Archive for April 5th, 2006
Nancy W. Webster,
President/CEO of Thomasville Furniture Industries will receive the Lifetime Achievement Award in Home Products from the renowned Fashion Institute of Technology (FIT) in New York.
The award is to be presented at the FIT 10th annual Scholarship Awards breakfast supporting the college’s Home Products Development program to celebrate “a decade of giving back to go forward.” Ms. Webster is one of four outstanding home products industry leaders, and the only woman, being honored at the breakfast event to be held at the Waldorf-Astoria Grand Ballroom.
Nancy Webster was named President and CEO of Thomasville in September 2005. Immediately prior to joining Thomasville, Ms. Webster was Vice President of Hardlines Product Design and Development for the Target Corporation.
At Target, she led a 100-member creative team devoted to in-house design and product innovation and was also involved in brand development and licensing of designer partnerships, including those with Michael Graves and Isaac Mizrahi.
During her years in the textile industry, she rose from designer at Cannon Mills to Corporate Officer and Vice President of Creative Development for Fieldcrest Cannon, Inc., and then as Senior Vice President of Creative Development for Springs Industries, Inc. In 1994, Ms. Webster was the first woman recognized by the North Carolina State University College of Textiles as Textile Leader of the Year. In 1995, she was selected as NC State Alumna of the Year. In 2004, home and furniture industry trade publication Home Furnishings Network (HFN) recognized her as one of the most powerful people in fashion and design (behind only Philippe Starck and Martha Stewart).
“To be receiving this award is especially gratifying to me personally because FIT helped to change my life at a time when I had the privilege of working and studying at FIT in their student exchange program with NC State University’s textiles department. My time at FIT was a life-changing experience, one that helped mold and inspire my career,” Webster says.
Warren Shoulberg, Editor in Chief of HFN, a home industry trade publication, who has known Nancy Webster throughout most of her career says: “What’s always amazed me about Nancy is the range of companies and industries she’s been successful in. She came up through the technical side of textiles at Fieldcrest but was able to assume the fashion and product development leadership at Springs without missing a beat. Then she went to Target where she created one of the finest private label products any retailer has ever done.
Now she has moved to furniture where I’m sure she’ll be equally successful. Few executives, male or female, have been able to make these moves and succeed at each stop. That says a lot about Nancy.”
Other distinguished industry leaders being honored at the April 4 FIT breakfast event include: Alan Gladstone, chairman/ president/CEO of Anna’s Linens, who will receive the Outstanding Achievement award; Carl Goldstein, senior vice president of S. Lichtenberg & Co., who will receive the Humanitarian award; and Marvin Traub, president of Marvin Traub Associates, Inc., to receive the Distinguished Global Leadership award.
The Fashion Institute of Technology is a college of art and design, business and technology of the State University of New York, with more than 30 majors leading to the AAS, BFA, BS, MA, and MPS degrees. The FIT program in Home Products Development is the only one of its kind in the country, developed with the assistance of alumni and members of the home furnishings industry, and consists of courses in product development, product knowledge, and marketing specific to the home products industry both in hard (furnishings and accessories) and soft (textiles) line classifications.
April 5th, 2006
(http://www.stepup.com)
StepUp Commerce, Inc. (http://www.stepup.com), the Internet’s local shopping service, announced that the nation’s most advanced Internet Yellow Pages, Verizon SuperPages.com, has chosen StepUp as a strategic data provider for local shopping.
StepUp’s rich retailer product data will be integrated into SuperPages.com’s directory, giving Internet shoppers a better way to find products they’re looking for at local retailers.
In addition to basic business information, business profiles, and links to local business Web sites, SuperPages.com shoppers will now have instant access to detailed brand and product pages, local product availability and pricing.
“One of StepUp’s missions is to help consumers use the Internet to find local shopping information,” said Kendall Fargo, CEO, StepUp Commerce. “By integrating our data with directories like Superpages.com, we are exposing consumers to powerful new local shopping options. We are pleased to bring this new dimension in local search to such an innovative online shopping resource.”
StepUp helps retailers of all sizes use the products they sell to drive Internet shoppers to their physical stores for purchase. Consumers are increasingly turning to the Internet, and to sites like SuperPages.com, for information on where to find the products they want to buy locally. StepUp provides local retailer product information to consumers on consumer destination sites they’re already familiar with, like SuperPages.com.
Verizon SuperPages.com is an online directory of more than 16 million U.S. businesses and boasts up to 17 million unique visitors per month. In addition, the site enables users to find local and national businesses, to compare goods and services, and to connect with merchants across the country.
About StepUp Commerce, Inc.:
Headquartered in San Francisco, StepUp is a leading local shopping services company that helps retailers use the Internet to display their in-store products. StepUp’s mission is to expose local inventory information from retailers of all sizes to consumers wherever they are browsing products online.
About Verizon Yellow Pages and SuperPages.com:
Verizon Information Services, a division of Verizon Communications Corp. (NYSE:VZ), is the nation’s most advanced provider of yellow pages and related shopping information. It has $3.5 billion in revenues from products including: Verizon Yellow Pages; Verizon SuperPages.com (www.superpages.com), the nation’s best Internet directory and a leading online shopping resource; and the SuperPages On the Go information directory offered through Verizon Wireless Get It Now services and on other wireless carriers. The company is the largest publisher of Hispanic directories in the U.S. and the first to provide a Hispanic online shopping resource (www.superpages.com/espanol).
More information on StepUp’s products and services can be found at www.stepup.com.
April 5th, 2006
By: Furniture World Magazine
Andy Gans, Chairman of the Golf Outing Comittee for the Greater New York Home Furnishings Association announced that that their annual golf classic will again be held at the Woodcrest Club on Long Island, Monday, May 22, 2006.
The Association, whose members are New York area retailers, representatives and industry suppliers is looking for individuals and companies to underwrite activities… from sponsoring a hole to hosting the cocktail hour.
Brought back this year will be the highly successful Jet Blue Challenge, a chance to win a $1,000,000 for a hole in one.
This event has sold out the past three years, so it is suggested that golfers and individuals interested in attending evening activities only call the Association office as soon as possible.
April 5th, 2006
— Furniture Today,
Forecast predicts factory shipments will be up 1% this year
HIGH POINT — This year started on a positive note for U.S. residential furniture factories, with orders up 6% from the same month a year earlier, said BDO Seidman.
Shipments, however, were flat for the month as backlogs increased 10% from December and slightly from January 2005, the accounting and consulting firm said.
Some 58% of participants in BDO’s factory survey reported better orders, with some reporting “healthy double-digit increases,” the firm said in its monthly Furniture Insights newsletter. That’s up from just 35% of participants reporting increases in December.
About 46% said their January shipments were up from a year ago.
“The results for new orders were good in January,” said Ken Smith, national director of BDO’s Furniture Industry Services, in the newsletter. “Based on our conversations, February was not necessarily great for many, while March has picked up a little. It seems that the industry is back to the mode of a good week or so, then a tail-off, then a pick back up again.”
BDO is forecasting that furniture factory shipments will be up about 1% this year, with business flat to slightly down in the first half and up 2% in the second half.
“With most companies putting in price increases, this seems to indicate that units will likely be down somewhat,” Smith said.
He attributed the softness to an increasing number of retailers buying imports directly, bypassing U.S. producers and importers, and to a U.S. economy slowed by rising interest rates and gasoline prices.
April 5th, 2006
By: Furniture World Magazine
Monthly Forecaster
New Orders.
According to our most recent survey of residential furniture manufacturers and distributors, new orders in January 2006 increased 6 percent over orders in January 2005─a good start for the New Year.
New orders were up 9 percent over December 2005 results. Normally, orders are up in January over December, but this month’s results were better than normal.
Over 58 percent of our participants reported increased order levels with several reporting healthy double-digit increases. This is compared to only 35 percent of the participants reporting increases in December 2005 over December 2004.
Shipments and Backlogs. Shipments in January were basically even with January 2005, but fell 9 percent compared to December. The decline from December is somewhat normal as there was a 10 percent decline in January 2005 compared to December 2004.
Approximately 46 percent of the participants reported increased shipments in January compared to January 2005. This percentage compares favorably to the 30 percent reported in December and 40 percent in November 2005.
With orders up and shipments relatively flat, backlogs increased 10 percent over December levels and were up slightly over last January.
Receivables and Inventories. Receivables levels were essentially unchanged from January 2005, in line with shipments. Receivables fell 3 percent from December, somewhat less than the decline in shipments, but this imbalance is also somewhat normal, starting off the New Year.
Inventories in January were 1 percent lower than January 2005 levels and were basically even compared to December. These levels were consistent with the latter part of 2005 results.
Factory Payrolls and Employment. Factory payrolls fell 14 percent compared to December, but again that is somewhat normal with December payrolls including year-end vacation and bonuses. Last month, December payrolls were 14 percent higher than November.
The number of factory employees was even with December levels and were 5 percent lower than January 2005 levels. This is consistent with the decrease reported in December and also consistent with the reported 8 percent reduction in factory payrolls comparing January 2006 to January 2005.
National
Gross Domestic Product─According to final estimates by the Bureau of Economic Analysis, real gross domestic product─the output of goods and services produced by labor and property located in the U.S., increased at an annual rate of 1.7 percent in the fourth quarter 2005. This increase compared to a 4.1 percent increase in the third quarter.
The increase in real GDP in the fourth quarter primarily reflected positive contributions from private inventory investment, personal consumption expenditures (PCE), exports, equipment and software, and residential fixed investment that were partly offset by a negative contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP growth in the fourth quarter primarily reflected a deceleration in PCE, an acceleration in imports, a downturn in federal government spending, and decelerations in equipment and software and in residential fixed investment that were partly offset by an upturn in inventory investment and an acceleration in exports.
Economic Indicators
The Conference Board reported that the U.S. leading index decreased 0.2 percent in February, while the coincident index increased 0.3 percent and the lagging index increased 0.1 percent.
The decrease in the leading index followed four consecutive increases. The index had increased 1.5 percent from August of 2005 (an annual rate of 2.9 percent). Five of the ten indicators increased in February─manufacturers’ new orders for non-defense capital goods, real money supply, average-weekly manufacturing hours, manufacturers’ new orders for consumer goods and materials and interest rate spread. These increases were more than offset by vendor performance, index of consumer expectations, average weekly claims for unemployment insurance (inverted), building permits and stock prices.
April 5th, 2006
Clint Engel
Plans to open 6 stores this year
WOODBURY, N.Y. — Levitz Furniture has secured a three-year, $89 million credit line and will begin opening new stores as part of its post-bankruptcy revitalization effort.
The revolving credit facility was arranged by Banc of America Securities and Back Bay Capital Funding. It replaces the company’s $55 million credit facility dating from December, when Levitz — formerly Levitz Home Furnishings Inc. — was purchased by Prentice Capital with Great American Group for about $92.3 million.
Prentice subsequently closed about 34 stores — primarily in the Northeast and on the West Coast — and dismissed Levitz top management. Tom Baumlin was named interim CEO of the now 78-store retailer and in today’s press release is referred to as CEO.
“This is an important milestone as we begin to aggressively implement our revitalization plans for this respected brand,” Baumlin said in the release. “We have further expanded our liquidity position, roughly doubling the company’s potential borrowing ability to ensure we have ample funds to continue to execute our vision to make Levitz Furniture the premier specialty furniture retailer in the markets in which it competes.”
He could not be reached immediately for additional comment.
Levitz said it will open stores in Paramus, N.J., and Staten Island and the Bronx, N.Y., in April and May; in Summerlin, Nev., in early summer; Murrieta, Calif., in the early fall; and Valley Stream, N.Y., in the late fall.
In addition, Levitz is renovating stores in Elmhurst, N.Y., Paramus, N.J., and Anaheim and Victorville, Calif.
“This is the most recent of many important markers we have hit since we bought the assets of Levitz from bankruptcy,” said Prentice Managing Director Jonathan Duskin. “We are pleased to note we have surpassed every major objective we have set since we have owned the company.”
LHFI filed for Chapter11 bankruptcy protection Oct. 11, owing the industry more than $61 million.
Duskin said Levitz’s new management “has made tremendous strides in only a few months, restoring trade confidence and rebuilding the Levitz consumer franchise.
“We would like to thank our many associates, vendors and customers for their support, and we are confident all our partners will prosper as we deliver on our promise to reinvigorate this great retailer,” he said.
April 5th, 2006
By: Furniture World Magazine
Hooker Furniture Corporation reported first quarter net sales of $85.3 million for the period ended February 28, 2006, a $4.8 million or 6.0% increase compared to net sales of $80.5 million in the 2005 first quarter.
Net income for the quarter of $3.6 million or $0.30 per share exceeded 2005 first quarter net income of $2.9 million or $0.25 per share.
“We are pleased to have turned the corner and be back on track with positive sales growth,” said Paul B. Toms, Jr., chairman and chief executive officer. After posting 13 consecutive quarters of sales increases over prior year periods, Hooker reported sales decreases in the low single digits for the last three quarters of 2005, compared with the same 2004 periods.
Toms attributed the 6% top line improvement to an increase in incoming orders for imported wood and metal furniture throughout the quarter, coupled with better import product availability. “We are beginning to see results from our initiatives in supply chain management, and we expect that our ability to flow product to our customers in a timely manner will continue to improve,” he said.
“Earnings also rebounded, surpassing 2005’s first quarter net income by $0.7 million or almost 21%.” However, Toms sees additional upside potential to further improve earnings. “We’re disappointed that we couldn’t convert our sales increase into an even greater profit increase,” he said. “This was largely due to higher warehousing and distribution costs associated with the growth in imported wood and metal furniture shipments. We expect to lower inventory and warehousing costs going forward by editing our product offerings and through improved demand forecasting.”
Net sales of Hooker’s wood and metal furniture during the 2006 first quarter increased 7.6% or $4.9 million, to $69.5 million from $64.6 million in the 2005 first quarter due principally to increased unit volume. These sales gains were the result of a 25.4% or $11.0 million increase in imported furniture shipments, to $54.4 million from $43.4 million in the 2005 first quarter, partially offset by a decline in shipments of domestically produced wood furniture of 28.9% or $6.1 million, to $15.1 million in the 2006 first quarter compared to $21.2 million in the prior year period.
Net sales of Bradington-Young’s upholstered leather furniture declined slightly to $15.8 million in the 2006 first quarter from $15.9 million during the 2005 first quarter. “We’ve experienced a modest softening in demand for domestically produced upholstered furniture but growing sales in the imported Seven Seas Seating category. We have initiatives underway that we believe will have a positive overall impact on Bradington-Young’s business for both domestically produced and imported upholstered products,” Toms said.
The Company anticipates a strong Spring International Home Furnishings Market for its upholstery subsidiary. “Bradington-Young is moving into a new showroom with greater visibility and is offering a new program for the design trade, along with strong product introductions, some of which we plan to ship by the end of the second quarter,” he said.
As a percentage of net sales, operating income increased to 6.8% in the 2006 quarterly period compared to 6.3% for the prior year period, principally driven by improving gross profit margin resulting from product mix and lower restructuring costs.
The improvement in operating income was partially offset by higher selling and administrative expenses, which increased by 9.9% or $1.5 million, to $17.0 million in the 2006 first quarter from $15.5 million in the same 2005 period. As a percentage of net sales, selling and administrative expenses increased by 0.7%, to 19.9% in the current quarter from 19.2% in the prior year period. “This increase in expenses reflects higher warehousing and distribution costs associated with the growth in imported wood and metal furniture shipments, coupled with our increased spending for supply chain initiatives. As the supply chain initiatives are implemented, we expect improved inventory availability, product delivery and service for our customers at lower cost to Hooker,” Toms said.
Hooker Furniture continues to maintain a strong balance sheet and cash flow. During the first quarter of fiscal 2006, the Company increased its working capital by $3.0 million or 2.7%, to $112.7 million from $109.7 million at November 30, 2005. Over the past twelve months, long-term debt has declined by 37.6% or $7.7 million, and shareholders’ equity has increased by 8.8% or $12.2 million.
“Based on continuing improvement in product availability and a good backlog of orders spurred by strong introductions at the October 2005 market, the Company forecasts an increase in net sales of 3% to 7% for the 2006 second quarter compared to the same period a year ago,” Toms said.
Ranked as the nation’s sixth largest publicly traded furniture producer based on 2004 shipments to U.S. retailers, Hooker Furniture is an 82-year old importer and manufacturer of residential wood, metal and upholstered furniture. With approximately 1,400 employees, the Company operates five manufacturing facilities, one supply plant, six distribution centers and warehouses, three showrooms and a corporate office in Virginia and North Carolina. The Company also utilizes a distribution center and warehouse in China. The Company’s stock is listed on the NASDAQ Capital Market under the symbol HOFT, and closed at $18.11 per share on March 29, 2006. Please visit our websites at www.hookerfurniture.com and www.bradington-young.com.
April 5th, 2006
Clint Engel —
Other retailers eye properties
OMAHA, Neb. – Rod Kush’s Furniture, a retailer that has competed with Nebraska Furniture Mart for 18 years, is closing.
Owner Rod Kush, a former professional football player, will shut the four-store business about July 1 after a retirement sale.
He “will still contribute to his rent-to-own, cash advance, furniture on consignment and real estate investments,” the company said.
Kush said several furniture retailers and others have expressed interest in buying the stores in Omaha, Freemont, Norfolk and Lincoln, Neb. He said he hasn’t decided yet what he’ll do with the property.
“The last 18 years have been good to me,” Kush said. “However, retiring from the retail furniture side of my business will allow a little more privacy for my family and the ability to be more involved with them and their interests.”
Kush’s, which also sells appliances, electronics and carpeting, is believed to be Nebraska Furniture Mart’s largest promotional furniture competitor in the state. The stores did about $30 million a year, and about $27 million of that was in furniture, Kush said.
Asked if NFM was the reason he decided to close, Kush said no. The giant retailer owned by Berkshire Hathaway actually was “pretty easy competition,” he said, in part because it kept other retailers out of the market and created a lot of spillover business.
“They really were a huge asset for us all those years,” he said.
Kush said he was just tired of being in the spotlight, and that he’s working on another project he wouldn’t disclose.
He continues to expand his seven-store RTO chain, RK’s Rent To Own, with an eighth unit coming soon.
April 5th, 2006
— Furniture Today,
Was regional sales manager at Tempur-Pedic
JESSUP, Md. — Bedding veteran Alan Hirschhorn has been named senior vice president of sales at Dormia. He will be responsible for expanding national dealer distribution of the Dormia mattress line. He succeeds Jim Knapick, who has left the company.
Hirschhorn joins the company from Tempur-Pedic, where he was regional sales manager for the metropolitan New York market for seven years.
Before that, he was vice president of JoAnne’s Bed and Back Shops, where he led the chain’s expansion into the New York region. He also was director of furniture for 1-800-Mattress. He has 27 years of experience in the home furnishings industry.
“Alan’s extensive experience on both the retail and manufacturing sides of the mattress industry will provide our current and prospective dealers with a tremendous resource to help them grow and expand their businesses,” said Mike Zippelli, CEO of Dormia.
April 5th, 2006
Home Accents
25,000 square feet of space dedicated to Italian producers
The International Contemporary Furniture Fair will host an Italian contingent during the show set for Saturday, May 20-Tuesday, May 23 at New York City’s Jacob K. Javits Convention Center.
This year the Italian contingent is presented by Cosmit, which sees a growing demand for Italian furniture in North America. Cosmit is the organization responsible for producing the Salone Internazionale del Mobile in Milan. The contingent’s 42 member companies will occupy 25,000 net square feet of exhibit space. The group is exhibiting under the name I Saloni WorldWide - Furnishing Ideas Made in Italy.
April 5th, 2006