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Furniture|Today > Archives > 08/06/2007 Issue
Table of Contents
Furniture|Today -- 08/06/2007

Bedding Today
  • Drop in specialty units puzzling find in my book
    A few weeks ago I asked Charlie Eitel, chairman and CEO of Simmons, what he thought of an association report stating the specialty sleep category suffered a slight unit decline last year. He expressed confidence in association statistics, but admitted: "I have a hard time understanding that (reported decline).

Editor's Desk
  • Fabric scene: Fast forward
    Not only could one say the fabric of the furniture business is changing, they'd better be saying it, because it is. At last week's Las Vegas Market, a key topic of conversation among upholstery makers was the void in domestic fabrics with the demise of once-major suppliers Joan/Mastercraft and Quaker.

Industry Numbers
  • Havertys reports 2Q loss
    Atlanta— Full-line retailer Haverty Furniture reported a second-quarter loss of $1.4 million, or 6 cents per share, as sales at the Top 100 chain dipped 11.3%. In last year's second quarter, the midpriced chain turned a profit of $3.6 million, or 16 cents per share. Sales in the latest quarter came to $187.
  • Ethan Allen 4Q sales, profits dip
    Danbury, Conn.— Retailer-manufacturer Ethan Allen said sales dropped 5% in its fourth quarter, while net income slipped 8.5%. The company said the declines were due largely to the continuing industry-wide slump, but noted its gross margins improved two percentage points, largely because retail sales made up a greater percentage of total sales.
  • Aaron 2Q revenues jump 11.6%
    Atlanta— Aaron Rents said second-quarter revenues were 11.6% above last year's comparable period as the rent-to-own major continued to add stores and generate more sales at existing stores. Same-store sales were 5% ahead of last year's second quarter. Revenues for the quarter amounted to $359 million, including $327.
  • FBI 2Q earnings drop 65.8%
    St. Louis— Furniture Brands International's second-quarter earnings tumbled 65.8% from the comparable period last year as sales slid 11%, the big manufacturer and importer reported. Mickey Holliman, chairman and CEO of the conglomerate, said the operating environment for the industry was still difficult, with demand dampened by sluggish consumer discretionary spending.

News
  • Strong showing in Vegas
    Las Vegas— Although sluggish business conditions seemed to stack the odds against the summer market here, the show managed to turn in a strong performance in the eyes of most exhibitors. While attendance clearly was below the January market, when the World Market Center's Building B was unveiled, most said showroom traffic was good and order-writing was strong.
  • WMC filling C, sets bigger D
    Las Vegas— Lexington, Sligh, Huntington, Canadel and Avenue Six are among the new furniture tenants who have signed leases for the World Market Center's third showroom building, a 16-story, $550 million structure that will be ready for the July 2008 market. That structure, Building C, will be the largest at the WMC complex at 2.
  • Klaussner to roll out new retail network
    Asheboro, N.C.— Klaussner Home Furnishings said last week it is rolling out a new retail arm, squelching months of rumors that it was being sold to a Chinese company or to other domestic manufacturers. The new Klaussnerhome network will start with four stores — two in Philadelphia, one in Hattiesburg, Miss.
  • Barcalounger, Stanton promote 3, create div.
    Tualatin, Calif.— Stationary upholstery resource Stanton and recliner specialist Barcalounger, both owned by Los Angeles-based Hancock Park Associates, have made management changes and created a new subsidiary. At Stanton, Walt Harris has been promoted to president and chief operating officer. He joined the company in 1998 and has held positions in customer service, credit, operations and...
  • Ferullo is Rizzy VP of sales
    Calhoun, Ga.— Mark Ferullo has been named vice president of sales for rug manufacturer and importer Rizzy Rugs. He had been vice president of rug supplier 828 International Trading since October 2004. "Ferullo brings a wealth of expertise to this new position. Under his leadership, we look forward to increasing our penetration in the U.
  • Fjords' McGuinness resigns
    Somerset, N.J.— Kevin McGuinness has resigned as president of Euro-recliner specialist Fjords USA by Hjellegjerde. McGuinness, who joined the Norwegian-owned company 18 months ago, will work as a consultant for Hjellegjerde and others. His day-to-day responsibilities have been assumed by Olav Roeyset, CEO/managing director of parent Hjellegjerde in Norway.
  • WMC promotes four execs to VP positions
    Las Vegas— The World Market Center here has promoted Dana Andrew, Babs Blair, Tim Branscome and Michelle Monteferrante to vice president positions. All had been directors, and all will continue in their current areas of responsibility. Andrew is vice president of marketing and public relations; Blair heads leasing; Branscome guides international business development; and Monteferrante lea...
  • Watson to direct product development for Broyhill
    Lenoir, N.C.— Pat Watson has joined Broyhill Furniture Inds. here in the new post of director of product development. He will lead domestic and Asian product development teams, and work to ensure on-time delivery and timely execution of merchandising concepts. Watson reports to Jimmy Martin, Broyhill's senior vice president of supply chain.
  • Bedroom additions win favor in Las Vegas
    Las Vegas— Bedroom makers said last week's Las Vegas Market had better traffic than July 2006, but less than January of this year. Written business and commitments appeared to follow the same pattern. Exhibitors saw traffic ebb and flow as patterns continued to develop. In general, Building A was reportedly stronger Monday while Building B picked up on Tuesday.
  • Dining runs from big to small
    Las Vegas— Satisfying consumers' needs in dining tables means offering many shapes and functions, but all those options can complicate sourcing and warehousing. A manufacturer can introduce all the tables it wants, but executives at the Las Vegas Market said the challenge is to satisfy the consumer, manage the SKU count and flow the product efficiently.
  • Upholstery sources see good activity with West
    Las Vegas— Despite mournful predictions of low attendance and slow business, the market here closed out last week with better-than-expected results. Some showrooms were busy while others were slack, so it was hard to tell exactly how many buyers were willing to venture into the desert heat (which, because of cloudy skies and some rain, wasn't extremely hot after all).
  • U.S. fabrics hard to find
    Las Vegas— With millions of yards vanishing from the domestic supply chain this year, upholstered furniture makers are being forced to rely on imported fabrics more than ever — whether they want to or not. And few have escaped the irony of the situation. Only a fraction remains of the U.S.
  • Rising costs, falling dollar hurt rug importers
    Las Vegas— The plummeting dollar and increasing costs of raw materials are putting the squeeze on profits for rug importers. But now is not the time to raise prices, said rug exhibitors at last week's Las Vegas Market. With the current soft market for home furnishings, executives say they will hold off the sorely needed price adjustments until January.
  • Rocker recliners prove popular in motion
    Las Vegas— The rocker recliner is growing more popular as an add-on option to motion upholstery groups, judging by introductions at the Las Vegas Market held here last week. Motion producers Elran, Flexsteel and Franklin all enjoyed strong outings with rocker recliner additions to their multi-piece functional seating.
  • Rug vendors find their rhythm at WMC
    Las Vegas— Rug vendors are beginning to find their rhythm at the World Market Center. Despite continued softness at retail, rug executives said results of this market were positive. Most of the visitors were independent furniture stores from the West, fresh faces for the rug industry. But executives said they saw some big players and old friends as well.
  • Wickes marks 1st of three planned Las Vegas stores
    Las Vegas— On the eve of the summer market here, Wickes Furniture hosted a grand opening celebration of the first of three planned metro Las Vegas stores. The 38,000-square-foot showroom, in a vast shopping and residential area on North Decatur Boulevard, welcomed industry guests and others. The store, which adheres to the Top 100 company's latest architectural designs, has a few regional...
  • Sustainable standards in works
    Las Vegas— What furniture deserves to be called "sustainable?" The Sustainable Furniture Council is working on an answer and hopes to have standards in place later this year, the group's leaders reported during a meeting at last week's Las Vegas Market. Gerry Cooklin, CEO of case goods manufacturer South Cone Inds.
  • Industry News
    To reflect both the tradition and the creativity of the industry, the High Point-based American Furniture Hall of Fame Foundation has introduced this new logo. "It conveys the history and prestige of the organization, welcomes future generations, and looks ahead to a new age for our organization as it evolves to meet the changing needs of the industry," said J.
  • Ethan Allen, Circuit City test tie-ins
    Danbury, Conn.— Ethan Allen said it is partnering with Circuit City in a test that involves placing products in each other's stores and working in common on house calls. Ethan Allen spokeswoman Peg Lupton confirmed that a test is ongoing at the Danbury, Conn.-based retailer and manufacturer's Natick, Mass.
  • Chromcraft uniting in Showplace space
    High Point— Chromcraft Revington has agreed to lease 35,000 square feet of showroom space at Showplace here and will move all of its brands under one roof in time for the October market. The company previously leased space on three floors of the International Home Furnishings Center for its various brands, including Chromcraft, Peters-Revington, Cochrane and Silver.
  • Obituaries
    Obituaries
  • Adams joins FFDM as VP
    High Point— Jim Adams, a former CEO of Hickory White and the CTH Sherrill Occasional division of Sherrill Furniture, has joined case goods importer Fine Furniture Design & Marketing as vice president of design and marketing. Adams, who reports to CEO Ted Philpott, left the Sherrill divisions in April after four years as CEO.
  • Lifestyle taps Bowman as wood chief
    High Point— Importer Lifestyle Enterprise has hired industry veteran Rick Bowman as president of the company's case goods operations. Bowman replaces John Wampler, who left Lifestyle earlier this year to become president of importer Amelia Home. Bowman most recently was vice president of manufacturing for Columbus, Ohio-based retailer American Signature.
  • Quaker liquidating to pay $34.2M in loans
    Fall River, Mass.— Apparently dashing any chance of a last-minute bailout, supplier Quaker Fabric has filed papers with the U.S. Securities and Exchange Commission to sell its real estate and equipment to pay off $34.2 million in loans. The company also said it has hired RAS Management Advisors to manage "the liquidation of the assets of the company.
  • Agreement averts strike at West Coast ports
    Los Angeles— Clerical workers and ocean carrier and terminal operators at Los Angeles and Long Beach ports tentatively agreed July 26 on a contract, averting a strike that could have held up imported furniture and other goods. Negotiations with representatives of the Office Clerical Unit, Local 63, of the International Longshore and Warehouse Union had stalled after the old contract expir...

  • Sauder recalling 414,000 television stands
    Washington— The U.S. Consumer Product Safety Commission announced a recall on Wednesday of about 414,000 TV stands made by Sauder Woodworking. The U.S.-made stands were sold at Wal-Mart stores and on Wal-Mart.com from January 2005 through May 2007 for about $90. The CSPC said consumers should stop using the recalled products unless otherwise instructed.
  • Universal's BHG line makes splash in Green Bay
    Green Bay, Wis.— Universal Furniture's Better Homes and Gardens collection debuted here to a crowd of consumers at the first Younkers Furniture Gallery store. Roughly 2,500 square feet of the 55,000-square-foot store at the Bay Park Square mall was dedicated to the line, which was developed in conjunction with the editors of what is billed as "America's largest home enthusiast magazine," ...
  • Sczubelek leaves post at L&P group
    Las Vegas— Stephen Sczubelek has left his position as senior vice president of merchandising at Leggett & Platt's Consumer Products Group to pursue other interests, the company said. Sczubelek has been with the company since 2005 and was promoted to the merchandising post this year. He left the company in late June.
  • Seymour is JLA Home nat'l sales mgr.
    Greensboro, N.C.— Fabric industry veteran John Seymour has joined fabric supplier JLA Home Fabrics here as national sales manager, a newly created position. Seymour, whose career in the fabric industry began in 1973, was with Quaker Fabric for the past 12 years, most recently as Southeast sales manager.
  • Bedding producers find ways to stand out
    Las Vegas— Bedding producers found several ways to stand out at last week's market, offering everything from new products to new leaders to new ad campaigns. The producers were generally pleased with their showings, saying that traffic was steady and retail response to introductions was strong.
  • Retailers respond to specialty bedding additions
    Las Vegas— Bedding's biggest producers showed revamped specialty bedding offerings here with consumer-friendly features and prices. According to the producers, retailers said they like the offerings and plan to use them to drive business in the key sales months ahead. Sealy's new PostureCore is an orthopedically correct support system used throughout its new TrueForm visco line.
  • La-Z-Boy reformats
    Monroe, Mich.— La-Z-Boy has overhauled its in-store gallery program for independent dealers and renamed it Comfort Studio. The company said the new format, which will involve all 304 existing in-store gallery dealers, highlights La-Z-Boy's increased focus on consumer comfort and allows dealers to customize the program to meet their needs.
  • Easter joins Huntington
    High Point— Industry veteran Eric Easter is joining fast-growing case goods importer Huntington Furniture as CEO, effective Aug. 7. Easter was executive vice president of Conover, N.C.-based Top 100 store Hendricks Furniture Group for the past year-and-a-half, and earlier was executive vice president of manufacturer-importer Thomasville Furniture Inds.
  • Group agrees on upholstery fire safety plan
    Arlington, Va.— A diverse group of industry stakeholders has agreed on a recommendation for federal regulators considering U.S. fire safety standards for upholstered furniture. "The majority of the group, including the entire furniture industry supply chain, was in favor of urging federal regulators to move forward on a standard that would ensure all upholstered furniture sold in the Unit...
  • Ashley seeks share of antidumping duties
    Arcadia, Wis.— Ashley Furniture Inds., a big domestic producer of wood bedroom furniture, said it is seeking a share of antidumping duties collected by the U.S. government on Chinese-made product in that category. The company has filed a claim with U.S. Customs and Border Protection for the monies, which are distributed each year under the Continued Dumping and Subsidy Offset Act of 2000,...
  • Piatt resigns from Emerald
    Tacoma, Wash.— Mark Piatt has resigned as vice president of Emerald Home Furnishings for personal reasons after more than 15 years with the importer. Piatt, along with President David Beckmann and Chief Financial Officer Jeanine Cassino, were joint owners of the company, which sources product from China.
  • Hiller leaves Four Hands
    Austin, Texas— Jeffrey Hiller has left as vice president of marketing of case goods importer Four Hands. Hiller had been with the company since early 2006 and had done some consulting work for it earlier, said Four Hands President Matt Briggs. He said Hiller left to pursue other opportunities, and that the company has not yet named a replacement.

Special Report
  • Retail Profile
    Fresh thinking pays off for I.O. Metro
    Rogers, Ark.— If you are going to sell furniture, Jay Howard reasons, then sell furniture the way that a Ford dealer sells Fords. No one finds a spiffy new red F-150 pickup truck in a showroom and then looks longingly at the empty space in his garage while he waits eight weeks for the truck to arrive.

Store Openings
  • Thomasville has another Chicago unit
    Naperville, Ill.— Thomasville has opened a locally owned store here based on the company's new prototype. The 10,600-square-foot unit is owned by the Emanuel family, and marks their third Thomasville store in metro Chicago. The others are in Geneva and Lincolnshire. Thomasville, with over 150 dedicated stores, is a subsidiary of Furniture Brands International.
  • Flexsteel opens 4 galleries
    Dubuque, Iowa— Upholstery producer Flexsteel has opened two 3,500-square-foot, in-store Signature Galleries in Colder's Furniture and Appliance units in Delafield and Grafton, Wis. In addition, 2,000-square-foot Flexsteel Signature Studio galleries have opened in Colder's stores in West Allis and Oak Creek, Wis.
  • Verlo Mattress Madison store moves one block west
    Madison, Wis.— Verlo Mattress Factory Stores of Madison-West here has relocated to a new 8,750-square-foot building on West Beltline Highway, just off Todd Drive. "We only moved one block west, but I think the new location has more to offer," said franchise owner Chad Franklin. He also owns a Verlo franchise store on Madison's east side, on Washington Avenue.
  • La-Z-Boy adds N.J., N.C. stores
    Monroe, Mich.— La-Z-Boy, based here, has opened two dedicated Furniture Galleries stores, in New Jersey and North Carolina. Pineville, N.C., is home to a new 14,222-square-foot store on Carolina Place Parkway. Byron Brown co-owns the store with Martha Brown and Mike Floyd. They also own nine other dedicated La-Z-Boy stores in Georgia, North Carolina and South Carolina.

Tech Talk
  • High-tech gear poses real challenge, but we'll adjust
    I'm 27 years old. I purchase furniture at Goodwill or from friends. Probably my greatest financial contribution to our industry so far this year: I bought a second-hand sofa ($40) and got a free chair from two people who finally got rid of those old pieces and bought a lovely new sofa and chair. We complain a lot about how we lose consumer disposable dollars to high-tech gear.

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