Home Textiles Today August 9th, 2010 by Sandow Media

Monday, August 9, 2010

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

HSNi Moves Ahead in 2Q BY JENNIFER MARKS ST. P ETERSBURG , FLA . — After acting as a drag on earnings for several quarters, HSNi’s Cornerstone division showed robust increases in operating profit, gross margin and sales during the second quarter and posted its best comp growth since 2005. Catalog/ecommerce nameplates Ballards, Frontgate and Garnet Hill drove the division’s increase, while signs of a turnaround were less evident at Improvements, Smith + Noble, The Territory Ahead and TravelSmith, executives said during

the company’s quarterly conference call last week. The division is “very focused on ecommerce,” said HSNi ceo Mindy Grossman. The Cornerstone brands are evolving into online businesses, with the catalogs transitioning into marketing tools, she added. While apparel was a big seller at Garnet Hill, Grossman also called out Eileen Fisher and the recently launched Lili Pulitzer Home brands as solid contributors. At Ballards, “new products are making the difference,” she SEE HSNI PAGE 16

Suppliers Testing Social Media BY CECILE B. CORRAL N EW YORK — As home textiles suppliers mind their marketing budgets as one of many measures to keep costs down, social networking media sites like Facebook and Twitter are increasingly fitting into their plans to build customer relations. The trend is still evolving, as many home textiles suppliers are still trying grasp the benefits of networking directly with shoppers – and customers – through social online venues. An informal search by HTT found many home textiles companies not yet involved in social networking.

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But a few industry companies in the past few months have opened pages on Facebook or “tweet” on Twitter and are updating at least weekly. And some have already invested more deeply in their ecommerce tactics, creating new staff teams dedicated strictly to operating online business and social networking efforts. “Social networking is revolutionizing the way we communicate, even in our industry,” said Jannice Cameron-Chapital, vp of marketing of the 55-year-old basic bedding company Hollander Home Fashions, based SEE SOCIAL PAGE 9

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Gearing up for Gift Fair BY CAROLE SLOAN NEW YORK — A more diverse product portfolio, a re-merchandised price point emphasis, and a sense that specialty retailers are once again writing orders — albeit small — are key factors boosting the expectations of home textiles exhibitors showing at the International Gift Fair/New York Home Textiles Market here later this week. Current business conditions are much improved compared with the same time last year, with exhibitors reporting different reasons for the uptick. For some, it is a general improvement in mood, for others it’s a marked upward movement in the better end of the hospitality segment of the business. Others report a Sferra introduces Lena, a collection of 100% Egyptian comfortable but not huge upsurge in cotton, printed duvet covers and pillow shams, sheets and projects from interior designers. pillowcases. Shown in butter, it is available in four other SEE FAIR PAGE 9

colors. See page 10 for additional product introductions.

Linens&More for Less Opens BY CAROLE SLOAN H OW L A N D, O H I O — With the strong opening of its first Linens&More for Less store here on July 23, Fred Mershad, president and ceo of the fledgling retailer, is more than optimistic about the company’s growth potential. The first store debuted with sales at 25% above plan on opening day, and the four following days were more than 30% above plan. “Customers’ reactions were very satisfactory, and even though it is an economically depressed area, we liked the demographics,” Mershad commented, noting that plans for five additional units this year will be on target for similar results. The new stores are in small communities including Murfreesboro, Tenn., Erie, Pa., Dayton, Ohio, Paducah, Ky., and Barboursville, W.V. In 2011, the company will

The high-impact towel section greets customers as they enter the store.

open some 15 to 20 units in larger mid-major markets including St. Louis, Indianapolis, Pittsburgh, Charlotte, N.C., Lexington, Ky., Louisville, Ky., and two in the Harrisburg, Pa., area, and an undetermined number for 2012. “We’re not opening stores for the sake of opening stores;

we have a very strategic point of view.” Mershad added, “We’re not going west of the Mississippi. We’ll grow south and north of here. We’re looking at Akron, Ohio, but we definitely don’t want new stores for the sake of SEE OPENING PAGE 21

8/6/2010 3:25:13 PM

Home Textiles Today

August 9, 2010

Retail Briefs Home Helps Push Big Lots 2Q sales

ome, furniture and seasonal were major catalysts propelling Big Lots’ second quarter sales, which rose 5.7% to $1.13 billion. Comps increased 3.8%, slightly below the retailer’s forecast of a 4% to 5% gain. For the first half, sales climbed 7.0% to $2.35 billion, with comps up 4.9%. Big Lots will report full results Aug. 24.

Family Dollar to offer Western Union Money Transfers

amily Dollar and Western Union have agreed to create an in-lane money transfer service at the retailer’s 6,500 locations. The goCash transfers are sold at the cash register in the amount of $50, $100 or $200 and can be sent to any Western Union station in the world. Consumers complete the transaction by calling Western Union after acquiring the transfer.

Stein Mart Sales Slip in 2Q

tein Mart’s second quarter sales fell 4.0%, with comps off 2.0%, the company reported. For the first half of the fiscal year, sales dropped 5.0%, with comps down 3.0%. The company will report full results Aug. 19.

Loretta Lee Takes N.Y. Showroom NEW YORK — Loretta Lee Ltd. is opening its first permanent New York showroom at 7W in time for the New York Home Fashions Market in September. The retail-direct manufacturer produces kitchen, tabletop and seasonal goods including tree skirts, stockings and wall

art. Its showroom at 7 W 34th St. is room 718. Company founder Loretta Lee will be on hand for the grand opening during market. The company is headquartered in Hong Kong, with production facilities located outside of Guangzhou. HTT

New York Summer Markets New York Home Textiles Market Week Held concurrently with GLM’s New York International Gift Fair. Aug. 13-19 at the New York International Gift Fair (Jacob K. Javits Convention Center and Passenger Ship Terminal Piers, Aug.15-19); at 230 Fifth Avenue (Aug. 13-19); and at 7 W New York (Aug. 13-19).

HTT Market Kick-Off Party Sunday, Sept. 12 Penthouse, 230 Fifth Ave, 6 p.m to 8 p.m.

New York Home Fashions Market Monday, Sept. 13 – Friday, Sept. 17 In the showrooms

News

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Next Creations, Alok Partners in New Company BY CAROLE SLOAN N EW YORK — U.S.-based Next Creations and Alok International of India have formed a joint venture, a new company Next Creations Holdings LLC, to strengthen each company’s business opportunities. The new company will involve all of Next Creations Designs, including its branded businesses and its license for Charisma home textiles products as well as private label, according to Michael Vidra, president of Next Creations Designs. It also will include the Raymond Waites Designs brand for all product categories except Waites’ license in furniture with Laneventure and specialty accessories with the Phillips Collection. T h e R a y m o n d Wa i t e s Designs business now will be known as Raymond Waites Designs LLC and will be created and marketed under the new corporate arrangement. The formation of a new company came about as Next Creations allied with Alok when it gained the Charisma license. As Arun Agarwal, president of Alok International, explained, “They are incredi-

bly talented in design and merchandising, and we have manufacturing strength. We will become a significant business in the United States (as result of this affiliation). Alok has joined to board of Next Creations Holdings LLC, but the business activity has nothing to do with Alok’s overall business activities, Agarwal emphasized. Vidra explained that the new alliance is a result of what “I felt we needed to be closer to a very strong manufacturer. As an example, we’re not strong in sheets and this will move us there in a major way. It also gives us financial strength by their ownership in the company.” Vidra earlier had bought out the company’s other private investors, he said. “I felt that No.1 today was that very large retailers want to be closer to their manufacturing sources, and we have the advantage in providing the designing and marketing plus for this,” Vidra commented. Alok, he noted, is more than a billion dollar company today and among the top three. “They have state-of-theart facilities, and we can bring them our design capabilities.” Vidra added: “It won’t

change much in what we’re doing now. We do a lot in China, and we still have the freedom in sourcing. And Alok will continue to sell direct.” For Alok, said Agarwal, “We will become a significant business in the U.S. in bed, bath and window in a fashion-forward perspective.” Next Creations Holdings’ first major move will be in the launch of Charisma under its licensing arrangement, which brings the company into three major sheet programs as well as towels that will debut at year end, said Vidra. The Charisma program under the aegis of lead designer Annie Wao will launch this month with two beds with additional beds later in the season. The queen is pegged at $249 for the duvet. There are three sheet programs — a 500-count Supima percale easy care in four colors, a 600-count Egyptian cotton sateen in six colors and a third high-count sheet that is to be finalized. The new towels include a Quick Dry 23 pound using a specialty yarn at $28, an Egyptian cotton replacing the existing towel as well as robes, bath accessories and rugs. HTT

WestPoint Home Boosts Sales, Narrows Operating Loss N E W YO R K — Better volume from existing accounts pushed sales ahead for WestPoint home during the recently concluded quarter. “We’re seeing demand slightly up,” Dan Ninivaggi, president of WestPoint parent company Icahn

Enterprises, said during the company’s quarterly analyst call last week. Sales volume in the last several weeks “seems to be flattening out,” he added. Sales rose 24% to $107 million for the second quarter ended June 30. Operating loss narrowed

to $10 million from $16 million in the year-ago period. For the first half of the fiscal year, sales were up 12% to $190 million, while operating loss declined to $24 million from $34 million in last year’s first six months. HTT

Surtex to Expand in 2011 WHITE P LAINS , N.Y. — Surtex,

the annual New York trade fair for surface design, will expand next year from nearly 250 exhibitors to 300, according to show manager GLM.

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The dates set for Surtex 2011 are May 15-17. The show will continue to take place at the Jacob Javits Center. Following the 2010 show, “we are getting requests for exhib-

itor space earlier than usual,” said Penny Sikalis, GLM vp and show manager. This year’s Surtex drew 6,000 visitors from 41 countries, she said. HTT

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