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Furniture|Today -- 07/21/2003
Bedding Today
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Specialty sleep's stars generating big buzz
Select comfort and tempur-pedic continue to create a strong buzz in the industry. Both report they still are growing rapidly. Both sell at premium price points. Both promote heavily. And both are leading a specialty sleep assault on conventional bedding. This raises an obvious question: Is innerspring bedding losing some of its bounce? The answer is a qualified yes.
Business Today
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Sealy sales decline 10% in 2nd quarter
Trinity, N.C.— Sealy's second-quarter sales were down 10% from the same period a year ago to $269.8 million, which the bedding manufacturer attributed to the restructuring of former affiliates, a weak economy and strong sales of floor samples last year. The company reported a net loss of $6.1 million in the quarter ended June 1, compared with a $13 million loss a year earlier.
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Select Comfort enjoys 34% sales gain in 2Q
Minneapolis— Airbed producer and retailer Select Comfort had what its president called "an extraordinary quarter" in the three months ended June 28, with same-store sales up 34% and net income up 85.8% from the comparable quarter a year ago. Total sales of $102 million were up 32% from last year's second quarter, and earnings came to $4.
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Stanley reports 2Q sales increase of 11.1%
Stanleytown, Va.— Case goods manufacturer and importer Stanley Furniture reported second-quarter 2003 sales of $61.4 million and net income of $3.5 million, increases of 11.1% and 35.2%, respectively, over prior-year performance. For the first six months of 2003, sales are up 6.8% to $122.7 million, and net income is up 56.
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Leggett & Platt sales dip 5.6%, profits plummet 33.6% in 2Q
Carthage, Mo.— Leggett & Platt reported second-quarter sales were $1.05 billion, off 5.6%, and profits plummeted 33.6% to $46.7 million from second-quarter 2002 results. The furniture components giant said lower sales and higher energy costs were primarily responsible for the earnings decline.
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Same-store sales plunge 22.3% for Jennifer Convertibles in 2Q
Woodbury, N.Y.— Battered by lousy weather and a weak economy, Jennifer Convertibles posted a fiscal third-quarter net loss of nearly $1.4 million as same-store sales plunged 22.3%. The sofa-sleeper specialty retailer had a gain of nearly $1.3 million for the same period ending May 31 last year.
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Financial results
Earnings per share are fully diluted, and all figures in parentheses are loses or declines.
News
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'Businesses need to adapt to consumer's needs,' says China
High Point— Hai Yan Liu, a trade official at the Chinese embassy in Washington, said last week that Chinese manufacturers are just reacting to consumer demand for low-cost and high-quality products. "Increased imports of furniture from China simply demonstrate the fact," he said. "Businesses need to adapt to the consumer's needs.
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U.S. mfrs. say currency manipulation hurts too
High Point— It's not as obvious as factors such as cheap labor, but currency manipulation creates an important advantage for Chinese manufacturers, according to the American Furniture Manufacturers Committee for Legal Trade. Chinese government support of the yuan gives Chinese goods artificially low prices in the United States, the committee says.
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Second group also seeks import action
Washington— The American Manufacturing Trade Action Coalition asked the House Furnishings Caucus last week to pressure the Bush administration to place quotas on furniture imported from China. Such a move would be more directly protectionist than the proposed antidumping action from another group, the American Furniture Manufacturers Committee for Legal Trade.
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Anti-dumping duties won't come easy
Washington— Anti-dumping duties, designed to protect domestic manufacturers against unfairly priced imports, require lengthy investigation by the U.S. Department of Commerce and International Trade Commission. Dumping is the practice of selling products in export markets at prices judged below fair market value.
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Hurwitz-Mintz to expand suburban store by 50%
Metairie, La.— Hurwitz-Mintz is expanding its suburban store here by 50% just three years after opening its first showroom outside of the New Orleans French Quarter. The company will break ground next week on a 25,000-square-foot addition that should be complete by March. The project will also include space for new corporate offices, which will be moved from downtown.
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Consultant starts new business
Gainesville, Ga.— Retail management consultant Patrick West has started his own firm here called West Retail Consulting. West, who previously was president of the Shepherd Management Group as well as Shepherd Performance Groups, is offering a comprehensive slate of services designed to maximize retail performance.
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Bycast raises issues for leather
High Point— Leather is facing a new dilemma — depreciation — stemming from the arrival of bycast, according to several exhibitors at Showtime here last week. Producers are buying up bycast, a leather split with a polyurethane protective coating that arrived in full force at the April High Point market.
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Fighting back vs. China
High Point— A coalition of U.S. furniture manufacturers will file an anti-dumping petition this fall with the U.S. government to fight wood bedroom furniture imports from China. The group, called the American Furniture Manufacturers Committee for Legal Trade, currently includes 17 case goods manufacturers at a broad range of price points.
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Showtime shoppers optimistic
High Point— Enthusiasm and attendance were up at Summer Showtime 2003 here last week, with both shoppers and sellers feeling optimistic about the potential for a pickup in retail activity later this year. The International Textile Market Assn., which sponsors the semiannual fabric show, estimated that 925 buying companies showed up to shop for upholstery and other home furnishings fabric,...
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Panel: Price makes imports inevitable
High Point— Global sourcing comes with a passel of built-in problems, but they are a worthwhile tradeoff for the ultra-low prices, according to a panel of industry representatives participating in a roundtable discussion at Showtime here last week. "Yes, there are pitfalls, including delivery and quality, and we are still struggling and learning like everybody," said Corey Faul, president...
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Showtime social scene
Fabric buying executives and mill and converter executives enjoyed several social events and networking opportunities at Showtime in High Point last week, including the annual Runway Fashion Show at Showplace and a cocktail party honoring WithIt scholarship winners that was held at the Chris Stone showroom in Market Square Textile Tower.
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After 3 years, new Haven issue due out this fall
Dallas— The Home Furnishings Council and its parent, the Home Furnishings International Assn., will reintroduce the Haven decorating magazine this fall with the first new version in three years. The 48-page issue will be distributed to consumers through furniture stores. One of the HFC's most successful marketing tools, Haven is being tweaked to include shorter, quick-read stories, but th...
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ProfitSystems, Exim team up to offer XML
Colorado Springs, Colo.— Furniture retail software supplier ProfitSystems has joined with Exim Technologies to provide dealers with industry-standard XML electronic data interchange. Exim recently partnered with the National Home Furnishings Assn. to work with its retailer members, and ProfitSystems is initiating EDI with a number of major manufacturers on behalf of its clients.
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Bedding format takes it easy
Winfield, W.Va.— Mattress Warehouse, the 17-store bedding chain based here, is entering the Lexington, Ky., market with a new retail format designed by brand strategist Connie Post to take a fresh approach to selling a category long treated as a commodity. Dubbed Sleep Outfitters, the format, with stores ranging from 3,100 to 4,500 square feet, is rolling out to several locations in the L...
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'Living with children' a new theme for Ikea
Paramus, N.J.— Ikea's newest North American store reflects the retailer's emphasis on "living with children" as an underlying theme in merchandise presentations throughout the sales floor, not just in children's products. The 370,000-square-foot store opens July 30 in this northern New Jersey city, in the New York metro area.
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Stoneville plant stands empty after Ch. 11 filing
Stoneville, N.C.— Stoneville Furniture's inventory was shipped out last week and the plant here stood empty, a week after the casual dining specialist filed for Chapter 11 bankruptcy protection. President Robert Koenig said the weak economy and overwhelming competition from low-cost importers kept the manufacturer from implementing its strategy, which was to grow sales in order to raise c...
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AFMA conference set
High Point— The American Furniture Manufacturers Assn. will host a multi-discipline conference next month on "Accelerating Competitiveness: Global Leadership through Innovative Supply Chain Management." The conference at the Westin Savannah Harbor Resort in Savannah, Ga., will focus on providing tools for increasing competitiveness in today's global marketplace.
- Obituaries
Obituaries
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Event overlap has no impact on rugs
Atlanta— The summer rug market felt little impact from the overlap with the Atlanta Gift and Home Accents Show last week, according to exhibitors. The rug show, which normally begins on Thursday after the gift show, this time opened on Sunday, when the gift market was still in full swing. Attendance is usually slow at the summer rug event, and that was the case this year.
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Shaw Rugs sets move into home textiles arena
Dalton, Ga.— Shaw Rugs plans to move into the home textiles business this fall, according to Jeff Meadows, vice president of the Shaw Inds. division. As Shaw Rugs' product mix changes, a new brand name will emerge as well. "We will also be inaugurating a new Shaw home brand in September," said Meadows.
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WMC gets plan extension
Las Vegas— Developers of the World Market Center have received an extension on site plans for the first phase of their furniture market complex here, a procedure they said is routine. WMC Co-managing Partner Shawn Samson said the project's construction timetable is on track. An April letter a WMC representative filed with the city said the extension was needed "due to our current finaliza...
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Senatore joins FMCA
High Point— The Furniture Manufacturers Credit Assn. has hired Scott Senatore as its new executive vice president. Senatore, 41, the former director of customer financial services at textile manufacturer Pillowtex, replaces Barry Wood, who is retiring after seven years at FMCA. Wood will stay through August to help with the transition.
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Stainmaster extends brand
Wilmington, Del.— DuPont Textiles & Interiors is extending its well-known Stainmaster brand to upholstery fabric. An initial test market of the Stainmaster Fabrics line, which will be rolled out nationwide next year, has been going on at Nebraska Furniture Mart featuring 20 inventoried La-Z-Boy frames and 47 covers DTI developed with Quaker Fabric.
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Anti-dumping move stirs cheers, doubts
High Point— An effort to add duties to wood bedroom imported from China appears to have support among domestic case goods manufacturers ranging from cautious to enthusiastic. Importers, on the other hand, worry that the move to impose duties doesn't account for those who source from modern factories with good working conditions, where they say Chinese manufacturers do play by the rules.
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Joan Fabrics realigns management team
Tyngsboro, Mass.— Joan Fabrics has realigned its sales and marketing responsibilities to create a greater synergy between its various divisions. Ray King, who was executive vice president of sales and marketing at the Mastercraft division, has been named to a newly created position, executive vice president of sales for Joan Fabrics, with responsibility for sales across the company's Mast...
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Temple acquires Parker Southern
Maiden, N.C.— Stationary upholstery producer Temple Furniture has acquired Parker Southern, a manufacturer of upper-end accent chairs. Temple officials said they intend to operate Parker Southern as a separate entity. They said they will attempt to replace many of Parker Southern's imported frames with domestic units — a move that should improve delivery and service to retailers.
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Sleep Country adds 3 stores in British Columbia Interior
Toronto— Sleep Country Canada is expanding in British Columbia, opening three stores in the Interior. The newly public retailer also plans another new outlet in Port Coquitlam and will relocate its downtown Vancouver store. The new Interior stores are in Kamloops, Kelowna and Vernon and bring Sleep Country's national store count to 85.
Opinion Today
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Creative ideas needed for AFMA campaign
This week, I am relaxing at my second home on the Chesapeake Bay. The weather is beautiful and the sailboats are out. In the past four weeks I have been to five furniture industry events, all at beautiful locations, but I would rather be home. I don't think I'm alone in that regard. Our trade groups, led by the American Furniture Manufacturers Assn.
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Don't put our legacy at risk: Support the FDC
Epiphanies, like the treasures they are, come in all shapes and sizes. It's been my experience that they usually come at the most unexpected times. Case in point: Last week, I happened to be driving on Main Street in High Point. I had the radio on and was listening to news on National Public Radio. Out of the corner of my eye I spotted the Furniture Discovery Center.
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Very few pros picking fabrics today
It was an interesting Showtime. If you listened closely at this summer's show, you could hear a number of fabric veterans grumbling about how few real pros there are picking fabric at the upholstered furniture producers these days. A decade or so ago, there were countless icons in this arena — people who lived and breathed fabrics, their construction, design and potential application.
People Today
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Ryan assumes VP post at Aaron Rents
Atlanta— Michael P. Ryan has been promoted to vice president, Northern Operations, Sales & Lease Ownership division of Aaron Rents. Ryan joined the company in 1990 as an assistant store manager and was general manager of stores in Jacksonville Beach and Gainesville, Fla., before being promoted to district manager in 1994.
- People on the Move
People on the Move
Marketing Cotton Inc. New York — Dana Poor has joined Cotton Inc. as home fashion marketing manager, fashion marketing. Poor, most recently with Saks, earlier had been fashion trend specialist for Cotton's The Cottonworks Fabric Library. She reports to Kathryn Novakovic, director, fashion marketing.
Special Report
- Mattress Flammability
Suppliers hit the road to update execs
Diamond Bar, Calif.— Whenever the bedding industry gets together to talk about mattress flammability, suppliers of fire-resistant products are part of the discussion. They have taken their messages across the country, from the splendor of a resort in Aspen, Colo., to a packed meeting room in Greensboro, N.
- Mattress Flammability
California's AB 603 makes flammability major industry issue
North Highlands, Calif.— Almost two years ago, California became the first state in the nation to approve legislation that will protect consumers from mattress fires started by open flames. That landmark legislation, known as AB 603, triggered a complex process of hearings, studies and analysis that has made mattress flammability one of the central issues facing the U.
- Mattress Flammability
Labs burn midnight oil
High Point— Mattress flammability is a growth industry for testing labs, which are burning the midnight oil as they set fire to a steadily increasing number of beds. "Sometimes we have to work nightshifts," admitted Chip Haby, manager of tunnel and furniture testing services at Omega Point Laboratories, one of the busiest flammability labs in the country.
- Mattress Flammability
Key testing resources
High Point— Need to burn up a mattress or two to see if you can comply with California's proposed mattress flammability standards? Producers who face that burning question have several options. There are at least half a dozen labs in the United States that have a dual burner developed by the National Institute of Standards and Technology (NIST), an arm of the U.
- Mattress Flammability
Basofil gears up for FR fiber push
Enka, N.C.— At a sprawling industrial park in this mountain community just outside Asheville, N.C., McKinnon-Land-Moran is quietly building its inventory of flame-resistant Basofil fibers. The multi-million-dollar, sophisticated operation here went on line in 1996 and is now adding about $500,000 in finished goods inventory each month.
- Mattress Flammability
Inside Basofil: The making of an FR fiber
Enka, N.C.— Basofil Fibers occupies a relatively small portion of the 18-acre industrial park here, but the business is poised to grow substantially with a $50-million expansion plan already in the works. The expansion will bring four more production lines to this facility. Capacity will jump from 3.
- Executive Compensation
24 executives exceed $1M in '02
High Point— Their paychecks boosted by bonuses and stock options whose value often exceeded their salaries, 24 executives of publicly held furniture companies each took home more than $1 million in compensation last year. That's an increase of six from 2001, and it is seven above the number who earned seven-figure salaries in 2000.
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Furniture grows at eBay
San Jose, Calif.— Online e-commerce gorilla eBay paradoxically is one of the Web's best-known brand names and at the same time one of its best-kept secrets in home furnishings. The dominant online auction house is found in none of the rankings of top furniture retailers. That's because most of eBay's activity involves individuals selling to other individuals.
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Establishing trust a key challenge for e-tailers
High Point— Perhaps the biggest challenge for online retailers is establishing and maintaining trust. Spam, fraud, identity theft and fly-by-night e-retailers threaten consumers' fragile trust in online marketplaces, particularly those in which they are asked to provide credit card information.
- Mattress Flammability
FR sources are ready to go
High Point— There are some strange misconceptions in the marketplace about the supposed lack of progress made by suppliers of fire-resistant materials. Some say the suppliers aren't ready to meet the industry's needs and don't have proven FR products. Our own experiences in the field suggest that the reality is quite different.
Up Front
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Z-line's licensed Maxim line aims to appeal to Gen-Xers
San Ramon, Calif.— Z-Line Designs, an importer of ready-to-assemble home office and entertainment furniture, is developing a line licensed by men's lifestyle magazine Maxim. The line, which Z-Line is already showing to key retailers, is expected to hit stores in September or October, according to Jim Sexton, president.
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Aaron set to enter Canadian market
Atlanta— Aaron Rents will enter Canada later this year with six stores scattered throughout southwestern Ontario. The first store will open within four months after the franchise agreements receive regulatory approval. Charlie Loudermilk Sr., chairman and chief executive officer of the publicly held home furnishings rental powerhouse based here, said those approvals are expected shortly.
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Values stir sales at rug show
Atlanta— Although there were the usual complaints about lack of traffic at the summer rug market here last week, most showrooms were busy for a solid three days. "We had a lot of big dealers in here and our showroom was busy the entire time," said Mike Riley, executive vice president of Sphinx by Oriental Weavers.
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Borreggine joins Therapedic
Middlesex, N.J.— Bedding veteran Gerry Borreggine has joined Therapedic International in the new post of vice president of sales and marketing. Borreggine, 48, who joined his family's sleep shop business, 40 Winks, in 1981 and more recently worked on the supply side of the business, will report to Therapedic President Michael Pino and the Therapedic board.
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Kittle's opens Thomasville store
Indianapolis— Kittle's Home Furnishings has opened a 22,000-square-foot Thomasville Home Furnishings store here, boosting its Thomasville exposure in the city while freeing up space for other furniture lines at its nearby superstore. The Thomasville store, less than two blocks from the 132,000-square-foot Kittle's superstore in the Indianapolis suburb of Castleton, has Thomasville's newes...
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Boyles parent expands into Ga.
Atlanta— Hendricks Furniture Group, which operates Boyles Furniture and other stores, has expanded into Atlanta by opening a Thomasville Home Furnishings store — one of four units planned for the market. The 15,000-square-foot store, in Perimeter Expo Plaza across from Perimeter Mall, is the second Thomasville store for Hendricks, which opened its first in Fort Lauderdale, Fla.
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Boise Cascade to buy OfficeMax for $1.15B
Boise, Idaho— Office products giant Boise Cascade Corp. has announced plans to acquire OfficeMax, a major retailer of small office-home office furniture and other office products, for $1.15 billion. Boise, which expects to close the deal during the fourth quarter, said it is vertically integrating by adding retail outlets for its office and paper products.
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