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Brought to you by Home Furnishings Business
April 12,
2011 by in UnCategorized 
By Home Furnishings Business in Financial Reports on April 13, 2011
Bassett Furniture Inds. (NASDAQ: BSET) reported Tuesday that first-quarter 2011 sales rose 22 percent to $64.3 million compared with the same period a year ago.
Bassett, Bassett, Va., largely credited the sales increase to a 14 percent increase in total wholesale shipments and increased sales at retail due primarily to additional company-owned stores and a 7 percent increase in comparable store sales.
The company reported a net loss of $8.3 million, or $0.72 per share, for the first quarter, which ended Feb. 26, 2011, compared with a net loss of $1.7 million, or $0.15 per share, first-quarter 2010.
The results for this year's first quarter included $6.4 million of bad debt and notes receivable valuation charges; $1.3 million of lease and loan guarantee expense associated with licensee store closures and takeovers; $0.9 million of asset impairment charges; $0.9 million of lease exit costs associated with the closure of five company-owned stores; $0.7 million of periodic costs associated with carrying idle retail facilities; and a $0.4 million gain on the settlement of two mortgages.
"Our weakest licensed and corporate Bassett Home Furnishings retail stores have been a drain on our operating results for the past several years," said Robert H. Spilman Jr., president and CEO. "The company has steadily addressed many of these situations by closing or acquiring stores. These efforts continue in 2011 as we assess the viability of all remaining stores. Driven by a 22 percent sales increase, the fundamentals of our business improved markedly on a year over year basis. However, the store by store appraisal process produced bad debt, lease termination, and restructuring charges that were responsible for our first quarter loss.
"Looking ahead, we may record charges of a similar nature and size in the second quarter. We look forward to then turning our full attention to effectively operating our corporate stores and strengthening the performance of many of the healthy licensed stores in our network."
As of Feb. 26, the total store network included 51 licensee-owned stores and 45 company-owned and operated stores. As noted, the company acquired certain assets of three previously-owned licensee stores during the first quarter. In addition, the company closed five underperforming stores during the quarter.
The company-owned stores had sales of $37 million in the first quarter of 2011, a 36.8 percent increase over the prior-year period. Comparable-store sales rose $1.6 million, or 7 percent.
In addition, Bassett expects to recognize pretax proceeds between $73 million and $75 million upon closing of the sale of the International Home Furnishings Center, which is expected to occur on or before April 29.
April 12,
2011 by in UnCategorized
By Home Furnishings Business in Financial Reports on April 13, 2011
Hooker Furniture (NASDAQ: HOFT) on Tuesday reported net sales of $215.4 million and net income of $3.2 million for fiscal 2011.
Net income for fiscal 2011, ended Jan. 30, was up 7.7 percent compared with the prior year; and net sales rose 5.9 percent.
Net sales for the fiscal 2011 fourth quarter of $55 million were 4.3 percent higher than the prior-year period. Hooker lost $182,000 for the period.
"We're pleased to have grown sales across all divisions this year in a business environment that was still very challenging," said Paul B. Toms Jr., chairman, chief executive officer and president of Hooker Furniture, Martinsville, Va. "We finished the year with momentum, as the fiscal 2011 fourth quarter represented the third consecutive quarter of year-over-year sales increases. While we are disappointed we weren't able to leverage higher sales into higher profits, this year's accomplishments in many areas have positioned us to improve profitability going forward."
For the year's top line performance, the upholstery division led the way with a nearly 15 percent overall increase in net sales, including a 47 percent increase in imported leather upholstery unit volume compared with last year. Bradington-Young's domestically produced leather seating line also achieved growth with a 12 percent increase, marking the first year-over-year sales increase for domestic leather seating since 2005, said Alan Cole, president of Hooker Upholstery. Casegoods net sales increased $2.8 million, or 2 percent, during the fiscal year. Two noteworthy areas of growth for casegoods were the Envision line of casual, affordable furnishings targeted at younger consumers and sales to international customers.
"Envision sales and international sales each roughly doubled compared to last year," Toms said.
Looking ahead, Toms said consumer demand is improving, particularly in case goods, with significant double digit percentage increases for incoming orders during the first two months of the fiscal year.
"The momentum we've had for the last 11 months received another boost last week at the April High Point Market, where we introduced three major collections on the wood side that were all equally well-received," Toms said. "Strategically, we did the best job we've done to date in integrating our upholstery and wood furniture in room settings and in major collections, which mutually benefited both the wood and upholstery lines. We found retailers to be generally upbeat and eager to freshen their floors to prepare for improving business. The remerchandising and updating of our line over the last couple of years has helped us grow share of market and share of customer, as we've aligned with some of the largest and healthiest retailers, who have also gained market share during the downturn. Freight rates have stabilized, and are having less of an impact each month. We should work through the inventory that reflects higher freight costs by the end of the first quarter. We're experiencing additional inflationary pressure with significant cost increases from wood and upholstery suppliers which we will offset with a price increase to our customers. By and large, our upper income consumer demographic is feeling more secure financially and is returning to the market. We're relatively optimistic, expecting modest improvements through the year with some bumps, but an overall positive trend."
April 12,
2011 by in UnCategorized
By Home Furnishings Business in Retail Closings on April 13, 2011
An Ashley Furniture Homestore in Spokane, Wash., will liquidate its inventory and close.
A liquidation sale begins Thursday, David Burns, event manager at the store, said in a press release about the furniture store's closure.
Furniture industry sales consultant Deere Park Associates is serving as advisor to the liquidation sale.
April 12,
2011 by in UnCategorized
By Home Furnishings Business in Motion Upholstery on April 13, 2011
Massage chair vendor Human Touch has won three 2011 ADEX Awards for design excellence in the massage chair category.
Conducted each year by the Design Journal, the annual Awards for Design Excellence (ADEX) competition recognizes superior product design of furnishings marketed and sold throughout the international architecture and design industry. This is the third consecutive year that Human Touch products have been recognized by the ADEX Awards committee.
This year, Human Touch's new AcuTouch 9500 massage chair received the Platinum award for its state-of-the-art design and revolutionary features. Earlier this year, the AcuTouch 9500 with HT-Connect was also selected by the Consumer Electronics Association as a 2011 CES Innovations Design and Engineering Awards honoree in the Major Home Appliances category for its excellence in design and engineering.
Human Touch also received a Gold award for its HT-7120 ThermoStretch Massage Chair; and a Silver award for its new Perfect Chair Serenity.
The ADEX Awards are given annually to companies that exhibit an unwavering commitment to design and innovation, said John Platter, director of Awards for Design Excellence. "Human Touch continuously impresses our awards committee with its product innovation and design excellence. This year, we were extremely excited about Human Touch's award-winning products, and in particular, by the companys ability to morph today's latest technologies, such as the popular i-Devices, with its new AcuTouch 9500 massage chair, to offer consumers the highest level of comfort, wellness and convenience."
"The ADEX Awards for Design Excellence are among the most prominent awards granted by the home and furnishings architecture and design community," said Andrew Corkill, director of marketing for Human Touch. "We are highly honored to have received this recognition for the third consecutive year as a demonstration of our company's ongoing commitment to superior product innovation and providing consumers with ultimate enjoyment and wellness."
April 11,
2011 by in UnCategorized
By Home Furnishings Business in sourcing/importing on April 12, 2011
The American Home Furnishings Alliance will hold a Global Supply Chain Management Conference July 22-23 at Embassy Suites Kingston Plantation in Myrtle Beach, S.C.
This year's conference, "Facing the Storm: Bracing for Coming Challenges," will focus heavily on important compliance issues impacting the future of both global and domestic operations.
Addressing import and export compliance matters will be John Dellinger, corporate broker for Globe Express Services. Dellinger has more than 25 years experience in customs brokerage and compliance. He has served on the boards of the International Freight Forwarders/Customs Brokers Association and the National Customs Brokers and Forwarders Association of America at both local and national levels.
The agenda also includes an update on domestic compliance issues, including hours of service rules, the 2010 Compliance Safety Accountability program and the National Labor Relations Board's proposed rules governing notification of employee rights under the National Labor Relations Act.
In addition to these two important sessions, the annual conference will provide attendees with an insightful overview of global logistics and supply chain issues. The presenter is David Bennett, vice president of global logistics sales for Schneider Logistics International. Schneider provides comprehensive logistics services to small, medium and large shippers across the globe. From 1992 to 1998, Bennett held a key sales role at Globe Express Services before expanding his industry experience as regional vice president of sales, Pacific Coast, for K-Line America. Prior to joining Schneider Logistics, Bennett returned to GES and served as vice president of sales and development.
AHFA also has invited a representative of a leading online retailer, Lou Ferris of Bari Furniture, to identify the top logistics issues for today's e-commerce companies, while a panel of traditional retailers will discuss key challenges for their operations.
Finally, a panel of ocean carriers is expected to offer insights on weathering the storm of volatile freight pricing and other issues rocking the import logistics boat.
AHFA has held an annual conference to address current transportation, logistics and supply chain challenges for more than 40 years. All retail, manufacturing and supplier companies interested in discussing and jointly seeking solutions to current logistics challenges in the home furnishings supply chain are urged to attend. Companies do not need to be AHFA members to participate.
The Supply Chain Management Conference is supported by the Specialized Furniture Carriers, a network of the leading furniture carriers, which will hold its annual meeting in advance of the annual educational conference. The 3 to 6 p.m. Specialized Furniture Carriers meeting on July 20 is open to any interested attendee.
In addition, AHFAs Transportation and Logistics Board will hold a meeting from 3 to 5 p.m. on July 21. This meeting also is open to any interested conference attendees.
The $395 conference registration fee covers a 5:30 p.m. opening reception July 21, light breakfast July 22 and 23, and lunch on July 22. Education sessions will run from 8:15 a.m. through 4 p.m. on July 22 and from 8:15 to 11:45 a.m. on July 23.
A special registration of $345 is offered for those attending the conference for the first time.
An optional golf outing is planned for 8:30 a.m. July 21 at Arcadian Shores Golf Course. Cart and green fees, plus a box lunch, are $72 per person. Pre-registration is required.
Those interested in attending the Global Supply Chain Management Conference should make hotel reservations as soon as possible by contacting the hotel directly at 843.449.0006. Reduced rates for conference attendees range from $215 to $269 a night. Contact the hotel prior to June 20 and mention the AHFA meeting to take advantage of the group rates.