Jennifer loss eases
By Clint Engel -- Furniture Today, January 14, 2008
Woodbury, N.Y. — Jennifer Convertibles posted a fiscal first quarter net loss of $505,000, an improvement over a loss of $637,000 in the comparable quarter a year ago, thanks largely to a shot in the arm from its new Ashley Furniture HomeStore business.
Revenues in 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 revenues 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 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 Ashley 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.
| Jennifer Convertibles | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| 13 weeks ended 11/24 | 2007 | 2006 | Change |
| (a) Includes income from discontinued operations of $7,000 in the 2007 period and loss from discontinued operations of $10,000 in the 2006 period. (b) Based on weighted shares outstanding of 7.1 million in the 2007 period and 6.8 million in the 2006 period. | |||
| Revenues | $34,702,000 | $32,577,000 | 6.5% |
| Operating income | (393,000) | (523,000) | |
| Net income (a) | (505,000) | (637,000) | |
| Earnings per share (b) | (0.07) | (0.09) | |
