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Furniture|Today -- 07/18/2005
Bedding Today
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Hellyer lost a hand of poker, but could return as winner
Bob Hellyer, president of bedding major Simmons since January 2001, found himself realigned out of a job the other day, and that's a shame. His sudden departure was a surprise to many of us, me included. Let's reflect on what happened to Bob and see if there are any lessons to be learned. Hellyer, 46, played a key role in the successes Simmons enjoyed in recent years.
Editor's Desk
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U.S. manufacturing can make sense, dollars
There is a small but growing number of U.S. manufacturers that obviously have not heard the fat lady sing. Companies like Copeland, McCreary Modern, Elite Mfg., Seco and American Leather all believe it's still possible to manufacture domestically and stay in business. While I can't name names, I can tell you that Furniture/Today will be reporting on similar companies.
Industry Numbers
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Sealy sales jump 12.4% in 2Q
Trinity, N.C.— Bedding sales leader Sealy posted sales increases and profits in the quarter and six months ended May 29. Sales in its second quarter were up 12.4% to $355.9 million from $316.6 million in the comparable 2004 period, and six-months sales increased 12.6% to $714.9 million from $634.
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Jennifer 3Q net income up 7% despite 8.6% drop in revenues
Woodbury, N.Y.— Retailer Jennifer Convertibles posted a 7% gain in net income in its third quarter, boosted by a $2 million collection of receivables. But sales fell, hit by price deflation and weakened demand. Net income in the quarter ended May 28 came to $1.4 million. The Top 100 chain said earnings were boosted by collection of receivables from a private company that owns 22 Jennifer ...
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Shipments up, not profits
High Point— Growth in shipments helped U.S. residential furniture factories last year, but profit margins remained similar to their 2003 levels, according to BDO Seidman. Gross profit margins inched up to 21.47% of sales last year from 20.9% in 2003, the accounting and consulting firm said. Operating profit, or gross profit less selling and administrative expenses, declined slightly to 5.
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Ethan Allen sees positives
Danbury, Conn.— Retailer-manufacturer Ethan Allen said it expects to report delivered sales of $242.3 million in its fourth quarter ended June 30. In the comparable year-earlier period, the company reported $246.6 million in delivered sales. Compared with the prior year's quarter, Ethan Allen Chairman and CEO Farooq Kathwari said written sales to company-owned stores were up 8.
Insider's View
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Office furniture industry could point the way for us
The office furniture industry gathered in Chicago last month for three very busy days at NeoCon, their annual market. Attendance was strong, as you might expect after 17 months of increasing orders and 15 months of higher shipments. The massive 39% decline in factory shipments from 2000 to 2003, while not forgotten, no longer dominated every conversation, and most showrooms were full of new and...
News
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Retailers laud Kluft lines
Gardena, Calif.— Larry Miller, president of powerhouse bedding retailer Sit 'n Sleep, says Earl Kluft is off to an encouraging start on his showroom floors. Sit 'n Sleep has added seven of Kluft's E.S. Kluft and Aireloom models to its extensive bedding assortment, which includes Simmons, Sealy, Serta, Spring Air, Miralux, Stearns & Foster, Chattam & Wells, Nature's Rest and Somma ...
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High Five spotlights new Showtime space
High Point— High Five Textiles, which represents upper-end European mills Algemene, Bruvatex, Decoviz, Penelope and Zensilk, showed off its new showroom at a Showtime party. The second-floor showroom, in the former Hoffman Mills space, doubled High Five's presence at the show.
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Purcell prints have interesting origins
High Point— Purcell International introduced a pair of print lines at Showtime last week, both with interesting origins. One is from Upper South Studios, which designs patterns and fabric for upscale hotels like the Ashton Waikiki, the Beverly Hilton and the Palmetto Inn in South Carolina. Studio owner Lawrence Rosen met Andrew Purcell, owner of Purcell International, when he wanted to pr...
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HomCraft scores with Brisa
High Point— HomCraft said it scored a hit with its new Brisa line of performance leather alternative, a polyurethane product for indoor or outdoor use that debuted at Showtime here last week. HomCraft partner Brian Gallagher called Brisa "the ultimate performance fabric" because of its durability to 200,000 double rubs, total cleanability and light-fastness to 1,400 hours, which is close ...
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Rhodes sale in works
Atlanta— Richmond, Va.-based The RoomStore, partnering with a liquidation specialist, has signed a letter of intent to acquire 51 Rhodes stores and other assets for $38.8 million. Separately, Rhodes has asked the U.S. Bankruptcy Court here to authorize store-closing sales at 14 Midwestern stores and a distribution center the proposed buyers don't want.
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H&S adds upholstery
Richmond, British Columbia— Importer Hamilton & Spill will use the Las Vegas Market to introduce a broad assortment of upholstery, all part of the company's strategy to become a whole-home source for North American retailers. The importer plans to show some 20 designs, primarily in leather.
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Longtime WHFA head David Lane dies at 63
Lincoln, Calif.— David Lane, who led the Western Home Furnishings Assn. for 14 years and is credited with developing numerous programs to cut the costs of doing business for its retail members, has died after a long battle with Parkinson's-related disease. He was 63. Lane joined the industry in 1988 when he accepted the executive director post at the National Home Furnishings Assn.
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Slavin heads Lifestyle leather
High Point— As part of a management expansion, Lifestyle Enterprise has hired industry veteran Howard Slavin as president of its Shanghai Leather division. Slavin was most recently vice president of merchandising for retailer Rooms To Go, Seffner, Fla. Previously, he was president and CEO of retailer Wickes, based in Wheeling, Ill.
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WithIt awards $5,000 scholarships
High Point— WithIt has awarded its Jena and Stephen Hall Scholarships of $5,000 each to two young women seeking careers in home furnishings, the organization announced during last week's Showtime fabric show here. Scholarship winner Julie Anne Allred will attend Meredith College in North Carolina and Alex Olivia Rosenhaus will attend Savannah College of Art and Design in Georgia.
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Priddy leaves Bombay
Fort Worth, Texas— Brian Priddy has resigned as executive vice president-operations for The Bombay Company to become president of Hibbett Sporting Goods of Birmingham, Ala. With his departure, Patsy Holmes has been promoted to vice president-stores, responsible for the operations of stores in the United States, and will report to Bombay Chairman and CEO James Carreker.
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Gordon Bros. acquires Ozer
Boston— Sales and liquidation specialist Gordon Bros. Group has acquired competitor and neighbor The Ozer Group for an undisclosed amount. Ozer will close its Needham, Mass., offices as its management team joins Gordon Bros. in Boston, Gordon Bros. said in a release. Henry Mittelman, former president and chief operating officer of Ozer Valuation Services, was named president, appraisal de...
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Vogels settle Ashley suit with Waneks
Arcadia, Wis.— Ron Wanek and Todd Wanek, majority owners of full-line manufacturer, importer and retail franchiser Ashley, have reached a settlement with Chuck Vogel and Ben Vogel over the value of the Vogels' stake in the company. Details of the settlement were not available. The Vogels sued the Waneks and Ashley in late 2002 in Trempealeau County Court in nearby Whitehall, contending th...
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Room & Board to close Minneapolis store
Minneapolis— Room & Board will close one of its two main Minneapolis-area stores, citing the evolution of its business to a national level and a burgeoning online and catalog business. The 10-store Top 100 company, which specializes in mid-priced, classic contemporary home furnishings, said it will close its 32,000-square-foot Roseville, Minn.
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Upholstery prices may climb
High Point— Retailers may see higher prices on new upholstered products this summer, thanks to the rising costs of raw materials. Hit hard by hikes on steel and petroleum-based products like foam, several manufacturers said they've been forced to add $10 to $20, on average, to the wholesale price of new sofas, and lesser amounts on chairs and other seating products.
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Kluft puts Aireloom revival on track
Ontario, Calif.— E.S. Kluft & Co. has won key retail placements for its upscale Aireloom and Kluft bedding lines, which the company says positions it for solid growth. President Earl Kluft, a player in the rise of Spring Air before leaving in 2003, said he is re-energizing the once-languid Aireloom brand, placing the venerable line with heavy hitters in Western states, including Calif...
Opinion Today
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Speed to market, exclusivity are new challenges
A number of key changes in the upholstery fabrics, home textiles and home furnishings arenas became more evident than ever during last week's Showtime fabric market in High Point. Speed to market has become an industrywide mantra, whether the conversation is about fabrics, furniture, home textiles or whatever.
Special Report
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Bacon's builds success on brand names
Port Charlotte, Fla.— When Bacon's Furniture Galleries opened a 32,000-square-foot Lane Home Furnishings store here in May, the first Lane store in Florida, the family-run business became just the second U.S. retailer to offer both Lane and LaneVenture lines. Bringing the Bacon's Furniture Galleries location to a total of 105,000 square feet, the expansion also makes Bacon's one of the la...
- Showtime Report
Leather suppliers capitalize on creativity, sophistication
High Point— Leather suppliers exhibiting at Showtime here last week capitalized on creativity and emphasized more sophisticated looks in their ongoing contest with Asian rivals. In lieu of competing on price, leather resources did a bit of boasting about technological advances in tanning, which they say are more evolved than that of the Chinese.
- Showtime Report
Tennis gets Crest sales post
High Point— Mike Tennis has been named U.S. sales director for Crest Leather, a new leather resource for the U.S. market. Tennis, formerly with tannery Fonseca U.S.A., reports to Alessandro "Alex" Rigoni, president of Conceria Di Vestena, the Italian tannery owned by Crest. Crest, the 10-year-old division of East Hides Group, says it is the only British company to own and operate an Itali...
- Showtime Report
Catawba has finished uph.
High Point— Domestic resource Catawba Leather has begun producing fully finished leather upholstery in China. "We have gone from just producing hides, to cut-and-sew, and now to fully built product," Manager Miguel Caputo said at Showtime here last week. The new production facility, which Catawba and a Chinese partner opened in June, will make leather upholstery largely for private-label ...
- Las Vagas Product
Las Vegas product parade
All prices retail • For rugs, all prices are for an approximate 5 by 8 size unless noted. In-depth stories about product introductions will appear in Furniture/Today's July 25 issue. A PLUS INTERNATIONAL S 645 Targeting middle to middle-high price points in case goods. New program offering next-day service on container loads out of warehouse; new warehouse in China to offer quick shipping...
- Atlanta Rug Market
Serious rug buyers draw vendor smiles
Atlanta— Rug vendors had modest expectations for last week's Atlanta rug market, but it turned into a buying event despite slow traffic. Did the upcoming Las Vegas show affect attendance? It's hard to say because traffic at the summer market always has lagged far behind the January rug event. "Perhaps some home furnishings retailers in the West skipped Atlanta so they can check out the La...
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Hurricane Andrew posed challenge for store openings
Port Charlotte, Fla.— The expansion of Bacon's Furniture Galleries here this past May almost didn't happen. The company originally planned to open a Lane store in Port Charlotte in November and a Drexel Heritage store just north in Sarasota in March. Those plans were put off indefinitely when Hurricane Andrew swept through the region with 155-mile-per-hour winds last August.
- Showtime Report
Showtime goes global
High Point— The mind-boggling rate of change in the textile industry was top-of-mind for buyers and sellers at Summer Showtime here last week. Some fabric sources that sold entirely U.S.-made lines just five years ago, for example, now source exclusively from offshore, and familiar domestic mills are moving steadily toward a business model in which they serve more as marketing and sales a...
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