Archive for August, 2006
By ALLISON LINN,
SEATTLE - Costco Wholesale Corp. said Wednesday it expects fourth-quarter profit to be below analysts’
estimates, as sales on items like jewelry and furniture slowed and the company struggled with higher gas prices. The warning sent Costco shares down more than 4 percent.
The Issaquah-based wholesale club said it expects to earn between 68 cents and 71 cents per share for its quarter ending Sept. 3. The 17-week period will include a one-time tax charge of about 3 cents per share.
Without the charge, Costco said it expects to earn between 71 cents and 74 cents per share. Analysts polled by Thomson Financial had been expecting earnings of 77 cents per share, on average.
Earnings for its full fiscal year, which will be 53 weeks, are now expected to range between $2.23 and $2.26 per share, while analysts had been expecting a yearly profit of $2.33 per share.
Costco had previously said that Wall Street’s forecast was at the high end of its expectations, and the company had also warned in that it might be hard to keep profits on gasoline sales up. In a conference call Wednesday with analysts, the company said gas sales were a factor in the reduced forecast but noted that it wasn’t the only issue.
Costco Chief Executive Jim Sinegal said customers also appeared to be wary of buying discretionary items such as furniture and jewelry, perhaps in part because of the pain they are feeling when they go to the pump. The company was forced to reduce costs on some of those big-ticket items, pinching its margins.
Costco also is struggling with the costs associated with people returning big ticket electronic items such as high-end televisions.
Still, Sinegal said other areas, such as toy sales, were doing well.
“It’s a mixed bag,” he said.
Chief Financial Officer Richard Galanti said the company also continues to face tough competition from other discounters, but he noted that that also wasn’t a primary factor in the lowered expectations.
The company said it “remains positive” in its outlook for its 2007 fiscal year and beyond, and expects to open at least 35 new locations in the coming year.
Analyst Bob Toomey with E.K. Riley Advisors blamed the reduced expectations on the economy.
“I think it’s just an adjustment to slower consumer spending. I don’t think it’s any problem with Coscto’s execution or their model. It’s just the economy, in my view,” he said.
He also said Costco may have wanted to be conservative in its guidance.
“From time to time they like to make sure expectations don’t get too exuberant,” he said. “Part of it is just them being conservative.”
Costco also noted that sales in U.S. stores open at least one year grew 5 percent for the four weeks ended Aug. 27, while jumping 16 percent internationally. Total same-store sales were up 7 percent for the four-week period, as compared to a year earlier.
Net sales for the month grew 11 percent to $4.55 billion from $4.08 billion a year ago.
For the 52 weeks ended Aug. 27, U.S. same-store sales grew 7 percent, international same-store sales were up 11 percent and total same-store sales climbed 8 percent. Net sales for the period rose 11 percent to $57.78 billion from $51.86 billion in the comparable period last year.
Costco shares fell $2.07, or 4.2 percent, to close at $47.18 on the Nasdaq Stock Market.
August 31st, 2006
It’s one part carefree attitude, another part guarded preparedness. Vicky D’Annunzio, a resident in one of Sea Ranch Lakes’ gated communities, took in her patio furniture and boarded up her windows.
But she didn’t remain holed up in her home.
‘’My son was just out playing,'’ she said Tuesday afternoon. “We haven’t had much of anything. Just gray skies.'’
Last year, her neighbors did little to prepare for Hurricane Wilma, largely underwhelmed by its reported category 1 status, she said. This time, they’ve opted to be safe rather than sorry.
‘’People were a little lazy,'’ she said. “But I think everyone has listened since Wilma. I myself started preparing since the beginning of June.'’
The municipality’s oceanside location makes it vulnerable, but officials did not expect to sustain much damage.
‘’We’re just monitoring the situation,'’ said Sgt. James O’Brien of Sea Ranch Lakes police. “If they tell us we’re going to have a surge, we’ll respond appropriately.'’
Still, city hall is closed, and may remain closed the rest of the week, police said.
– Robin M. Peguero
August 31st, 2006
Deere Park Associates, ( http://www.dpa-inc.com ) one of America’s largest and most experienced home furnishing consultants, is currently serving as a
consultant to St. Louis- based DeBasio Furniture in DeBasio’s Going Out Of Business liquidation. DeBasio, with two stores in the St. Louis area, is closing after 78 years of family-oriented business.
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As a home furnishing specialist offering services to companies nationwide, Deere Park Associates was chosen to assist DeBasio Furniture with the largest event in the store’s long history, resulting in the liquidation of its multi- million dollar inventory.
“Deere Park Associates was clearly the best furniture consultant in terms of reliability, integrity, professionalism, resources, and proven success,” said DeBasio president, Mike Noblot. “It is very important to us to maintain the standards and reputation we’ve earned over the past three-quarters of a century.”
The decision to close DeBasio Furniture, founded in 1928, was based on trends in the furniture industry as well as the larger economy.
“Deere Park Associates understands the unique requirements of the furniture business,” said founder and President Richard Glabman. “As a privately owned company with a history of operations in the furniture business dating back to 1900, we are familiar with the tough decisions that furniture store owners must make when faced with dramatic market changes,” Glabman added.
With a team organization of over 750 professionals, Deere Park Associates offers clients unequaled support in financing their businesses, supervising internal operations, developing and executing marketing plans, organizing and streamlining operations, and realizing specific goals on individual projects. Deere Park Associates works individually with clients to determine needs, and develop a variety of strategies including growing a business, financing operations, completing outstanding sold orders, conducting specialty promotions, consolidating or restructuring store operations, or achieving maximum values from inventory liquidation.
ABOUT DEERE PARK ASSOCIATES
Deere Park Associates offers services solely in the home furnishing industry. Services of the company include: general business development; mergers and acquisitions; business financing through temporary bridge loans; inventory appraisals and value guarantees; special order facilitation; leadership personnel and expertise in retail promotion events; advertising development; crisis management and supervision of store closings.
August 31st, 2006
PriceGrabber.com Research Confirms Large Growth and Opportunity in High-Ticket Categories Outside of the Strong Electronics and Technology Segments
PriceGrabber.com®, an Experian company, explores home furniture and appliance shopping trends in its latest Consumer Behavior Report, which tracks shopping trends from its leading comparison shopping site along with data from a survey of 1,417 online shoppers.
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Recent trends show that consumers are migrating online to shop for furniture, appliances and home furnishings, both to research and complete purchases of large and small-ticket items. Market Reporter, PriceGrabber.com’s market research database, shows a 92 percent increase in merchant referrals over the past six months to retailers in the furniture category and a 50 percent increase in merchant referrals for major appliances.
Although furniture traditionally is a look and feel purchase, consumers now are willing to purchase items such as sofas, patio furniture and tables online in addition to buying from a brick-and-mortar store. From shopper behavior over the past few months, it appears that shoppers are doing their homework by researching online for sales, lower tax rates and free shipping.
“Savvy consumers for quite some time have been taking advantage of the convenience and savings of buying big-ticket electronic items such as TVs and computers online. So it is natural to see online shoppers also embrace the convenience, selection and pricing that is now more readily available through the Internet for other large-ticket items,” said Kamran Pourzanjani, president of PriceGrabber.com.
According to the survey of online shoppers at PriceGrabber.com, the top three motivations to go online for home furniture and appliance shopping include finding better prices, the convenience of shopping when you want, and the ability to shop from home and avoid crowds at stores and malls. Of those surveyed, 23 percent stated that they expect to buy more products online for their home within the next 12 months. These survey results are aligned with a recent JupiterResearch forecast that predicts steady growth for online spending for furniture, with a 17.4 percent growth from 2005 to 2010 (Jupiter Research Internet Shopping Model, 11/05 U.S. only).
Online retailers also support these findings. “Buying furniture on the Internet is here to stay and growing fast as consumers embrace the channel for furniture,” said Scott Perry, CEO of EverythingFurniture.com. “Our online business has increased more than 1,000 percent over the past three years, landing us in Inc. magazine’s top 500 fastest-growing privately held companies in the U.S. this year.”
The following are the top 10 home furniture and appliance products searched for on PriceGrabber.com:
1. Maytag MG5765QDQ 30 inch gas freestanding range From $600
2. Manhattan Chocolate queen platform bed From $140
3. South Shore juvenile bunk bed From $171
4. Le Domaine d’Elegance bedroom furniture set in dijon From $4,073
5. Bryce two piece sectional sofa From $1,200
6. Loft Sectional 1 sofa From $7,080
7. Woodard FLC Trinida five piece conversation patio set From $400
8. Timeless Traditions pedestal dining table From $862
9. Redmond seven piece living room set From $1,300
10. Overture Oak bedroom furniture set From $4,075
PriceGrabber.com plans to track the expected online shopping growth trends for furniture and appliances in the coming 12 months. To view the full Consumer Behavior Report on Home Furniture and Appliance Trends, which includes insight into the value of free shipping offers, the top reasons why shoppers will not purchase furniture online and the heavy reliance shoppers place on doing online research before making offline purchases, please visit PriceGrabber.com at http://mr.pricegrabber.com .
About PriceGrabber.com
PriceGrabber.com, part of Experian InteractiveSM, has established itself as one of the most trusted and effective online comparison shopping services, allowing approximately 21 million consumers each month to search and compare information that enables them to find the right product from the right retailer at the best price. Through continued innovation and a consistent focus on providing the best comparison shopping experience on the Internet, PriceGrabber.com provides savvy shoppers access to millions of unique products and services from thousands of retailers and sellers in 22 product and service channels. The company also powers comparison shopping functionality for a network of leading Internet sites, including MSN Shopping, AskJeeves, About.com and Comcast. The company offers comparison shopping in English (at http://www.pricegrabber.com), Spanish (at http://www.preciomania.com) and Portuguese (at http://www.precomania.com) as well as international sites in Canada and the United Kingdom.
NOTE: PriceGrabber.com is headquartered in Los Angeles, Calif. PriceGrabber is a registered trademark, and PriceGrabber.com and BottomLinePrice are trademarks of PriceGrabber.com, Inc., a Delaware corporation. Other trademarks or registered trademarks are the property of their respective owners.
Prices quoted above were taken from third-party merchant listings on the PriceGrabber.com Web site. PriceGrabber.com disclaims any and all liability regarding the prices quoted for the stated products in this press release, including their accuracy and/or availability. PriceGrabber.com is in no way offering to the public the products at the prices quoted in this press release or otherwise.
August 31st, 2006
Adonis Furniture, a major U.S. importer, manufacturer and wholesale distributor of high-quality sofa-bed futon frames and platform beds, has just released the only
video game / rocker chair with a genuine made for iPod(TM) licensed docking station, the first gaming chair ever to use patented Apple iPod(TM) technology.
“The iPod(TM) is a phenomenal product with a huge consumer base spanning multiple age groups,” said Matt Sansoe, General Manager of Adonis Furniture. “As the only chair made specifically for iPod(TM), our iRocker ™ has the style, design and functionality to make it the perfect complement to the player.”
iRocker ™ is an interactive gaming chair with docking station that allows the user to lounge comfortably while enjoying surround-sound music . It comes complete with remote control, a multi-position reclining back, Heavy Magnet speakers, Base Tube (on many models), audio inputs, additional line input (to use with other brand MP3 players) and master volume dial with LED indicator light (for non-docking models). It can also be used with any electronic device that has an audio output, making it great for video game sound set-up.
Major National retailers who are already lined up to carry the iRocker(TM) products include Costco, Target, Amazon.Com, Linen’s and Things, QVC, Stacks and Stacks, FAO Schwartz, Gately’s Shopping Network, and Fortunoff. The chairs are also sold regionally at a number of outlets including HOM Furniture in Minnesota, Boscovs and Just Cabinets in Pennsylvania; and American Furniture Warehouse in Colorado.
With top-quality speakers made by Alltek Vision, the iRocker(TM) is available in seven different price points, ranging from $99 up to $599, making it accessible to a wide range of consumers across every age and demographic. Each chair adopts the sound through between two and five speakers, depending on the model.
The scale and functionality of the iRocker(TM) makes it a viable choice for both adults and children, and it is offered in two different color schemes for the adult and teen audience. The teen version comes with its micro fiber cushions in a choice of six hip colors, while the adult version is available in the more sophisticated palette of black, bone or saddle, in faux leather.
Adonis Furniture was originally founded by owner Bill Nazzal in 1999 out of his need to find a consistent quality Supplier for Futon Frames to fill his 10 retail stores. Although futons remain a staple of Adonis’ business, their product line is currently evolving to include an even wider scope of bedroom furniture, juvenile products and innovative other products such as the iRocker(TM)
It is this spirit of innovation that has allowed Adonis Furniture to flourish while much of the futon market has become stagnant in design over the years. Adonis Furniture’s leading position in the marketplace could also be attributed to their success in reinventing the functionality of its products, i.e. increasing storage for a bed, or adding value to a chair. Forward- thinking Adonis also is lauded for using timbers that are 100% plantation- grown (mainly, hevea brasiliensis) and/or are harvested under the sustained forest management guidelines of the ITTO.
About Adonis Furniture
Founded in 1999, Adonis Furniture is a major U.S. importer, manufacturer, and wholesale distributor of high quality sofa-bed futon frames and platform beds. They are the supplier of choice for mid-to-upper end products by hundreds of futon retailers all across America. Adonis is based in Oakland, California and they have distribution centers in Tampa, Florida and East Hartford, Connecticut. More information is available at http://www.adonisfurniture.com/, or call 1 (877)-3ADONIS, 1 (877) 323-6647.
Contact: Leslie Nash Steinreich Communications (818) 398-0307 lnash@scompr.com Stan Steinreich (201) 498-1600
Adonis Furniture
CONTACT: Leslie Nash, Steinreich Communications, +1-818-398-0307,
lnash@scompr.com, or Stan Steinreich, +1-201-498-1600, both for Adonis
Furniture
Web site: http://www.adonisfurniture.com/
Published Aug. 30, 2006
Copyright © 2006 SYS-CON Media. All Rights Reserved.
August 31st, 2006
In its latest Consumer Behavior Report, PriceGrabber.com, an Experian company, found that consumers are migrating online to shop for furniture,
appliances and home furnishings, both to research and buy large and small-ticket items. The report tracks shopping trends from its comparison shopping site along with data from a survey of 1,417 online shoppers. Market Reporter, PriceGrabber.com’s market research database, shows a 92 percent increase in merchant referrals over the past six months to retailers in the furniture category, and a 50 percent increase in merchant referrals for major appliances. Although furniture traditionally is a look-and-feel purchase, consumers now are willing to purchase items such as sofas, patio furniture and tables online in addition to retail store purchases. It appears shoppers are doing more homework before shopping, researching online for sales, lower tax rates and free shipping.
According to the survey, the top three motivations to go online for home furniture and appliance shopping are finding better prices, the convenience of shopping when you want, and the ability to shop from home. Twenty-three percent of survey respondents said they expect to buy more products online for their home within the next 12 months. A recent JupiterResearch forecast similarly predicts that online spending for furniture will experience a 17.4 percent growth from 2005 to 2010.
August 31st, 2006
GRAND RAPIDS - Hekman Furniture is stopping production in Grand Rapids, and 60 people are out of a job.
In a statement, the company said it’s been a difficult decision. “This transition is dictated, among other reasons, by continued global competition and domestic excess capacity within the residential furniture industry and is not a reflection on the dedicated work force in Grand Rapids.”
Hekman’s main office will remain in Grand Rapids. They are working with federal and state agencies for job training and other benefits for all their affected workers.
Other existing West Michigan facilities and in North Carolina will continue operation.
24 Hour News 8 will have more information as it becomes available.
August 31st, 2006
Furniture retailer Homestyle today counted the cost of overcoming its debt mountain as it reported pre-tax losses of almost £25m (€37m).
Homestyle said it made pre-tax losses of £24.6m (€36.4m) in the 61 weeks to July 1 after financial difficulties forced it into a major restructuring deal.
The Rotherham-based company – which runs the Harveys, Benson, and Sleepmaster chains – today insisted it faced the future with “fresh enthusiasm” but shares sank 3%.
The losses in the 61 week period compared with losses of £25.5m (€37.8m) in the 52-weeks to the end of April 2005. Homestyle changed its accounting year following the restructuring in June 2005.
The company has 170 Harveys furniture stores across the UK and a further 392 bed shops spread across the Bensons, Sleepmaster and Bed Shed chains.
It reported a 15.5% like-for-like growth in orders taken at its Harveys furniture stores during the 52 weeks to July 1, although it did not offer details on sales at its beds division.
August 31st, 2006
By: Furniture World Magazine
In anticipation of being asked to comment on current business trends at a Goldman Sachs’ Global Retailing
Conference on September 7, 2006, Ethan Allen Interiors Inc. Chairman and CEO Farooq Kathwari stated, “As indicated in our July 27th earnings press release, sales did start slowing in July and have slowed further in August. This quarter we are being impacted by both lower consumer confidence and our initiative, started last July, to reduce the lead time in filling customer orders. As we previously indicated, the faster backlog turnover reduces the forward visibility of delivered sales, and we are subject to more volatility as demand levels fluctuate.
“We are pleased that our June 30, 2006 fiscal year ended with record sales and strong profitability. More importantly, we have continued to take steps to differentiate Ethan Allen by focusing on providing decorating solutions. In that regard we have strong product programs in place; we have strengthened our design professional staff and retail management; and, we continue to relocate our Interior Design Centers. In mid September we will have over 800 of our associates attending our annual Retail Convention at which time we will be discussing our marketing initiatives for the next year and also unveiling new product introductions in our newly renovated Ethan Allen Interior Design Center in Danbury. We will be hosting an Investor Conference at our Danbury, Connecticut headquarters to share these exciting initiatives with the investment community on September 26th. The presentations will be available on our website at http://ethanallen.com/investors.”
August 31st, 2006
Escalate Retail, a provider of customer-focused software solutions, announced that the new RIS News
SMB Tech Trends Study, co-sponsored by Escalate Retail and IBM, is available as a free download at www.escalateretail.com. This is critical information for mid-sized retailers who want to be up to speed on the latest IT priorities, challenges, and strategies they need to employ to compete with the retail giants.
Retailers and industry analysts can also visit Escalate Retail’s new website for detailed product and corporate information.
Formed by the merger of GERS Retail Systems and Ecometry Corp. on August 21, 2006, Escalate Retail combines the front-office strengths of Ecometry, customer-interaction and loyalty, with GERS’ strengths in merchandise planning and execution to provide retailers with advanced capabilities to meet their customer demands across all channels.
About Escalate: Escalate Retail is a premier provider of customer-focused software solutions that completely automate the front- and back-end operations of consumer-centric retailers. By facilitating the real-time flow of transactions and information across the entire retail organization, our solutions enable retailers to consistently anticipate, understand, and fulfill their customers’ expectations for an optimal shopping experience. Escalate Retail’s software solutions enable retailers to increase same-store sales, boost e-commerce revenue, and drive customer loyalty by managing all selling channels, the merchandising life cycle, planning, business intelligence, and supply chain synchronization to meet escalating customer demands. The company maintains headquarters in San Diego, CA and Delray Beach, FL with six additional satellite offices located across North America and in Europe. For more information, visit www.escalateretail.com.
August 31st, 2006
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