Jennifer posts $711,000 loss as sales fall 12.6%
By Clint Engel -- Furniture Today, July 13, 2008
WOODBURY, N.Y. — Jennifer Convertibles posted a $711,000 loss in its fiscal third quarter, saying it was hurt by the downturn in the economy but is positioned well for an eventual turn.
Revenue from continuing operations for the chain of primarily sofa-sleeper specialty stores decreased 12.6% in the quarter ended May 24, to $28.4 million from $32.5 million a year ago.
The company posted a profit of $1.6 million in the 2007 quarter.
For the first nine months of its fiscal year, Jennifer reported a $2.5 million loss compared with a $2.2 million profit a year ago. Revenue from continuing operations declined 7.2% to $90.1 million.
During the third quarter, selling, general and administrative expenses from continuing operations increased to 30.4% of revenue, compared with 26.8% in the same period last year. Jennifer closed three stores in Ohio and one in New York, with the three Ohio stores counted as discontinued operations.
“Although we are disappointed with the results … we remain optimistic for the future,” said Jennifer CEO Harley Greenfield. “Sales have been dramatically impacted by the downturn in the economy and the housing market, which has hit the furniture industry particularly hard.”
Greenfield said Jennifer continues to monitor its costs and provide value to consumers without sacrificing margins. It has more than $9 million in cash and is “extremely well positioned to take advantage of the future upturn in the economy,” he said.
Greenfield also said the company’s new Ashley Furniture HomeStores division, generated a $129,000 operating profit in the quarter. The company opened its second New York-area HomeStore at the end of the quarter.
A Top 100 company, Jennifer Convertibles is the owner and licensor of 158 Jennifer Convertibles and 14 Jennifer Leather stores, as well as the two HomeStores. All but 22 stores are company-owned.
| Jennifer Convertibles | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 5/24 | 2008 | 2007 | Change |
| (a) Includes losses on discontinued operations of $67,000 in the 2008 quarter, $66,000 in the 2007 quarter, $230,000 in the 2008 nine months and $131,000 in the 2007 nine months. (b) Based on average shares outstanding of 7.1 million in the 2008 quarter and nine months, 8.5 million in the 2007 quarter and 8.7 million in the 2007 nine months. |
|||
| Revenues | $28,429,000 | $32,536,000 | (12.6%) |
| Operating income | (492,000) | 1,766,000 | — |
| Net income (a) | (711,000) | 1,609,000 | — |
| Earnings per share (b) | (0.10) | 0.18 | — |
| 9 months ended 5/24 | 2008 | 2007 | Change |
| Revenues | $90,121,000 | $97,141,000 | (7.2%) |
| Operating income | (1,908,000) | 2,540,000 | — |
| Net income (a) | (2,462,000) | 2,230,000 | — |
| Earnings per share (b) | (0.35) | 0.25 | — |
-
Jennifer Convertibles posts $711,000 loss
Jul 9, 2008 -
Jennifer reports 2Q loss of $6.4 million
May 3, 2010 -
Jennifer loss eases
Jan 13, 2008 -
Jennifer Convertibles sales slide 17.5% in 2Q
Apr 25, 2009 -
Jennifer Convertibles’ loss widens in latest quarter
Dec 21, 2009
Merinos Home Furnishings opening display room, Boyles addition
HOM Furniture adds flooring to six Twin Cities stores
‘Mega vessels' likely to boost capacity, stabilize freight rates
Ernest Warsaw, founder of Sheffield Corp., dies at 91
21 companies from Turkey, Taiwan and China to exhibit at Showtime
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
