Home Textiles Today March 7 Issue by Sandow Media

Monday, March 7, 2011

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

Michael Fux: The Next Revolution BY WARREN SHOULBERG NEW YORK– Michael Fux says he isn’t crazy. He just can’t wait to get back into the game. And that’s exactly what Fux – the founder and former owner of longtime pad and pillow powerhouse Sleep Innovations – is doing this month with the launch of his new company, Comfort Revolution.

“I’m not going into this blind. I understand the economy has changed and the players have changed. But the consumer hasn’t changed.” — MICHAEL FUX, Comfort Revolution

Fux has sat out on the sidelines for the past five years, pursing his charitable and personal interests, but at New York market next week Fux will be back big-time with his new company. “A lot of people think I’m crazy getting back into the business,” Fux was saying recently as work was progressing rapidly on the company’s new showroom space at 230 Fifth Avenue. “They told me the competition was going to eat me alive. “Well, I left five years ago (when he sold Sleep to a private equity investment firm) and I haven’t seen anything new since then. I know I have a lot more competition now, but I have my creativity, my knowledge of the business and my knowledge of the consumer. “And I’ve got something else I didn’t have before: I’ve got money.” When Fux, who had spent most of his career on the retail side of the home furnishings business after emigrating from Cuba as a youth, founded Sleep Innovations in the mid-1990s, the idea of bedding products like pads, pillows and mattresses using viscose memory foam was brand new, an unproven product without any SEE FUX PAGE 38

htt110301_001_038 1

hometextilestoday.com

| Vol. 32, No. 7 | $8.00

Retailers Price Dance With Wall Street BY JENNIFER MARKS N E W YO R K — The latest round of quarterly conference calls for retailers saw analysts again raising the question of how they will deal with rising raw material costs, especially for cotton. Most retailers said they were working to remain competitive relative to their position in the overall retail universe. There was also a lot of talk about improving value — ironic when considering supplier reports that de-specing is rampant even as retails are rising. Big Lots’ chief Steve Fishman last week said the company is committed to pricing 10% to 50% below the competition. “I spent — myself, personally — about two weeks in about four or five different markets [domestically and in Asia] and I was on the ground and saw exactly what was going on,” said Fishman, chairman, president and ceo. “There’s a lot of confusion between manufacturers and retailers on costs associated with commodities.” His counterpart at Kohl’s, Kevin Mansell, told analysts “it’s just too early” to gauge how much elasticity there might be in prices. He described overall price increases as “pretty broad.”

Mansell, chairman, president and ceo, said higher prices are not e qu a l a m o n g Kohl’s good, better and best price points, then added: “I don’t want to give you any sense that they’re not pretty much everywhere. They are pretty much everywhere.” After several months of experimentation, JCPenney feels it has a handle on the impact of higher prices, executives said during its quarterly call. When retail prices go up on opening price point items, units fall. But when prices go up on better and best goods, the higher tickets make up for it, according to Kristen Hayes, vp of investor relations. She did not address how unit volume was affected by higher prices on better and best merchandise. “It’s important to test because you learn not SEE PRICING PAGE 38

Home a Leader in Big Lots Fourth Quarter BY CECILE B. CORRAL C OLUMBUS , O HIO — The home business decked Big Lots’ halls in the fourth quarter as this department was the forerunner among several higher-ticket discretionary categories that drove the off-price chain’s results in the period. “Our home category was a leader in the store. Newness and better quality goods and deeper inventory levels for key items worked well for us this holiday season,” said Steve Fishman, chairman, ceo and president, during the 48-state 1,398-unit retailer’s earnings conference call last week. He later noted that for the last several quarters, “our best performing categories continue to be our discretionary higher-ticket businesses” Specifically, furniture, home and seasonal each posted mid-single-digit comps in the fourth quarter against “some tough comparisons from a year ago,” he said. Big Lots is “very encouraged by the continued strength in our furniture business,” which was up

against double-digit comps, Fishman added. “We continue to believe furniture could be one of the largest growth opportunities we have for the future.” Softer in the quarter were toys and consumables, the latter being Big Lots’ largest merchandising category. In its fourth quarter, ended Jan. 29, the company’s overall net income grew by 4.2% to $110.1 million, or $1.46 per diluted share, compared to $105.4 million, or $1.27 per diluted share, in the prior year. Net sales for rose by 3.8% to $1,518.9 million SEE QUARTER PAGE 38

Inside This Issue Who Wants To Buy a Retailer? .......................page 4 It’s Not Inflation, It’s Price Elasticity! .............page 4 Winter Markets Help to Set Tone for Small Upscale Stores’ 2011 Business ............page 20 Department Stores Take Comp Lead in February ...................................page 26

3/4/2011 4:33:57 PM

Home Textiles Today

Retail Briefs Family Dollar Board Opts Not to Sell

amily Dollar Stores Inc.’s board of directors has decided not to sell the business to Trian Group, opting instead to focus on improving its performance by pursuing its earlier-implemented strategic plan. The board voted unanimously that Trian Group’s unsolicited proposal “substantially undervalues the company, and that pursuit of a sale of the company is not in the best interest of shareholders.”

HSNi Posts Solid 4Q

trong internet sales and resurgence in the catalog brand business helped push HSNi ahead 9% in the fourth quarter. Consolidated sales were $915.2 million for the quarter ended Dec. 31. Sales for HSN rose 4% to $636.8 million, which included a 9% sales boost at HSN.com. The company’s Cornerstone division - Garnet Hill, Ballard Designs, Frontgate, Improvements, Smith + Noble, The Territory Ahead and TravelSmith - generated a 23% sales gain to $278.4 million, with internet sales penetration reaching 58.6%. Net income rose 4.9% to $41.3 million, or 71 cents per share.

Calico Corners Donates Equipment to Quilts for Kids Non-Profit Organization

ecognizing that new shelving and fabric-measuring and cutting machines would create more efficiencies, design fabric house Calico Corners has donated several pieces of equipment to non-profit charitable organization Quilts for Kids to support its endeavors. Since opening its doors 10 years ago in Southeastern Pennsylvania, Quilts for Kids, which has donated tens of thousands of hand-crafted quilts to children with serious illnesses, has become “so successful that they had to move into rented space last fall— but aren’t yet operating as efficiently as needed in the expanded space,” Calico Corners said. When Calico Corners president and ceo Roy Simpson Jr., and director of custom products and programs, Julie Morris, heard about the necessity, they paid a visit to Quilts for Kids and “were bowled over.” Morris said, “all it took was a tour of their facility and a documentary about the volunteer quilters to show us that this is a cause we want to support. The impact these quilts have on thousands of sick, injured or abused children is heart-warming, as the kids usually can’t have stuffed animals in the hospital due to allergy issues.” Simpson added that he “saw clearly” that Quilts for Kids’ operations would benefit from new equipment to more adequately meet increasing demand for its quilts. Calico Corners is providing fabric racks for storing the fabrics, shelving to stage quilting kits and finished quilts, as well as a special table for rolling, measuring and cutting fabrics. Furthermore, Calico Corners has created a partnership with Quilts for Kids and will make a donation for every custom bedding order placed in 2011.

htt110301_002 2

March 7, 2011

News

> hometextilestoday.com

Pacific Coast Feather, UF&D to Merge SEATTLE — Pacific Coast Feather

Company and United Feather & Down (UF&D), both familyowned companies, announced a definitive merger agreement to create a $300 million basic bedding leader. Pacific Coast Feather Company was the eighth largest home textiles supplier to the United States last year, with estimated sales of $289 million. Eric Moen, president and ceo of Pacific Coast Feather Company, will retain his role for the combined entity. Brandon and Stephen Palmer will continue as co-presidents of UF&D in addition to their roles as senior exec-

utives of the combined entity. “The two companies have rich histories in the industry and have considered combining forces many times over the years. Merging now allows us to accelerate our growth strategy and positions us to offer even greater value and service to our customers and partners,” said Moen. He said the deal will let the companies “create substantial value through access to new growth opportunities. At a particularly challenging time for the home textiles industry, this combination ensures our leadership role with our customers and

partners for years to come.” The merged entity will be headquartered in Seattle and retain a presence in Chicago, where UF&D is located. For the upcoming New York Home Fashions Market, each company will show from its own showroom. The company said it has no plans at this time to dissolve the UF&D brand. PCFC and UF&D are active in both the American Down and Feather Council, and the International Down and Feather Bureau, with executives from both companies holding key positions in each organization. HTT

Pier 1 Reports Strong 1Q Comps F ORT WORTH , TEXAS — Same-

store sales for Pier 1 Imports jumped 8.9% in its fiscal fourth quarter thanks to higher tickets and better traffic and closing rates. The Fort Worth, Texas-based home furnishings specialty chain said the same-store sales increase for the period ended Feb. 26 was on top of a 6.5% gain in the pre-

vious year’s fourth quarter. Total sales in the latest quarter were $427 million, up 7.8% from $396 million a year ago. For the full year, sales increased 8.1% to about $1.4 billion and same-store sales rose 10.9%. Pier 1 president and ceo Alex Smith called the fiscal year “outstanding” and said the fourth quarter was its most successful

period in seven years. Smith added that the early read on Pier 1’s outdoor and spring assortments is “encouraging” and said the retailer’s core lineup continues to strengthen, too. Fourth quarter earnings, to be released April 7, are expected to be in the range of 47 cents to 48 cents per share, up from 30 cents per share a year ago. HTT

IHFC to Be Sold for $275 Million BY JAY MCINTOSH HIGH POINT, N.C. — The International Home Furnishings Center will be sold to a group that appears to include investment firms The Related Cos. and Bain Capital and possibly another entity for $275 million, a purchase agreement filed last week by IHFC shareholder Bassett Furniture Inds. indicates. While the agreement identifies the potential buyer only as “IHFC Acquisition Company LLC,” it also says that Related and Bain and “the purchaser” were parties to a confidentiality agreement signed in October. Officials with Related, Bain and Bassett could not be contacted immediately. The agreement appears to be the first part of a rumored purchase of three large showroom properties in High Point - the

IHFC and buildings owned by Merchandise Mart Properties and Showplace. Pretax proceeds to Bassett, a part-owner of the IHFC, would be in the range of $73 million to $75 million when the deal closes, according to a filing today with the Securities and Exchange Commission. The closing is expected on or before April 29. The purchase price would include the assumption of any IHFC debt, including the outstanding mortgage on the building, the filing indicates. Bassett’s latest 10K filing indicated that the IHFC had long-term debt of about $101.5 million as of Oct. 31. Bassett owns about a 47% stake in the IHFC. Lincoln National Corp. holds a 29% stake and the R.B. Terry Charitable Foundation, set up by the late High Point Enterprise publisher Randall

Terry, owns about 24%. Another owner, Joseph P. Rawley, holds 1,000 shares in the IHFC, out of the 481,628 shares outstanding, that will be sold to the purchaser under a separate agreement on or before the closing date, according to the Bassett filing. The Related Cos. has been a participant in the financing of the World Market Center, home of the Las Vegas Market. The purchase agreement filing doesn’t identify the WMC as a party in the IHFC purchase, although it has been rumored that the deal would place the Las Vegas and key High Point buildings under common ownership. But the agreement does include a provision that Bassett, which has not been an exhibitor at the Las Vegas Market, will enter into a five-year lease at the WMC. .HTT

3/4/2011 3:16:29 PM

Home Textiles Today

March 7, 2011

> hometextilestoday.com

OPINIONTodaY It’s Not Inflation It’s Price Elasticity! “It’s used to describe price hikes without actually having to use the ugly words … ‘higher retail prices.’”

H, T HE BUSINESS BU Z Z WOR DS. “Thinking outside the box.” “Downsizing.” “Right-sizing.” “Best practices.” “Learnings.” As in: “We’ve gotten a lot of learnings from this project.” That one, for this English major, is akin to nails on a chalkboard. In the latest round of retail calls with analysts, a new catch phrase cropped up: “elasticity.” It’s used to describe EDITOR-IN-CHIEF price hikes without actually having to use the ugly words … “higher retail prices.” What also appears to be a bit elastic: reality. Higher prices aren’t really a problem for Macy’s, you see, because Macy’s deals in better goods. On the other end of the spectrum, analysts were told higher prices aren’t really a problem for Big Lots because its pricing is always 10% to 50% less than the competition’s. The irony doesn’t stop there. As everyone knows, de-specing is the order of the day, yet most retailers profess to easing the sting of higher prices by enhancing value and quality. Poppycock. From “poly rich” sheeting to lightweight “quick dry” towels, the consumer is getting less than she bargained for — literally. I assert this doesn’t matter too much in the realm of home textiles. The consumer buys milk every week, so she notices right away when prices change or, conversely, when the price remains the same but the package is now slightly less than a full quart. She buys clothing somewhat regularly, especially if she has kids, so she’s quick to note that a cotton T-shirt was $6.99 last year and is now $8.99. But home textiles? How often is she buying bedding ensembles? Once every five years or so? If last year’s bed-in-abag contained eight pieces and this year it carries only four, she’ll be none the wiser. Is a bath towel that costs a dollar more and weighs slightly less going to set off her alarm? Probably not. I doubt that extra dollar is a purchase-killer. All of which is to say that in a weird way, home textiles do not face the same sort of peril of consumer backlash over higher retails that faster-turning product categories do. Sometimes, there are advantages to being the odd duck. HTT

Jennifer Marks

htt110301_004.indd 4

Who Wants To Buy a Retailer?

“Investors are willing to put up big money if they believe a retail operation is well-run, has a clearly identifiable market position and executes it strategy successfully“

PPA R EN T LY JUST A BOU T E V ERY BODY. If you’ve been following the funny papers — formerly known as the financial section of the news — you may have noticed a recent rather unusual spike in the amount of activity surrounding the subject of retail acquisitions. A pair of money-slinging private equity bloodsuckers have bought a big stake in JC Penney. J. Crew is going private via another private buy-out. And last week Family Dollar rebuffed yet another bunch of money guys, who had put up an unsolicited offer for the company. What exactly is going on here? Don’t these guys know that retail is a dying industry, that the InWarren ternet is going to replace real stores and that all those Gen Xers and and whoever else is being gestated out there has no inShoulberg Millenniums terest in bucking the traffic, schlepping to the mall, trying to find a PUBLISHER/ parking spot and standing in line at a cash register with a fist full of EDITORIAL DIRECTOR paper coupons? Don’t they know that there’s no longer any truth to the old ruse about buying retailers because you could then unlock the hidden value of the real estate, closing down some underperforming units and flipping the leases to the latest up-and-coming expanding chain? Don’t they know that America is over-stored, that retailing is a lousy business run by lousy businessmen who don’t know the difference between a balance sheet and a fitted sheet and couldn’t find a pen with black ink if they were signing the Declaration of Independence? What’s the matter with these guys, anyway? Well, the simple answer is that the money guys, having run out of interesting banks, airlines, pharmaceutical companies and REITS to exploit, are always on the lookout for new places to park their cash and retailers are an untapped resource. The less-simple answer is that retailing remains a viable business where you can make a lot of money if you know what you’re doing. Of course, it’s not that simple. Pershing Square and Vornado, the two private equity monsters that have taken a big bite out of Penney, largely see a company that they can suck more profits out of, rather than a perfectly run cash cow that will spin off dividends from now through the next sighting of Haley’s Comet. Not that either has a perfect track record. Vornado was created on the bone yard of the old Two Guys from Harrison discount store and later ran Alexander’s, another late, largely unlamented mass operation in the Northeast. Pershing Square took on a chunk of Target and tried, unsuccessfully, to have its way with them. Its other recent retail play has been Borders, and we know where that’s going. But J. Crew and Family Dollar are both — excuse the expression — top dollar operations that are highly coveted, and that’s what’s really going on here. Investors are willing to put up big money if they believe a retail operation is well-run, has a clearly identifiable market position and executes it strategy successfully. Just like any business. Retailing is still a fragmented business when you consider general merchandise retailing as the universe, not just mass merchants or department stores. There may be only three national discount stores and a couple of department stores, but lump all retailing into a bucket and you have ten or 12 big players. Compare that to three or four banks, a few airlines, a couple of supermarket chains. There’s still a lot of upside investment potential in a business that is not going away. Who wants to buy a retailer? Somebody smart. HTT

3/4/2011 2:31:21 PM

Best Building. Best Rent. Best Deal! The most Market Week traffic You’ll get more than the lowest rentals and best quality at 295 Fifth. You’ll get: • More

actual square footage for your rental dollars

•

Free freight service

•

State-of-the-art security

2 9 5 F i f t h Av e n u e • N e w Yo r k , N Y 1 0 0 1 6 Contact Lou Lombardi at 212-685-0530

Home Textiles Today

March 7, 2011

News

Target’s “Volatile” 4Q Hurt in Part by Softness in Home M INNEAPOLIS — Target Corp.’s

still-lagging home business only added to the retailer’s woes in the fourth quarter when the holiday selling season proved “more volatile” than anticipated. Sales in home as well as in hard-lines were “more difficult” than other categories in the period, said Kathryn Tesija, evp, merchandising. The fourth quarter overall had ups and downs, with “times of surprising strength but also times of softness.” Home “has been a mixed bag,” she continued. “We’ve seen some strength in housewares and in certain stationary and holiday categories, but we are still having some difficulty in domestics and part of the decorative home business.” The few recent highlights lately in home have been on the opposite extremes of the pricing sphere - “good” and “best” areas. Tesija singled out “great results in our ‘good’ products, our opening price points, like our Room Essentials [line],”

and also “a fantastic response in ‘best’ items,” – mostly KitchenAid and Calphalon-branded wares, she said. Hardest hit within home has been the “better” station, “like our home brand,” which hits the middle price point mark. There, business has been “a bit softer,” Tesija explained. More recently, the 1,750unit Target is “seeing action” again in home again, but Tesija warned “it is still underperforming the rest of the company.” To correct this, “some of the things we are doing,” she continued, include: improving on the message it sends consumers about the benefits and special features justifying the “better” price point; and a stronger trend and color statement across the various categories within the home segment. This spring the discounter is launching a new blue-andwhite fashion story across home to show shoppers “our new innovations in color, the way it is infused” and translated in prints and patterns for a com-

plete and season-right decorating story. Additionally, home will continue to be part of the retailer’s larger effort to remodel units via a “transformational strategy” that has been in place for the past few years. After completing 341 “P-Fresh” renovations in 2010, the retailer is on plan to convert another 380 stores this year. “Consistent with last year’s,” said Gregg Steinhafel, chairman, president and ceo, the new P-Fresh sites will feature an expanded food assortment as well as “reinvented” areas for home and other discretionary categories to help improve sales and traffic. For the fourth quarter, ended January 29, net earnings grew 10.6% to $1.035 billion, with earnings per share up 17.0% to $1.45. Sales rose 2.8% to $20.3 billion, and comps increased 2.4%. For the fiscal year, EPS rose 21.4% to $4.00. Sales increased 3.7% to $65.8 billion, with comps up 2.1%. HTT

One Kings Lane, Traditional Home Partner for new “Tag Sales” Designer Summer Events L OS A NGELES — Private online

shopping home furnishings retailer One Kings Lane and home décor shelter publication Traditional Home have aligned forces to offer the new “Trad Home Tastemaker Tag Sales” events starting this summer. Set to launch in late June and continue with bi-weekly sales over the span of the summer, the tag sales events are set to take place on the www.onekingslane.com website. Curating the sales will be

various designers who recently made it onto Traditional Home’s designer hotlist, the “New Traditionals,” all of whom will be featured in the May issue of Traditional Home as well as in the inaugural issue of Trad Home, a new online shelter publication co-created by the editors of Traditional Home and Lonny. For the t ag sales, select designers will create rooms and vignettes that will be photographed and featured on One Kings Lane. Each event will

include items from the designers’ rooms and as such will be available for purchase. “We are thrilled to bring the vision and talents of the designers selected by Traditional Home to our customers,” said Andrea Stanford, general manager of designer sales for One Kings Lane. “The marriage of great content from Traditional Home, and One Kings Lane unique shopping experience, provides our members with an exciting retail experience.” HTT

Louis Hornick Co. Featured in ABC Series NEW YORK — ABC World News with Diane Sawyer turned the spotlight on products that are Made in the USA – and Louis Hornick Co.’s Firefend curtain line was one of products covered. “As we 100% Made in the

htt110301_006 6

USA – from the first yarn to the last packaging – they really wanted us,” said Louis Hornick III, also known as Tripp. Firefend – a patented, certified, fire-resistant, decorative window panel collection

for residential use – was introduced during the spring New York Home Fashions Market last year. For more about the series, visit: abcnews.go.com/WN/ MadeInAmerica. HTT

> hometextilestoday.com

Kohl’s Credits Private and Exclusive BrandS for 4Q Gains M E N O M O N E E FA L L S , W I S . —

Kohl’s Corporation attributed its double-digit net income and high single-digit net sales and comp gains in both the fourth quarter and full 2010 fiscal year largely to rigorous inventory management practices and the ongoing strong performances of its myriad private and exclusive brands. “We’re very excited about the progress we made last year in both our private and exclusives national brands,” said Kevin Mansell, chairman, president and ceo, during the mid-tier department store chain’s earnings call late last month. For the year, private and exclusive national brands reached approximately 48% of sales - almost 300 basis points higher than the prior year. And while there was “wide-spread successes” across both of these categories, some of the “very strongest increases” came from Kohl’s exclusive national brands in our contemporary life zones - including Simply Vera Vera Wang, he explained. “While the success of these helped propel our top line they also provided support to achieve a consistent improvement in merchandise margin,” Mansell added. Kohl’s expects this trend to continue in this new fiscal year, especially in the second half of 2011 when the retailer is set to launch its Jennifer Lopez and Marc Anthony exclusive programs in apparel and accessories for men and women - representing Kohl’s “largest brand initiative in terms of scope and investment we have ever made.” Net income for the quarter, ended January 29, increased 14% to $493 million, or $1.66 per diluted share, compared to $431 million, or $1.40 per diluted share, a year ago. Net sales grew by 6.3% to $6.0 billion versus $5.y billion in the 2009 fourth quarter. And comparable store sales for the quarter increased 4.3%. For the year, net income jumped 11% to $1.1 billion, or $3.65 per diluted share, compared to $991 million, or $3.23 per diluted share, for fiscal 2009. Net sales increased 7.1% to $18.4

billion from $17.2 billion. And comparable store sales increased 4.4% over the prior year. “We clearly outperformed our direct competition for the year, achieving the highest total sales increase for the year, leading to the largest market share gain,” Mansell said. Merchandise-wise for both the quarter and the year, footwear churned the strongest comp results, men’s outperformed the company average, and home, too, outperformed the company for year with strength in small electrics. E-commerce was a highlight yet again for Kohl’s. Mansell said to help “ensure profitable growth,” Kohl’s is actively investing “prudently” for the long-term in its stores - both new and remodeled - as well as in its “high-growth” e-commerce business. In the case of e-commerce, this segment’s sales were up almost 60% in the quarter and almost 50% for fiscal 2010 to $720 million, and made a contribution to comp sales of about 200 basis points for the quarter and 130 basis points for the year “Our investments in e-commerce continue to result in higher sales,” Mansell noted. On the storefront, Kohl’s, which ended the year with 1,089 stores in 49 states, expects to open approximately 40 new sites and remodel 100 existing units in fiscal 2011. The company also issued its initial guidance for fiscal 2011. Based on assumptions of a total sales increase of 4% to 6% and a comparable store sales increase of 2% to 4%, the Company expects earnings per diluted share of $4.05 to $4.25 for the year. For the first fiscal quarter, the company expects earnings per diluted share of $0.68 to $0.73 based on assumptions of a total sales increase of 4% to 6% and a comparable store sales increase of 2% to 4%. “In 2011, we expect consumers to remain very interested in value and ways to make their dollars go further and we will remain focused on increasing market share,” Mansell said. HTT

3/3/2011 5:47:40 PM

Kassatex_Inc.indd 1

2/24/2011 4:59:43 PM

Home Textiles Today

March 7, 2011

News

> hometextilestoday.com

Vera Wang Bedding Expanding to Asia N EW YORK — Designer Vera Wang will introduce her luxury bedding and accessories to the Asian market this July. The line, offering cotton sheets, pillow cases, duvet covers, blankets, and pillow shams in both queen and king sizes, will include all the ensembles

in her recently launched bedding collection with Revman International. The Vera Wang collection in Asia will be launched at the Dongguan 3F International Furniture Fair, March 16-20, in partnership with Revman and Matrix Group (HK), one of the

largest distributors of international home fashion brands in Asia, which operates more than 1,000 retail stores. “Bedding makes a room…it can even inspire a whole house!” said Wang. Richard Roman, president and ceo of Revman Interna-

tional, said, “We are pleased to be taking a leadership position, introducing a prestige brand of Vera Wang’s caliber to the Asian market. We are confident that the products will be extremely well received, as they have been here in the United States.” HTT

Screaming Eagles Division Totes Dacron Pillows to Afghanistan K ENNESAW , G A . — When the

U.S. Army’s 101st Airborne Division, known as the “Screaming Eagles,” recently took off for Afghanistan from the Special Tactics Base in Fort Campbell, Ky., they took with them miniature pillows bearing the Dacron fiber quality seal, sized to fit into each soldier’s field pack.

“Most people don’t realize that pillows aren’t a government-issued item for certain troops on the front line.” —BRIAN NIX, Invista

BASIC BEDDING

“Most people don’t realize that pillows aren’t a government-issued item for certain troops on the front lines,” said Brian Nix, segment manager for Invista’s North America Fiberfill business. “When we found out that soldiers on the move often fall asleep wherever they can find a place to rest their heads, we knew we had to provide the assurance of comfort (in the form of Dacron brand fiberfill) to those deployed.” In collaboration with local U.S. military personnel and supportive organizations, such as Pillows for Patriots and Our Troops Online, the Dacron brand team delivered hundreds of branded, miniature pillows to American forces stationed in combat zones in Afghanistan and Iraq. The Dacron fiber quality seal endorses brands like Dacron Comforel fiberfill, Dacron Performa fiberfill, and Dacron DuraLife fiberfill. HTT

Check out

htt110103_008 8

3/2/2011 10:31:40 AM

Home Textiles Today

March 7, 2011

News

Ellery Revamps Showroom NEW YORK — Ellery Homestyles said it has taken a totally new approach to presenting home fashion products in its completely renovated showroom. The 17,000-square-foot space at 295 Fifth Ave., Suite 1212, is subdivided into four distinctive showrooms, two presentation lounges, a design studio and

offices. The space features a loftlike look and distinctive lighting. “The new showroom will create a game-changing, unparalleled experience for buyers, one which they will appreciate and remember,” said Budd Goldman, ceo of Ellery. Each showroom uses a different approach to presenting prod-

ucts. The window showroom displays full stories of product and emphasizes styling and color lines while the spacious bedding showroom showcases 18 designs under the VUE and Waverly brands. The throw showroom displays a unique mixture of avant-garde and traditional displays, and the specialty showroom will be cus-

> hometextilestoday.com

tomized for each market week to profile new category introductions. The presentation lounges were designed to create a comfortable, private and relaxed atmosphere where customers will be able to view planograms and customized product programs. The new showroom and company’s expanded design studio will accommodate Ellery’s growth plans. HTT

Designer Day Set During Architectural Digest Home Design Show NEW YORK — “Designing for the

‘A’ Word” will be the topic for 7W’s Designer Day session during The Architectural Digest Home Design Show. Experts in design and geriatrics will discuss how to design for aging Baby Boomers on March from 1 p.m. to 2 p.m., with a networking reception to immediately follow. Coinciding with the New York Design Festival, the event will take place at Pier 94 (12th Ave. and 55th St.) and is free and open to all show attendees. Designer Day is sponsored by showroom building 7W in collaboration with the International Furnishings & Design Association New York Chapter (IFDA), the IFDA Educational Foundation and the National Kitchen & Bath Association (NKBA). For more information or to register for the show: http:// www.archdigesthomeshow.com/ for-the-trade/register RSVP for the Networking Reception by March 11 at ifdanyny@verizon.net or phone (212) 686-6020. HTT

ITM Opens first-ever N.Y. Showroom NEW YORK — International Tex-

tile Manufacturing is opening its first permanent showroom here in time for the New York Home Fashions market in mid March. The new space is in suite 511 at 230 Fifth Avenue. The company said “the explosive growth of braided rugs at retail…is giving us the ability to open our first permanent New York showroom,” said Jeff Cohen, ITM national sales manager. “Braids are truly emerging as a contemporary life style floor covering choice.” ITM’s showroom will feature 15 braided rug and door mat styles along with a range of woven accent rugs. HTT

htt110103_010 10 Venus Home.indd 1

2/25/2011 6:41:31 PM

3/2/2011 2:49:58 PM

Shri Lakshmi Cotsyn Ltd.

Shri Laksmi Cotsyn Ltd. Presents bold and stunning bed linen that express a unique sense of style rich, brilliant colour palette and natural textures. CORPORATE OFFICE: C-40, Sector-57, Noida (U.P.) - 201301, India. Ph. No. : +91-120-4722700 Fax No.: +91-120-4722722 E-mail: sales@shrilakshmi.in

WORKS: A-7, A-8, UPSIDC Industrial Area, G.T. Road, Malwan, Dist. Fatehpur (U.P.) - 216601, India. Ph. No.: +91-5181-248669 Fax No.: +91-5181-248668 E-mail: sales@shrilakshmi.in

USA OFFICE: 7-West, 34th Street, Suite #627-629 5th Avenue, New York, NY-10016 Ph. No.: 212 213 0770 Fax No.: 212 213 0773 E-mail: bgknair@shrilakshmi.in

Manufacturers of Premium Bed Linen, Towel, Quilts, Comforter, Window and Table Linen.

Home Textiles Today

March 7, 2011

News

1888 Mills Extends Coca Cola into Beach Towels GRIFFIN, GA. — How many Coke bottles does it take to make

a bath towel? The answer is six, when it’s 1888 Mills’ Coca Cola RPET branded product. The line of sheets and bath towels is made using recycled PET plastic (RPET). The line gives post consumer PET bottles an “afterlife” by transforming them into products consumers use, according to the company. The towels, for instance, use 70% cotton and 30% of the recycled material. The six-pack of wash cloths uses only three bottles. The first products in the line are due to hit stores this spring at mass retailers and warehouse clubs. At the March market, 1888 Mills is introducing a line of beach towels under the iconic brand. “We see [the beach towels] appealing to all retail channels,” said Lexi Schladenhauffen, vp, marketing and design, 1888 Mills, who noted that Coca Cola nostalgia is trending strong now, as evidenced by a recent Dolce & Gabana designer runway show, which used it in a number of its men’s wear looks. According to Coca-Cola, it has made an investment of more than $60 million to build the world’s largest bottle-to-bottle recycling pant and to support recycling in the United States. HTT

Kassatex Wades Deeper into Bath Accessories BY JENNIFER WHITE KARP

INTRODUCING

New Pro ducts, N mattres ew Bran ses / b ed pillo ds, New ws / m attress t Values oppers / bed p ro tectors

New York Market Center™ / 230 Fifth Avenue, Suite 614 / 781-297-7111

htt110301_012 12

> hometextilestoday.com

N EW YORK — Kassatex is going deeper into bath accessories with its offerings at the New York Home Fashions Market this month. Following up its previous introductions of bath items that coordinate with its Le Bain and Tribeka collections, Kassatex will show an expanded array of shower curtains, accessories and bath rugs that complement its towel collections. “Luxury fashion and solid elite towels have been a core foundation of the Kassatex Fine Linens business for over 11 years,” said Ernesto Khoudari, president and ceo of Kassatex Fine Linens. “Over the years, buyers had repeatedly approached us, requesting that we branch out into other bath categories. The first season launch was a huge success for us with the introduction of such collections as Le Bain and Tribeka, so we are very excited now to continue with this expansion.”

Khoudari said Kassatex collections feature upscale materials such as porcelain, glass and marble for the hard goods accessories, and long staple combed yarns for the towels. One of the new bath accessory collections is Estella, a contemporary line with eight pieces: lotion dispenser, tumbler, cotton jar, tray, waste basket, tissue holder and soap dish. Estella features porcelain with a botanical silhouette decal in platinum. The coordinating towel that has a high-low weave with a botanical motif. Aimed at department and specialty stores, retail prices range from $12 to $65. Kassatex also recently announced it would debut a Trump Home branded bath collection at the market, a luxury line featuring bath towels, bath accessories, bath rugs and shower curtain. Designs in Kassatex’s Trump Home were inspired by Trump’s luxury properties. The assortment aims to bring the “Trump hotel experience” into the home, said Khoudari. HTT

Texstyle/Jamie Stern Launches Sheer Bliss Rug Collection R IVER VALE , N.J. — Texstyle/

Jamie Stern is introducing its new high-end Sheer Bliss collection of elegant rugs in designs and colors appropriate for a corporate office or a luxury bedroom. Targeting “discriminating” clients, noted company president Jamie Stern, this new grouping employs a hand-tufted needlepoint loop, with tip shearing, construction. Its palette is subtle – from soft shades to deep earth tones, as is the case with all Texstyle/Jamie Stern offerings, he continued, and clients may request custom colors from a library of hundreds of other shades. “Worsted woolen/silk or bamboo silk fibers mirror the soft

feel of a chenille throw, but for your feet,” said Stern. “This collection is suitable for an elegant bedroom, a presidential suite or a senior executive’s office.” “The combination of natural yarns provides the extreme durability of wool, coupled with the sensuous luster of silk,” he added. Manufactured in loop, and then sheared, has accomplished a beautiful light/dark aesthetic. Custom samples may be obtained within two to three weeks of request and rugs can be produced in any size, or may be utilized in wall-to-wall installations. Designers may substitute bamboo silk for a reduce cost of the rug. HTT

3/3/2011 4:21:52 PM

Shri Lakshmi Cotsyn Ltd.

Shri Lakshmi Cotsyn Ltd. presents the premium range of beach and bath towels woven from long staple cotton for ultra softness. The towels are instant soaks and are highly absorbent. These towels have high piles which gives extra softness and absorbency. We have exclusive collection of Jacquard towel designs which are unbeatable.

CORPORATE OFFICE: C-40, Sector-57, Noida (U.P.) - 201301, India. Ph. No. : +91-120-4722700 Fax No.: +91-120-4722722 E-mail: sales@shrilakshmi.in

WORKS: A-7, A-8, UPSIDC Industrial Area, G.T. Road, Malwan, Dist. Fatehpur (U.P.) - 216601, India. Ph. No.: +91-5181-248669 Fax No.: +91-5181-248668 E-mail: sales@shrilakshmi.in

USA OFFICE: 7-West, 34th Street, Suite #627-629 5th Avenue, New York, NY-10016 Ph. No.: 212 213 0770 Fax No.: 212 213 0773 E-mail: bgknair@shrilakshmi.in

Manufacturers of Premium Bed Linen, Towel, Quilts, Comforter, Window and Table Linen. Shri_Lakshmi_Page2.indd 1

3/3/2011 1:26:00 PM

Home Textiles Today

March 7, 2011

News

> hometextilestoday.com

Christy’s Previews New Bedding and Bath Lineup N EW YORK — English luxury

linens house Christy is gearing up for the introduction this spring of its latest collections of bed and bath textiles. Set for debut in mid March during the New York Home Fashions Market, the new lineup includes: the Royal Turkish towel, a limited-edition towel in celebration of Christy’s 160 year tradition; two new top-of-bed lines -- Antoinette and Karim, Renaissance, which together make up a program of fine Egyptian cotton sheets; three new bathrobe lines -- Renaissance Luxury, Odyssey and Supreme -- that are made to coordinate with Christy’s existing towel lines; and eight new vibrant beach towel designs. “Christy is rooted in our rich heritage of designing and developing premium linens,” said Bob Hamilton, director of marketing. “The new collections will seamlessly add substance to our prestigious line while continuing our longstanding devotion to high-quality products featuring fashion-focused designs.” The Royal Turkish Towel pays tribute to what Christy’s described as the first looped towel known to the western world. First shown at the Crystal Palace Exhibition of 1851 and given to Queen Victoria, the company said the towel represents the inspiration for Christy’s new Royal Turkish Towel, a classic terry towel with fringe edge. Made of 100% Mesopota-

mian combed cotton and available in parchment, the Royal Turkish Towel “stays true to its history and is not only an elegant, charming addition to any bathroom, but a conversation piece with a fascinating history,” the company said. Each towel is gift-boxed and numbered in limited edition. Antoinette Bedding is a 400thread count jacquard bedecked with elegant and trailing detailed embroidery in classic tones of cream and gold. The design features Swarovski touches for a regal finish. The line includes a queen, king or California king duvet, pillow shams and a decorative bolster cushion. The Karim Bedding was designed to create “a rich, exotic look for any bedroom” with its dramatic textured jacquard inspired by the tribal embroideries of Africa.” The collection offers coordinating embellished pillowcases and cushions for an impressive layered look. The new Renaissance Sheets are made of 100% fine Egyptian cotton yarns in crisp 400-thread count percale and feature a sophisticated hem detail. In the bath robes category, Odyssey is a Kimono style made of 100% cotton and available in charcoal or white, Renaissance Luxury is a shawl collar robe made of 100% Egyptian cotton available in muted natural tones, and Supreme is also a shawl collar robe but it is made of 100% Supima cotton and is offered in

Eileen West to Launch “Autumn Rose” Collection S A N F R A N C I S C O — Designer

Eileen West’s fall collection for home is centered on her new “Autumn Rose” theme. “Inspired by a painter’s garden,” this new bedding and bath collection features romantic floral prints and jacquards, delicate embroideries and rich autumnal hues. The launch is set for mid March during the New York Home Fashions market. West, who is based here and has been a noted designer for more than 30 years, explained “the changing seasons give us a chance to revamp and redeco-

htt110301_014 14

rate, and the Eileen West home collection allows us to do this with simple changes that make a big impact.” West’s bedding and bath licensees showing new product for the “Autumnal Rose” collection will include: • AQ Textiles for fashion bedding; • American Dawn Inc. for bath towels; • Park B. Smith Inc. for shower curtains and bath rugs; • Hedaya Home Fashions for quilts; • United Feather & Down for bedding. HTT

Christy’s Karim bedding is inspired by the tribal embroideries of Africa. The collection offers coordinating pillowcases and cushions.

a variety of bold colors. Christy’s said its beach towel line has “quickly grown in popularity, due to their vibrant colors, exciting patterns and ultra-absorbent texture.” The

company said it applied the same techniques and materials to the eight new patterns for this season—Berry Flower, Blue Circles, Fresh Stripe, Jungle Leaf, Samba, Teal Spots and

Wave in Plum and Blue. Made of 100% cotton, the towels are looped on one side for absorbency and velour on the other “to ensure comfortable sunbathing.” HTT

Brentwood Originals Gives Personality to its Newly Launched Website BY CECILE B. CORRAL C ARSON, C ALIF. — A visit to the new website of Brentwood Originals offers users more than a glimpse into the 52-year-old company’s product offerings, operations and sustainability efforts as well as a truer sense of its “lighthearted” approach to business. The newly launched site, www.brentwoodoriginals.com, is now live after six months in development and replaces the company’s longtime former site that originally served mainly as an inhouse portal for the sales team

to submit and track orders and access account information, said president and ceo Loren Sweet. “What we realized over the years was that Brentwood needed to give itself a public persona,” Sweet explained. “Our purpose with this site is to highlight what makes Brentwood different, and I think that is what we’ve done. A website should reflect the personality of the company, and I think what ours has achieved is a professional operations-driven company with a light-hearted approach towards business.” Among the more jovial aspects

of the site are “some quips” throughout, including images of the staff at work under the “Our People” tab. But the site also conveys several other more critical messages, Sweet noted, in particular the myriad sustainable practices the company has adopted over the past eight years and counting with its $15 million investment in “green” initiatives at its factories and throughout its business operations. “No one really knows or sees that,” until now via the “Take a tour” tab on the website. HTT

3/3/2011 3:02:30 PM

/ŶĐƌĞĚŝďůǇ ^ŽŌ ^ŚĞĞƚ ^ĞƚƐ ŝŶ ^ŽŽƚŚŝŶŐ ^ŽůŝĚ ŽůŽƌƐ͘

“Think Textiles Think Shri Lakshmi”

hůƚƌĂ &ŝŶĞ zĂƌŶ ƌĞ tŽǀĞŶ &Žƌ ǆƋƵŝƐŝƚĞůǇ ^ŽŌ͕ >ŝŐŚƚǁĞŝŐŚƚ ŽŵĨŽƌƚ͘ Shri Laksmi Cotsyn Ltd. Presents bold and stunning bed linen that express a unique sense of style rich, brilliant colour palette and natural textures.

Synergy Global Home Inc. 7-West, 34th Street, Suite #627-629, 5th Avenue, New York, NY-10016. Ph. No.: 212 213 0770 Fax No.: 212 213 0773 E-mail: bgknair@shrilakshmi.in.

(Subsidiary of Shri_Lakshmi Page 3.indd 1

^Śƌŝ >ĂŬƐŚŵŝ ŽƚƐǇŶ >ƚĚ͘Ϳ 3/3/2011 1:21:32 PM

Home Textiles Today

March 7, 2011

News

> hometextilestoday.com

Textrade India Highlights Diversity BY MAITREYEE B. ANGELO NEW DELHI, INDIA — TexTrends India 2011’s mission was to focus,

for the first time, on the synergies among the various segments of India’s textile value chain. Six Theme Pavilions highlighted new developments in silk, handloom, carpets, fashion apparel and cotton, with the North East pavilion displaying apparel and home furnishings from the region’s indigenous muga, eri and pat silks, along with creative home décor in bamboo, cane, wood and diverse tribal weaves. A plethora of products attested to the fact that jute today provides livelihoods for 40 million farmer families. Cultivated in the Gangetic-Brahmaputra delta for centuries, jute was sent by the British East India Company to England in 1791. When it was discovered that jute fiber could be softened and used for yarn without altering the frames used for spinning flax, the lowly fiber soon replaced the more expensive flax. Originally used for packing as hessian, jute, now covers the spectrum of lifestyle possibilities — furnishings, handicrafts, bags, lampshades, geo-textiles, furniture and even automotive panels. The Hans introduced a stone-washed jute-cotton fabric with an unexpectedly soft hand-feel. For the first time in the country, India’s Jharkhand region has achieved the distinction of procuring an “organic silk” registration for the tussar silk produced in its Khaswan-Kuchai region which produces 400 million tussar silk cocoons a year in 70,000 silk farms. The certification by U.S.-based One-Cert Asia under the Global Organic Textiles Standards (GOTS) has been accorded to this silk at all its three stages — cocoon, yarn and fabrics. In window wear, silk, polyester, linen, jute and cotton were still popular, with blended fibers affording lower costs and soft, sheer looks. Hanuman Weaving, one of the few vertically integrated home furnishing companies that do print and placement embroidery, introduced Peacock — an eye-catching, one-across “jumbo repeat” pattern for drapes in which the bird design was repeated SEE TEXTRADE PAGE 18

Above: Cotton, linen printed in plaid and polka dots accented with a range of surface treatments in bouclé, velvet, embroidery and appliqué from Bee Gee Handicrafts. Below: A selection of jute mats from Eco Rubber: clockwise from right: jute with printed cotton, jute with sisal, jute with coir and finer grade woven jute.

Hanuman Weaving’s lustrous Peacock design printed one-across in 2 meter spans makes for eye-catching drapery.

htt110301_016 16

3/2/2011 1:45:18 PM

HERBAL TOWEL COLLECTION The Herbal Colors are extremely therapeutic to eye, mind and body. All of the herbs have therapeutic uses as botanicals (herbs), or as homeopathic (diluted), or as nutritional suppliments (Minerals). It is extra smooth and good for transpiration. The colors are unique and cannot be duplicated with any dyes, thus new shades are achieved.

Shri Lakshmi Cotsyn Ltd. presents HERBAL TOWEL RANGE in collaboration with Aura Herbal

Shri Lakshmi Cotsyn Ltd. CORPORATE OFFICE:

WORKS:

USA OFFICE:

C-40, Sector-57, A-7, A-8, UPSIDC Industrial Area, 7-West, 34th Street, Suite #627-629 Noida (U.P.) - 201301, India. G.T. Road, Malwan, Dist. Fatehpur (U.P.) - 216601, India. 5th Avenue, New York, NY-10016 Ph. No. : +91-120-4722700 Fax No.: +91-120-4722722 Ph. No.: +91-5181-248669 Fax No.: +91-5181-248668 Ph. No.: 212 213 0770 Fax No.: 212 213 0773 E-mail: sales@shrilakshmi.in E-mail: sales@shrilakshmi.in E-mail: bgknair@shrilakshmi.in Manufacturers of Premium Bed Linen, Towel, Quilts, Comforter, Window and Table Linen.

Page4.indd 1

3/3/2011 1:28:54 PM

Home Textiles Today

March 7, 2011

News

> hometextilestoday.com

Textrade 2011 TEXTRADE FROM PAGE 16

every two meters apart. Also on display were its digital printed designs using eco-friendly pigments which are directly printed on the fabric, requiring no preor post-treatment of the silk. The most variety in home furnishings was in made-ups which displayed India’s forté in handwork and embroidery. They ran the gamut from pillows, bed ensembles and table linen to textile-based accessories and juvenile furnishings. Cotton, organdie, linen, polysilk, faux suede and velvet, enhanced with a wide assortment of “sequins” in plastic and metal in new shapes, as well as surface embellishments that ranged from pleated, stitched fabric and rouched ribbon to buttons and braids. Microfiber, fabrics with a luxurious touch, surface texturing with flocking, foam and rubber printing and appliqués with velvet and chenille were on display. Emphasis was on elaborate hand and machine stitching techniques and combining disparate elements to create surprising effects. Upholstery offerings were scant with raw silk and blended fabrics on show more appropriate for decorative purposes than practical usage. Floor covering such as bath mats and rugs did not evince any new developments. Grover International showed two new concepts in its Jewel collection of carpets which comprised rolled up varicolored layers of New Zealand wool cut in the cross grain then closely pasted to create interesting graphic designs. Amar Carpets’ Chhoti was a design in which a bottom layer of braided wool squares was overlaid with hand tufting. India’s textile industry enjoys a significant place in the country’s national economy, and is a priority sector for development through the government’s Central Plan Schemes and Foreign Trade Policy. The Ministry of Textiles monitors its techno-economic status, providing the policy framework for modernization and rehabilitation. As the largest producer of jute, the second largest producer of silk and cotton, and one of the top suppliers of cellulosic fibers, yarns and synthetic yarns, India’s textile sector has great diversity and potential. HTT

htt110301_016 18

From top to bottom: Malika Overseas pillows display surface embellishments that take embroidery and patchwork to a new level with the latest styles and shapes of plastic and metal sequins. Jute is the primary component of these handbags and woven runners are combined with banana and river grass in these accessories from Vedhanayaki Fabs. Recycled denim, cotton and silk rage are combined with recycled rubber from old tires to fabricate these ottomans. Industrial waste paper, denim and rubber go into the making of the totes, floor mat and picnic hamper in the foreground – all creations of Conserve HP, a non-profit dedicated to environmental conservation and women’s employment.

3/2/2011 1:54:15 PM

Home Textiles Today

March 7, 2011

> hometextilestoday.com

First Monday: Specialty Retailing

Winter Markets Help to Set Tone for Small Upscale Stores’ 2011 Business BY CECILE B. CORRAL NEW YORK – As the winter markets for independent retailers wrapped up last month, upscale specialty stores across the county are getting a good idea about what they can expect for business in 2011 — both in fashion trends and price points. When high-end specialty boutique linen store Classic Home started to feel the pinch from higher cotton and raw material prices from its vendors and elsewhere, the single-unit retailer made headlines. This beachside store in Lake Como, N.J., published an advertisement in its local newspaper in February to warn its customers about looming price

hikes for its new assortments while promoting discounts on older merchandise. As owner Pearl Fitzgerald described it, the ad was in newspaper style with a headline that read, “News alert: Rising cotton prices,” which was followed by a message that said “Now is the time to enjoy our luxurious sheets and towels as we hold off price increases. Take advantage of sales on our discontinued items throughout the store as we make room for new spring arrivals.” The ad also featured a photograph of some of Classic Home’s sheets and towels in stacks. “Now, as we’re seeing prices go up across the board, we’re

wondering, ‘Holy cow, is this sustainable?’” Fitzgerald told HTT. “It will be interesting to see what is going to happen. [With the ad], we wanted to let our customers know about [the rising prices]. Many have been telling us that they’ve heard about it. So they know.” Classic Home, which very recently redressed seven beds on its selling floor with new products from John Matouk, Sferra, Peacock Alley, Home Treasures and others, has just begun to raise prices on some of its new linens, “but we’re not doing the markups like we did before because it’s too much of a shock on the customer. When a washcloth is costing as much as a bath towel did, it can cause

Early To Bed in Omaha is focusing on offering its customers more value for a better price.

DO YOU HAVE A PRODUCT THAT WILL HELP THEM? OUTLAST DOES. Sleep disturbances caused by hot ﬂashes and night sweats are a reality for those passing through menopause. Outlast has bedding products that can help mitigate this problem for millions of women.

50% OF AMERICAN WOMEN WILL SUFFER FROM SYMPTOMS OF MENOPAUSE BY 2015

Outlast® Technology Improves Comfort By: - Managing heat build-up under the covers to prevent perspiration - Adapting to continuously changing skin temperature to keep you “thermo neutral” - Reducing hot ﬂashes and resulting night sweats - Keeping you not too hot, not too cold®, just right! Solutions For Everyone: - Normal sleepers in search of a more comfortable night’s sleep - Thermally incompatible couple - Woman experiencing symptoms associated with menopause Experience The Outlast® Difference

Untitled-2 1 htt110301_020_021 20

outlastsleepsystem.com

2/25/2011 AM 3/3/2011 5:30:06 10:55:55 PM

News

> hometextilestoday.com

Feathers in Pittsburg is updating its bedding displays with new looks from its suppliers, including this one titled Mata from Yves Delorme.

Classic Home started to feel the pinch from higher cotton and raw material prices and alerted its customers through an ad in the local newspaper.

sticker shock.” It’s cashmere no-more, at least for now, for Scarsdale, N.Y.-based La Dentelliere At Home, said co-owner Charelle Anderson-Grgas. “The trend is more basic, and the reason is because in this economy, the customer doesn’t want something for t h ei r b e d r o o m t h a t i s t o o fussy looking,” she said, citing

instead a broader natural color story that included more taupe and cream hues among new products she saw at the recent markets. “My customers are still looking for something that is easy on the eyes, something very inviting and clean.” Not to mention, the price of cotton has kept her assortment somewhat more modest in terms of retail tickets.

Home Textiles Today

March 7, 2011

“The price of cotton has gone up, so people think the economy is getting better because prices are higher,” Anderson-Grgas continued. “The economy is getting better little by little. But I can’t sell cashmere in my store anymore. Over the past two years, the price of cashmere throws and blankets has gone up 20% each year, so I cannot afford to keep them in store anymore.” She added that while her cost of doing business is higher, “I have not raised the prices because I want to sell. I would rather sell more quantity.” O m a h a - b a s e d E a r l y To Bed’s owner, Joan Miller, was pleased to find price-sensitive, more practical product alternatives at the winter markets. “We found some wonderful price points coming through from our vendors that are a little bit lower than some of the high, high things we used to see more of,” Miller explained. “For example, some of our vendors who used to show us fabulous silk coverlets that retail over $1,000 now came back with similar coverlets made of cotton that can retail for $500 … We are stressing in our store [machine] wash-ability and comfort as well as elegance and good taste, and that is where vendors are going, too, now.” And like some of her counterparts, Miller said her focus

as of late has been “definitely, to give more value for a better price. I have cut my margins as far down as I can. My markup is less than in the past, and I do more promotion than I used to.” Successfully passing along low double-digit price increases on cotton and other natural fiber luxury linens to its customer is Pittsburgh-based Feathers, said owner Jeff Mulert. “We’re seeing on average about a 15% price increase from our suppliers, but we’re still committed — as our suppliers are — to selling natural fibers of 100% cotton and l i n e n ,” M u l e r t t o l d H T T . “Prices are higher for these goods, but we see other stores in the marketplace bringing in some polyester and we are staying away from that. Our consumer is ready and willing to pay more for the product. So fortunately, our business has not been affected. Our consumer is not price sensitive, so we are able to increase our prices.” As proof, Mulert said his business in January and February was “basically even to last year.” But his outlook for the rest of the year is brighter — a 10% to 12% increase over 2010 — supported by an expanded marketing effort and soonto-come enhancements to its social media and high-tech strategies to reach more customers, more often. “My goal is by this summer to have my customers find out about new products at my store and then buy them, all from their phones while they are at a party,” Mulert said, hypothetically speaking. “I feel that if I don’t do that, I am in trouble.” Hestia Linens in Covington, La., is currently revamping its sales strategy to include not just high-end bedding and bath linens but also special services to help the business more adeptly attack outside hurdles this year, like cotton price hikes. Owner Jenny Mutter said her aim is to make her fiveyear-old store “become more of a fashion house and design service provider where we can in one place totally help you redecorate your home.” New in-house services include monogramming, custom draperies, interior design consulting, and of course, all of

the high-end linens to match. Having walked the winter markets with optimism for the New Year, Mutter said she got the same sense from her suppliers, who include Peacock Alley and Sferra many many others. “I think this year is starting our kind of slow, but I expect business to be as good as or better than last year,” she went on. “I am starting to see more traffic in the store, and I think it will get even better as my customers start receiving their tax refunds from the government.” Richard Smith-Allen, who established and owns 38-yearold Warm Things in San Francisco, is visiting his first and only winter market — the New York Home Fashions — in March, explaining that it is the most relevant to his needs. Coming off a “very good Christmas, as I geared it around value for my customers,” he said to HTT, he saw his store traffic drop off after the holidays and senses possibly some more hesitance from shoppers this year as they will be challenged more by rising oil/gasoline prices. “It’s putting some uncertainty back in the marketplace, so that puts consumers on hold with their spending,” SmithAllen warned. “And in our industry, that makes the suppliers tend to get put on hold, too, because they don’t know where to step out and be bold with new designs and styles when they know the consumer isn’t stepping out to buy them.” In sum, he expects “a curious” market atmosphere in New York but still “a lot more successful it was this same time last year for both suppliers and retailers.” He expects to see a bevy of fresh looks and color stories — all of which he will be seeking in rounding out his new programs for the second half. “I think that is what people are going to need for next fall,” he said. “Price will be an issue. And I would have said units would slow but dollar sales would get better or expand. But because the cost of cotton and down and polyester have gone up from a year ago by so much, it has got to have an impact on the total units sold in the industry on a unit basis. I think the units will be less, but dollars could be more.” HTT

2011 10:55:55 AM htt110301_020_021 21

3/3/2011 5:36:24 PM

Home Textiles Today

March 7, 2011

> hometextilestoday.com

PEOPLETodaY Former IBM Exec is New Sears Holding CEO H OFFMAN E STATES , I LL . — Lou

D’Ambrosio, who has worked as a consultant with Sears Holding’s board of directors, has been named the company’s ceo. Bruce Johnson has been acting as interim ceo since January 2008, when then-chief Aylwin Lewis stepped down. Johnson has been named executive vp

for off-mall businesses and supply chain. D’Ambrosio was chief executive of business communications firm Avaya Inc. from 2006 to 2008, exiting that post for health reasons. Prior to joining Avaya in 2002, he spent 16 years at IBM. “From the beginning of our

ceo search, we were determined to find a leader with information and technology experience who could catalyze the transformation of our portfolio of businesses in the context of the evolution of the retail industry that is occurring more broadly,” said company chairman Eddie Lampert. HTT

Greg Jordt Named Executive VP at Harounian Rugs N EW YORK — Greg Jordt has

been named executive vp, sales and marketing for rug importer and manufacturer Harounian Rugs International (HRI). Jordt is a rug industry veteran of 30 years with experience in both retail and wholesale. He worked in buying posts at Burdines and J.L.Hudsons, was national merchandise man-

ager at Ethan Allen and coo of Couristan. At Harounian, his responsibilities include working with current and developing new national accounts, expanding the national sales force and developing new marketing strategies. Lee Harounian, president of HRI said: “He has worked hard throughout his career to build

and maintain strong relationships with many of the top retailers in the country. His experience and knowledge of the rug industry will help us to expand and diversify our national customer base.” HRI’s warehouse and corporate offices are located in New York City with showrooms in Atlanta and Las Vegas. HTT

Harriet Schoenthal Passes N EW YORK — Harriet Schoen- nies. thal, a longtime industry publiOne of IFDA’s most consiscist and member of the Interna- tently active members – for over tional Furnishings and Design 50 years – Schoenthal joined Association, died Feb. 22. what was then the National Details on her age and ser- Home Fashions League in vices were not readily availAugust, 1960. able She served on the She was president of HarNew York Chapriet Schoenthal Inc., a New ter Board of DirecYork advertising, marketing tors and was a New and public relations firm, York Chapter Presirepresenting such clients dent. An IFDA Felas the Hardwood Manufaclow (FIFDA), she HARRIET turers Association, Baldwin was the 2007 recipSCHOENTHAL Piano, Hickory Chair and ient of the IFDA Swaim Furniture, among National Honorary other home furnishings compa- Recognition award. She was also

on the board of the Educational Foundation and was an honorary trustee. As a way to recognize her, the Educational Foundation has renamed the Executive Leadership Grant the Schoenthal IFDA Leadership Forum. The Forum provides a high caliber interactive leadership program, which coincides with the IFDA Conference/Symposium and provides training for future leaders of IFDA and the design/ furnishings industry. IFDA members said they hope to organize a memorial for her later in the year. HTT

CHECK US OUT ON THE WEB

htt110301_022 22

Capel Hires Jerdon to Head Mid-Atlanta Region Sales TROY, N.C. — Capel Rugs has named Mark Jerdon its new regional sales manager for its Mid-Atlantic territory. Jerdon brings more than 25 years of experience selling specifically to dealers within his designated region. In his position, he will manage sales in New Jersey, Maryland, Delaware, northern Virginia, Pennsylvania, the Washington, D.C. metro area and the five boroughs of New York City. “During his tenure work-

ing in the area industry, Jerdon has proven himself as a top performing salesperson, establishing many beneficial connections with retailers,” Capel noted. Added Allen Robertson, vp of sales: “Mark’s outstanding track record and high level of regard in the sales industry make him a valuable addition to the Capel team. We’re excited to see the positive changes he will surely bring to our retailers in the Northeast.” HTT

Voorhis Moves Up At Glen Raven G L E N R AV E N , N.C . — Glen Raven Custom Fabrics has promoted longtime employee Greg Voorhis to design team manager with management responsibilities for the team of fabric designers dedicated to the Sunbrella brand. Voorhis’ new responsibilities will include the planning, development and evaluation

of new fabric lines. He will also work with the Glen Raven Custom Fabrics market managers and sales teams to oversee exclusive fabric design work for the company’s broad customer base. He continues to report to Gina Wicker, design and creative director for Glen Raven Custom Fabrics. HTT

Former Couristan President Walter West, FORT LEE, N.J. — Former Cour-

ist an president Walter West passed away on Feb. 18. He was 87. West spent more than 45 years “as a vital member of the Couristan team,” serving as the soft floor covering company’s president during a majority of his tenure, the company said. Ron Couri, president and ceo, said West helped “pioneer the Couristan brand and was an integral part in making this company the international success that we are today. He is a large part of Couristan’s legacy and we will forever be grateful for his unwavering dedication and

tremendous contributions. On behalf of all of us at Couristan, we extend our sincerest condolences to his wife Elsie and his entire extended family. He will be greatly missed.” In addition to his wife, Elsie, West is survived by his son, Stephen, and grandson, William. Plans for a memorial service will soon be announced. In lieu of flowers, donations may be made in West’s memory to The American Parkinson’s Association, 8555 Aero Drive, Suite 308, San Diego, California, 92123, or at www. apdaparkinson.org. HTT

3/3/2011 2:02:30 PM

Investing more in tick than fiberfill can make pillow sales fall flat. Customers want long-lasting firmness or softness for the way they sleep. Only fiberfill can provide that kind of cushion. The DACRON® brand has innovated fiberfill technology for more than 50 years to bring the bedding industy a variety of comfort and performance options. With recent innovations like high-bulk fibers and fiberfill which is nearly indistinguishable from down, you can give consumers what they want, from a brand they know and trust.

Help your customers make the right choice. The DACRON® ﬁberﬁll quality seal endorses the following brands:

PERF RMA Brand Fiberfill

Brand Fiberfill

Home Textiles Today

> hometextilestoday.com

March 7, 2011

BUSINESS TodaY Macy’s Fiscal Year Comp Increase Best in 15 Years CINCINNATI — Macy’s Inc. 4.6%

comp increase for the fiscal year was double its original expectations. “Since comp-store sales growth is the best proxy for how the customer grades our performance, we are part happy with our performance on that matrix this year,” noted cfo Karen Hoguet during 850-unit department store chain’s fourth quarter and yearend earnings call. “[It] was our best performance in at least 15 years and it also compares favorably to our key competitors,” she continued. “At this same time last year, we expected comp store sales growth of between 1 to 2%

for 2010, and we obviously far exceeded that that. That delta is important and enabled us to produce higher-than-expected earnings and cash flow.” Quarterly net income grew 49.8% to $667 million. Sales rose 5.4% to $8.269 billion, with comps up 4.3%. Earnings were higher than expected at $1.55 per share. For the full fiscal year, net income leapt to $847 million, representing a 157.4% increase over the prior year’s $329 million in net income. Due to one-time charges related to store closings, EPS fell to $1.98 compared to $2.11 in the previous year. Sales were on the high end

of guidance, climbing 6.4% to $25.0 billion. Online sales – from macys. com and bloomingdales.com combined – increased 29.1% in the quarter and 28.7% during the fiscal year. The company noted its online sales positively affected its same-store sales by 1.1 percentage points in the fourth quarter and 0.9 percentage points in the year as a whole. Online sales are included in the same-store sales calculation for Macy’s Inc. The company is assuming same-store sales growth of approximately 3% the new fiscal year and EPS of $2.25 to $2.30. HTT

BJ’s Takes Market Share Away from Competitors in Consumables in Q4, Fiscal ‘10 WESTBOROUGH , M ASS . — In its

first earnings conference call since shutting down five underperforming sites in January and restructuring its home office and certain field operations, BJ’s Wholesale Club reported results last week for its fourth quarter and fiscal 2010 that reflected the recent changes in its business. “These initiatives are vital to our competitiveness, future growth and profitability,” explained Laura Sen, president and ceo, during the presentation this morning. Net income came in at $10.2 million, or $0.19 per diluted share, for the quarter ended Jan. 29, compared to $54.5 million in the year-ago period. These results include post-tax expense of $41.1 million for the five club closures, restructuring activities and asset impairment charges. Excluding the post-tax expense of $41.1 million, adjusted non-GAAP net income was $51.3 million, or 95 cents per diluted share. Quarterly net sales increased by 7.4% to $2.90 billion, and comparable club sales increased

htt110301_024_026_028 24

by 3.8%, including a contribution from sales of gasoline of 2.1%. Excluding the impact of gasoline sales, merchandise comparable club sales increased by 1.7%. Consumables were a highlight in the quarter, when departments with the strongest comparable club sales increases versus last year included bakery, cheese, dairy, deli, frozen, health and wellness, meat, milk, prepared foods, produce, small appliances, summer seasonal, video games and winter supplies. By comparison, weaker departments included apparel, baby food, books, cigarettes, diapers, plates & utensils, paper products, prerecorded video, televisions and water. For the year ended, BJ’s reported net income of $95.0 million, or $1.77 per diluted share. Excluding the post-tax expense of $41.1 million, adjusted nonGAAP net income for fiscal 2010 was $136.1 million, or $2.53 per diluted share. Net sales rose by 8.3% to $10.63 billion and comparable club sales increased by 4.4%, including a contribution from

sales of gasoline of 2.0%. Excluding the impact of gasoline sales, merchandise comparable club sales increased by 2.4% for the full year. “Consistent growth in member visits, membership renewals and sales of perishable food demonstrate that BJ’s is continuing to capture market share from other retail channels,” said Sen, who added that the company this year has plans to expand its food business as it continues to grow its share of the market at the expense of its competition, which includes both other warehouse clubs and grocery stores. BJ’s offered its earnings guidance for the first quarter and fiscal year, ending January 28, 2012. The company expects to report GAAP net income in the range of $144 million to $154 million, and earnings per diluted share in the range of $2.62 to $2.82. For the first quarter of fiscal 2011, BJ’s expects to report GAAP net income in the range of $29.5 million to $31.5 million, and earnings per diluted share in the range of 54 cents to 58 cents. HTT

Dillard’s Makes Net Income and Sales Strides in 4Q, Fiscal 2010 LITTLE ROCK , A RK. — Dillard’s

enjoyed significant net income gains -- double-digit for the fourth quarter and triple-digit for the full year – as well as some more modest increases in sales in the two reporting periods. “Our fourth-quarter results underscore a year of progress at Dillard’s,” said ceo William T. Dillard II. “We began 2010 well positioned to achieve notable results, and we remained focused on our core initiatives throughout the year. We executed disciplined inventory management and controlled our expenses while seeking clear distinction in the mind of the fashion consumer.” For the fourth quarter ended Jan. 29, the 294-unit 29-state department store chain reported a 38% increase in net income to $109.6 million, or $1.75 per diluted share, compared to $79.5 million, or $1.08 per share. The company noted that included in the 13-week’s net income results are: $7.5 million proceeds received as final payment related to hurricane losses ($4.8 million after tax or 8 cents per share); a $2.2 million pretax gain on disposal of assets primarily related to three closed stores ($1.4 million after tax or 2 cents per share); and a $6.5 million income tax benefit (10 cents per share) primarily related to net decreases in unrecognized tax benefits, interest and penalties due to resolutions of federal and state examinations, decreases in state net operating

loss valuation allowances, and a decrease in a capital loss valuation allowance. Total merchandise sales for the 13 weeks grew by 6.6% to $1.912 billion compared to $1.794 billion. And comparable store sales increased 7% in the quarter. For the full fiscal year, Dillard’s net income increased 162% to $179.6 million, or $2.67 per diluted share, compared to the prior year’s $68.5 million, or $0.93 per share. Included in net income for the 52 weeks ended Jan. 29, 2011 are the following items: $7.5 million proceeds received as final payment related to hurricane losses ($4.8 million after tax or 7 cents per share); non-cash pretax asset impairment and store closing charges of $2.2 million ($1.4 million after tax or 2 cents per share); a $5.1 million pretax gain on disposal of assets primarily related to five closed stores ($3.3 million after tax or $0.05 per share); and a $9.7 million income tax benefit (14 cents per share) primarily related to net decreases in unrecognized tax benefits, interest and penalties due to resolutions of federal and state examinations, decreases in state net operating loss valuation allowances, and a decrease in a capital loss valuation allowance. Total merchandise sales for the 52-week period were up 2.2% to $6.020 billion compared to $5.890 billion in 2009. And comparable store sales increased 3%. HTT

ForecastIQ: Retailers Brace for Potential Sales Declines WORTHINGTON , O HIO — As the 2010 holiday season gets farther away, the outlook for same-store sales growth continues to decline, according to the February ForecastIQ report. December experienced a “spending high” that came

down in the New Year. But the good news, noted ForecatsIQ, is that February’s readings are still appearing slightly brighter than February 2010, with fewer retailers likely to see declines. SEE FORECAST PAGE 28

3/3/2011 3:54:41 PM

Nourison.indd 1

2/3/2011 8:40:41 AM

Home Textiles Today

March 7, 2011

Business

> hometextilestoday.com

Department Stores Take Comp Lead in February BY CECILE B. CORRAL N EW YORK — The major de-

partment stores got their new fiscal calendars off to a strong start in February, with most of them posting mid- to high-single digit comp increases, followed by off-price chains and discounters, which saw more modest low-single digit gains in comps for the month. Of the 13 key ret ailers tracked monthly by HTT, only two — regional department store chains Dillard’s and The Bon-Ton Stores — suffered losses, although only minor declines of 1.0% and 0.5%, respectively. The home category could take credit for just a few retailers’ successes in February, when shoppers opened their pocketbooks more often for apparel and accessories. In an unexpected turn of events, Jacksonville, Fla.based Stein Mart, which oper-

JCPenney, which generated the month’s second highest comp gain at 6.4%. Driving the performance were woman’s apparel and accessories, children’s apparel, and fine jewelry. The company also credited its “compelling Valentine’s Day gift assortments for all ages, lifestyles, and budgets, fresh spring merchandise and industry-leading customer service” with aiding February sales results. Home along with fine jewelry and children’s took the lead online at www.jcp.com, where sales were said to be strong throughout the month, increasing 11.8%. “This reflects enhancements to the merchandise mix on jcp.com as well as ongoing improvements to the online shopping experience,” JCP explained. Macy’s Inc.’s 5.8% comp increase was helped by a significant 30.9% increase in on-

FEBRUARY SALES FOR KEY RETAILERS Four weeks ended February 26, 2011 (dollar amounts in millions) a 2011 SALES

BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. c d Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.

a. Reporting periods vary from chain to chain. b. Excluding gasoline sales, merchandise comparable club sales increased by 2.4% for the four-week period. c. Mexico sales accounted for approximately three percentage points of the increase for the four-week period.

same-store sales are planned to

WINNERS AND LOSERS Same-store sales % change

WINNERS 10.0%

4.2%

8.5%

2011 year-over-year

7.0% 5.5% 4.0% 2.5% 1.0% -0.5% -2.0% -3.5% -5.0%

FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB Source: Johnson Redbook Retail Sales Average, a unit of Instinet, a Reuters company.

htt110301_024_026_028 26

8.2% 6.4% 6.0% 5.8% 5.5% 5.0% 3.1% 3.0% 3.0% 1.8% 0.9%

Dillard’s Inc. (1.0)% The Bon-Ton Stores Inc. (0.5)%

Johnson Redbook Index

ates 264 units nationwide, took the lead in comp results, posting an 8.2% increase. The retailer noted that all of its major categories posted positive sales comparisons for the month. The strongest performers were ladies’ career sportswear, men’s sportswear and the home category, and geographically, its monthly sales were strongest in the Southeast and Northeast. All divisions reported comp increases at Plano, Texas-based

Stein Mart Inc. J.C.Penney Company Coscto Wholesale Corp. Macy’s Inc. BJ’s Wholesale Club Kohl’s Corp. Duckwall-ALCO Inc. Ross Stores TJX Cos. Target Corp. Fred’s Inc.

LOSERS

February Same-Store Sales

line sales from macys.com and bloomingdales.com combined. “Consumer reaction to new spring merchandise has been encouraging,” said Terry Lundgren, chairman, president and ceo. Cincinnati-based Macy’s same-store sales in the combined March-and-April period are expected to be up by approximately 3%, consistent with full-year guidance. March

$814.1 $197.7 $6,380.0 $492.6 $35.5 $153.6 $1,214.0 $1,161.0 $1,765.0 $595.0 $80.4 $4,750.0 $1,500.0

be down, with April planned to be up, given a calendar shift in which the pre-Easter period and a planned cosmetics promotion fall into April this year versus March last year. Home was among the lines of business that achieved lowto mid-single digit increases in February at Menomonee Falls, Wis.-based Kohl’s, said Kevin Mansell, chairman, president and ceo. “All lines of business reported positive comparable store sales for the month,” he added, citing men’s, women’s and children’s at the period’s best, out-

2010 SALES

$744.6 $199.9 $5,610.0 $499.2 $33.6 $150.6 $1,182.0 $1,084.0 $1,667.0 $554.0 $74.5 $4,637.0 $1,400.0

TOTAL % CHG.

9.3 (1.1) 14.0 (1.0) 5.5 2.0 2.7 7.1 5.9 7.0 7.9 2.4 3.0

SAME-STORE % CHG.

5.5 (0.5) 6.0 (1.0) 3.1 0.9 6.4 5.0 5.8 3.0 8.2 1.8 3.0

d. February comp club results are for the U.S. division. Excluding the positive impacts of inflation in gasoline prices and strengthening foreign currencies, comparable club sales for the month were up 4% in the U.S. division, 7% in the international division, and 5% for the total company.

performing the company with high-single digit comp gains. Not even the impact of inclement weather during February’s first two weeks could dampen comp results for general merchandise 23-state chain Duckwall-ALCO. Rich Wilson, president and ceo of the Abilene, Kan.-based retailer, said its performance “represents a solid start to the new fiscal year. We continue to achieve positive momentum as a result of several key initiatives that include enhancing the shopping experience for ALCO customers, improving product selection, and integrating the ‘Best Choice’ and ‘Always Save’ private label brands.” Off-price competitors Ross Stores and TJX Companies each reported 3.0% comps For Pleasanton, Calif.-based Ross, these results exceeded its original forecast for a flat to 1% increase. “While we are encouraged by our solid start to the year, the much more import ant March/April holiday selling period is still ahead. As a result, our forecast for same store sales to be down 2% to 3% in March and up 4% to 5% in April remains unchanged,” noted Michael Balmuth, vice chairman

and ceo. He cited dresses and juniors as the month’s strongest merchandise areas. Framingham, Mass.-based TJX Cos. continued to see its customer traffic grow in February, “signaling to us that great value remains a top priority for consumers. We’re pleased to be off to a good start in the new year, well positioned to capitalize on the great fashions and brands that we see in the marketplace,” said Carol Meyrowitz, ceo. Comps in the home area at Minneapolis-based Target Corp. declined in the low- to mid-single digit range. Housewares and seasonal were the category’s strongest performers, but decorative home was the softest. Overall, Target’s February comparable-store sales were in line with expectations, said Gregg Steinhafel, chairman, president and ceo. Because the Easter holiday will be three weeks later than last year, “which is expected to cause pre-Easter sales to move from March into April this year,” he added, Target expects a mid- to upper-single-digit declines in its March comparable-store sales, followed by a mid-teens increase in its April SEE SALES PAGE 28

3/3/2011 3:56:08 PM

SOHO

Vicki Payne, host of the PBS and nationally syndicated show “For Your Home” as well as an accomplished author, designer, decorator and home improvement exper t, in par tnership with Royale Linens, Inc. now presents her new bedding collection that includes four rich and distinctive designs ranging from understated formal to urban chic.

7 We s t 3 4 t h S t r e e t , S u i t e 4 3 3 , N e w Yo r k , N Y 1 0 0 0 1 201-997-3700 w w w. r oy a l e l i n e n s . c o m w w w. y u n u s t e x t i l e . c o m

Home Textiles Today

Business

March 7, 2011

NRF Stores/BigReseach: Consumers Slowly Seeking Little Luxuries Again W A S H I N G T O N — Consumers

who have recently been forced to quell their purchases for some of the finer things in life because of the economy’s downturn are now slowly quenching their thirst for some of those more discretionary items and/or services again. That is what a recent survey, conducted by consumer research firm BigResearch for NRF’s Stores Magazine, recently found and published in its February issue. Unpredict able economic conditions in 2009 forced many consumers to reevaluate whether their manicures, new handbags and even their cable TV service were worth the expense, NRF said. But with signs of an improving economy throughout 2010, “many were a lot quicker to say ‘hands off’ when it came to the things they love.” Among the key findings of the survey were indications that a few small luxuries, such as casual sit-down dining, department

store shopping and even haircuts, have made their way back on the “Untouchable” list after falling victim to the “expendable” list the previous year. Stores editor Susan Reda noted that small luxuries such as gourmet coffee, casual dining and even high-end cosmetics were among the things many consumers in a large part of the U.S. “really had to learn to live without.” But although most Americans are still quite focused on maintaining a budget, she added, “many are once again falling in love with the things they had to temporarily say good-bye to.” When it comes to surfing the web and consumer electronics, for example, “millions of Americans simply cannot get enough,” as the survey found eight in 10, or 81.5%, in 2010 said their Internet service was untouchable – consistent with what the survey found in both 2009 and 2008. In the category of upgraded mobile devices, nearly twice

as many people in 2010 than in 2008 -- 22.9% versus 12.3% -- said their cell phones, smartphones, tablets and eReaders were “untouchable.” And yet, overall the survey found most Americans are still evaluating their wants versus their needs. Traditional discretionary expenditures such as magazine subscriptions, satellite radio and fine dining “are still among those on the chopping block,” NRF said. Nine out of 10 (90.0%) in 2010 said fine dining was expendable, the same as 2009 (90.8%), and 85.2% in 2010 agreed they could do without their favorite magazine, same as 85.0% in 2009. Additionally, department and discount store shopping for apparel have also become increasingly important for consumers. In 2010, one-quarter (25.2%) of respondents said department store shopping was untouchable, up from the 21.4% who said so in 2009. HTT

Same-store sales

A Strong Finish for Comps in Feb’s Final Week NEW YORK — Same-store sales rose 3.0% dur- she added. ing the last week of February, according to the Looking ahead, she noted the Easter holiday is three weeks later this year and will push sales Johnson Redbook. For the month, the Johnson Redbook Retail into April rather than March. HTT Sales Index rose 2.6%, slightJohnson Redbook Index ly above target. Fourth week of February, year-over-year % change Redbook analyst Catlin Levis credited President’s Day sales as well a encouraging early business in spring apparel and other seasonal categories. “Private label merchandise seems to be performing well,”

February SALES FROM PAGE 26

comparable-store sales. These two results would lead to a low single-digit increase in Target’s comparable-store sales for the combined March and April 2011 period. At Little Rock, Ark.-based

htt110301_024_026_028 28

WEEK ENDED

2/5

2/12

2/19

Department stores* Discounters Redbook Index

3.3 2.4 2.7

2.7 1.9 2.2

3.5 2.4 2.7

2.26

3.7 2.6 3.0

MONTH

3.3 2.3 2.6

TARGET

3.1 2.2 2.5

*Including chain stores and traditional department stores Source: Johnson Redbook Index

Dillard’s, sales in the home and furniture category and the men’s category were significantly below trend during the fourweek period. Bon-Ton Stores was “pleased with customer response to our spring merchandise, despite February sales being hampered by snow storms in our markets

throughout the month,” said Tony Buccina, vice chairman and president – merchandising. Businesses that performed well at the York, Pa. regional department store included soft and hard home and furniture as well as fine jewelry, shoes, ladies’ better sportswear and men’s sportswear. HTT

> hometextilestoday.com

Mohawk Ind. Exceeds Earnings Expectations in 4Q, Fiscal 2010 C ALHOUN , G A . — Raw materi-

al price increases are an ongoing concern for Mohawk Industries, forcing the company to raise prices across its various divisions, even as the fourth quarter and fiscal 2010 post some favorable results. “Our earnings exceeded our expectations as results were positively impacted by enhanced manufacturing efficiencies, benefits from restructuring actions, reducing SG&A costs and improved process consistency,” said Jeffrey Lorberbaum, chairman and ceo.“Our operating margin of 6.8% continues to show improvement compared to last year despite rising raw material cost.” In its fourth quarter, the total company’s net earnings jumped 130% to $46 million and diluted earnings per share increased to a better-than-expected 66 cents compared to the year ago period’s net earnings of $20 million and EPS of 29 cents. Excluding unusual items, 2009 fourth quarter net earnings and EPS were $39 million and 56 cents per share. Net sales for the three months were less favorable, dipping by about 6% to $1.3 billion. But on a constant days and exchange rate basis, net sales increased 2% over the prior year. Results for the full fiscal year included: net earnings of $185 million and EPS of $2.65 versus a net loss of $5 million and loss per share of $0.08; and a slight decreased in net sales to

ForecastIQ FORECAST FROM PAGE 24

In February 2011, 13 retailers said they are expecting an almost certain/likely increase, one expects flat results, and 13 anticipate an almost certain/likely decline. This compares to Feb. 2010’s 12 retailers expecting almost certain/likely increases, zero expecting flat results, and 15 expecting an almost certain/ likely decline. An “almost certain increase” indicator for February means that in March and April, retailers are almost certain to experience

$5.3 billion. On a constant exchange rate and excluding 2009 sales adjustments, net sales decreased 2% for 2010. After adjusting for the lower number of days in the quarter, the company’s Mohawk segment – which includes soft flooring division Mohawk Home – suffered a net sales decreased of 3%, “but achieved the highest operating margin in two years despite increasing raw material costs,” Lorberbaum noted. “Manufacturing costs, material yields and process controls have improved from last year.” He explained the segment’s market position, after adjusting for the number of days in the period, “stabilized in the fourth quarter as we accelerated key introductions in new residential polyester carpets and commercial carpet tile products.” To help offset raw material price increases, Mohawk this month implemented a 7% to 10% carpet price. Lorberbaum said “the seasonally slow first quarter” has already been affected by harsh weather and increasing raw material costs “offsetting savings from our cost initiatives.” For the balance of 2011, Mohawk anticipates an improvement in its results as price increases are implemented, volume expands and the recovery continues – all of these factors prompting a first quarter guidance for earnings of 36 cents to 44 cents per share, excluding restructuring charges. HTT

same-store sales growth from the same period a year ago. Nordstrom was among the high-end department stores likely to experience growth. However, its department stores counterparts Dillard’s, Bon-Ton and JCPenney are likely to see declines. A partial list of retailers covered in the ForecastIQ and expectations for same-store sales year-over-year growth/decline through April puts Coscto, Ross and TJX among those almost certain to see an increase, and BJ’s, Fred’s and Nordstrom likely to see an increase. HTT

3/3/2011 3:57:20 PM

Home Textiles Today

> hometextilestoday.com

March 7, 2011

Calendar March

(336) 885-6842 www.itma-showtime.com

12 - 14 The Atlanta International Fine Linen and Home Textiles Market & The Atlanta Spring Gift, Home Furnishings & Holiday Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

13 – 15 NeoCon World’s Trade Fair The Merchandise Mart, Chicago (800) 677-6278 www.merchandisemart.com/neocon

13 – 15 American Society of Interior Designers (ASID) National Conference at NeoCon The Merchandise Mart, Chicago (202) 546-3480 www.asid.org/foryou09

13 Home Textiles Today’s New York Winter Market Kickoff Party The Penthouse Lounge and Rooftop Garden at 230 Fifth 6 p.m- 8 p.m. (646) 805-0226 www.hometextilestoday.com

22 – 24 Domotex asia/CHINAFLOOR Shanghai New International Convention Center, Shanghai, China +86 21 6247 7668 www.domotexasiachinafloor.com

April 2–7 High Point Market International Home Furnishings Center (IHFC), High Point, N.C. (336) 869-1000 www.highpointmarket.org

6–8 Lineapelle Fair District, Bologna, Italy +39 02 8807711 www.lineapelle-fair.it

htt110301_030 30

Las Vegas Market World Market Center and Pavilions Las Vegas (702) 599-9621 www.lasvegasmarket.com

22 – 28 Dallas Holiday & Home Expo Dallas Market Center, Dallas (800) 325-6587 www.dallasmarketcenter.com

16 – 18

Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) 325-6587 www.dallasmarketcenter.com

1–5

Licensing International Expo Mandalay Bay Convention Center, Las Vegas (212) 951-6612 www.licensingexpo.com

New York Home Fashions Market Home Fashion Products Association (212) 297-2122 (Kellen Co.) www.homefashionproducts.com

24 – 27

August

14 – 16

14 – 18

Interstoff Asia Essential— Spring Hong Kong Convention & Exhibition Centre, Hong Kong Messe Frankfurt (HK) Ltd. (852) 2238 9917 www.interstoff.messefrankfurt.com

Sands Expo Center & Las Vegas Convention Center, Las Vegas, NV (310) 481-7300 www.asdamd.com

13 – 18 22 – 28

26 – 28

15 – 17

gulfBID Bahrain International Exhibition and Convention Centre, Manama Kingdom of Bahrain +973 1729 3131 www.gulfbidexhibition.com

Surtex Jacob K. Javits Convention Center, New York, (914) 421-3200 www.surtex.com

26 – 28 Vision11: International Window Coverings EXPO Las Vegas Convention Center, Las Vegas (651) 293-1544 www.wf-vision.com

May 4–6 Proposte Villa Erba in Cernobbio, Como, Italy +39 02 6434054 www.propostefair.it

14 – 17 International Contemporary Furniture Fair (ICFF) Jacob K. Javits Convention Center, New York (914) 421-3200 www.icff.com

18 – 20 Hospitality & Design Show Sands Expo Center, Las Vegas (508) 743-8502 www.hdexpo.com

18 – 22 Evteks CNR EXPO, Istanbul, Turkey +90 212 465 74 75 www.itf-evteks.com

June 1–3 Interior Lifestyle (Ambiente/ Heimtextil/HomeDesign) Japan International Exhibition Center (Tokyo Big Sight), Tokyo, Japan +81 3 3262 8453 www.interior-lifestyle.com

5–8 Showtime Fabric Fair Market Square, Textile Tower, High Point, N.C.

Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) 325-6587 www.dallasmarketcenter.com

New York International Gift Fair Jacob K. Javits Convention Center, Pier 94, New York (914) 421-3200 www.nyigf.com

24 – 27

14 – 18

F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas (214) 655-6116 www.dmcfinds.com

New York Home Textiles Market Week 7 W New York, 230 Fifth Avenue, Jacob K. Javits Convention Center, New York, NY (800) 272-SHOW www.nyhometextilesmarketweek. com

30 – July 3 & July 7 – 10 New Designers Business Design Centre, London, UK 020 7288 6738 www.newdesigners.com

July 13 – 20 The Atlanta International Gift & Home Furnishings Market AmericasMart, Atlanta, GA (800) ATL-MART or (404) 220-2435 www.americasmart.com

15 – 18 (TBD) The Atlanta International Area Rug Market AmericasMart, Atlanta, GA (800) ATL-MART or (404) 220-2437 www.americasmart.com

31 – August 3 ASD/AMD Las Vegas

14 – 18 Gourmet Housewares Show Jacob K. Javits Convention Center (914) 421-3200 www.thegourmetshow.com

29 – 31 Intertextil Show Shanghai New International Expo Centre, Shanghai, China (852) 2238 9983 www.messefrankfurt.com/hk

27 – 30 Textile House South America Anhembi Exhibition Pavilion São Paulo (SP), Brazil (+55 11) 2105-7000 www.grafitefeiras.com.br

3/3/2011 2:58:13 PM

Get Into Bed With

More companies choose Home Textiles Today for their marketing & advertising than all other industry publications put together.

www.HomeTextilesToday.com

HTT_Campaign "11 finals.indd 1

3/1/11 12:14:38 PM

MARKET KICKOFF PARTY PENTHOUSE LOUNGE & ROOFTOP CLUB Sunday, March 13, 2011 • 6pm – 8pm Cocktails & Hors d’oeuvres Industry business card required for admittance.