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Jennifer Convertibles cuts loss as sales rise 1.2%

Larry Thomas -- Furniture Today, July 13, 2011

WOODBURY, N.Y. — Retailer Jennifer Convertibles said sales rose 1.2% in the quarter ended May 28, and the company cut its net loss to $1.95 million.

The retailer, which emerged from Chapter 11 bankruptcy protection in February, said the latest numbers show it is making progress towards its goals of returning to profitability and establishing Jennifer as a "vibrant entity."

"We are at various stages of implementation of many new initiatives including, but not limited to new products, new vendors, new marketing campaigns and some more efficient supply chains," said Rami Abada, president. "We will continue to explore other opportunities to return us to profitability and provide quality and value to our consumers."

Sales for the period - the third quarter of the retailer's fiscal year - totaled $19 million, compared with $18.8 million in the same quarter last year.

The net loss, which equals $1.95 per share, compares with a loss of $4.78 million or 68 cents per share, in the comparable period in 2010.

The most recent per-share figures are higher than the 2010 numbers because the company had only 1 million shares of stock outstanding after emerging from bankruptcy, compared with nearly 7 million outstanding shares a year earlier.

For the nine months ended May 28, sales totaled $54.3 million, down 3.6% from $56.3 million in the first nine months of the previous fiscal year.

Net income for the most recent nine months was $26.8 million, a figure that included a one-time gain of $33.4 million from the discharge of debt while in bankruptcy protection. In the first nine months of the previous fiscal year, the retailer recorded a net loss of $18.1 million.

Jennifer emerged from bankruptcy with 90% of its stock controlled by Chinese furniture producer Haining Mengnu Group, its largest supplier.

The company has 65 Jennifer Convertibles sofa-sleeper specialty stores, eight Jennifer Leather stores, and six licensed Ashley Furniture HomeStores.

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Jennifer Cuts Loss; Sales Up 1.2%

Jul 22, 2011

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