Buffett: Nebraska Furniture Mart had good 2007
Sales up 8% in Kansas City, 6% in Omaha
Heath E. Combs -- Furniture Today, March 3, 2008
OMAHA, Neb. — Investor Warren Buffett said in his annual letter to shareholders that in a down year for some retailers, earnings at Nebraska Furniture Mart hit a record in its Omaha and Kansas City, Kan., stores.
Buffett did not quantify the earnings. But he said the stores each had sales of about $400 million. Sales at Kansas City increased 8%, while in Omaha the gain was 6%.
“These, by some margin, are the two top home furnishings stores in the country,” the chairman of holding company Berkshire Hathaway wrote in his much-anticipated yearly letter.
Buffett praised the Blumkin family, which has operated Nebraska Furniture Mart for decades, for the store’s success.
“Credit the remarkable Blumkin brothers, Ron and Irv, for this performance. Both are close personal friends of mine and great businessmen,” said Buffett.
In addition to Nebraska Furniture Mart, Berkshire also owns furniture retailers R.C. Willey Home Furnishings, Star Furniture and Jordan’s Furniture. The retail group also includes Borsheims, Helzberg and Ben Bridge jewelry retailers and See’s Candies.
Berkshire Hathaway’s retail group reported revenues of $3.4 billion in 2007, up $63 million or 2% versus 2006. Furniture segment revenues were not reported.
Furniture/Today reported estimated sales for the furniture division of $1.3 billion in 2006 and $1.2 billion in 2005.
Also in the letter, Buffett also extended his usual invitation to shareholders to shop at Nebraska Furniture Mart during “Berkshire Weekend” discount pricing in early May.
“We initiated this special event at NFM 11 years ago, and sales during the Weekend grew from $5.3 million in 1997 to $30.9 million in 2007. This is more volume than most furniture stores register in a year,” Buffett said.
Berkshire Hathaway, with insurance, energy, retail and housing holdings, reported net earnings of $13.2 billion in 2007 versus $11 billion in 2006 and $8.5 billion in 2005.
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