|
|
|
|
Furniture|Today -- 04/28/2008
Bedding Today
-
Tempur-Pedic rocket sputters, panel tackles category's future
Suddenly, memory foam leader Tempur-Pedic looks all too vulnerable. The company just reported a whopping 16% sales decline in its domestic business in the first quarter. Net income plummeted from $29.8 million in the first quarter last year to $13.5 million in the first quarter of 2008. As I ponder those shocking reversals, I have several questions.
Editor's Desk
-
Credit crunch causing pain
While the sub-prime fiasco and its impact on home furnishings continue to be a hot topic, it may soon take a back seat to a related hot potato: the credit crunch. In simple terms, the escalating credit crunch has caused a number of large lenders, many of whom have taken big hits in earnings, to become far more demanding, even having the audacity to ask for the borrower's financials.
Industry Numbers
-
Proxy fight over FBI board seats heats up
St. Louis— A proxy fight over Furniture Brands International board seats heated up in advance of the May 1 annual meeting, with the company and a dissident group sending letters to shareholders and lining up allies. Sun Capital, a private equity firm and significant Furniture Brands stockholder, has nominated three new board members against the company's candidates.
-
Aaron revenues up 12.7%, but costs hold down profits
Atlanta— Rent-to-own powerhouse Aaron Rents said first-quarter revenues rose 12.7%, but profits fell more than 15% as the company was beset by heavy start-up costs from several new stores opened late last year. The company, which operates about 1,565 company-owned and franchised stores, said it was sticking to a previously announced plan to slow expansion efforts in 2008 and improve profi...
-
EA sales down 4.3%
Danbury, Conn.— Ethan Allen's income fell 49.7% in its fiscal third quarter ended March 31 as sales slipped 4.3% in a weaker economy, the company reported. Earnings came to $8.8 million on sales of $235.9 million. Sales in the company's retail division increased 3% to $172.8 million, while wholesale division sales fell 9.
Insider's View
-
Reincarnations reach out to next generation
At the spring High Point Market, I was impressed with the array of new merchandise from every supplier. Funny how price increases spur a new product flow in our industry, isn't it? I am so old that I often recognize the introductions as being reincarnations of furniture from decades ago. I was almost thrown out of a recliner manufacturer's showroom a few years ago because I reminded them that t...
News
-
Interim Sealy CEO: Rollout of Posturepedic going well
Archdale, N.C.— Sealy is accelerating the rollout of its new flagship Posturepedic line, introduced with much fanfare earlier this year, the company's interim CEO says. Larry Rogers, 59, named interim CEO last month following the sudden departure of longtime Sealy executive Dave McIlquham, talked about the Posturepedic launch and other key items on his agenda in an interview at his office...
-
Prillaman chairing Stanley
Stanleytown, Va.— Albert Prillaman has resumed his position as chairman of Stanley Furniture's board of directors to provide added strategic guidance in the face of slumping business, the company said. Prillaman, 62, spent 33 years involved in the daily operations of the case goods resource, starting in 1969.
-
Packaging expert: Styrofoam not best for shipping furniture
Fort Lauderdale, Fla.— Styrofoam makes an excellent coffee cup, but it's a poor packing material for furniture being shipped from Asia, an executive for a major packaging company said here. Speaking at the annual conference of the International Furniture Transportation and Logistics Council, Connie Hardy-Jones of Multi-Wall Packaging said Styrofoam should be avoided when shipping furnitur...
-
Home Meridian relocating staff to High Point
High Point— Home Meridian International has announced it will relocate some jobs from its Pulaski, Va., and Phoenix locations to its corporate headquarters here on Premiere Drive. In January, HMI opened the 20,000-square-foot office as the home base for all four of its divisions — SLF, Pulaski, infant and juvenile furniture producer Creations, and contract division SLH (Samuel Lawre...
-
SunBelt opens new facility
Fontana, Calif.— SunBelt Furniture Xpress, a furniture transport and home delivery company, has opened a 90,000-square-foot distribution center and cross-docking facility here. The new facility will complement the company's East Coast operations, which are based in Hickory, N.C. "We see our current customer base looking at different distribution points to speed the time it takes to get pr...
-
Vietnam: Next China?
Fort Lauderdale, Fla.— Although China is clearly the leading resource for U.S. furniture producers and retailers, a top retail executive said he believes the furniture industry will be "insignificant" in China within a few years. Jeff Sears, international logistics manager for Warren, Mich.-based Art Van Furniture, said Chinese-owned furniture companies are opening factories in Vietnam at...
-
L&P introduces VertiCoil innerspring
Carthage, Mo.— Components major Leggett & Platt has introduced what it is billing as the latest advance in sleep technology: A newly engineered innerspring coil that takes dead aim at the most popular innerspring in the world. L&P says its new VertiCoil, invented at the company's Idea Center here, offers premium, high-performance at a value price point.
-
Spring Air closing plants
Elk Grove Village, Ill.— Bedding major Spring Air said last week that it is closing its manufacturing plants in Phoenix and St. Louis and will relocate its corporate headquarters from this Chicago suburb to Tampa, Fla. CEO Bob Hellyer said the changes are "tough, but necessary," given the challenging business climate that faces the bedding industry.
-
Clarke drops Shermag offer
Halifax, Nova Scotia— Investment firm Clarke Inc. has withdrawn its proposal to take furniture manufacturer and importer Shermag private. "The price proposed by Clarke was below the range established by the valuator and the independent directors were therefore not in a position to recommend acceptance of the
-
Abbyson offers promo
Chatsworth, Calif.— Abbyson Living is offering a pre-Las Vegas Market promotion for retailers from now through June 30. Customers purchasing more than $10,000 in Abbyson rugs and furniture during this period will receive a free trip to the market, which runs July 28 to Aug. 1. The promotion includes round-trip airfare for two from anywhere in the United States and accommodation at the New...
-
ASFD accepting Pinnacle entries
Greensboro— The American Society of Furniture Designers is accepting entries for its annual Pinnacle Design Achievement awards, which will be presented at the October 2008 High Point Market. The deadline for entries is July 30. The Pinnacle awards are open worldwide to any designer or manufacturer.
-
Trucking cos. merge, form World Wide Logistics
Valdese, N.C.— Six well-known specialized furniture carriers have merged, forming a new organization called World Wide Logistics that will serve all 50 states and Canada. The merger brings together Four Truckers of Morganton, N.C.; Furniture Transportation Systems of Pomona, Calif.; Milwaukee Delivery Service of Jefferson, Wis.
-
DeCoro plans new China factory, High Point showroom
High Point— Leather upholstery maker DeCoro will open another factory in China next month and a new showroom here next year. The 968,000-square-foot plant set to open in May joins DeCoro's 2 million-square-foot upholstery operation in Shenzhen, China. The new facility will produce exposed wood trim, with additional space set aside to expand leather upholstery operations by 40%.
-
A.R.T. opens East Coast warehouse
Ontario, Calif.— A.R.T. Furniture has opened a 50,000-square-foot warehouse in Hickory, N.C., to facilitate shipments to East Coast retailers. The warehouse was opened in response to requests from retailers east of the Mississippi, said Bill Sibbick, vice president of sales. He said the warehouse gives A.
-
FBI acquires 11 T'ville stores
St. Louis— Furniture Brands International acquired 11 Thomasville Home Furnishings stores from four dealers this past quarter, bringing its company-owned count to 23. The manufacturing and importer acquired four Thomasville stores in South Florida from Hendricks Furniture Group; two in the Kansas City market from Stuart Smoler; two in Dallas from a dealer getting out of the Thomasville bu...
-
Logistics pros enjoy Florida dinner cruise
Fort Lauderdale, Fla.— The International Furniture Transportation and Logistics Council capped its 48th annual conference here with a dinner cruise aboard the yacht Caprice. More than 100 logistics professionals attended the conference.
-
Hamilton Spill hosts 85 retailers in new Dongguan showroom
Dongguan, China— Hamilton Spill Furniture Group used its new showroom here to launch a line of case goods, occasional and upholstery in March. The 35,000-square-foot showroom has been open to buyers since September, but this was the company's first official show. The March 8–23 event attracted 85 retailers from around the world, about 20 of whom were from North America, said Chairma...
-
JCPenney's Internet sales rise 15% in 2007 to $1.5B
New York— JCPenney's Internet sales climbed 15% to $1.5 billion last year, making it the fastest growing of the $19.9 billion retailer's three sales channels, company officials said at their annual meeting here with securities analysts. Now, the Internet will be a merchandise hub — offering a larger selection of product than the other channels, stores and catalog.
-
JCP realigns furniture, bedding buying teams
Plano, Texas— JCPenney has realigned its furniture and bedding buying teams as it has combined buying responsibilities for its retail and direct (Internet and catalog) businesses. Mike Kays has been named senior buyer for bedding, youth furniture, occasional furniture, home office, metal beds, bed frames and home entertainment.
-
Bridge plan in place
New York— JCPenney will cut back on expenditures this year as part of "a bridge plan" to carry the company through current rocky times, according to Chairman and CEO Mike Ullman III. "We are in an environment that is unstable, and there is a lack of consumer confidence," Ullman said at the retailer's annual presentation to securities analysts here.
- Obituaries
Obituaries
Opinion Today
People Today
- People on the Move
People on the Move
Marketing/Sales Hickory Hardware Nashville, Tenn. — Supplier Hickory Hardware has restructured its sales teams within its OEM furniture hardware business. The company said the reorganization enables it to offer integrated sales and customer service, a dedicated design studio and finishing lab, and local showrooms in the United States and China to better serve the furniture market.
-
IFDA-NY elects Klein president
New York— The New York Chapter of The International Furnishings and Design Assn. has elected Maureen Klein, a marketing specialist for Designer Showhouses, as 2008 president. The group has also formed a new board of directors. Klein took the reins from Susan Hirsh, who was president for the last two years.
Q and A
-
What your biggest challenge in this tough credit climate?
High Point— The biggest challenge for furniture retailers in today's tight credit market has less to do with credit within the industry and more to do with financial pressures throughout the American economy, according to a spot- check of furniture retailers across the United States. From Alaska to Florida, many different kinds of retailers in different market areas said there is a genera...
Special Report
- Behing The Design
Pattern play
Interior Design 101 teaches us how to combine patterns by carefully balancing their size and quantity within a room. The latest trend, however, is breaking the rules, and the end result is an explosion of fun. Current patterns have evolved and progressed toward unexpected material mixes and a playful relationship between the patterns and the way they are being combined.
- Dongguan Show
Dongguan plans sprawling International Furnishings City
Houjie, China— The next big stage of furniture-related development is about to occur in this section of Dongguan. During the 19th International Famous Furniture Fair, local government officials announced a planned 2.5 million-square-foot development anchored by furniture showrooms. Located just outside the Guangdong Modern International Exhibition Center in Houjie, the Xingye Internationa...
- Home Office
SOHO sources enhance function
High Point— If there's one story that home office sources are telling better, it's that they're offering more functionality and versatility in their products. Companies are adding charging stations and power strips to their home office setups while other sources have new pieces more geared for consumers using laptops at home.
- Global Textiles Today
U.S. mills find ways to grow
High Point— Despite finding themselves under siege by foreign producers, some U.S. fabric manufacturers are finding they can survive — and even thrive — in the face of intense global competition. This is good news for an industry that has seen itself go from a rock-solid base of two dozen or more mills down to about half that number — in a reduction that seemed to happen...
- Global Textiles Today
Wynwood sues Endura
Greensboro, N.C.— Case goods resource Wynwood Furniture has filed a lawsuit against Endura Furniture, accusing the company of copying its Cordoba bedroom group. The suit, filed in U.S. District Court here, accuses Endura of copyright infringement, trade dress infringement, unfair competition and deceptive trade practices.
- Dongguan Show
Dongguan fair tilts toward home
Houjie, China— Chinese manufacturers found a receptive audience among Chinese buyers attending the 19th International Famous Furniture Fair, which was less oriented toward exports than in the past. Covering about 2.5 million square feet, the March event showcased a mix of traditional to contemporary case goods and upholstery largely designed or scaled for the Chinese market.
|
|
|
