Jennifer returns to positive net worth with a 39.2% 4Q profit jump
By Furniture Today Staff -- Furniture Today, December 2, 2001
WOODBURY, N.Y. — Jennifer Convertibles posted a 3.1% increase in fiscal fourth-quarter sales and a 39.2% increase in profits as the company returned to a positive net worth for the first time in years.
Sales for the 190-store sofa-sleeper and leather specialty retailer were $34.3 million for the quarter ended Aug. 25, up from $33.3 million for the same period a year ago. Net income rose to $3.2 million. Same-store sales dipped 4.3%.
For the fiscal year, Jennifer's sales increased 4.3% to $129.1 million, while net income was $4.1 million, down 14.5% from $4.8 million last year. Same-store sales were down 4.3% for the year.
"Our continued progress in a weak economic climate is the result of our flexible marketing and merchandising abilities and our relentless focus on expense reductions," said Harley Greenfield, chief executive officer.
Stockholder equity at the end of the year was $830,000, the first time it has been in positive territory since a 1994 restatement of earnings. At the end of fiscal 1997, Jennifer's net worth was a negative $13.4 million, but that finally has been whittled away.
"It's been a long road to regaining positive net worth," Greenfield said. "Our four consecutive years of profits has allowed this to be achieved."
He said this will allow Jennifer's stock to be listed again on one of the main stock exchanges — either the American Stock Exchange or NASDAQ — instead of as an over-the-counter bulletin board stock.
Greenfield said NASDAQ's delisting in 1994 hasn't affected company operations, although relisting will improve stock liquidity. He anticipates relisting by the end of next year.
While business conditions continue to be challenging, Greenfield said Jennifer expects to be profitable next year, even if sales are flat to slightly down. "If we can raise the comps and keep expenses low, we stand to make a lot of money," he said.
A Top 100 company, Jennifer has 173 stores operating as Jennifer Convertibles and 17 as Jennifer Leather. The company owns 114 stores and licenses 76.
Jennifer Convertibles opened 12 stores in existing markets in the past fiscal year and plans to continue aggressive expansion this year, Greenfield said, adding that tough market conditions have created some particularly good real estate opportunities. He wouldn't say how many stores the company expects to open.
| Quarter ended 8/25 | 2001 | 2000 | Change |
|---|---|---|---|
| Sales | $34,341,000 | $33,303,000 | 3.1% |
| Operating income | 3,134,000 | 3,404,000 | (7.9%) |
| Net income | (a)3,232,000 | (b)2,322,000 | 39.2% |
| Earnings per share | 0.45 | 0.32 | 40.6% |
| Year ended 8/25 | 2001 | 2000 | Change |
| Sales | $129,065,000 | $123,713,000 | 4.3% |
| Operating income | 5,926,000 | 6,745,000 | (12.1%) |
| Net income | (a)4,086,000 | (b)4,780,000 | (14.5%) |
| Earnings per share | 0.57 | 0.66 | (13.6%) |
| (a) Includes a $80,000 pretax gain on the reversal of certain charges and write-off provisions in both periods. (b) Includes a $117,000 pretax charge for certain charges and write-off provisions in both periods. | |||
-
La-Z-Boy earns $11M profit
Feb 22, 2010 -
Jennifer reports 2Q loss of $6.4 million
May 3, 2010 -
Culp sales drop 25.4%, with profit of $1.7M
Jul 6, 2009 -
Jennifer Convertibles sales slide 17.5% in 2Q
Apr 25, 2009
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
