Chromcraft posts $6 million quarterly loss
Sales tumble 21.9%, to $25.8 million
Larry Thomas -- Furniture Today, August 12, 2008
WEST LAFAYETTE, Ind. — Chromcraft Revington reported a second-quarter net loss of $6.04 million Monday as sales fell 21.9%.
The net loss, which equals $1.32 per share, was nearly double the loss reported in last year’s second quarter, when the company lost $3.3 million or 73 cents per share.
Sales for the quarter ended June 28 were $25.8 million, down from $32.8 million in last year’s second quarter.
Ronald Butler, chairman and CEO, said residential furniture shipments were lower in all categories due to weak retail business conditions, competitive pressure from imports, the discontinuation of certain domestic products before imported replacements were available, and various restructuring activities.
“We will be focusing on reducing costs to match our present level of revenue, improving our supply chain and product offerings, and driving the initiatives necessary to complete our transition,” Butler said.
Sales for the first six months of the year fell 20.4% to $53.1 million. The company’s first-half net loss came to $8.28 million or $1.81 per share.
In the first half of last year, the net loss was $4.48 million or $1 per share.
The company manufactures and imports furniture under the Chromcraft, Peters-Revington, Silver, Cochrane and Sumter brand names.
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To Chromcraft,
Our Chromcraft sales are already ahead of all of 2007. We don''t sell the junk, just the better domestic products. Our sales would be 3x or 4x higher if this company would make domestic product that appealed to people under AARP age. I recently found an inventory from 1995. The sets on that inventory were basically the same as what''s available to us today. Would you buy a car with 13 year old styling? Didn''t think so. How do you expect people to buy a dinette set with 13 year old styling? At any price?
Cutting choices and quality by making it in China may bring the retail price to $899 or $999 but do you think people will spend that much money for a lesser product? Customers just won''t buy, they''ll leave in frustration that they can''t get what they want. I know, I see it every day.
Hire a designer, and do it right this time. Reproducing Jetson''s acrylic sets from the 60''s was not the answer. I realized that when we delivered a new set (not Chromcraft) to a customer and their old acrylic set was on the front lawn. Just for kicks I turned the chair over - and it was an original chrome-plated Chromcraft from many years before (in perfect condition I might add.) As soon as I got back to the store I marked down the acrylic set we had to below cost just to get rid of it.
Also, don''t knock off other factories. You can''t get the details right. The nice looking brushed steel stationary chair from a couple of years ago comes to mind. Better made than the original, and less expensive. We carried both yours and the original, and yours didn''t sell. Again, the details weren''t there and our customers could tell. Your domestic stationary product can sell, I''m a retailer and I know it. But it has to be original and look great. Just pay a designer and do it right. Find John Klein, he knows what works. Your quality is there, just put more desire into the product.
As a publicly traded company, its tough to tell your shareholders that you plan to do less business this year than last. However, we are in a business that is contracting, and everyone knows it. And as the results show, imports aren't the answer.
Factories are dropping like flies. This is a great opportunity. The Chromcraft name still means something to many people. Have a plan. Be better. Don''t milk your reputation. Keep Americans employed. Make a quality product, and make it desirable.
I know the economy stinks but take two seconds and see how just many lawyers and doctors and other people of means are out there, people with money in this poor economy, people who will spend what it costs to get what they want, people under the age of 50. Can''t you make product for these people too?
Your import program with sharp price points is aimed at people with literally no money to spend on furniture.
Accept being smaller but better. In the year 2008 that will be the trait of survivors, and you need to survive to be around when things improve.
Steve Oster - 2008-13-8 10:35:00 EDT -
They finally got rid of 2 cancers.
Karen J - 2008-12-8 22:22:00 EDT -
It's easy to start to figure out why- the companies with the best sales are the big chains- Chromcraft doesn't support these stores well- their catalogs are confusing and out of date as are their price books. The website has been down for months "under construction." It's as if they don't want to sell anything. If you look at Amisco, their books and website aren't much better. Double digit sales loss for both because they aren't moving with a changing world.
Hosehead - 2008-12-8 21:11:00 EDT
Chromcraft Revington trims loss in quarter
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