Furniture|Today 04/29/2002 Table of Contents

Table of Contents

Furniture|Today -- 04/29/2002

Bedding Today

Market gives boost to one-sided beds
There was plenty of bedding news at the just-concluded market. So much, in fact, that we can only start our market commentary this week. One interesting development was the introduction of several one-sided beds. Three different bedding producers said positive things about one-sided beds. The latest comments clearly demonstrate the one-sided bed has a number of supporters in the industry.

Business Today

Havertys 1Q profits surge 56.3% on sales gain of 4.4%
ATLANTA — Havertys posted a 56.3% increase in first-quarter profit and a 4.4% sales gain, with imported goods and its proprietary Havertys branded merchandise playing a key role. The Atlanta-based retailer earned $6.7 million on sales of $175 million in the quarter. Same-store sales increased 3.
FBI acquisitions lead to big sales, earnings gains
ST. LOUIS — Furniture Brands International reported a first-quarter sales increase of 25.3% to $634.5 million and a 66.5% jump in net income to $32.8 million. Much of the sales increase for the leading U.S. furniture maker was due to its acquisition late last year of Drexel Heritage, Henredon and Maitland-Smith.
Chromcraft Revington's sales drop 7.6%
DELPHI, Ind. — Full-line manufacturer Chromcraft Revington's first-quarter earnings were down 4.7% from a year ago before a big one-time charge as sales declined 7.6%, the company said. The company recorded a non-cash charge of $26.7 million in the quarter for a writedown of goodwill value, in compliance with a new accounting standard, giving it a $23.
Pier 1 4Q net income jumps 34%, sales up 11%
FORT WORTH, Texas — Benefiting from consumers' desire to concentrate on the home following the Sept. 11 terrorist attacks, Pier 1 Imports posted a 34.3% increase in its fourth-quarter profits and revised its first-quarter earnings guidance upward. Net income for the fourth quarter ended March 2 rose to $49 million, up from $36.
Cone Mills reports 1Q profit despite 20.2% drop in sales
GREENSBORO, N.C. — Cone Mills, whose Cone Jacquards division supplies upholstery manufacturers, said it turned a profit in the first quarter despite a 20.2% sales decline. Net sales were $105.8 million, compared with $132.7 million in the first quarter of 2001. Sales for the decorative fabrics segment were off 7.
Dorel earnings surge 30%; 1Q RTA sales decline 5.7%
MONTREAL — Dorel Inds. said first-quarter total sales rose 4% to $255 million and earnings surged 29.6% to $15.7 million despite a 5.7% drop in ready-to-assemble furniture sales, mainly due to a sharp dip in orders from bankrupt Kmart, one of its largest accounts. RTA sales in the quarter were $70.

News

Todd Wanek succeeds father as Ashley CEO
ARCADIA, Wis. — Todd Wanek has succeeded his father, Ron Wanek, as chief executive officer of manufacturer Ashley Furniture Inds. The transition involves no other management changes, said Ron Wanek, who will continue as chairman. Todd Wanek was president and chief operating officer and will retain those responsibilities in his new position.
Center Point to expand into adjacent facility
HIGH POINT — The owner of Center Point has purchased a vacant factory building behind the showroom complex here and will convert the building to additional showroom space. Center Point owner Lynn Davis said the former Hickory Springs factory at Russell Avenue and Manning Street will be named Center Point on Manning.
RightLinx to shut down after selling Knowit
HIGH POINT— RightLinx has sold its Knowit sales force automation software suite to Symetri, an e-business consultancy based here, and will shut down all other operations this month. Terms of the sale were not released. RightLinx, an e-business software specialist, acquired Knowit more than a year ago and used it to anchor several business-to-business software products tailored for the fur...
Furniture Brands readies push in retail franchising
High Point— With an aggressive plan for store openings in its Thomasville and Drexel Heritage divisions, Furniture Brands International is looking for significant growth in the already-hefty amount of retail distribution it controls. At the just-ended market here, FBI Chairman Mickey Holliman outlined how FBI plans to expand its retail presence.
Focus on cash management helping FBI absorb its recent acquisitions
HIGH POINT— A strong focus on cash management at Furniture Brands International has helped the company comfortably absorb the acquisition of Drexel Heritage, Henredon and Maitland-Smith. A "cash is king" mentality also means Furniture Brands could move quickly if and when other acquisition opportunities arise, and provide turn-on-a-dime support to operating companies when necessary.
FBI sorting out price points
HIGH POINT — Furniture Brands International has a clear idea of its price point positioning among its new and old brands. Henredon will be at the top, luxury price point, with Heritage just below and Drexel the next step down, said FBI Chairman Mickey Holliman. Thomasville fits just under Drexel, and midpriced Broyhill and Lane fill out the major brand statements.
Market ready to tackle parking
HIGH POINT— Fresh from an overhaul of the market's shuttle system, the International Home Furnishings Market Authority moved ahead last week on another major headache — parking. The board agreed the lack of reasonably priced downtown parking is still first on the complaint list of many marketgoers, but said finding additional space for parking will be difficult and expensive.
Latex Foam, Louisville Bedding forge alliance
SHELTON, Conn. — Latex Foam Products, a producer of latex foam pillows, has formed a strategic alliance with Louisville Bedding, a producer and distributor of pillows and mattress pads. Latex Foam also produces latex used by mattress makers. It is North America's only producer of latex foam pillows and mattresses.
Obituaries
Jay Henry Hershey, industry veteran
MIDLOTHIAN, Va. — Jay Henry Hershey, who worked in the industry with Armstrong World Inds. and later as an economic development representative for the state of Virginia, has died. He was 78. Hershey retired last year as manager of the International Market Planning Program, later called the Global Market Research Program, of the Virginia Economic Development Partnership/Division of Interna...
Globiz makes market debut distributing for Segusino
DALLAS — Globiz, a logistics, trading and consulting company based here, showed at the High Point market for the first time as the exclusive U.S. distributor for Mexican-based case goods manufacturer Segusino. Gerardo Gomez, formerly Segusino's general manager, has joined Globiz to run its trading division, which handles Segusino distribution.
Hatcher, Robbins launch design firm
WINSTON-SALEM, N.C. — Industry veterans David Hatcher and Bryan Robbins have formed an independent design company, Hatcher & Robbins Creative Design Services. Hatcher, president of Hatcher & Robbins, most recently was the senior vice president of design and product development for Maitland-Smith and its La Barge subsidiary.
Court clears way for Stoneville purchase
STONEVILLE, N.C. — A federal bankruptcy court has approved casual dining producer Stoneville Furniture's reorganization plan, paving the way for management to purchase the company. The 76-year-old manufacturer has been operating under Chapter 11 bankruptcy protection since July 2001. President Robert Koenig said he and other managers expect to buy Stoneville from River Associates of Chat...
Comfort Furniture veterans form upholstery producer
TUPELO, Miss. — A group of former Comfort Furniture executives have launched New Look Second Generation, a maker of midpriced upholstery and recliners. The executives are Mark Nanney, president of New Look; Jim Tackett, vice president of sales; Craig Wedel, vice president and secretary/treasurer; and Eddie Harper, vice president of production.
Kass resigns as Robert Allen Group CEO
NEW YORK — Ron Kass has resigned as chief executive officer of fabric supplier The Robert Allen Group. Kass, who joined the company in 1994 and headed its turnaround, said, "I have wanted for some time to own part of a company and now will pursue my personal goal — teaming up with a major private equity firm to pursue acquisitions in the home and office furnishings and related indus...
Milan show excites buyers
MILAN, Italy — It was, in the opinion of a diverse group of Americans, one of the best Salone del Mobile shows in a number of years, with new materials, lots of lacquer and lots of color. "It was a great show, not so much in terms of breakthroughs but in taste, excitement and maturity of product," said Michael Lerner, president of Roche Bobois USA.
Nationwide seeks to sell all its stores
Norcross, Ga.— Nationwide Warehouse & Storage is scaling back its store count again, then hopes to sell what's left in an effort to avoid foreclosure by its debtor-in-possession lender. The promotional Top 100 company, which filed for Chapter 11 bankruptcy protection in October, has asked the court for permission to auction off substantially all of its remaining assets at 63 stores in...

Opinion Today

Broyhill's best salesman is also its top executive
As someone who has been a trade journalist for some 25 years, believe me when I say I've had my share of showroom tours. Let me share a secret with you. They fall into three major classifications: the good, the bad and the ugly. In my book, to earn a good rating, an exhibitor has to show well-designed product with price tags that match the quality.
Why you should take the conference plunge
I have the best collection of polo shirts, coffee mugs and tote bags in my neighborhood, but not all my neighbors are jealous because all bear furniture company logos. I attend several furniture-industry conventions, conferences and other confabs every year. The shirts and other trinkets are my souvenirs, which is nice even if one does start to resemble a walking billboard.
What a difference a year makes!
The mood, environment and energy at the market was a dramatic change from last April, when everyone seemed to be in denial concerning the economy and the role of imports. The energy of both buyers and sellers was clearly discernible this market, and it had only a bit to do with product. It was more a feeling that to feel good about the business was OK.

People Today

Glick joins La Vita
LINDEN, N.J. — Veteran Powell executive Robert Glick has joined importer La Vita as executive vice president of sales and marketing. Glick was at Powell nearly 20 years, most recently as senior vice president of sales and product development and director of national accounts. Powell did not announce any staff changes with his departure.
Barr tapped as HTL president
ARCADIA, Calif. —Stephen Barr has been named president of HTL Furniture, a subsidiary of Singapore-based leather tanner and upholstery manufacturer HTL International. Barr, a 20-year industry veteran, most recently was vice president of leather upholstery for Ashley's Millennium division. He began his career at retailer-manufacturer Krause's Sofa Factory, ran his own leather care busi...
New Directions names Perone SVP of marketing
PHOENIX — Case goods resource New Directions Mfg. has named Sam Perone to the new position of senior vice president of marketing. He joined the company in 1995 and has been national accounts manager since 1999. A 28-year industry veteran, he previously worked for A-America, Brookwood, Schnadig and Bassett.
Arrington is Kincaid retail operations VP
HIGH POINT —Angela Arrington has joined Kincaid as vice president of retail operations, a new position at the solid-wood case goods and upholstery manufacturer, a division of La-Z-Boy. Arrington, who reports to president and chief executive officer Steve Kincaid, will oversee Kincaid's dedicated store and gallery programs and its advertising, marketing and display planning departments.
People on the Move
People on the Move

Special Report

Market Highlights
Stanley readying a Blockbuster deal
HIGH POINT — Stanley Furniture has teamed up with Blockbuster Video to promote the re-engineering of its home entertainment furniture. Stanley will offer 25 free movie rentals on DVD or VHS at Blockbuster stores to all consumers who buy a home entertainment system between Oct. 1 and Jan. 6. "This promotional tie-in with Blockbuster is especially enticing because we share the same target m...
Market Highlights
Hot entertainment category drives action for RTA makers
HIGH POINT — Entertainment is the hot category in ready-to-assemble furniture, and retailers at market responded to everything from traditional to futuristic designs. The latest generation of big televisions and other consumer electronics has given flat-pack furniture producers and retailers a pass to slightly higher price points and improved margins.
Market Highlights
Versatility, value key small office/home office
HIGH POINT — Versatility and value drove small office/home office activity this market. Since many consumers don't have space for full-blown home offices, producers brought out a variety of pieces suitable for smaller spaces. They also sharpened their pencils, tapping new import capabilities as well as improved domestic efficiencies to offer more features for the money.
Market Highlights
RTA producers seek 'spirit of innovation'
HIGH POINT — Flat-pack furniture makers continued to tinker with their home office assortments here as big-box buyers searched for the next big idea in computer furniture. It remains to be seen whether they found it. Ready-to-assemble home office continues to evolve into something of a bipolar market, and the introductions at market reflected the serious home office computer user as well ...
Market Parties
Market Parties
HIGH POINT — The Common Thread for the Cure, a foundation for the home furnishings industry that fights breast cancer, gave away a Seadoo personal watercraft at an April market event co-sponsored by ShowPlace. The winner was Richard Tenenbaum of Syosset, N.Y., a sales representative for Hallmart Collectibles, Largo International and Arca Leather.
Market Highlights
Youth takes backseat to adult BR at market
HIGH POINT — Cooling down after a hot couple of years, youth furniture took a back seat to master bedroom in many market showrooms. While some manufacturers came out with big offerings, most said they were focused on filling in a few holes in their style portfolios. Lea Inds. had the largest collection with the 54-piece Jessica McClintock group.
Market Highlights
Case goods importers evaluate shipping times for buyers
HIGH POINT — Several case goods importers said their buyers won't have to wait as long to receive shipments of the product they saw at the market here. Other companies, however, said the shipping times may soon grow longer. Because so many major U.S. case goods companies have begun shipping from China in the past year and a half, however, import capacity is starting to dry up.
Market Highlights
CG mfrs. compare event to April '01
HIGH POINT — Everyone knew the just-ended market here would turn out far better than October, but some case goods exhibitors said it stacks up favorably against last April. A healthy supply of new product, upbeat attitudes, and retailers looking to replenish their stocks added up to strong written business.
Market Highlights
Seating producers find plenty to be happy about
HIGH POINT— Seating producers say they used a common set of upholstery legs this market — the kind that walked the product right off showroom floors. Not really, of course, but executives at major stationary upholstery makers clearly ended the market here last week jubilant over the amount of business booked.
Market Highlights
Sectionals back in the spotlight
HIGH POINT — After languishing in the background for what seems like eons, sectional sofas are creeping back into the spotlight. While some upholstery producers say their sectionals business has been solid over the years, most report the category has waxed and waned — and probably will never regain the popularity of the old pit groups of a few decades ago.
Market Highlights
Stylish, value-packed metal beds catch retailers' eyes
HIGH POINT — Retailers flooded metal bed showrooms and snapped up stylish, value-laden introductions in a market that pleased exhibitors. "We saw all the majors," said Victor Sawan, president of Wesley Allen, which brought out a broad array of products. "And the attitudes were, across the board, unbelievably optimistic.
Market Highlights
Leather demand rising, and market fills needs
HIGH POINT — Pent-up demand prompted leather upholstery dealers to shop High Point in high spirits, eager to restock their floors with modern looks, better leathers and sharp prices. "People have gotten off of the idea of not spending money," said Mark Parris, vice president of sales and marketing USA for Canadian-based Coja Leather.
Market Highlights
Natuzzi eyes 17 test galleries in America
HIGH POINT— Natuzzi rolled out a Natuzzi Gallery concept at the market here, and also said it was shelving a proposal to build a flagship, company-owned store in nearby Greensboro, N.C. While the gallery concept was introduced to American retailers for the first time, single-store dealers in England and Australia have already been testing the concept.
Market Highlights
Bedding brands brandish their strength
HIGH POINT — Retailers here gave strong support to conventional bedding brands, including two that were expanded into the specialty sleep arena. No. 1 player Sealy said it got a good response to its new Posturepedic, Back Saver and Posture Premier mattresses. Sealy also enhanced its Bassett line, which it said is the fastest-growing brand in its portfolio.
Market Highlights
Kingsdown demonstrates benefits of mattress pad
HIGH POINT — A high-tech thermal imaging camera let Kingsdown show retailers the benefits of a new mattress pad that helps improve sleep. The infrared camera, which retailers saw in the company's market showroom here, demonstrates how the Sleeping Beauty by Kingsdown Mattress Pad absorbs heat from the body when it's too warm and feeds it back when it get cold, thus equalizing body tempera...
Market Highlights
Occasional flirts with French influences
HIGH POINT — A popular look in occasional this market was French-influenced shaping with smooth lines, moderate to light carving and a distressed, warm brown finish. The look traversed collections from high-end manufacturers like Century with its new Consulate, Henredon with Acquisitions, Harden Furniture with Vendôme and Bernhardt with Collingwood, and also showed up in midpriced li...
Market Highlights
Home entertainment producers emphasize whole-room approach
HIGH POINT — Manufacturers at market re-emphasized a whole-room approach to home entertainment furniture, designing pieces to match occasional furniture and case goods. The approach isn't new but has taken a back seat the last few markets to standalone entertainment armoires and walls. Home entertainment furniture has changed in recent years to accommodate larger TVs.
Market Highlights
Best of market
Comfortable furniture — though by all means elegant — with casual elements in finish, fabric or feature was the name of the game at the April 2002 International Home Furnishings Market. Speaking of names, the presence of Kathy Ireland, Elvis Presley and other celebrities was key as several producers tied company brand to celebrity icon.
Market Highlights
High Point becomes preview venue for rugs
HIGH POINT — Judging from buyer reaction last week in High Point, the Atlanta market in July will be filled with value-oriented handmade rugs. Paradoxically, new machine-made rugs are duplicating the tightly knotted formal looks of the extreme high end of the market. High Point has become a preview for the rug business, with April's shoppers functioning as beta testers for the July show.
Market Highlights
Rug producers unveil large, lavish showrooms
HIGH POINT — Rug vendors such as Shaw, Feizy and Momeni unveiled huge, lavishly accessorized showrooms here to lift the category from prosaic to palatial. It's a far cry from the boring racks and sloppy stacks that used to be the hallmark of rug exhibitors. It has nothing to do with price structure but everything to do with merchandising.
Market Highlights
Motion upholstery boom continues to gather steam
HIGH POINT — Motion upholstery, a category that has enjoyed a booming business since late last year, showed no signs of slowing down at market. Producers said they secured good placement on most introductions, and they believe the boom in sales will continue well into the summer. Recliners at promotional and middle price points were especially popular in both leather and fabric covers, w...
Market Highlights
Home theater seating a hot ticket
HIGH POINT — The stay-at-home phenomenon helped revive action at market in home theater seating, a category largely dormant during the economic boom of the late 1990s. Producers of motion upholstery say consumers increasingly are furnishing family rooms, dens and living rooms with seating groups that allow family and friends to enjoy movies and sports with a comfortable view of the action.
Market Highlights
Casual dining offers rainbow of options
HIGH POINT — For the retailer comfortable with custom orders, casual dining remains one of the industry's most creative categories, and buyers here responded to the rainbow of colors, sizes, shapes and materials that resources offered. Casual dining specialists didn't restrict their menus to any particular style, but did seem to be following a theme that blends casual with elegance.
Market Highlights
Linon expands dining, bedroom lines
HIGH POINT — An expanded line of Italian casual dining helped give Linon Home Décor "our best market ever for solid commitments," said Vice President John Michaelides. More than 10 sets were added to the Ideal Sedia Casa program, with contemporary tables at $299 to $699 retail and chairs at $40 to $80.

Store Openings

O'Reilly's celebrates larger store
LIBERTYVILLE, Ill. —O'Reilly's Furniture, a family-owned and operated store here for 25 years, has opened a new 91,000-square-foot complex, more than doubling the size of its original store. O'Reilly's also celebrated the grand opening of a new 7,500-square-foot Pennsylvania House gallery, which showcases the La-Z-Boy division's entire line of case goods and upholstery.
Francis King installs seventh U.S. French Heritage shop
MINNEAPOLIS — French furniture reproduction resource French Heritage has opened its seventh U.S. shop in Francis King Ltd., located inside showroom building International Market Square here. This is the first French Heritage shop inside a to-the-trade market building and design center. IMS organizes a number of furniture markets during the year.
Badcock adds new-format units
MULBERRY, Fla. — Top 100 company W.S. Badcock has launched four more new-concept Badcock Home Furnishings & More stores in Alabama and Florida. Eufaula, Ala., is home to a 14,000-square-foot store on Eufaula Avenue. Owner Paul Holley will handle the store's daily operations. Also in Alabama, a 13,000-square-foot store has been converted to the new format on Cherokee Avenue SW in Cull...
Steinberg's has Bassett gallery
PERU, Ill. — Bassett Furniture has opened a 3,000-square-foot At Home with Bassett gallery here in Steinberg's Furniture. Bruce Steinberg is the owner of the store.
La-Z-Boy opens in Connecticut
Waterbury, Conn. — La-Z-Boy has opened a 15,000-square-foot La-Z-Boy Furniture Galleries store here. Tom L. Greene is the store owner, and the store manager is Scott Petro. The Waterbury store offers a broad range of La-Z-Boy upholstery and occasional furniture, including the American Home and Thomas Kinkade collections.

Up Front

FBI's plans take shape
High Point— In their first market as Furniture Brands International companies, the long-term roles of Drexel Heritage, Henredon and Maitland-Smith came into sharper focus here. Buyers sensed a rejuvenated atmosphere at the three high-end resources because of the financial stability Furniture Brands brings to the table.
Young taps Rich in marketing, Black in wood design at Drexel Heritage
HIGH POINT — Lenwood Rich and Michael Black have joined Drexel Heritage as executive vice president of sales and marketing, and senior vice president of design, respectively. The hirings are part of new President and Chief Executive Officer Jeff Young's efforts to reshape senior management at the full-line, high-end manufacturer and importer, a division of Furniture Brands International.
Friul Cassetti resumes shipments
POMPANO BEACH, Fla. — Italian contemporary case goods resource Friul Cassetti resumed shipments last week from a new source plant that will give the company increased capacity. Friul Cassetti had interrupted shipments to obtain a final inventory count as part of a legal requirement in connection with the transfer of its sales, marketing and production division for the U.
Finch joins Norwalk as national accounts director
NORWALK, Ohio — Scott Finch has been named to the new post of national accounts director for upholstery maker Norwalk Furniture. He will be responsible for cultivating and servicing a select group of multi-store retailers to market specially designed and labeled upholstered furniture. Product will differ from that offered through Norwalk — The Furniture Idea and other stores.
Suspect in Singapore market death still at large
SINGAPORE — A man wanted in the death of a furniture exhibitor at the Singapore furniture show is still at large. Authorities said the unidentified man fled the early March show after scuffling with Leonardus Van der Storm of Alu-Light Products in Holland. Van der Strom fell to the floor of his exhibition space, hit his head on a table base and later died at a Singapore hospital.
Spring Air plant hires Posey
GRAND RAPIDS, Mich. — Industry veteran Arvel Posey has joined Spring Air-Grand Rapids as vice president of sales. "The past year's success in our growth of the NeverTurn mattress has created a need for the addition of Posey's sales and marketing expertise to the Grand Rapids team," said Ken Clapp, president of Spring Air-Grand Rapids.
Value City plans upscale concept store
FRANKLIN, Tenn. — Value City Furniture plans to open a concept store here based on a successful in-store furniture gallery program that takes an upscale approach to display. The 50,000-square-foot American Signature Furniture will open in June in the Cool Springs Galleria mall in this suburb 15 miles south of Nashville.
Kincaid promotes Grout, Jolley
HUDSON, N.C. — In a move that nearly completes a four-month corporate restructuring, Kincaid has created two new management slots, promoting Roberta Grout to director of display planning and Christy Jolley to director of upholstery. Grout oversees all display planning projects, including the 45,000-square-foot High Point showroom, all in-store gallery development and the company's dedica...
Leather Center gone?
CARROLLTON, Texas — Furniture retailer-manufacturer Leather Center apparently has closed its remaining 33 stores nationwide. Telephones rang unanswered at stores and company headquarters late last week. The Dallas Morning News reported earlier in the week that a recorded message on the Leather Center headquarters phone line said the company had no plans to reopen.
Market mulls outdoor food vendors
HIGH POINT — Over the objections of one of its board members, the International Home Furnishings Market Authority agreed to explore the possibility of allowing food vendors to set up shop outdoors during market. A majority of the board asked Market Authority President Judy Mendenhall to see if such vendors could operate without violating a 1999 High Point city ordinance that essentially b...
Lang set to launch sleep chain in Detroit
DALLAS — Veteran bedding retailer Phil Lang is launching a new bedding chain called The Mattress Mall, which will debut in Detroit later this spring. "We are planning for 16 stores in Detroit," said Lang, former president of Mattress Giant, a major sleep specialty chain. "We have our fingers crossed that we will have a couple of stores open by Memorial Day, and five or six by Labor Day.
WMC retailer survey: High Point market has problems
LAS VEGAS— Several buyers from among the nation's Top 200 furniture retailers criticized the High Point market in a survey conducted for developers of the proposed World Market Center here. Buyers were asked what primary benefits they believed the World Market Center would have for the industry.

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