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Furniture|Today > Archives > 04/21/2003 Issue
Table of Contents
Furniture|Today -- 04/21/2003

Bedding Today
  • Will furniture stores give up bedding dominance?
    Ready for a quick bedding quiz? Only one bedding distribution channel posted market share gains in both 2000 and 2002. Which one was it? I'll bet many of you picked the warehouse club channel, but you would be wrong. Some of you might pick the alternative retailing channel, which includes Internet sales and direct marketing, but you would be wrong too.

Business Today
  • Jennifer 2Q revenues dip 5.8%
    Woodbury, N.Y.— Specialty retailer Jennifer Convertibles posted a fiscal second-quarter loss of $821,000 and an 8.7% decrease in same-store sales. Still, the loss in the quarter ended March 1 was an improvement over the $942,000 loss for the year-ago quarter. Revenue for the 203-store chain dropped 5.
  • Stanley's sales rise 2.9% in 1Q
    Stanleytown, Va.— Case goods resource Stanley Furniture continues to rebound from a poor 2001, with sales up 2.9% in this year's first quarter and net income jumping 85.6%, mainly because of a large writeoff last year. Sales in 2001 dropped nearly $50 million to $234.3 million, when Stanley's largest customer, HomeLife, declared bankruptcy.
  • Valspar cuts earnings estimate
    Minneapolis— Finish supplier Valspar has reduced its fiscal second-quarter earnings estimate and said sales are expected to be flat with a year ago, reflecting a "significant business slowdown in response to recent world events." Earnings are expected to be in the range of 60 to 65 cents per share for the quarter ending April 25, compared with 67 cents in the same period a year ago.
  • Financial results
    Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
  • L&P's sales edge up, net income drops 12%
    Carthage, Mo.— Leggett & Platt, the furniture industry's largest components supplier, said first-quarter sales edged up 1.5%, but net income dropped 12.1% due to higher energy costs. The company said sales increased in its commercial fixtures, industrial materials and specialized products divisions, but declined 0.
  • Sealy's 1Q sales slip 1.2%, net income up
    Trinity, N.C.— Bedding maker Sealy reported net sales of $288.3 million in the fiscal first quarter ended March 2, a decrease of 1.2% from sales in the same quarter a year earlier. Net income was up 4.5% to $4 million. Earnings before interest, taxes, depreciation and amortization came to $38.2 million, compared with $39 million a year earlier.
  • Flexsteel's sales run flat in 3Q
    Dubuque, Iowa— Sales were essentially flat and earnings were off 29.5% for upholstery manufacturer Flexsteel Inds. in its third quarter ended March 31, although sales and earnings for the nine months were both up. Sales for the quarter came in at $73.5 million compared to $73.7 million in the prior year's period.
  • Select Comfort sales jump 26%
    Minneapolis— Bedding manufacturer and retailer Select Comfort continued on a strong growth track in the first quarter as sales jumped 25.6% and net income rose 27.3%. The airbed specialist, which generates nearly 80% of sales from company-owned stores, said comparable-store sales rose 30% in the quarter, a figure that topped a 15% same-store sales gain in the first quarter of 2002.

News
  • Leda honors top sales reps
    High Point— Case goods manufacturer Leda Furniture recognized two sales representatives with its top awards at the April market here. Arlene Duryea, who reps Leda in Washington and Oregon and operates a designer showroom in the Seattle Design Center, received the Steve Karp Spirit Award. Named for the late Steve Karp, a rep noted for his "we can do anything" attitude, the honor salutes Du...
  • Kids Today Conference will examine key issues
    High Point— Space is filling up quickly for the third annual Kids Today Conference, which will take place June 4–6 in Fort Lauderdale, Fla. This year's theme, "Playing to Win," brings together industry experts for three days of strategizing and networking, and tackles the big questions to help manufacturers and retailers stand out in an increasingly competitive marketplace.
  • Pulaski plans to cut 70 jobs in clock plant
    Ridgeway, Va.— Reduced demand for floor clocks is leading Pulaski Furniture to cut 70 jobs this summer at its Ridgeway Clocks plant here. "This is a difficult decision, which we've delayed for some time in the hope that demand for grandfather clocks would increase," said John Wampler, president and chief executive officer.
  • Bobowski joins ISPA as VP, CFO
    Alexandria, Va.— Robert F. Bobowski has been named vice president and chief financial officer for the International Sleep Products Assn. He succeeds Brian Dulmaine, who left the bedding industry trade group earlier this year. As chief financial officer, Bobowski is responsible for financial reporting, audits, tax matters, budgeting and investments, and ensures that ISPA resources are allo...
  • New VP for Serta's Masterpiece to push upscale line's benefits
    Itasca, Ill.— The new vice president and brand manager for Serta's high-end Masterpiece Sleep Products line is looking for retailers who appreciate the line's benefits. "The opportunity that Masterpiece offers is selective distribution," said Chad Megard, formerly vice president of national accounts, who has been named vice president and brand manager of Masterpiece, a subsidiary of Serta.
  • ATMI praises federal moves to curb imports
    Coral Gables, Fla.— Members of the American Textile Manufacturers Institute praised new federal government procedures to protect the U.S. industry against damaging Chinese textile imports, but would have liked to see action sooner. U.S. Department of Commerce Undersecretary Grant Aldonas outlined at ATMI's annual meeting here the procedures under which U.
  • Tilley joins Thomasville
    Thomasville, N.C.— Tom Tilley was named president and chief executive officer of Thomasville Furniture Inds. last week, days after resigning as president of case goods maker and importer Pennsylvania House, a La-Z-Boy division. At Thomasville, a subsidiary of Furniture Brands International, he replaces Chris Pfaff, who resigned earlier in the week from the full-line manufacturer, importer...
  • 3 bedding majors disclose FR plans
    High Point— Bedding majors Serta and Spring Air say they intend to distribute new fire-resistant bedding lines throughout the United States and not just in California. And sales leader Sealy says it is likely to convert all of its facilities to produce beds that are FR compliant shortly after a stringent new flammability standard is implemented in California.
  • Nation: We should make safer bedding
    Elk Grove Village, Ill.— If the bedding industry can make mattresses more fire-resistant in a cost-effective way, it should. So says Spring Air President Jim Nation, who spoke candidly in an interview about the mattress flammability issue, something relatively few bedding producers have been willing to do.
  • California sets public hearings this week
    San Francisco— The California Bureau of Home Furnishings will hold public hearings this week here and in the Los Angeles area on stringent open-flame mattress flammability standards proposed for the state. Here is the schedule:
  • Producers: FR law could hurt business
    West Caldwell, N.J.— About half of the bedding producers responding to a nationwide survey on mattress flammability believe flammability legislation could hurt their business, according to the consulting firm that conducted the survey. A total of 51% of respondents gave that answer, up one percentage point from a similar survey a year earlier, according to The Marketing House.
  • Yarn maker Unifi cutting 400 more U.S. jobs
    Greensboro, N.C.— In the face of a weak U.S. economy and ongoing price pressure from Asian imports, yarn producer Unifi is eliminating 400 more U.S. jobs, a move expected to save about $20 million annually. This brings to some 600 the number of U.S. jobs eliminated since January, about 15% of the company's domestic workforce.
  • Natuzzi ad campaign generates 1,000 leads
    High Point— Leather upholstery manufacturer Natuzzi's national print advertising campaign has garnered 1,000 leads in its first 10 weeks. "We couldn't be happier with the results," said Steve Bailey, vice president of marketing and retail development for Natuzzi Americas. With the tag line, "It's how you live," the lifestyle ads began running in March issues of such shelter and fashion ma...
  • Pa. House begins search for new chief
    Monroe, Mich.— A search is under way for a new president at La-Z-Boy division Pennsylvania House following Tom Tilley's departure to head Thomasville. "We'll make a selection soon," said Jerry Kiser, president and chief executive officer of La-Z-Boy. Pennsylvania House is coming off one of its best High Point markets ever with the debut of New Standards: The Steve Tyrell Collection.
  • Corrections & Amplifications
  • Discounts available for San Fran
    San Francisco— Discounted hotel rates for those attending the San Francisco Furniture Market, July 18–21, are available through the San Francisco Mart's travel agency, R/A Performance Group. The Mart's hotel rates start at $84, with many of the properties offering free breakfast and other food and beverage discounts.
  • Stanton Carpet appoints Malone sales manager
    Syosset, N.Y.— Pat-rick Malone has been named sales manager for the Western region at Stanton Carpet, a new post for the maker and importer of wool and synthetic broadloom products and area rugs. He will oversee all sales west of the Rockies. Malone has been a Stanton sales representative in Connecticut, and will relocate to Southern California.
  • Obituaries
    Obituaries
  • South Cone sets tribal line for Oct.
    Gardena, Calif.— South Cone Trading Co. will offer at the October market a line of tables and accessories produced by the Yanesha tribe, which lives in the highland rain forests of Peru where the high-end case goods maker sources much of its wood. The products were developed as part of South Cone's Partnerships and Technology for Sustainability, or PATS, a key component of its Giving Back...
  • Cebu show called better than expected
    Cebu City, Philippines— Pre-war apprehensions put a damper on buying at the Far East series of furniture fairs, but considering how bad things could have gone, organizers are relieved. With decidedly more sober expectations, exhibitors here were pleased with the results of the Cebu International Furniture & Furnishings Exhibition, according to organizers.
  • Cebu's furniture industry seeking government help
    Cebu City, Philippines— The furniture industry here has asked the government to help it remain vital in the face of competition from Chinese manufacturers. The Cebu Furniture Industry Foundation, organizers of the recent Cebu furniture fair, is requesting tax incentives and financing to expedite imports of raw materials into the country, said Nelia Navarro, the Cebu director for the Depar...
  • Carls opening to benefit cancer center
    Miami— Carls Furniture will celebrate its new 80,000-square-foot store on the Palmetto Expressway here this week with a benefit for the University of Miami's Sylvester Comprehensive Cancer Center. A grand opening party is set for 7 to 10 p.m. on Thursday, April 24, at Carls Furniture and the attached, 15,000-square-foot Carls Patio showroom at 1400 NW 167th St.
  • Carroll elected Hall of Fame president
    High Point— Joe Carroll, publisher of Furniture/Today, has been elected president of the American Furniture Hall of Fame for 2003–2004. Other AFHF officers are Clarence H. Smith, president of Haverty Furniture, first vice president; Steve Kincaid, president of Kincaid Furniture, second vice president; and Roy Briggs, industry consultant, secretary/treasurer.
  • FurnitureFan develops two mfr. Web sites
    Sudbury, Mass.— FurnitureFan has developed consumer-oriented Web sites for manufacturers Schnadig and Holland House. Upholstery and occasional table resource Schnadig's site at www.schnadig.com offers browsing capability by room, by category and by style, allowing consumers to preview product online and find their closest retailer for purchasing and service.
  • Cargo Transporters wins safety award
    South Sioux City, Neb.— Cargo Transporters has been presented a Platinum award by Great West Casualty Co. as part of the 2002 National Fleet Safety Awards Program. "We are proud to receive this award for the fourth year in a row," said John Pope, president of Cargo. "With our trucks traveling more than 4.

Opinion Today
  • More about people than about furniture
    Another High Point market has come and gone, and I'm feeling a little down. The week and a half at market in the spring and fall are the busiest, most-stressful times of the year for manufacturers, retailers and those of us at Furniture/Today. Still, now that it's over, I wish market had lasted longer.
  • Letters to the Editor
    Letters to the editor
    Industry needs common policy on soiled upholstery Our store just handled a warranty issue with a major mattress manufacturer. The customer was not very happy when we told her the warranty was void because the mattress was stained or soiled. I can understand the factory's unwillingness to take soiled bedding because of the sanitary problems and not knowing what caused the soiling.

People Today
  • Soban gets Whitewood quality assurance post
    High Point— Jurij Soban has joined dining room and occasional resource Whitewood Inds. as director of quality assurance, a new position. He will travel to Whitewood's overseas factories to monitor production and quality. He also will create new quality procedures for domestic assembly, finishing and packaging.
  • People on the Move
    People on the Move
    Officers/Directors Hardwood Manufacturers Assn. Pittsburgh — The Hardwood Manufacturers Assn. has elected new officers and directors for 2003. The officers are Dan Harrison, Cersosimo Lumber Co., Brattleboro, Vt., president; Jeff Hanks, Bill Hanks Lumber Co., Danbury, N.C., first vice president; and Tony Parks, Anderson-Tully Co.

Special Report
  • Warehouse clubs big winner in bedding distribution survey
    High Point— Warehouse clubs are rising fast. Bedding specialty stores remain on the ascent. And furniture stores and department stores are losing ground. These are some of the highlights of the latest Furniture/Today survey of bedding's retail channels of distribution. The survey documents the retail bedding climate as it stood at the end of 2002.
  • Imports resume climb
    High Point— After a 1% slip in 2001, U.S. furniture imports resumed their growth last year, bulging 13% to $14.2 billion. Not surprisingly, No. 1 source China fueled much of that growth, accounting for 40% of total U.S. imports in 2002. No. 8 Thailand and No. 9 Brazil also scored substantial gains of 32% and 35%, respectively.
  • U.S. exports decline 10%
    High Point— The huge furniture trade gap between the United States and the rest of the world got even bigger last year as U.S. shipments abroad dropped 10% to $1.5 billion, a figure less than 11% of imported furniture. The decline follows a 16% drop in exports in 2001, and indicates the U.S. furniture manufacturing community has scant interest in marketing beyond North America.
  • About the numbers
    Furniture/Today's exclusive imports/exports report is based on the dollar values declared by importers and exporters to the U.S. Customs Service. The numbers are coded according to the Harmonized Tariff Schedule and made available to Furniture/Today by the U.S. Census Bureau and the U.S. International Trade Commission.
  • Now showing: Home theater seating
    High Point— One of the hottest tickets in motion furniture these days is home theater seating — and consumers don't even need a home theater in order to enjoy it. All it takes is a large-screen television, a DVD player, and a modest-sized family room or great room. And judging by the huge number of showrooms that displayed home theater seating at the recent High Point market, motion...

Store Openings
  • La-Z-Boy installs youth areas in stores in Ill., N.Y., Va., Wash.
    Greensboro, N.C.— Lea Inds., a division of La-Z-Boy, has installed four Youth Collection areas in stores in Illinois, New York, Virginia and Washington. Wrights Furniture & Appliance in Pontiac, Ill., has a 1,500-square-foot youth area. The store, on East Madison Street, is 55,000 square feet and is owned by Eric Wright and Gary Wright.
  • Studio 70 expands showroom
    Hickory, N.C.— Studio 70 Contemporary Furniture Store, in the Catawba Furniture Mall here, has added 6,000 square feet, bringing its total square footage to 18,000. The new space is being used for showroom samples, discontinued furniture and accessories, said Frank Garriga, managing partner. The store has added upholstery and case goods from Pennsylvania-based Comfort Designs to its mix.
  • Massood opens big Thomasville store in northern New Jersey
    Paramus, N.J.— A Thomasville Home Furnishings store has opened here, on Route 4 West in the Mall at Four. The 22,000-square-foot store is owned by Michael Massood Jr., a New Jersey native who owns six Thomasville stores in the Washington, D.C., area and northern New Jersey. He said he considers the Paramus unit his flagship store in northern New Jersey.

Up Front
  • Legends taps Dockter for import program
    Phoenix— Legends Furniture has hired Chris Dockter to head up a new import program. The domestic producer began developing the sourcing program in October and in March received its first shipment of entertainment centers and occasional tables from China. As director of imports, Dockter will be responsible for expanding Legends' import offerings and assuring that quality parameters are mai...
  • DuPont may have buyer for its textile subsidiary
    Wilmington, Del.— DuPont may have a buyer for its subsidiary DuPont Textiles & Interiors, which includes DuPont's nylon, polyester and Lycra brand fiber businesses. The chemical giant disclosed the negotiations with an unnamed third party about the possible sale as part of the offering circular published last week regarding its tender offer to purchase the 25% of DuPont Canada stock t...
  • Nourison names 2 execs
    Saddle River, N.J.— Rita Karmiol has been promoted to executive vice president of Nourison, and Pat Muschamp has joined the rug importer as national sales manager. Karmiol previously was Nourison's vice president of sales. In addition to her role in new business development, she will retain responsibility for national accounts, including department stores, catalogs, home centers and the N...
  • 5 receive Celia Moh awards
    High Point— Five college students have been chosen to receive Celia Moh Scholarships for the 2003–2004 academic year. The scholarships will pay each student's full costs, including tuition, room, board, books and fees. The scholarship recipients are: The five recipients join four other students who received scholarships last year and who are eligible to renew them for the upcoming a...
  • Store employees do rep jobs
    Englewood, Colo.— American Furniture Warehouse is experimenting with a new strategy in which some of its own employees act as full-time manufacturer's representatives for lines on the Top 100 company's floors. American has assigned employees Dave Dumcomb and Lieha Huggins to positions it calls preferred factory reps.
  • DMI to make Betty Crocker line
    Louisville, Ky.— DMI Furniture's Home Styles division has signed a licensing agreement with General Mills to develop a line of kitchen furnishings under the Betty Crocker brand name. The line will include ready-to-assemble furniture such as kitchen carts and islands. Home Styles President Pat Bahil said the company approached General Mills about a furniture line, which hadn't been propose...
  • Church leaving Clayton Marcus for Southern
    Conover, N.C.— Veteran upholstered seating executive Ken Church is leaving as president of Clayton Marcus to become president and chief executive officer of upholstery and case goods manufacturer Southern Furniture Co. Church will join Southern, a privately held, 77-year-old, family operated company here, in May.
  • Maine Cottage opens Charleston store
    Charleston, S.C.— Maine Cottage has opened a 3,600-square-foot showroom and design studio here, its second store anywhere and the first of what could be five in this area as the manufacturer and retailer positions itself as a coastal home furnishings expert. The upscale store is at a busy intersection on King Street in Charleston's revitalized historic district.
  • Container shipping increases looming
    Greensboro, N.C.— Furniture importers are facing across-the-board freight-rate increases, fuel surcharges and peak-season charges that could tack as much as $1,000 onto the cost of a 40-foot container. Shippers plan to raise the price of 40-foot containers by $700 for port-to-port service, and $900 for product that continues overland from the West Coast.

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