Rowe Companies sales rise 11.6% in 2nd quarter
By Furniture Today Staff -- Furniture Today, June 27, 2004
McLean, Va. — The Rowe Companies, parent of upholstery maker Rowe Furniture and retailer Storehouse, recorded an 11.6% sales gain in its second quarter ended May 30, as sales reached $75.9 million compared with $68.1 million in the comparable 2003 quarter.
Profits for the quarter rose more than eightfold to $715,000 from $89,000 a year ago. Excluding net gains from discontinued operations and the sale of Mitchell Gold, Rowe said the year-ago net loss would have been $642,000.
Chairman and President Gerald Birnbach said, "Same-store sales growth at our Storehouse unit for the quarter was 8%. Total sales increased 13.8% in our retail unit and 9.7% in our manufacturing unit."
He noted the same-store sales gain was on top of a 13% increase a year ago.
Direct-to-consumer sales, from the Internet and catalog, were $1 million in the quarter. Rowe introduced its catalog last fall and its Internet site went live in March.
Sales for the first six months were up 11.3% to $146.7 million, measured against $131.8 million last year. Net income for the six months was up 725% to $759,000 from $92,000.
The 2004 six months included a $105,000 net loss from discontinued operations, and the 2003 six months included $1.1 million in net income from discontinued operations and a $462,000 net gain on the sale of Mitchell Gold. Excluding the net income and net gain, Rowe would have posted a net loss of $1.5 million for the 2003 six months.
Rowe said retail sales in the 2004 six months were up 18.6%.
In a conference call with analysts, Birnbach said Rowe had added two large accounts: Warren, Mich.-based Art Van, No. 12 on Furniture/Today's Top 100 furniture stores ranking, and St. Louis-based May Department Stores, a Top 25 U.S. furniture retailer.
Storehouse plans to open an additional one or two net stores this year, and a net five or six stores next year.
| The Rowe Companies | |||
|---|---|---|---|
| Owns Rowe Furniture and Storehouse | |||
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 5/30 | 2004 | 2003 | Change |
| (a) Includes a $125,000 pretax retail restructuring and other charges in both periods, income tax benefits of $415,000 in the 2003 quarter and $885,000 in the 2003 six months, net earnings from discontinued operations of $269,000 in the 2003 quarter and $1.1 million in the 2003 six months and a $462,000 net gain on the sale of Mitchell Gold in both periods. (b) Based on average shares outstanding of 13.5 million in the 2004 periods and 13.2 million in the 2003 periods. (c) Includes a $105,000 net loss from discontinued operations. |
|||
| Sales | $75,922,000 | $68,059,000 | 11.6% |
| Operating income | 1,587,000 | (307,000) | — |
| Net income | 715,000 | (a)89,000 | 703.4% |
| Earnings per share (b) | 0.05 | 0.01 | 400.0% |
| 6 months ended 5/30 | 2004 | 2003 | Change |
| Sales | $146,668,000 | $131,778,000 | 11.3% |
| Operating income | 2,465,000 | (648,000) | — |
| Net income | (c)759,000 | (a)92,000 | 725.0% |
| Earnings per share (b) | 0.06 | 0.01 | 500.0% |
-
Rowe sales rise 11.6% in 2Q
Jun 27, 2004 -
Rowe 4Q shipments, profits sag
Feb 13, 2005
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
