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Furniture|Today -- 09/02/2002
Bedding Today
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Simmons brings big profits to new youth bedding line
Simmons has found a way to bring grown-up profits to a category that traditionally offered only pint-sized benefits. And in the process, it is improving the sleep of some pretty important people: the leaders of tomorrow. Right now those leaders are kids, and many of them are not sleeping on beds that meet their needs.
Business Today
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Culp sales flat, stock down
High Point— Despite reporting healthier earnings before accounting charges, fabric supplier Culp saw its stock lose a third of its value last week as it reported flat sales. Culp also announced it will close its Chattanooga, Tenn., plant, shifting production to other facilities. The move will result in a charge of about $9.
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Shermag sales jump 26.5% in 1Q
Sherbrooke, Quebec— Case goods and upholstery producer Shermag reported a strong fiscal first quarter with a 26.5% gain in net sales and a big rebound in profit. The company earned C$3.3 million in the three months ended July 5, up from C$74,000 in the comparable period a year ago. Last year's earnings were hurt by a C$2.
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Financial results
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
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Select Comfort rebounds to profit
Minneapolis— Airbed producer and retailer Select Comfort said its sales increased 23.2% to $77.3 million in its fiscal second quarter ended June 29. Net income of $2.6 million was a turnaround from a loss of $3.5 million a year earlier. The company had operating income of $3.1 million in the latest quarter, compared with an operating loss of $3 million a year ago.
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Leon's earnings climb 12.3% to C$7M
Toronto— Leon's Furniture, Canada's second-largest furniture and bedding retailer, reported that its sales rose 8.9% in the second quarter to C$101.6 million, while net income climbed 12.3% to C$7 million. For the first half, sales were up 9.3% to C$196.2 million, and net income advanced 18.9% to C$13.
News
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John McCloskey joins PCG
Reno, Nev.— John McCloskey has joined the furniture retail consulting firm Profitability Consulting Group as president of operations consulting. He reports to John Egger, chief executive officer. "John McCloskey will continue the traditions established by his father, Bill McCloskey, who in 40 years worked with more than 400 retailers .
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BDO: Furniture factory orders up 5% in 1st half
High Point— Furniture factory orders in June were down 8% from a strong May number, but were about even with June 2001, according to BDO Seidman. For the first half, U.S. residential furniture factory orders were up 5% to $12.7 billion, the accounting and consulting firm estimated. "In the last several years, June orders have been close to even with May orders .
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Lexington closes another plant
Mocksville, N.C.— Value-priced imported product claimed another U.S. furniture plant this month with the announcement from Lexington Home Brands that its 300,000-square-foot Plant 11 here will close in the next 60 days. About 360 employees will be affected. "It is with heavy heart" that the company announced the phase-out, said Bob Stec, chairman at Lexington.
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Bassett promotes Satterfield, Ehlers
Bassett, Va.— Bassett Furniture has promoted Michael Satterfield to vice president of marketing and Loy Ehlers to vice president, store development and retail general counsel — management changes designed to strengthen the retail side of its business. Satterfield, formerly vice president of retail operations, has been with the company for four years and played a role in helping assu...
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Bigham joins Rose Hill
Roswell, Ga.— Longtime Standard Furniture executive Hunter Bigham has joined Rose Hill as vice president of sales, a new position for the promotionally priced manufacturer. Reporting to President Hamp Hughes, Bigham is charged with organizing Rose Hill's first national sales force. "The addition of Hunter will bring us organizational skills to build a true sales force and achieve national...
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AFMA Media Center to accept press kits Oct. 7
High Point— Exhibitors at the October market can once again submit press kits for distribution at the Media Center in the High Point Theater, next to the International Home Furnishings Center on Commerce Street. The American Furniture Manufacturers Assn. operates the center, which hundreds of print and broadcast journalists visit every market to obtain press credentials and collect new pr...
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Drexel taps execs for five positions
High Point— Full-line manufacturer and importer Drexel Heritage Furniture has hired three people and promoted two. Tracy Little has joined the Furniture Brands International division as vice president of customer relations. Dave Whittington has come on board as director of customer service, and Monica Edwards has been named manager of retail marketing.
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European shows make it easier to stay for all six
Paris— In an unusual display of cooperation among major trade fairs, home furnishings shows in Paris and the German cities of Cologne, Frankfurt and Hanover are coordinating the dates of their January 2003 markets so that buyers can attend all six. The shows are Heimtextil in Frankfurt, Salon du Meuble de Paris, Paris Sélection Déco, the Biennale des Éditeurs de la Déc...
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Badcock looks to grow
Savannah, Ga.— Looking to move into markets where Heilig-Meyers was once strong, W.S. Badcock says it will expand its network of stores to new markets in four Southeastern states. At the company's annual meeting with dealers and managers here, Badcock executives detailed their plans to push into Virginia, West Virginia, Kentucky and eastern North Carolina.
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Vaughan adds uph. division
Galax, Va.— Case goods manufacturer Vaughan Furniture has tapped industry veteran Ed Gerken to head a new upholstery division that will introduce its first products at the April 2003 market in High Point. The company said the line will include traditional, transitional and modern styles that complement its case goods offerings.
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GERS panel offers tips
San Diego— Take care of your customers and employees, and they'll take care of you. That's the message from a panel of retailers, who talked about the success of their businesses at the 22nd annual GERS users' conference. Speakers included retailers Pedro Capo, chief operating officer of El Dorado Furniture, Miami; Howard Haimsohn, president of Lawrance Contemporary Furniture, San Diego; ...
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World changes in retail
San Diego— The Sept. 11 attacks on the World Trade Center and the Pentagon brought uncertainty into the world of retailing and may have changed it forever. That was one of several retail trends that Rick Gallagher, vice president of the National Retail Federation, listed in a keynote address at the GERS user conference.
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Zhen Jing Leather picks U.S. agent
Greensboro, N.C.— Carolina Resource Group has been appointed the U.S. agent for Zhen Jing Leather, a Chinese leather tannery and cut-and-sew upholstery provider. "Our relationship with Zhen Jing Leather (an IS09001-certified company) provides our U.S. customers the opportunity to streamline and simplify their upholstered leather manufacturing process by outsourcing their cut-and-sew opera...
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UCC, RosettaNet merger likely to speed B2B integration
Lawrenceville, N.J.— The Uniform Code Council and RosettaNet, an e-business standards consortium for high technology, have merged. The merger is aimed at strengthening the development and adoption of business-to-business (B2B) standards across the industries served by the two organizations and expanding the standards-based business opportunities for member companies.
- Obituaries
Frank Greenblatt, mill CEO
Cape Town, South Africa— Frank Greenblatt, chief executive officer and a principal in decorative woven fabrics mill Svenmill Ltd., has died. He was 55. He is survived by his wife and three children.
Opinion Today
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As Martha Stewart turns, Bernhardt execs adjust
This isn't how it was supposed to happen. It's like the caterer getting busted the week before a fancy Connecticut dinner party. But Bernhardt executives are making the best of the canapé platter they've been served. They must be breathing easier after the success of the first big event to launch the company's Martha Stewart Signature Collection of case goods and upholstery.
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Hungry for good news? Try Magnussen Home
Last week, I was listening to the news on the radio. Talk about gloom and doom: The the Dow was down, and consumer confidence was also in the tank, in part due to fears about the economy, terrorism and a possible a war with Iraq. That somber report made me wonder if there was any good news anywhere, particularly in our industry.
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Amazingly, luxury is hot in fabrics
As we move into the homestretch before Decosit (in Brussels, Belgium, Sept. 7–10), the attitude of American fabric producers and suppliers seems more upbeat than at any time in the last couple of years. The slight decline in the value of the dollar versus the Euro and other international currencies has had but a slight impact on their attitudes — but it is, if nothing else, a psycho...
People Today
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Leda promotes Frank to VP for U.S. sales
Toronto— Canadian case goods manufacturer Leda Furniture has promoted Bill Frank to vice president of U.S. sales. A 33-year industry veteran, Frank joined Leda two years ago, and has served as U.S. sales manager. In addition, Leda has added three sales representatives. Herb Levitz and Robert Levitz will cover New York City, New Jersey and Connecticut.
- People on the Move
People on the Move
Executives Leather Inds. of America Washington — Jerry Sumpter was named chairman of Leather Inds. of America during the recent annual meeting of the trade association of tanners and suppliers. Sumpter, who will serve as chairman for two years, is president and chief executive officer of Eagle Ottawa, a specialist in upholstery leather for the automotive industry.
Special Report
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Madison Square's size key to license
Hanover, Pa.— Madison Square Furniture might be a small manufacturer, but that's one of the main reasons the Thomas Jefferson Foundation chose the occasional and dining producer for the Monticello Collection. The Monticello team believed their license would play a vital role in Madison Square's growth, rather than serve as a small portion of a larger manufacturer's line.
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Jefferson Foundation makes careful selection
Charlottesville, Va.— When the Thomas Jefferson Foundation began shopping manufacturers for production of a licensed line of Monticello furniture in 1999, it took a while to find the right partner. The Monticello team wanted a company making upper-middle to upper price wood furniture, preferably with domestic production, and one that would make the Monticello Collection an important part ...
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Badcock dealer meeting a swashbuckling affair
Savannah, Ga.— With this seaport's maritime history as a backdrop, the W.S. Badcock Corp. met with its dealers and corporate store managers here for three days. The event featured a pirate theme, "Treasures for the Taking," as the company talked about its plans to conquer more of the retail furniture business.
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Badcock adds MORE to dealer training program
Savannah, Ga.— Besides updating its stores, Badcock also is taking aggressive steps to keep the people who work there up to date on the latest ideas in superior retailing. The company has expanded its year-old training program with two new Modules of Retail Education. The goals for the entire MORE program are to make Badcock stores more productive and profitable and to assure prospective ...
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Benjamin's keys on quality
Bend, Ore.— Don Jones, a former waterbed retailer, opened Benjamin's Home Furnishings here two years ago with the idea that he would not get into price and promotion wars. He merchandised his 24,000-square-foot store at middle and better price points, with leather, a key category, opening with Klaussner at about $1,099 and with better sets from Elite Leather up to $3,499.
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Leather is Knoxville leader
Knoxville, Tenn.— Whether it's recliners or stationary upholstery, leather is the growth leader at Knoxville Wholesale Furniture, so much so that some of the business may be coming from the company's fabric upholstery sales. "Leather is one of our biggest growth areas," said Tim Harris, president.
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Leather gets consumers excited, ready to buy
When it comes to selling upholstered cow hides, there appears to be more than one way to skin a cat. Leather continues to be a retail pacesetter, selling more frequently and at higher price points than most other categories. Reliable and steady during these past months of retail uncertainty, leather attracts consumers like a magnet and gets them excited about buying furniture.
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Custom orders doing nicely, thanks
High Point— With short lead times on a full menu of frames and hides, many retailers are doing nicely helping their customers place custom orders on leather upholstery, which, because of its popularity and its higher prices, makes the category quite important to those stores. For instance, the category is a top sales generator for Houseworks, a contemporary shop in Indianapolis, and Ed Ch...
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Category flows at Gallery Furniture
Houston— Leather is a mainstream category at Gallery Furniture, which means that sofas, recliners and chairs flow through the store and its warehouse in torrents. Just a few years ago, leather was a strong seller, but it wasn't treated like a mainstream category. While Jim McIngvale's Houston emporium had an active leather department, the sales specialists there were trained to teach shop...
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Riley's: A matter of devotion
Monroe, Ohio— Riley Griffiths wanted to know what all the fuss was about. At Riley's Furniture Gallery, leather just didn't seem to be generating the excitement that other retailers were enjoying. "We had trouble getting leather going for a long time," Griffiths said. "I kept saying to myself, 'Where is this leather that everyone is talking about'.
Store Openings
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Stores expand space at Atrium
High Point— Stores at the Atrium Furniture Mall on South Main Street here have added new locations to increase showroom space. Kagan's Furniture has moved its third-floor store to the first floor. It displays lines such as Dallagnese, Schnadig, Bassett Mirror, Rowe, American Drew and Howard Miller grandfather clocks.
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Bloom Brothers opens gallery for La-Z-Boy Youth Collection
Midlothian, Va.— Bloom Brothers has installed a La-Z-Boy Youth Collection gallery inside of their 30,000-square-foot location here. The youth gallery will occupy 1,200 square feet. Owner Larry Bloom has plans for youth galleries in his other stores located in Colonial Heights and Virginia Beach.
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Ethan Allen unveils renovated location in Catonsville, Md.
Catonsville, Md.— Ethan Allen Home Interiors has renovated its store here on Baltimore National Pike. The showroom, built in 1966, is 20,000 square feet. Jordan Levine is Ethan Allen's general manager.
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England installs two CCC's
New Tazewell, Tenn.— England has opened two new Custom Comfort Centers. Richard's Furniture & Flooring has opened a 4,800-square-foot Custom Comfort Center in Lancaster, Pa. Lacks Valley has opened a 4,000-square-foot Custom Comfort Center in its new 130,000-square-foot store in Laredo, Texas.
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Kiser Furniture adds Broyhill
Abington, Va.— A 12,500-square-foot Broyhill Showplace gallery has been installed in Kiser Furniture here. Store owner Gerald Kiser installed a smaller Broyhill Showcase gallery in 1999 and earlier this summer decided to expand with the larger configuration. Kiser Furniture is a family-owned business with five brothers, Willis, Clyde, Larry, James and Gerald, and nephew Roger handling day...
Up Front
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Bombay looks for answers in merchandising, marketing
Fort Worth, Texas— Merchandising and marketing decisions made last fall after the Sept. 11 terrorist attacks have come back to haunt The Bombay Company, a perennial Top 100 retailer that has been swimming in red ink for months. Those decisions, coupled with the sluggish economy, have humbled the one-time high-flyer, which fueled its growth in the go-go '90s with splashy catalogs that drew...
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Michigan sets discount rule
Lansing, Mich.— Michigan's attorney general, its Better Business Bureaus and the furniture industry have come together to crack down on phony deep-discount ads and other deceptive furniture advertising practices. The group developed guidelines that outline how to establish a "regular price" before merchandise is offered at a sale price.
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Aaron explores new avenue for growth
Atlanta— Aaron Rents plans to acquire home furnishings retailer Sight'n Sound Appliance Centers in a deal that moves the primarily rent-to-own operator deeper into pure retail. "If we are successful, then it opens up much larger opportunities for the company's future expansion," said Charlie Loudermilk, chairman and chief executive officer of Aaron's, which has more than 650 company-owned...
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Magnussen Home name reflects broader focus
High Point— The former Magnussen Presidential is simplifying its name and broadening its goals, the company announced last week. In a new office north of High Point, Jeff Cook, president and chief executive officer, said the new company name is Magnussen Home. The manufacturer started in Canada under the name Magnussen, and launched Presidential in 1986 as a brand for the U.
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City Furniture building uph. plant
Tamarac, Fla.— Top 100 retailer City Furniture is building a 62,000-square-foot factory in New Albany, Miss., to strengthen its offering of midpriced stationary upholstery. Named after City founder Kevin Koenig, who died last year, Kevin Charles Furniture is expected to start production in November, said Keith Koenig, City's president.
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GERS speaker shares ethics views
San Diego— Today's unfolding corporate shenanigans have provided Frank Bucaro with powerful ammunition to use on the speaker's circuit. "I thank God every day for Enron and Arthur Andersen," said Bucaro, author of "Taking the High Road: How to Succeed Ethically when Others Bend the Rules" and consultant to over 100 organizations from the U.
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Bassett's L.A. production moving to North Carolina
Bassett, Va.— Bassett is shifting upholstery production from its Los Angeles plant to facilities in Newton and Hiddenite, N.C. The West Coast plant closure, to be completed by late October, will affect about 200 employees or 6% of the company's workforce. Despite a year-to-date upholstery sales increase of 20%, productivity gains have created new capacity at the North Carolina sites, the ...
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Germany's Weco closes North American offices
High Point— German leather upholstery specialist Weco has ceased its North American operations after a two-year effort. Weco's German-based parent has closed both its sales operations in Charlotte, N.C., and its High Point showroom at 220 Elm. The line of motion, modular and stationary leather upholstery had been distributed to high-end retailers.
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Spears launches uph. company
Ecru, Miss.— Former River Oaks production executive Mitchell Spears has launched an upholstery company to make contemporary and traditional seating. The new company, Trinity Group Furniture, has opened a 10,000-square-foot facility here to make stationary furniture, with sofas retailing in the $499 price range.
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