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Leather powers continue to thrive

By Joan Gunin -- Furniture Today, March 3, 2002

Despite a somewhat bumpy economic ride this past year, manufacturers of stationary leather seating have managed to circumvent the potholes.

As the category continues to thrive, several stationary frame manufacturers have managed to rise above the rutted plain.

Many leather producers have held steady in the face of pendulum-like swings resulting from temperamental hide pricing and acute economic uncertainties. Here, some of those leaders within the industry — particularly those with earnings of more than $40 million in annual sales in the United States — key in on what sets them apart from their competitors.

Although the manufacturers have not been ranked, Natuzzi remains on top. With projected sales for 2001 of approximately $320 million for the Americas, it represents one of the few companies that is not only public but also breaks out its figures separately for its leather category.

In addition to those profiled here, other stationary manufacturers of note — due to size, creativity, brand name or just plain smarts — include American Leather, Ethan Allen, Flexsteel, Divania, La-Z-Boy, Omnia, Palliser, Soft Line and View Point.

The Asian-based vertical operations Home Impressions and HTL International are also striving to gain greater visibility within the U.S. marketplace.

Leather by the numbers Leather producers' estimated U.S. sales volume (fiscal year 2000)
COMPANY, HEADQUARTERS, WEB SITE ESTIMATED U.S. SALES VOLUME
American Leather, Dallas, www.americanleather.com $40 million
Ashley, Arcadia, Wis., www.ashleyfurniture.com $23 million (leather sales)
Broyhill, Lenoir, N.C., www.broyhillfurn.com $32 million
20% of leather product produced outside the United States
Chateaux d'Ax, Milano, Italy, www.chateau-dax.it $65 million
DeCoro, Forli, Italy $60 million
100% of leather product produced outside the United States
Divania, Modugno, Italy, www.divania.com $45 million
Flexsteel, Dubuque, Iowa, www.flexsteel.com $30 million (leather sales)
Klaussner, Asheboro, N.C., www.klaussner.com $180 million(leather sales)
LeatherTrend, San Diego, Calif., www.leathertrend.com $120 million
100% of leather product produced outside the United States
Natale, Gravina in Puglia, Italy, www.nfifurniture.com $45 million
100% of leather product produced outside the United States
Natuzzi, Santeramo in Colle, Italy $297 million
100% of leather product produced outside the United States
Nicoletti, Matera, Italy, $50 million
www.nicolettisalotti.it (Web site under construction)
100% of leather product produced outside the United States
Omnia Leather, Chino, Calif., $30 million
www.omnialeather.com
Palliser, Winnipeg, Manitoba, Canada www.palliser.com $100 million
Source: Estimates from Furniture/Today research, telephone interviews and company reports
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