Sales decline for most Top 25 contenders
By Furniture Today Staff -- Furniture Today, May 21, 2007
High Point — Six of the nine companies on Furniture/Today's Top 25 contenders list had sales declines last year, mainly reflecting the industry's second-half doldrums.
The contenders include several companies not quite large enough for the Top 25 list of furniture sources for the U.S. market.
Topping the list was LeatherTrend, the leather and fabric upholstery specialist and one of just two of the second-tier companies to post sales gains. It reported an improvement for the year of 3.9%, to $187.5 million.
The other gainer among the contenders was Riverside Furniture, whose U.S. shipments rose 4.8% to $113.1 million.
One company on the downward slide last year was O'Sullivan Inds., whose U.S. sales were estimated to tumble 21.2% last year to $184 million. O'Sullivan said last month it will close its manufacturing operations this year. It has sold certain intellectual assets to rival Sauder Woodworking, which plans to take over production of some of the best-performing O'Sullivan lines.
Sales declines aren't always bad news, said Bob Maricich, president of high-end manufacturer Century Furniture Inds. The company's U.S. volume declined by 6.5% last year, to just under $140 million, but he said that was by design.
"We got out of some relationships that weren't profitable, and we're really pleased with what's going on," said Maricich. "Last year was our third most profitable year ever."
He said Century has largely pulled out of the guest room business — where contracts tended to go the lowest bidders, limiting profits. It also has combined some case goods collections and invested in its factory, focusing on "doing things properly." So far this year, he added, orders are up.
Vaughan-Bassett executives weren't so happy with the sales decline at their company, whose U.S. business fell 12.9% to $116.8 million.
"Last year was a tough year for us. We also sold our Virginia House facility," said Doug Bassett, executive vice president of sales and marketing. He said sales were trending down in the latter part of 2006 and into this year.
"We were off double digits in the first quarter but we had a good market with American Farmhouse," he said. The ambitious High Point case goods introduction has helped the company set weekly order records since market, said Bassett.
| Some Top 25 contenders | |||
|---|---|---|---|
| U.S. furniture shipments in $ millions | |||
| Company | 2006 | 2005 | Percent change |
| e = Furniture/Today estimate R = revised Figures are for total furniture shipments to the U.S., including bedding, contract and accessories for some companies. Non-furniture revenues (such as textile products, components, investment income) have been excluded and are described in the notes, with specific amounts given when possible. All figures for 12 months ended Dec. 31, 2006 and 2005 unless otherwise indicated. Source: Furniture/Today market research |
|||
| LeatherTrend | $187.5 | $180.5 | 3.9% |
| U.S. sales accounted for 97.1% of shipments in 2006 and 95% in 2005. Total 2006 revenues, $193.1 million. | |||
| O'Sullivan Inds.e | $184.0 | $233.6 | -21.2% |
| For the trailing 12 months ended Dec. 31, 2006 and 2005. Fiscal year ended June 30, 2006. U.S. sales accounted for 92% of shipments in 2006 and 93% in 2005. Total 2006 trailing 12 month revenues, $200 million. | |||
| Chromcraft Revington | $158.9 | $167.9 | -5.4% |
| Includes contract furniture shipments. U.S. sales accounted for 99% of shipments each year. Total 2006 revenues, $160.5 million. | |||
| Norwalk Furniture Corp. | $145.0 | $145.0 | 0.0% |
| Includes contract furniture shipments. U.S. sales accounted for 98% of shipments each year. Total 2006 revenues, $159 million. | |||
| Century Furniture Inds. | $139.8 | $149.5R | -6.5% |
| U.S. sales accounted for 94.7% of shipments in 2006 and 95.5% in 2005. Total 2006 revenues, $147.6 million. | |||
| Collezione Europa | $122.3 | $124.7R | -2.0% |
| U.S. sales accounted for 97.9% of shipments in 2006 and 98.2% in 2005. Total 2006 revenues, $124.9 million. | |||
| Vaughan-Bassett | $116.8 | $134.0R | -12.9% |
| For fiscal years ended Dec. 2, 2006, and Dec. 3, 2005. U.S. sales accounted for 99% of shipments each year. Total 2006 revenues, $118 million. | |||
| Riverside Furniture | $113.1 | $107.9 | 4.8% |
| U.S. sales accounted for 98% of shipments in 2006 and 99% in 2005. Total 2006 revenues, $115.4 million. | |||
| Shermag | $100.8 | $123.8R | -18.6% |
| For the trailing 12 months ended Dec. 29, 2006 and 2005. Fiscal year ended March 31, 2006. U.S. sales accounted for 68% of shipments in 2006 and 70% in 2005. Total 2006 revenues, $148.2 million. | |||
