Clive Daniel Home Adds to Design Team

December 3, 2012   by in UnCategorized   

Reanna Rieman has been named to the design team at home furnishings retailer Clive Daniel Home in Naples, Fla. She previously provided administrative assistance in several departments at the store. 

The newest addition to the Clive Daniel Home design team believes combining art with fine furnishings can enhance the living experience.

Reiman has been dishing out genuine customer service for the past several years as the banquet and event coordinator for Angelina's Restaurant in Bonita Spings, Fla., where she lives. As part of her work at the restaurant, she also was responsible for server training and procedures, helping to win the famed eatery praise and respect for its wine and customer service focus.

"Reanna has already made a very positive impact with many of our customers," 

said Bonnie Kern, Clive Daniel Home general manager. "Her expertise in the world of art in an invaluable asset to our design team."

Hooker Has Good 3rd Quarter

December 3, 2012   by in UnCategorized   

Hooker Furniture (NASDAQ: HOFT) reported fiscal 2013 third-quarter sales of $56.8 million, a 4.8 percent rise over the prior year.

Net income for the period ended Oct. 28 rose 7.7 percent to $2.4 million, compared withn last year's third quarter.

Through fiscal 2013's first nine months, net sales were $158.7 million, a 5.6 percent drop; but net income rose 11.3 percent to $4.9 million.

Improved profitability in both 2013 fiscal periods was driven by lower sales discounting, reduced costs and greater domestic manufacturing efficiency. In case goods, higher revenues were driven by improved shipments of backlogs and a better in-stock position. Upholstery sales improvements, especially at Sam Moore and at Bradington-Young's import division, were driven by higher demand.

"Across both segments in the company, orders and shipments increased this quarter over the prior year," said Paul B. Toms Jr., chairman and chief executive officer. "We were able to increase net income over 11 percent for the first nine months of the year on lower sales, which indicates greater efficiency, particularly in upholstery manufacturing. We believe there's room for further improvement," Toms said.

In the upholstery segment, Bradington-Young has "achieved sustained profitability for several months as well as increased sales and order rates," said Michael Delgatti, president of Hooker Upholstery. "Sam Moore, on the other hand, came close to break-even as we work through a short-term profit challenge that relates directly to the most robust incoming order rate at Sam Moore in several years."

Brisk demand for Sam Moore's fully upholstered sofa line and other new product lines has necessitated a ramping up of production with accompanying higher labor rates and costs of goods sold.

"We expect to have our incoming order rates and production capacity better aligned by the end of our fiscal fourth quarter," Delgatti added.

Moving forward, Toms said that improved service levels and in-stock position in the third quarter bode well.

"Our improved in-stock position should also drive higher sales from special orders at retail," he said. "We've also been gratified that the Rhapsody Collection we introduced last spring has been performing very well at retail since it began shipping in September, and other collections are also retailing well. Demand is positive in every segment of our business, with our consolidated incoming order rate up just under 5 percent for the third quarter versus the same period last year.

"Our outlook is more bullish looking out to the second quarter of our next fiscal year and beyond than in the shorter term. Longer term, there are many positive signs from the housing sector, with increased housing activity, prices stabilizing and the highest home builder sentiment in six years. Consumer confidence is improving to more historically healthy levels driven by improvements in housing and gains in the stock market this year. All this bodes well for our industry longer term. In the shorter term, we believe the uncertainty around negotiations in Washington, D.C. regarding the so-called 'fiscal cliff' may create enough uncertainty for consumers to postpone big-ticket purchases."

Internally, Toms referred to successful implementation of Phase 1 of Hooker's enterprise resource planning  system over Labor Day weekend.

"While we are still working through numerous issues, we were pleased to have had a normal shipping month in September given the magnitude and scope of the project," he said. "We plan to begin Phase 2 in our upholstery segment in January with full implementation scheduled for late in the fourth quarter of fiscal 2014."

Abbyson Re-Makes Brand

December 3, 2012   by in UnCategorized   

Home furnishings vendor Abbyson Living is in the first phase of a rebranding and marketing campaign.

The move includes a new logo, tagline and Web site, and an intensified social media strategy that leverages the celebrity following the firm's products have developed.

"Abbyson Living has always been dedicated to building our brand name in the market," said Yavar Rafieha, vice president of Abbyson Living. "As we looked to expand our presence we realized that we needed to modernize and more clearly define our identity and position."

Abbyson Living, which focuses on transitional to contemporary living and dining room products, brought in Los Angeles-based MVC Agency, a specialist in brand building and marketing for upscale furniture brands, to spearhead the initiative.

"Our first goal was to reposition and redefine Abbyson's brand to better communicate their customer-oriented values, establishing it as a lifestyle-centric brand," said Jason Pires, MVC's president and brand director. "Abbyson Living has now established a more meaningful connection with its audience, based on core values, which in turn supports their retailer partners."

The new brand position focuses on Abbyson's heritage as a long-time family owned and run business, including featuring the family signature in the new logo. The company also worked with MVC to develop its new tagline "Inspired Elegance, for the Way We Live" to communicate values such as quality, style and familiarity.

The new marketing campaign includes an online social platform that highlights Abbyson's growing celebrity following, including Howie Mandel, Virginia Madsen and Jennie Garth of Beverly Hills 90210 fame.

Abbyson Living also has launched a redesigned Web site to offer an engaging and informative experience.

"We want to reward our customers, in appreciation of the time and attention they have given Abbyson Living," said Rafieha. "We want to offer a memorable experience through great imagery and information, but also to tell the Abbyson story. The new Web site triumphs in many respects."

FTC Requests More Info on Tempur-Pedic, Sealy Deal

December 2, 2012   by in UnCategorized   

The Federal Trade Commission has requested additional information from bedding suppliers Tempur-Pedic International (NYSE: TPX) and Sealy Corp. (NYSE: ZZ) in regard to Tempur-Pedic's proposed acquisition of Sealy.

The information request was issued under notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Because of the request, the waiting period will be extended until 30 days after each company has complied with the request. 

In a press release, the companies said they intend to respond to the information request and to continue to work cooperatively with the FTC in connection with this review. Completion of the transaction remains subject to the expiration or termination of the waiting period under the HSR Act and satisfaction of other customary closing conditions. Tempur-Pedic and Sealy continue to expect the transaction to close during the first half of 2013.

Sept. Furniture Orders up 10%

December 2, 2012   by in UnCategorized   

The latest Furniture Insights report shows new orders for furniture rose 10 percent in September compared with the same month last year.

High Point accounting and consulting firm Smith Leonard conducts the monthly survey of residential furniture manufacturers and distributors.

Through 2012's first three quarters, new orders remained up 5 percent over the same period a year ago. Last year at the same point, new orders were up 6 percent over 2010. Smith Leonard Managing Partner Ken Smith said the increase could be a timing issue--while several survey participants reported strong double-digit increases in orders, only 53 percent overall reported increases.

September shipments fell 1 percent from September a year ago.

"Again, we think this was probably also a timing issue" Smith said. "In September 2012, there were only 19 working days compared to 21 a year ago, so that probably impacted the shipping results."
 
Year-to-date, shipments were up 7 percent, down slightly from the 8 percent reported last month. Through September 2011, shipments were up 3 percent over the same period in 2010.
 
With orders exceeding shipments for the month, backlogs rose 9 percent over August. Backlogs in September were 13 percent higher than September 2011.
 
With shipments down 1 percent from September 2011, receivables also fell 1 percent from last September.

"Unfortunately, shipments fell 3 percent from August, yet receivables increased 3 percent from August levels," Smith said. "Since receivable levels have been in line most of the year, we expect that this month's unusual results were a result of timing."
 
Inventories rose 4 percent from last September, much more in line compared to the 9 percent reported last month.

"Inventories actually fell 5 percent from August," Smith said. "So it appears that inventories are being controlled based on current volume levels."
 
Factory and warehouse employment rose 4 percent over September 2011 levels; and was up 1 percent over August 2012; results that also appear in line with current conditions.
 
Factory and warehouse payrolls were flat with September 2011 but up 3 percent over August. Year-to-date, factory and warehouse payrolls are up 6 percent over last year down from a 7 percent increase we reported last month.

"Our latest survey of residential furniture manufacturers and distributors had a few unusual results but we believe some of the results were due to timing," Smith said in summary. "New orders were up 10 percent over September a year ago, but only 53 percent of the participants reported increased orders. But those reporting increases had some significant double digit increases."
 
Due to fewer shipping days in September this year, Smith believes it's best to focus on the year-to-date results. New orders year-to-date were up 5 percent. Through September last year, new orders were up 6 percent so we seem to continue to move upward.

While the elections are finally over, Smith remains concerned over how Congress will avoid a crisis with the "fiscal cliff."

"Surely they will do something," he said. "We think most of us, no matter the party affiliation, are sick and tired of Congress and the way they are acting. Everything seems to have to relate to politics versus what is best for the country (ok-off the soap box).
 
"But all of this is affecting business and consumer spending. Hopefully we will see some sort of reasonable compromise in the next few weeks."
 
He noted that consumer confidence continues to improve, with the Conference Board's Consumer Confidence Index reached its highest point in 4½ years.

"The University of Michigan report also noted their confidence index was at its highest point in five years," Smith said. "So hopefully, if we can get some resolution in Washington, confidence can continue to build.
 
"Housing also is continuing to improve. Home prices are rising giving people a bit more confidence as well. Interest rates are low. And the GDP is showing positive signs. According to the government reports, retail sales at furniture and home furnishings stores were up 8.4 percent for the first 10 months of 2012. Overall, we have some pretty good things to feel good about. Let's hope we can continue to move forward and Congress doesn't do anything stupid to push us back again."