label luxury bed and bath line Sears calls Everyday Luxe that debuted in about 500 of Sears' largest stores and online earlier this month.
"We're very excited about what's happening in terms of the quality and value we're going to provide our customers," the spokeswoman said.
Hoffman Estates-based Sears' last dance with furniture ended in 1999 when it sold the HomeLife furniture chain. HomeLife later went bankrupt.
March 16,
2006 by in UnCategorized
By Home Furnishings Business in on March 2006
La-Z-Boy Senior Vice President and Chief Financial Officer David M. Risley said Thursday he will retire from La-Z-Boy when the company completes its year-end reporting this summer. Louis M. (Mike) Riccio Jr., currently corporate controller, will succeed Risley.
Risley, 61, joined La-Z-Boy in April 2001 and was instrumental in reshaping the company's financial functions, as well as planning strategy as a part of the senior management team. Additionally, as part of the senior management team, he was integral in forming the company's strategy.
In his new role as CFO, Riccio, 43, will be responsible for the internal audit function, treasury and risk management, the legal and tax function, investor relations, and the corporate controller function, which includes internal and external reporting.
Riccio joined La-Z-Boy in early 2000 when the company acquired LADD Furniture, Inc. At that time, Riccio was LADD's corporate controller, having served since 1990 in a number of increasingly responsible financial management and accounting positions. Prior to LADD, Riccio worked for the public accounting firm Deloitte & Touche.
"The Board and I are delighted Mike will succeed David as the CFO," La-Z-Boy President and CEO Kurt Darrow said in a company announcement. "Succession planning has been an increased focus for our company, and, as such, Mike will easily make a smooth transition into his new role. He is a seasoned professional with tremendous financial expertise and has made a significant contribution to La-Z-Boy since joining the company. I look forward to working with him more closely as we continue to move La-Z-Boy forward in a dynamic marketplace. At the same time, I would like to extend my gratitude to David, who played a pivotal role in reshaping and setting La-Z-Boy on a new course during his tenure. He will be missed by all and we wish him all the best in his retirement."
La-Z-Boy has started a search for Riccio's replacement as corporate controller.
March 16,
2006 by in UnCategorized
By Home Furnishings Business in on March 2006
A decline in February sales is costing 37 hourly plant workers at Rowe Furniture's Elliston, Va., factory their jobs.
In addition, the upholstery producer also cut 21 positions at its Poplar Bluff, Mo., factory.
Parent company The Rowe Cos. posted a loss of $5.3 million for fiscal 2005. The Rowe Cos. also owns lifestyle retail chain Storehouse.
The company has been in the news most recently for Bruce Birnbach's departure from his newly appointed post of president for Rowe Sourcing. Prior to that, he was president of Rowe Furniture. The company said he left to pursue other opportunities. Earlier this year, Rowe fired its chief financial officer.
March 16,
2006 by in UnCategorized
By Home Furnishings Business in on March 2006
The U.S. Bankruptcy Court for the Northern District of Georgia has confirmed an amended plan of reorganization by RTA producer O'Sullivan. The approval will allow the company to emerge from bankruptcy in the next few weeks.
The plan calls for a cash payment for general unsecured creditors and a potential additional settlement for all vendors and utility providers who elected to participate, a warrant offering for senior subordinated note holders and the conversion of senior secured notes into substantially all of the equity of the reorganized company, along with $10 million in new junior secured notes.
In addition, the company has received a commitment to secure up to $50 million in exit financing from Wachovia Bank. The revolving credit facility, which will be secured by the assets of the company, will support the plan's implementation and provide working capital for the company's on-going operations.
"The plan confirmation and exit financing paves the way for us to emerge from bankruptcy in a very short time," said Rick Walters, interim chief executive officer. "This restructuring is an exciting step in the continued execution of our strategy."
O'Sullivan filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code Oct. 14.