Jennifer Convertibles reports smaller loss
Ashley HomeStore helps first-quarter results
Clint Engel -- Furniture Today, January 8, 2008
WOODBURY, N.Y. — Jennifer Convertibles posted a fiscal first quarter net loss of $505,000, an improvement over a loss of $637,000 for the same quarter a year ago, thanks largely to a shot in the arm from its new Ashley Furniture HomeStore business.
Revenue for the period ended Nov. 24 increased 6.5% from a year earlier, to $34.7 million. The company attributed the jump to the $2.6 million in revenue from the Ashley store. Sales at the Jennifer stores, meanwhile, were down slightly.
Harley Greenfield, CEO of the 162-store Top 100 company, said he was “extremely pleased with the results” from the Ashley store, which generated a profit of $146,000. The store opened on Long Island in metro New York in June.
“Although revenues in our Jennifer stores were impacted by the decline in overall demand within the furniture industry, we continue to monitor costs and adjust merchandising and advertising strategies and expect to regain overall profitability in the second half of our fiscal year,” said Greenfield.
He added that the company has a strong balance sheet with cash and securities of more than $16 million. Jennifer plans to announce the location for its second HomeStore shortly.
The company owns and licenses 161 Jennifer Convertibles sofa-sleeper specialty stores, including 16 Jennifer Leather stores, and the one Ashley store.
In releasing its results, Jennifer said its operating profit margin from continuing operations rose slightly in the first quarter, to 30% from 29.9% a year ago. Selling, general and administrative expenses decreased to 31.1 % of revenue from 31.5%.
During the quarter, the company closed one store in Miami and one in Woodland Hills, Calif.
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Jennifer loss eases
Jan 13, 2008
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