Monday, November 5, 2012
THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY
WestPoint EBIDTA Breaks Even NEW YORK — Despite a year-over-year decline in sales, one profitability measurement at WestPoint Home hit break even during the third quarter, with EBIDTA (earnings before interest, depreciation, taxes and amortization) flat compared to a year-ago loss of $7 million. Icahn Enterprises, WestPoint’s parent company, credited the performance to improved margins as well as lower commodity costs. Sales sank 32.9% to $53 million for the quarter ended Sept. 30. “The decline in sales reflects the impact of the loss of largely unprofitable programs as the company focuses on products and customers that match its manufacturing and distribution strengths,” the company reported. The earnings release also noted WestPoint continued to build cash through Q3 “as it works down its working capital and sells discontinued plants.” At the end of the quarter, WestPoint had $73 million of unrestricted cash. At the end of 2011, it had $55 million. Year-to-date, WestPoint’s EDIBTA loss shrank to $2 million from $15 million in the first nine months of 2011. Sales tumbled 33.2% to $173 million. HTT
| Vol. 33, No. 24 | $8.00
Made in the USA Will it Gain Ground?
BY JENNIFER MARKS NEW YORK — One of the biggest surprises of the New York Home Fashions Market in September was the number of companies talking about, or already engaged in, establishing U.S. production. Another surprise, given the enthusiasm they displayed during market week, has been how few are ready to discuss those initiatives publicly. To be fair, some are in their infancy and many are still in the exploratory stage. It’s also worth noting U.S.-made goods in the home textiles arena never completely disappeared — in the area rug and utility bedding areas in particular. But there is some expansion here and there. No hard numbers are available for the U.S. Veratex’s U.S. cut and sew operation now SEE USA PAGE 6
employs 120 people.
The Show Must Go On IHMRS Exhibitors See Modest Growth BY WAYNE MARKS
Star Textile is showing an expanded bedding palette at the show.
NEW YORK — Nothing speaks to the spirit of the human heart and ingenuity as people recovering from adversity, pulling together and getting the job done. And so it will be at this week’s International Hotel/ Motel and Restaurant Show at the Jacob Javits Center here from Nov. 10–13. And with the hospitality business showing continuing recovery, suppliers are expecting a good show. “Hospitality is growing capacity, especially compared to the last three years,” said Northern Feather’s, Florencia Pergament, director of strategy and business development, who noted that access to cred-
it has been difficult for hoteliers for new construction. At the show, Northern Feather will be displaying a hospitality line that is 100% cotton and produces at very green facilities. At Star Textiles, Tanya Hendershot, SEE HOTEL PAGE 21
Inside This Issue Kohl’s Revamped Ecommerce Ignites Q3 ......................................page 2 Give a Hoot ...................................page 4 50 Shades of Black........................page 4 October Comps up for Most........page 18
SURYA CASUAL MODERN COMFORT + AFFORDABLE STYLE Flat-Weave
11/8/2012 5:30:24 PM
Home Textiles Today
November 5, 2012
Kohl’s Revamped Ecommerce Ignites Q3 Comps positive in home M ENOMON EE FALLS , W IS . — Buoyed by a turnaround in its ecommerce business, which has doubled sales from a year ago, Kohl’s Corp. ended the third quarter on a high note, setting the stage for what the department store chain hopes will be a better holiday season than last year. Kohl’s ecommerce sales in the quarter increased 50% to $295 million from the year ago period, and year to date rose 41% to $782 million. The effect on comp was 230 basis points for the quarter and 190 basis points for the 39 weeks, explained Wes McDonald, svp and cfo. “We’re continuing to gain market share with customers,” he said. “We’ve invested a lot of money in digital marketing to drive traffic to the site, we just installed guided navigation, and we expect that to be a benefit for the holiday season. We’ve increased the number of skus we have online … we’ve been behind some of our competition, but we are catching up very rapidly.”
He added that the company, which operates 1,146 stores in 49 states, is now doing online order fulfillments not just from its ecommerce centers but also from its seven distribution centers for its stores nationwide. Consistent with expect ations, net income for the quarter ended Oct. 27 rose 1.9% to $215 million, or 91 cents per share. Sales were up 2.6% to $4.4 billion, with comps up 1.1%. Home category comped positive, but below the company average. Strength within the department came from bedding, bath and electrics. Kohl’s private and exclusive brands, led by Jennifer Lopez, Marc Anthony, and Princess Vera Wang, among some others, accounted for 53% of quarterly sales, up about 150 basis points over the year ago period. Year to date, net income jumped 14.8% to $609 million, or $2.54 per share. Sales rose 1.2% to $12.9 billion; with comps dipping 0.5% dip. HTT
Kohl’s Talks Holiday MENOMONEE FALLS, WIS. – Encouraged by its third-quarter performance, Kohl’s is feeling more confidence about this holiday, especially after taking a hit last year. Kevin Mansell, chairman, president and ceo, said home will be an integral part of the gift strategy. “We know last year we were not well positioned for gifts. We lost share to others. So a very big focus for us is on creating a gift headquarter strategy for November and December — both in the aisles and in the deKEVIN MANSELL partments. It is built around our [new] marKohl’s keting handle of ‘Dream for Christmas,” he said. Kohl’s Great Value program during the season will offer opening price point items throughout the store in every single category, he added. “And it leans more toward basic. Not all, but it mostly leans that way.” Finally, for the post-holiday period, Kohl’s has prepared a transition initiative that Mansell described as “really important. Last year, with the results we had, we did a very poor job of transitioning into new spring selling. So now it’s a major course correction.” HTT
NPD Exec to Keynote HFPA Annual Meeting NEW YORK — The Home Fash- home textiles industry from Robert Leo of Meeks, Shepion Products Associpard, Leo & Pillsbury ation’s annual meetand HFPA’s Legal Couning here on Nov. 14 sel. HFPA president will include an inKeith Sorgeloos will redustry overview from view the association’s acCarrie O’Connor, accomplishments over the count manager for past year. housewares and home CARRIE O’CONNOR The meeting will textiles at The NPD NPD take place in the buyGroup, which interer’s lounge at showviews thousands of consumers each month about their room building 7 W, 7 W. 34th St., Suite 729. There will be a shopping habits. In addition, Dr. A. Blanton continental breakfast and netGodfrey, dean of the College of working from 9 to 9:30 a.m., folTextiles at North Carolina State lowed by the meeting from 9:30University will give a special pre- 10 a.m. Godfrey will speak at 10 sentation highlighting college a.m., followed by O’Connor at activities in the area of home 10:25 a.m. The meeting will close at 11:10 a.m. textiles. For additional information, The meeting will also include a report about government and contact Emoses@kellencomregulatory issues affecting the pany.com. HTT
Fashion Delivers Seeks Home Textiles Donations N E W Y O R K — Fashion Delivers is working with local agencies in the Northeast to furnish families devast ated by Hurricane Sandy with apparel, shoes and home goods. The Home Fashion Products Association is reaching out to members of the home textiles industry to aid in the effort. “We need a broad assortment of apparel for men, women and children, such as t-shirts, shirts, jeans, slacks, sweaters, outerwear and winter coats, sportswear, active wear, etc. Basic items such as underwear, socks, baseball caps, sneakers, boots and sleepwear are also needed. We also need home products, such as towels, blankets, sheets, pillows and pillow cases,” the HFPA announced in a message to its members. The association noted temperatures are rapidly dropping in the Northeast, so winter-weight products are especially needed. “Rest assured, that your product donations will quickly reach the victims for which they are intended and will help them cope with this tragedy,” the HFPA wrote. Product donations are being coordinated by Carla Fattal at Fashion Delivers. She can be reached at Carla@FashionDelivers.org or 646-786-2683. HTT
For more information on these Home Textiles Today advertisers, scan their QR tags below using a free QR scanner available at synqware.com.
Softline Home Fashions
Note To Our Readers NEW YORK — The issue of Home Textiles Today you hold in your hands went to the printer a week later than it was scheduled to, thanks to Hurricane Sandy. The storm closed our office here for a week, and even after it reopened Nov. 5, HTT remained without internet access for several days. This issue was assembled by a staff working wherever they could access wi-fi, mostly from home, but in the case of managing editor Julie Murphy, from a McDonald’s in Hoboken, N.J. That our HTT Extra newsletter didn’t miss a beat is thanks to senior editor Cecile Corral. Located in Miami, she literally was the HTT editorial team while the rest of the operation was still dark. We appreciate your patience and assure you our next issue will arrive when it is supposed to. HTT
QR tags provided by Synqware, a leading technology company supplying connectivity tools to the businesses. Synqware. com.
11/8/2012 5:01:04 PM
,I\RX¶UHLQhome textiles New York is the market. And the market in New York is the TEXTILE BUILDING For 90 years, 295 Fifth Avenue has been the leading showcase for the home textiles industry, with the best location, the best value per square foot, services that cater to your distinctive needs, high-profile traffic, high-tech security, a wi-fi buyers lounge and the personal service of a staff of 15. Give your business the best market, in the market. Call Lou Lombardi, President & CEO, Manhattan Properties, Inc. 212-685-0530 ƒ firstname.lastname@example.org ƒ on-site management
The Textile Building at 295 Fifth We are the market
Home Textiles Today
November 5, 2012
OPINIONTodaY Give a Hoot
U R R IC A N E S A N DY M A Y H AV E disappeared from news in most of the country, but it is still very much a factor in the lives of tens of thousands of people still without power as I write this nine days after the storm passed. Several retailers have donated to disaster relief in the wake of the storm, including Belk, Kohl’s, Target, Macy’s and Walmart. So have some home textiles suppliers, among them Alok and Ellery Homestyles. The Home Fashion Products Association has put out a call to the home textiles industry on behalf of Fashion Delivers, a non-profit in the apparel industry, which is seeking towels, blankets, sheets, pillows and pillow cases. It’s EDITOR-IN-CHIEF gotten a lot colder since the storm passed through, so warming products (of the nonelectrical variety, obviously) are especially needed. To help, you should contract Carla Fattal at at Carla@FashionDelivers.org or (646) 786-2683. Kids in Distressed Situations has also set up a Hurricane Sandy Disaster Relief Drive to provide help to those affected by Hurricane Sandy seeking merchandise donations for families who are still in the cold. K.I.D.S. is working with agencies in New York, New Jersey and West Virginia to deliver goods from corporate donors. The non-profit is also accepting cash donations to help with the effort. You can find more information at www.kidsdonations.org. Given the magnitude of the storm, it was a miracle there were so few deaths. But a lot of people are still in a very bad way. Industry folks sometimes like to joke — wryly — that the problem with being in home textiles is you deal with goods people can mostly do without. Well, they need you now. HTT
LOVE THE FEEL
DARE TO COMPARE?
50 Shades Of Black
O MUCH HAS HAPPENED over the past few weeks: A presidential election, a monster storm in the Northeast, the World Series, a man named Angus being elected to the United States Senate. So, of course, all of this raises the question every single person in this industry wants to ask: How is business going this Christmas? Warren to be It’s only a few short Shoulberg weeks until the official PUBLISHER/ start of the holiday shopEDITORIAL DIRECTOR ping. In fact, we all know that shoppers are out there all the time and that increasingly the busiest days of the retail cycle are much, much closer to the Big Day itself. That said, this year’s version is likely to have its own special characteristics. Among them: 1. The Election is Finally Over. It really seemed as if most of the country was on hold waiting for Nov. 6 to pass and there’s a strong argument to be made that the paralysis of the fall will be replaced with out-and-out enthusiasm in December. 2. …Unless We Fall off the Fiscal Cliff. Whoever thought of this phrase should go into copywriting because it’s a beauty. The fi nancial deadlines set by Congress for the end of the year are the $800 billion elephant in the room. If things are addressed – or more likely kicked down the road until 2013 – people
will be feeling pretty good. If this looms over the entire shopping season, it’s not going to be pretty. 3. The Back-to-School Results are Useless. Every year people try to make a case that the shopping done around the return to the school season is indicative of holiday trends. And every year that turns out to be utterly ridiculous. Labor Day was a long, long time ago – see Number 1 – and it don’t mean a thing ’cause the consumer didn’t have a swing back in September. 4. Online, Online, Online. It used to be all about location, location, location. But now it’s the strength of the Internet that will be the defining characteristic of successful retailers, especially for holiday. Amazon’s huge head start on everyone else is still in place and the rest of the retail world continues to play catch-up. 5. Penny Whistling. JCP – the retailer formerly known as J.C. Penney – remains the wild card this season. Will they deviate from RonJon’s predetermined course or will they stick with the program and pay the consequences of being irrelevant in the promotional tidal wave sure to engulf December? What happens will impact the rest of the middle market in many ways. 6. Please White Out Black Friday references…Somebody Please. The first Black Friday promotions started running last spring. They are going to build to a fever pitch the next two weeks and then they will only get worse as the adjective “black” is applied to anything that doesn’t move in retailing. It’s enough already. Time to fade to black HTT
Booth #2430 Stop by to take the challenge
INTERNATIONAL HOTEL MOTEL + RESTAURANT SHOW
November 11-13, 2012
a true down alternative fiber htt121101_004.indd 4
Javits Center, NYC
For an appointment, please call Adam Petricoff (704) 905-8658
w w w. h o l l a n d e r. c o m
11/8/2012 4:35:47 PM
Safavieh’s Four Seasons Recognized by This Old House Collection voted one of best 2012 home products
designer, manufacturer and importer Entryways — formerly known as Imports Unlimited — is launching many new designs that include clever adages as well as soothing botanical looks for the spring and summer 2013 selling seasons. “There are new designs for those who love a party, including one that says ‘Party Animals’ and depicts three dogs and a cat,” said Eirini Kalafatides, Entryways president. “Our artists have created lovely floral designs, one that’s perfect for a beach house and another that would add a very chic touch to an urban set-
Burlington Coat Factory Engages Service to Improve Sourcing
Anthropologie Arrives in the Blue Grass State
nthropologie opened its first Kentucky store in Louisville in September at Oxmoor Center, located at 7900 Shelbyville Road. The 6,500-squarefoot store’s home décor offerings include bedding, rugs, lighting, furniture, wall décor, throws and pillows.
that This Old House has recognized the great strides in quality and design in the outdoor living category we’ve taken with Four Seasons. This collection really does blend indoor and outdoor spaces. It is innovative in so many ways, from patterns with neon colors, to multi-colored chintz designs — all unheard of in outdoor a year ago.” Four Seasons, a collection of 30 patterns introduced in July 2012 at the Atlanta Rug Market, is made in China and retails at $320 for a 5-by-8 size.
The 2012 list marks the second annual “The TOH Top 100” and includes items for people who love houses new or old and are looking for the newest ways to fix them up. Mohawk Home was another home textiles category winner of this year’s TOH award for a new broadloom carpet product. “I am confident that these products will impress our readers as much as they did the editors of the magazine and will raise the bar for the industry,” added Omelianuk. HTT
Entryways Launches New Designs for Spring and Summer 2013 MT. L AUREL, N.J. — Floor mats
Retail Briefs urlington Coat Factory has signed a multi-year agreement with LogicSource for strategic sourcing expertise and e-procurement technology to improve efficiency and reduce costs. Burlington will use LogicSource’s OneMarket Buyer e-procurement module and OneMarket Analytics module for procurement and analysis, according to the service provider. Earlier this year, LogicSource announced an increased focus on the retail industry and its newly expanded menu of options for the industry.
PORT WASHINGTON, NY — High-
end area rug house Safavieh recently got a feather in its cap when its Four Seasons indoor/ outdoor collection was named by “This Old House” do-it-yourself shelter publication as one of the 100 best new home products of 2012. The only area rug to win a place on the “TOH Top 100” list this year, Four Seasons is handhooked of solution-dyed polypropylene and comes in a broad range of patterns that includes traditional Persian and Moroccan motifs and florals from English country to contemporary styles. “The TOH Top 100 is the result of an exhaustive search for the most forward-thinking, relevant and necessary new home products out there. Through the winners, we saw several major trends emerge in homes, including bringing the outside in, simplified Do-It-Yourself, and getting high-end looks for less,” said Scott Omelianuk, editor, This Old House. Added Arash Yaraghi, Safavieh principal: “We’re honored to be included in the TOH Top 100 list. And we are gratified
Home Textiles Today
November 5, 2012
ting. And, of course, there are mats for consumers who simply want to say ‘Welcome’ in a most distinctive way.” Entryways’ new line is aimed at helping consumers welcome their house guests with a variety of options. They can opt for “floral beauty” with a new a mat that features a daisy against two shades of green or a design depicting bright red tulips. For a more fun approach, they can choose from a series of clever styles, such as “All Bark No Bite” which has one corner of the mat “chewed off”. And for more contemporary tastes, there are also many options such as color blocks.
Every Entryways floor mat and doormat is designed by an artist. Many are commissioned from individual artists and others are designed in the Entryways studio, the company noted. “Our Sweet Home Collection is designed specifically to deliver exceptional value,” Kalafatides said. “These mats combine an artist’s touch with affordability to provide functional artistry for the home.” Each new doormat in the Sweet Home Collection is made with non-slip backing and measures 17-by-28 (except for Do Not Enter, which is 22 inches in diameter). HTT
Williams-Sonoma Opens Doors to First Quebec Store
illiams-Sonoma has opened its first store in Quebec and eighth store in Canada. Located at Carrefour Laval in Laval, Quebec, the unit is the chain’s first to showcase a new store design. A newly created modern kitchen is a focal point of the store, and there are demonstration stations throughout the store enabling customers to test products. In addition, there are several terminals where customers can complete purchases throughout the store. The other Canadian Williams-Sonoma stores are located in: Sherway Gardens, Toronto Eaton Centre, Yorkdale Shopping Centre, Bloor Street West in Toronto; West Edmonton Mall in Edmonton; Chinook Centre in Calgary and Granville Street in Vancouver.
Macy’s Revs up for Black Friday with New App
new Black Friday feature on Macy’s mobile app is being launched to help customers browse and shop for specials specific to their local store. Macy’s will host its Black Friday “one-day shopping extravaganza” event at its more than 800 locations nationwide as well as at macys.com beginning at 12 a.m. on Nov. 23. Previews will be available starting Nov. 15. “Black Friday is a day dedicated to finding the best deals,” said Peter Sachse, Macy’s chief stores officer. “For the first time last year, Macy’s stores nationwide opened at midnight and our customers loved getting a head start on their holiday shopping.” The new Black Friday feature, created through a partnership with eBay Inc., will be available for iOS devices and can be used by downloading the Macy’s App at the Apple App store.
11/7/2012 4:24:14 PM
Home Textiles Today
November 5, 2012
Made in the USA USA FROM PAGE 1
home textiles industry — making a nascent, if it is such, pattern of on-shoring difficult to pin down. That, in fact, is also the case in other areas of manufacturing, according to Chad Moutray, chief economist for NAM (National Association of Manufacturers). “We hear about it anecdotally, so I guess ‘trickle’ would be a good word to describe it. Even some studies that have looked at it have been anecdotal,” he said. Those studies, including the widely-circulated report “Made in America, Again” from the Boston Consulting Group, cite key factors undergirding the trend. • Leaner manufacturing that requires less labor; • Higher U.S. worker productivity; • Rising labor costs in China;
• Rising transport ation costs. “In the last couple of years, we’ve seen a wholesale evaluation of the supply chain,” said
“In the last couple of years, we’ve seen a wholesale evaluation of the supply chain.” —CHAD MOUTRAY, NAM
Moutray, who also noted factors that mitagate against onshoring, specifically: higher tax rates, the regulatory environment and the legal environment. While an Obama Administration proposal to offer tax incentives to companies that bring production back to the
Jeffco Fibres continues to invest in new technology.
United States remains idling in
Congress, plenty of states are offering their own inducements. “We took a six-state tour. Met with some pretty heavy hitters,” said Keith Sorgeloos, pres-
“We didn’t think it would be that big, but now we’re chasing fabric.” —AVI COHEN, Veratex
ident and ceo of Home Source International, which is opening a plant in Marianna, Fla., for cut-and-sew home textiles operations and to manufacture furniture and lighting for its Shiner International acquisition. “That this was a textiles manufacturing area was important as well,” he said. “We’ve got people chomping at the bit.” Phase one is complete and will be manufacturing furniture and lighting imminently. The cut and sew will take on its first contract job in December and will be fully operational in December. Home Source reached out to 300 key suppliers, manufacturers and importers to let them know the facility is available for Made in the USA work with low minimums. “At the end of the day, we’re
building this thing and we want to run. We can run one shift or we can run three shifts,” said Sorgeloos. Veratex reopened its cut and sew plant in Van Nuys, Calif., about 18 months ago and now employs 120 people. “The big question was: ‘Can I compete?’ And the answer is yes. We now can ship within 48 hours because we never sold our machinery, and we keep stock on all of our fabrics, ” said Avi Cohen, president. The fabric comes from Israel “with the right finishing, mercerized and using reactive dye,” he added. “I like the good stuff.” Veratex named one of the U.S.-made collections Legacy in honor of its workers, many of whom were with the operation previously, as well as their children who have joined them at the company. The new Legacy Collection consists of jacquard and dobby sheets, as well as duvet covers. Each drop-ship package carries a letter thanking the purchaser for supporting 120 U.S. workers and their families. “The wheel is moving, and that movement is for Made in America,” said Cohen. “We thought it would be something. We didn’t think it would be that big, but SEE USA PAGE 8
11/7/2012 4:59:50 PM
Anna’s Linens turns 25 this year and Home Textiles Today is celebrating with a Special Commemorative Report in our December 3, 2012 Issue. LAST
This Special Report will be all about Anna’s – past, present and future – and will pay tribute to the thousands of Anna’s a’s employees, suppliers iers and customers who helped make it all possible.
TO SIGN UP S !
You’re invited to be part of the celebration with a commemorative ad honoring Anna’s. And a portion of all gross ad proceeds will be donated to Anna’s favorite charity, the St. Jude Children’s Research Hospital.
Your Home Textiles Today sales representative can give you all the details.
TEXTILES IS OUR MIDDLE NAME
Jeff Reeves, 336-605-1009 email@example.com
HTT_Anna's Linens tab.indd 1
Mary McLoughlin, 646-805-0227 firstname.lastname@example.org
Kaushal Shah, 91-9821715431 email@example.com
10/26/12 10:36:43 AM
Home Textiles Today
November 5, 2012
Made in the USA es and toppers made in the USA and the company runs and cut
â€œWe not only have to be innovative but also more efficient and get those cost savings.â€? â€”NANCY LONSTEIN Jeffco Fibres
and sew operation as well. The bulk of its manufacturing is located in Webster, Mass. â€œWeâ€™re seeing increasing demand for [Made in the USA] in terms of anecdotal comments about it,â€? said Nancy Lonstein, director of marketing. As to calling out Made in the US on packaging, she added: â€œItâ€™s probably the first thing they mention.â€? To survive as a U.S.-producer, â€œWe invest in new technology every year. We not only have to be innovative but also more efficient and get those cost savings.â€? HTT
Home a Winner at Macyâ€™s, Bloomies
USA FROM PAGE 6
now weâ€™re chasing fabric.â€? Jonathan Alkin, president of iJon, reopened his cut-and-sew operation in Southern California last year, focusing on highend goods with small minimums. He was surprised, however, when he recently received offers to bid on larger orders destined from a pair of high profile multichannel retailers as well as a national chain. Why? he asked. â€œThe answer Iâ€™ve gotten is: â€˜Because the customer likes Made in the U.S.â€? The fact that iJon is able to handle velvet â€” a difficult fabric â€” has also proved a plus, he said. But, he added, â€œIâ€™m under no illusions. Weâ€™ve never going to seen the return of the kind of production the country had previously.â€? There is also some expansion taking place where production never left. Jeffco Fibres Inc. has brought on a new pillow topper line to produce foam/fiber combination sleep products for the top of bed. All Jeffco mattress-
CINCINNATI â€” Macyâ€™s Inc.â€™s third quarter performance benefitted from strong sales in home at both its Macyâ€™s and Bloomingdaleâ€™s division during the third quarter. Textiles and furniture were cited as particularly good. During the retailerâ€™s conference call, an analyst asked cfo Karen Hoguet about how Macyâ€™s expects to handle increasing competition from JCPâ€™s remodeling. â€œHonestly, weâ€™ve struck to our strategies because they are working,â€? she responded. â€œI see no reason to change. It is working well for now.â€? The quarter also marked the companyâ€™s 11th consecutive quarter sales and earnings increases, she noted. â€œThe third quarter was a good perod for the company,â€? she explained. â€œSales were strong but we significantly exceeded our earnings expect and beat last yearâ€™s earnings per share...We had expected a down quarter, so we are very pleased with these results.â€? For the quarter, ended October 27, net income rose 0.7% to $145 million, or 36 cents per share. Sales were up 3.8% to $6.075 billion, and comps grew 3.7%. Year to date, net income jumped 18.4% to $605 million, or $1.45. Sales rose 3.7% to $18.3 billion, and comps also increased 3.7%.
No more monthly reports for Macyâ€™s Cincinnati - Macyâ€™s became the latest retailer to announce it will cease reporting monthly sales and comp results. The retailer will stop issuing reports in 2013. Kohlâ€™s said last month it will drop the practice in 2013. Target delivered the same news in October. JCPenney bowed out earlier this year. This is the second time Macyâ€™s has pulled the plug on monthly results. It did so in early 2008, only to resume monthly disclosers later that year.
Online sales - for macys.com and bloomingdales.com combined - leapt 40.4% in the third quarter and 36.8% year to date, compared with the same periods in 2011. The company said its online sales positively affected its same-store sales by 2.2 percentage points in the third quarter and 1.8 percentage points for the 29 weeks. Online sales are included in the same-store sales calculation for Macyâ€™s Inc. HTT
Solutions WE PROVIDE MANUFACTURING SOLUTIONS. 9e]ja[YfEYfm^Y[lmjaf_Ylalk:]klafgf]Dg[Ylagf =ph]\al]\LmjfLae]$DgoEafaemek :Y[c]\:q0(Q]Yjk=ph]ja]f ;gflY[l2Bg`fD]fa`Yf0*0&/(*&0)0)ooo&eookgdmlagfk&[ge
Cut & Sew
EDI & XML
11/7/2012 5:11:06 PM
SOMEONE SHOULD WRITE A BOOK ON WHAT YOU NEED TO KNOW ABOUT INDUSTRY STATISTICS.
WE DID. The HTT Business Annual is the single mostrequested issue of the year, the one executives and buyers hang on to all year round and refer to for all their industry data questions. This exclusive report features information not found anyplace else. That’s why it’s an excellent place for your marketing message, a cost-efficient way to stay in front of your customers all year long.
HTT_BusAnn12 tab.indd 1
Your HTT sales representative can give you all the details about being included in the 2013 HTT Business Annual this January.
TEXTILES IS OUR MIDDLE NAME
11/2/12 3:52:42 PM
Home Textiles Today
November 5, 2012
Sallie Home Sticks to Tradition After a Bad Department Store Experience, a Boutique was Born BY CECILE B. CORRAL ST. L OUIS — Sallie Kramer has
been in the business so long, she says, she is allowed “to invent anything I want.” And within that realm, she includes her years of career experience retailing luxury linens. “I will only admit to 35 years,” she told HTT. “Or I can admit to 29 years. But the most is 35 years. That’s all I’ll admit to.” One thing is for sure: Within her lifetime, she can remember “back to the days when you did business on a handshake.”
That might seem like a while back, indeed. But it’s a style and an era that Kramer hangs on to, and it works for her and her upscale home textiles shop here, Sallie Home. “We are an old-fashioned type of company, and the people I deal with are old fashioned, too,” she explained. “Our signature is our product and our services and our staff. I have a fascinating staff of truly adorable people who care about the customer and go the extra mile, and that’s what really makes a difference.” Kramer’s career actually got
JANUARY 26-30, 2013
NY INTERNATIONAL GIFT FAIR ®
JAVITS CENTER - PIERS 92 + 94
started in commercial design. But it took a turn one fateful day during a visit to the local Saks Fifth Avenue store where she went to buy a bedding set for her then-teenage daughter.
Sallie Kramer with her beloved pet, Ava Gardner, a Havanesebreed who likes to nap on display beds. Sallie Home has been located in a small shopping center in an upscale St. Louis suburb for more than two decades.
“It took me a while because I had taken the time to find all of the matching components in different sections of the store,” Kramer said. “And once I was done, I was holding them all in my arms, and they were heavy, and I got to the cash register to pay, but no one was there. I called out and no one answered.” After several futile attempts to get a salesperson’s attention, Kramer abandoned the purchase and headed to the exit empty handed. “There were three very important men standing outside the department and I let them know that they had missed a sale,” she went on. “They asked me if they could help, and they tried to get someone for me. But I said it was too late. I had lost it — my sense of humor.”
What she did next was go back to the office and call Palais Royale [Yves Delorme] to open an account “because I decided right there and then a that I was going to open my own linen store,” she said. “It was that simple.” It just so happened that the Palais Royale rep working with Kramer at the time was Ray Gabler — husband of Peacock Alley founder Mary Ella Gabler. “He got me into Peacock Alley, so now I had two lines,” Kramer said. “From there, I opened my shop.” That was in the late 1970s.
Originally, Sallie Home was located in a two-story space across the street from its current spot on Clayton Road. But after a few years there, she found a more suitable space — run by a more amiable property manager “and the most wonderful landlord.” She moved in in the mid 1980s, and it is where she remains today. “My business grew by 30% instantly just by moving across the street to the space I’m at now,” she recalled. Sallie Home measures 2,500 square feet and is situated in a convenient “little shopping center that gets a lot of traffic.”
11/7/2012 9:36:51 AM
While Sallie Home offers a variety of soft and hard high-end home furnishings pieces, about 50% is comprised of luxury lines — including bedding, bath, table linens, decorative pillows, and utility bedding. “Linens are my love,” Kramer said. “If I could, I’ll sell them all day long from my bed. The tactility of Egyptian cotton, the colors, it’s all so vibrant for me to touch and see, it all gives me the chills.” Just as it was in Sallie Home’s early days, Yves Delorme continues to be a category headliner for the store. Of the four display beds on the selling floor, two are dedicated solely to Yves Delorme product and positioned at the front of the store. Other key brands within bedding and bath also include Peacock Alley, Sferra, Matouk, and Ann Gish, among several others. An area that has recently seen a noticeable growth spurt is table linens. Kramer recently opted to triple the space she devotes to the category in that past few months. Brands here include Le Jacquard Français, Kim Siebert, Vietri, Deborah Rhodes, Chilewich, Sybaritic and others. Over the years, especially more recently, Sallie Home has seen its share of challenges. “I misjudged SEE SPECIALTY PAGE 12
November 5, 2012
Home Textiles Today
A new collection from Sferra. is featured on one of the four display beds.
11/7/2012 9:01:57 AM
Home Textiles Today
November 5, 2012
Sallie SPECIALTY FROM PAGE 11
the recession … And oh boy, we felt that depression recession like anyone else,” she said. It was only this year that the store started seeing an improvement in sales. That was partly due, she said, to revamping the merchandise presentation. “We completely changed the look of the store. We moved the back to the front, and the front to the back,” she said, meaning she moved bedding and linens to the entrance and front and her tabletop and hard goods to the rear of the store. Sallie Home also overcame some competition. At one point there were 11 stores selling linens in the area, Kramer said, among those some major chains. “But they didn’t last. They thought linens were going to be an easy game to play. But they could not make it. Linens are very personal. You can’t just set up bins of sheets and expect the customer to put it together. They need help, and we offer them all the help they need.” As the economy is taking a turn for the better, at least in Sallie Home’s market, business is bouncing back to what it once was traditionally. “Shoppers don’t care about price as much. They buy it if they like it,” Kramer said. “As far as sales go, if they don’t like it, I can’t give it to them at half price.”
Sallie Home has tripled it offering of table linens to keep pace with demand.
Sallie Home’s customer is very conservative. “We cater to the top 2% in our area, and they are discerning. They travel, they know what they like, and they are web conscious. Even a lot of the younger ones — the newlyweds and the ones who are off to college or in their first apartment — they come in and they know what they want. And we help them get it.” HTT
Above: Yves Delorme is a core bedding supplier to Sallie Home. At left: Peacock Alley gets prime real estate on the selling floor.
11/7/2012 9:37:03 AM
The Pakistan Advantage Pakistan continues to be one of the most important resources for the American home textiles industry. However, Pakistani suppliers need to better communicate their stories to potential U.S. customers. To that end, Home Textiles Today will present a special promotional section called “The Pakistan Advantage” highlighting the Pakistani home textiles industry and featuring individual companies in the business. Last year’s section was a big success with strong participation from a broad cross-section of the supplier base in Pakistan.
TO RESERVE YOUR SPACE, CONTACT YOUR HTT SALES REPRESENTATIVE: Joe Carena, firstname.lastname@example.org, (203) 329-9553
Jeff Reeves, email@example.com, (336) 605-1009 Mary McLoughlin, firstname.lastname@example.org, (646) 805-0227 Warren Shoulberg, email@example.com, (646) 805-0226
“The Pakistan Advantage” will be a multi-page section that will run in the December 17 issue of HTT and then will be reprinted in HTT issues distributed at Heimtextil in Frankfurt, Germany in January 2013. Participating companies will receive a full-page ad and a full-page advertorial write-up especially produced by HTT. The section will only be open to companies based in Pakistan. Pakistani home textiles producers have a strong story to tell to the American market. Make sure you do so in “The Pakistan Advantage.”
TEXTILES IS OUR MIDDLE NAME
HTT_Pakistan tab.indd 1
10/12/12 3:11:12 PM
Home Textiles Today
November 5, 2012
PEOPLETodaY Marvin Traub Memorialized BY WARREN SHOULBERG
C AMBRIDGE, MASS. — Harvard University Graduate School of Design (GSD) will name a distinguished visiting professorship in architecture in honor of John Portman, chairman of AmericasMart and founder and chairman of John Portman & Associates, a leading design firm based in Atlanta. “John Portman is one of the most innovative designers of his generation,” said Dean Mohsen
Mostafavi. “The Portman Chair will bring leading architects to our campus with a variety of perspectives and backgrounds to share with our students. It is my intention that the holders of the Portman Chair will, in turn, benefit and inspire generations of designers to think expansively about how they will contribute to the transformation of our societies, just as Mr. Portman has throughout his career.”
Said Portman: “Educating future generations of designers who will shape our world is one of the most important contributions I can make to my field. This professorship will provide opportunities for students to hear from and work with a dynamic cohort of leading practitioners who will inspire them to think in new ways about how to improve the world around them. HTT John Portman and Mohsen Mostafavi
PHOTO COURTESY NICOLE PORTMAN
NEW YORK — Friends, family and fans — not to mention mentees, co-workers, customers and suppliers — of Marvin Traub, the legendary former head of Bloomingdale’s who passed away in July, gathered for a celebration of his life here Oct. 24. Several hundred people were on hand for the event, held at City Center in Midtown, including many notables from the home industry: Ralph Lauren, former Bloomies execs Sue Kronick, Lester Gribetz and Norman Axelrod, Dorothy Roberts and Steven Roberts of Echo, former mill executive Dave Tracy, financial consultant Gil Harrison, Mitchell Gold of Mitchell Gold + Bob Williams and Peggy Traub, Marvin’s daughter and head of Adesso, the lighting and furniture company. They all sat in front of a giant reproduction of the portrait done of Marvin Traub upon his retirement from Bloomingdale’s two decades ago. As master of ceremonies Mortimer Singer — Traub’s partner in his post-Bloomies consulting business — said, literally and figuratively, “Marvin was larger than life.” Seven speakers shared personal reminiscences and old war stories about Traub, including Gribetz, who worked with him for some four Marvin Traub decades and is now president of Lenox. Talking about the time they visited the Forbidden City in Beijing to gather products for one of Bloomingdale’s legendary country promotions, he said, “Marvin knew instinctively what would interest customers.” Kronick, who rose through the home side of the store and went on to the No. 2 position at Macy’s before retiring several years ago, talked about Traub’s role in developing women executives at the store and suggested he is responsible for more senior female executives in the business than anyone else. Choking up for a moment, she said, “It shows that one person can make a difference.” Mike Gould, who succeeded Traub as ceo of the store 21 years ago, spoke about the initially awkward moments they had during that transition but then recounted how they went on to have hundreds of breakfasts and meetings together, Gould insisting that they take place at the store so he could walk the selling floors with Traub. Years later, he said, “Marvin told me we were the only two people who truly understood Bloomingdale’s.” The final tribute speech came from Lauren, who credited Traub with launching his career. “I am a child of Marvin’s and Bloomingdale’s. He gave me my world.” And standing under the giant portrait onstage, Lauren joked about Traub’s legendary energy and well-known proclivity to talk about all the things he was doing. “What can we say about Marvin Traub that he hasn’t already said about himself?” HTT
Americasmart Chairman Honored by Harvard
Family Dollar Names evp for Store Ops MATTHEWS, N.C. — Family Dol-
lar Stores has promoted Colin McGinnis to senior vp for store operations support, store development and procurement. He joined the retailer in 2004 as a regional v, where he was the
operations lead on the development of the Store of the Future project. In 2006, he was named vp of store operations support & process improvement. Most recently, he was given additional responsibility for store services, procure-
ment and store development. Prior to joining Family Dollar, McGinnis held positions of increasing responsibility with a national drug store chain. He reports to Barry Sullivan, executive vp, store operations. HTT
Texprocil Elects Officers M UMBAI — At the 58th Annual
General Meeting of The Cotton Textiles Export Promotion Council (Texprocil) held last month, the organization elected officers
for the 2012-2014 term. Shri Manikam Ramaswami, who is chairman of Loyal Textile Mills, was voted chairman. Deputy chairman is Shri R K Dalmia,
who is senior president of Century Textiles and Industries Ltd. Vice chairman is Shri Ujwal Lahoti, who is executive director of Lahoti Overseas Ltd. HTT
11/7/2012 2:42:26 PM
Soft Lines Growth Leads to AICO Addition P ICO R IVERA , C ALIF. — Home furnishings resource AICO, Amini Innovation Corporation, has hired Kim DiNonno for the newly created position of director of design development. “The rapid growth of soft lines and other product divisions has prompted the need to further expand our product development and merchandising team with a focus on unique styling and product execution”, said Martin Ploy, AICO president. “Kim brings a deep passion for furniture and design. Her sense of style and keen understanding of home
“The rapid growth of soft lines has prompted the need to further expand our product development and merchandising team.” —MARTIN PLOY, AICO fashion trends will harmonize beautifully with [AICO chairman and ceo] Michael [Amini]’s vision and distinctive flair.” DiNonno comes to AICO with more than 20 years of experience in home furnishings, working most recently in design and merchandising for RC Furniture of California, where she was responsible for everything from fabric frame application to sourcing. In the process, she developed relationships with many retailers, as well as fabric suppliers domestically and abroad. Previous experience included director of catalog merchandising at Furnitureland South in North Carolina and interior designer for Ladlows Fine Furniture in Arizona. “We are very fortunate to have someone with Kim’s great enthusiasm, knowledge and experience join the AICO team,” Amini said. “We are very excited for the new dynamic she brings to our talented and hard-working team.” HTT
Home Textiles Today
November 5, 2012
Industry Veteran Sidney Slovik, 97 W O O D M E R E , N.Y. — Sidney
Slovik, founder of Beau Ideal Bedspreads, passed away Oct. 19 of natural causes at age 97. He created Beau Ideal in 1946 after returning home from World War II, where he served in the Army Air Corp. “His father was a sewing machine operator,” said Slovik’s
son, Mitchell. “So my grandfather would sew it, and my father would sell it.” Beau Ideal eventually operated several production facilities around the country, producing bedspreads, comforters and curtains. The company, which for many years had a New York showroom at 261Fifth Avenue,
sold to powerhouse JCPenney as well as a start-up called Bed Bath and Beyond - “and everybody else, right down to the momma and poppa stores,” said Mitchell. He was given a Dean of the Industry Award and later retired in 1991. Slovik is survived by son
Mitchell and daughter, Aileen, four grandchildren (Alison, Julia, Dara and Cory) and five great-grandchildren (Bradley, Kaiya, Devyn, Marley and Eden). Donations in his memory can be made to the MJHS Hospice at http://mjhsfoundation. org. HTT
Statement of Policy Concerning Gifts and Other Items of Value
To Our Valued Suppliers, We are taking this opportunity to restate our policy concerning gift-giving, not only during the forthcoming holiday season but throughout the year. On any occasion, gifts, gratuities, payments, favors or other items of value, no matter how well-intentioned by the donor, are against our Company’s policy. Gifts received by any Associates will be returned to the donor or donated to charitable organizations. Our Associates are also advised that any violation of this policy will be taken very seriously. We respectfully ask that you assist us in this matter by refraining from offering Associates gifts or items of value. Your kind cooperation with this policy will foster the continuation of fair business practices that favor our close working relationship. Thank you very much for your support. We wish you a happy holiday season and a prosperous new year.
Bernard Cammarata Chairman of the Board
In the U.S.
Carol Meyrowitz Chief Executive Officer
The TJX Companies, Inc., 770 Cochituate Road, Framingham, MA 01701 l www.tjx.com ¹2012 The TJX Companies, Inc.
11/7/2012 12:04:38 PM
Home Textiles Today
November 5, 2012
BUSINESS TodaY Royal Velvet Hits a Bump at Iconix Rolling out of BBB, Rolling in at JCP N E W YO R K — Iconix Brand
[Royal Velvet], and we definitely Group Inc. revenue faltered see it growing from here.” in its third quarter, in part due For the third quarter, ended to the ongoing transition of its Sept. 30, total revenue decreased Royal Velvet brand into JCPen- 6.5% to $86.6 million. Net ney. income rose 4.0% to $27.1 milNeil Cole, chairman and ceo, lion, and EPS was 38 cents. explained: “Strength in Year to date, total most of the company’s revenue dipped 2.0% brand portfolio during $268.7 million. Net the quarter “continued income sank 15.8% to be offset by the transito $83.3 million, with tion of Royal Velvet and earnings per share declines in our men’s $1.15. business.” Looking ahead, IcoNEIL COLE R o y a l Ve l v e t w a s nix is pursuing internaIconix moved from Bed Bath tional expansion, which and Beyond to JCP durit believes can grow to ing the company’s second quar- approximately 40% of the busiter, and Iconix warned last quar- ness. It also continues to evaluate ter that the shift was expected to potential brand acquisitions. “significantly impact” business “With 29 brands in our portthrough yearend. folio, inclusive of Umbro, that JCP’s Royal Velvet-branded represents over $13 billion in goods include not only its sig- annual retail sales, we believe nature towels but also expanded our company is stronger than product categories like soft win- ever and we look forward to condow treatments, furniture pieces tinuing to grow our business and and other home products. deliver value to our shareholdCole said that, so far, “It looks ers,” said Cole. phenomenal. They’ve done a In other news, the company really great job executing it and announced during the call that we see it only getting better. It Yehuda Shmidman, who has is definitely a little lower than served as the company’s coo we anticipated, but it’s doing since July 2010, has left the better” than other areas in JCP company to pursue other opporcurrently.” tunities. “We have no plans to He added, “We are happy replace him right now,” Cole with the way [JCP] is executing said. HTT
Check us out on the Web Hometextilestoday.com
Home a Bright Spot For HSN, Cornerstone ST. PETERSBURG, FLA. — Strong sales growth in the home design and household as well as culinary and beauty businesses at HSN coupled with similar strides in home brands at Cornerstone were highlights for the company’s third quarter, parent HSNi reported during its earnings release in early November. Net sales for HSNi, an interactive multichannel retailer, grew 7% to $778.8 million, and adjusted earnings per share were up 32% to 66 cents. GAAP diluted EPS from continuing operations decreased 26% to 31 cents. Despite expected sales
declines in electronics that offset the growth in home areas, the HSN segment saw its net sales increase by 5% to $537.4 million, including 10% growth in digital sales. Cornerstone’s net sales climbed 13% to $241.4 million, including 22% growth in digital sales. Gross profit for HSN increased 7% to $191.8 million, and its gross profit margin improved 90 basis points to 35.7% from 34.8% — positively impacted by the product mix shift and lower transaction costs, partially offset by an increase in shipping and handling promotions. For Cornerstone, gross profit
was up 13% to $93.7 million, and its gross profit margin decreased 10 basis points to 38.8% from 38.9% in 2011 — a decline driven by an increase in promotional activity that was offset by lower return rates and lower inventory reserves. “Our strong financial performance during the quarter demonstrates the sustained effectiveness of our overall strategy of creating immersive experiences, offering differentiated products and leveraging technology to build relationships, not just transactions,” said Mindy Grossman, ceo of parent company HSNi. HTT
Merchandising Buoys MSLO’s Q3 JCP launch set for spring 2013 N EW YORK — Martha Stewart
Living Omnimedia saw its merchandising revenue grow 7.2% in in the third quarter, thanks mainly to design fees from JCPenney as well as strong sales growth in its home office line with Avery. During the company’s earnings call earlier this month, president and ceo Lisa Gersh said MSLO’s merchandising business “continued to see solid growth ... Our design work with JCPenney is on track, and JCPenney expects to launch [the Martha Stewart program] in stores in spring 2013.” MSLO’s quarterly merchandising revenues came in at $13.2 million, and operating income rose 18% to $8.5 million. Offsetting some of the growth
within merchandising was continued softness in sales for its products at The Home Depot, particularly in soft flooring products. This decline is still being experienced in the back-half of this year, noted Ken West, cfo of MSLO. An analyst on the call inquired for updates related to the legal battle between MSLO and Macy’s, which currently carries the Martha Stewart Collection across multiple home categories from linens to culinary goods. But Gersh said there were none to report other than what is available on public record. Higher merchandising revenues could not fully offset the MSLO’s lower revenues in the publishing and broadcasting
segments over the quarter. As a result, the company’s total revenues sank 17% to $43.5 million. To remedy this, the company announced new actions it has taken to further restructure its portfolio of popular media brands, including transitioning Everyday Food from a print publication to a digitally-focused brand and exiting Whole Living altogether. The publishing business was also the culprit of MSLO’s total operating loss for the third quarter, which widened to $50.7 million, compared to an operating loss of $9.3 million. “Our performance in the quarter was in line with our expectations but not our ambitions for the company,” Gersh explained. HTT
11/7/2012 10:26:59 AM
November 5, 2012
Home Textiles Today
Wal-Mart Sets Rigorous Sustainability Standards for U.S. Market B E I J I N G — At a sus-
tainability event here in late October, WalMart Stores Inc. set an ambitious benchmark: by the end of 2017, 70% of goods sold in U.S. stores and Sam’s MIKE DUKE Clubs will come only Wal-Mart Stores from suppliers that use the Sustainability Index to evaluate and disclose the sustainability of their supply chain. And beginning next year, the company will use the index as it designs goods for its U.S. private label brands. “Today I’m proud to announce a series of steps and commitments that will make Walmart’s supply chain, in the United States, here in China, and around the world, more sustainable,” said Mike Duke, president and ceo, Wal-
Mart Stores, Inc. “The impact of these commitments will be global and make a difference with products sold around the globe.” The Sust ainability Index uses metrics developed by The Sustainability Consortium
(TSC), which Walmart already uses for more than 100 categories. Walmart expects to expand the use of the index to an additional 100 product categories by the end of 2012. To a i d t h e e f f o r t , T h e Walmart Foundation is donating $2 million to fund TSC in China, where it will work with
industries, universities and other leaders to help suppliers become more sustainable. In addition to sustainability projects, the foundation also supports education, workforce development, and health and wellness initiatives around the world. “We will drive progress faster and scale our work to make fac-
tories more socially and environmentally sustainable, reduce energy and water usage, and eliminate harmful emissions into rivers and the air. We will also have deeper insight into how we can make manufacturing more sustainable for people and communities in China,” said Duke. HTT
VHC, Inc. Adds National Field Sales Manager BRANSON, MO. — Kristine Dunlevy has been named national field sales manager at VHC, Inc. home of Lasting Impressions bedding/throws, Bella Taylor handbags and Nancy’s Nook home décor including kitchen, window, holiday and braided rugs. Dunlevy, formerly with OneCoast and Gund, Inc., will be based in Ohio and will be responsible for building a sales team nationwide by region or state. Sales personnel will be corporate employees and will be responsible for the growth of sales in all VHC lines on a target-client basis. “With the tremendous growth we have experienced in the past two years, and the positive reception we are seeing to our branded product approach, we really feel that a nationwide sales team will help us achieve our goal of becoming a top name brand to retailers around the country,” said Ken Kline, ceo. “We are very excited for Ms. Dunlevy to head up our efforts to build out a strong sales team to help us achieve our objectives.” HTT
11/7/2012 4:35:21 PM
Home Textiles Today
November 5, 2012
October Comps Up For Most BY CECILE B. CORRAL N EW YORK — With a shift this
year in Halloween, the spooky holiday didn’t get the credit for a decent comp turnout for almost all key retailers who reported their October sales. The strong performances seen by most was more general in nature, as nine out of 10 stores tracked monthly by HTT experienced gains as the result of movement in multiple categories and successes stemming from a variety of growth initiatives as well as improved traffic. Leading the pack was TJX Cos., which reported a 7.0% comp increase. October was the first time in several months that its direct competitor, Ross Stores, did not experience a similar gain. Instead, Ross Stores came in with a 4.0% comp, positioning it as the fourth highest among the key retailers last month. TJX’s momentum in October, explained ceo Carol Meyrowitz, “continued at all divisions and customer traffic drove comp increases across the board, which we believe speaks to the staying power and appeal of our great brands and fashions at compelling values. We believe the momentum we are seeing in all of our businesses, along with the exciting gift initiatives and marketing campaigns that we have planned, bode well for the holiday selling season. We are looking forward to a strong fourth quarter as well as to the longer term future growth of our company.” Ross also performed at the
high end of its expectations, noted vice chairman and ceo Michael Balmuth, and as such is expecting to report “another quarter of solid, above-plan growth in both sales and earnings. We also remain well positioned as a value retailer in the current environment, and our business continues to benefit from our ongoing ability to deliver a wide assortment of fresh and exciting name brand fashions to today’s bargain-oriented consumers.” Driving Macy’s 4.1% comp increase were “the key growth strategies we put in place three years ago [that] continue to provide us new opportunities for continuous improvement in driving sales,” explained Terry Lundgren, chairman, president and ceo. “We are feeling confident
Winners and Losers WINNERS TJX COs. Costco Macy’s Inc. Ross Stores The Bon-Ton Stores Kohl’s Corp. Target Corp. Alco Stores Stein Mart Inc.
7.0% 5.0% 4.1% 4.0% 3.7% 3.3% 2.4% 1.8% 1.7%
LOSER Fred’s Inc.
about our prospects for the upcoming holiday season and have increased our sales guidance for the fall season, despite the interruption caused by Hurricane Sandy in the first few
OCTOBER SALES FOR KEY RETAILERS Four weeks ended October 28, 2012 (dollar amounts in millions) 2012 SALES
Alco Stores Bon-Ton Stores Inc. Costco Wholesale Corp. (b) Fred’s Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
34.2 $199.1 $7,670.0 $140.0 $1,392.0 $1,908.0 $715.0 $87.2 $4,982.0 $2,100.0
33.5 $192.0 $7,010.0 $136.0 $1,331.0 $1,842.0 $661.0 $85.7 $4,839.0 $1,900.0
1.9 3.7 9.0 3.0 4.6 3.6 8.0 1.7 3.0 11.0
1.8 3.7 5.0 (0.8) 3.3 4.1 4.0 1.7 2.4 7.0
YTD SALES FOR MAJOR RETAILERS 39 weeks year to date Alco Stores Bon-Ton Stores Inc. Costco Wholesale Corp. Fred’s Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
$340.6 $1,904.0 $72,900.0 $1,422.0 $12,937.0 $18,337.0 $6,960.0 $848.7 $49,589.0 $18,200.0
$334.9 $1,901.4 $65,580.0 $1,381.0 $12,786.0 $17,681.0 $6,210.0 $832.2 $47,529.0 $16,500.0
1.7 0.2 11.2 3.0 1.2 3.7 12.0 2.0 4.3 10.0
(1.2) 0.3 NA (0.8) (0.5) 3.7 7.0 1.3 3.7 8.0
a. Reporting periods vary among retailers. b. Costco’s October comp results are for the U.S. division and do not include the positive impact of inflation on gasoline prices or the positive impact from stronger foreign currencies. Including those impacts, comps for the month were up 7.0% in the U.S. division, 9.0% in the international division, and 7.0% for the total company.
days of the fourth quarter,” he added. Online sales for macys.com and bloomingdales.com combined were up 44.6% in October, 40.4% in the third quarter, and 36.8% year to date. Online sales are included in the samestore sales calculation for Macy’s Inc. Making a turnaround last month was The Bon-Ton Stores, which posted a 3.7% comp. Brendan Hoffman, president and ceo, cited home, furniture and intimate apparel among the weakest performing catego-
ries. Better off were ladies’ and men’s outerwear, dresses and shoes, which were the strongest category performers, with double-digit gains. Ecommerce was also a highlight for the period with its double-digit gains. Hitting the low end of its monthly expectations was Target Corp. with a 2.4% comp. Still, its third quarter comparable-store sales increase of 2.9% was in line with guidance, noted Gregg Steinhafel, chairman, president and ceo. “As we enter the fourth quarter we feel very good about our
holiday season merchandising and marketing plans and our ability to deliver outstanding value for our guests while generating strong financial performance for our shareholders,” he added. At Alco, domestics was among the stronger performers in October, along with furniture, housewares, toys, sporting goods, and stationery, said Rich Wilson, president and ceo. And at Stein Mart, which reported the smallest comp increase, 1.7%, linens were also a strong suit in the month. HTT
Four Key Retailers Revise Guidance For Q3 And Beyond N EW YORK — Upon wrapping
up their October sales, four key retailers offered updates on their respective guidance for the third quarter and yearend periods. Given its “strong” third quarter sales performance, Cincinnati-based Macy’s said it is raising its guidance for same-store sales growth in the second half of 2012 to approximately 4% — up from previous guidance of a 3.7% increase. This calculates
to guidance for same-store sales in the fourth quarter to grow by about 4.2%, the department store chain noted. TJX Cos., in Framingham, Mass., is raising its earnings-pershare guidance for the third quarter to $.61 and for the full year fiscal 2013 to $2.44 to $2.47. Ross Stores, based in Pleasanton, Calif., is now projecting its earnings per share for the 13 weeks ended Oct. 27 to
be in the range of 71 cents to 72 cents, “up slightly from our prior guidance of 70 cents to 71 cents, mainly due to higher merchandise margin,” noted Michael Balmuth, vice chairman and ceo. “This forecasted range compares to 63 cents in earnings per share for the same period last year.” And Memphis, Tenn.-based Fred’s Inc. said it now expects its third quarter earnings per
share to be in the range of 18 cents to 23 cents, a reduction that reflects “the incremental shift in layaway sales, unfavorable LIFO expense charges in the quarter and a single-event increase in insurance reserves, with a combined impact of 3 cents to 5 cents in earnings per share for the quarter,” explained Bruce A. Efird, ceo. But farther down the road, the regional discount chain
expects brighter days, as “the implementation of several key new merchandising and marketing initiatives in the fourth quarter and the positive impact of the forward shifting of layaway sales and earnings,” are encouraging Fred’s to continue to project a double-digit earnings per share improvement for 2012, with full-year earnings per share now expected to be in the range of 96 cents to $1.02. HTT
11/7/2012 9:59:50 AM
How do you make your company stand out from the hundreds of other suppliers calling on the same ten retail accounts?
A marketing and advertising plan using Home Textiles Today in both print and online can help your company stand out from the crowd as well as introduce you to new buyers at those key retail accounts.Your HTT sales representative can give you all the details.
TexTiles is our Middle NaMe
YOU’VE BUILT A BRAND.
Now, get out there and show it off. Are you a small-scale retailer with a single storefront? Or a leading manufacturer with widespread dealers? From one bow flag to one thousand banners, we offer turn-key customizable products and programs to fit your needs, including full design services. Whether it’s an industry tradeshow, a retail sales floor or a special event, let us help your brand flourish and make you stand out in front of those who matter most. Contact us today to quote your next project. CONTACT: Joseph Ellis firstname.lastname@example.org 336.605.1018
7025 Albert Pick Road
CJK_brand msg_TAB.indd 1
Greensboro NC 27409 www.cjksignage.com
10/11/2012 11:40:19 AM
November 5, 2012
Home Textiles Today
International Hotel/Motel and Restaurant Show HOTEL FROM PAGE 1
sales manager, sees a similar opening us in the sector. “The hospitality industry has seen an increase in travel and business in general for the better part of 2012. Business definitely started an upward trend at this time last year and went strong into the first and second quarter of 2012.” Hendershot is seeing more of an uptick in large renovations rather than new construction, and believes the pace of new construction properties has slowed with the economy. “Properties are still in the progress of being built, however, the building process is taking much longer to complete than we have seen in years past,” she said. Star Textiles believes there are many project opportunities in the hospitality industry ranging from high end to budget economy and creates individual products for each. Hendershot added, “Eco friendly products are a great ap-
In terry Emmebiesse Spa is showing coordinating robes, towels and bath mats.
proach to the future of hospitality products; many are in place in guest rooms now. However, pricing will always be a major factor in the decision making for a renovation project to a property.” At this year’s show, Star Textile will introduce new guest room schemes in hundreds of color palettes designed. Also sanguine about the business environment is Piero
Martinotti, ceo of Emmebiesse Spa. “The hospitality business is growing. We have, in fact, acquired some important new customers, which have great potential for the future. We work with many different types of customers, in the higher end, in the middle tier and in the budget segment, and we are able to serve every one of them.” Martonotti added pricing is the major demand driver. Cus-
tomers want products of good quality with a good price as well as fast and efficient service. At the show, Emmebiesse Spa will introduce several categories under the “Suite Hotel” trademark, which offers three categories of products, including Star, Vip, and Top in the sheeting category. In terry, the company will be showing bathrobes, towels, guest and hand towels, and bath-mats. Tablecloths will include Italian fabrics. Hollander’s Adam Petricoff, vp of hospitality sales, said while hotels are full “many remain cautious,” and like others added: “New construction is still pretty rare.” Petricoff sees renovations picking up due to pent up demand and believes that there are plenty of opportunities in the higher end, middle tier and budget segments. Price remains a key driver, according to Petricoff, big hotel chains are still interested in a sustainability if it makes sense.
Hollander’s introductions at the show include Dream Essence and Crypton products. “Dreamessence is the closest to down [in a down alternative] you will get. We will be hosting the Take the Down Challenge at our booth to show you really can’t tell the difference between natural down and Hollander’s exclusive. Crypton protection technology will also be exhibited with red wine spills on the white product to demonstrate its effectiveness.” Caber Sure Fit from Canada, which specializes in furniture and bedding protection, will unveil BedCare and FurnitureSkins designed specifically for the hospitality industry. “We understand the vital need hoteliers have to keep their furniture looking new and their mattresses clean,” said president and ceo Bernard Weinstein. “Our furniture covers and mattress encasements were specifically designed to endure the wear and tear hotel rooms face each day.” HTT
Dillard’s Q3 Hoped to Set Pace for Holidays LITTLE ROCK , ARK. — Dillard’s Inc. managed a 4% sales increase and a 5% comp hike in its third quarter, but not thanks to home, which proved among the weakest categories along with furniture. The 284-unit department store reported total merchandise sales (which exclude the company’s construction business
CDI) of $1.425 billion for the 13 weeks compared to $1.366 billion a year ago. Sales trends were strongest in men’s apparel and accessories, ladies accessories and lingerie and shoes. Geographically, the Central region led the way, followed by the Western and Eastern regions, respectively. Dillard’s third quarter net
income dropped to $48.5 million, or $1.01 per share, against $228.2 million, or $4.31 per share last year. In the year-ago period, profit got a $202.5 million boost from an after-tax credit. As Dillard’s ceo William T. Dillard II explained, “Driven by a strong 5% sales increase, we were able to double our earnings
per share for the third quarter on top of a record performance last year, after non-routine items… We are entering the holiday season confidently based on these strong results and we look forward to serving our customers at the highest possible level in the coming weeks.” Year to date, Dillard’s total merchandise sales increased 4%
to $4.403 billion compared to $4.247 billion, and comps were up by 4%. Net income for the 39 weeks was $174.5 million, or $3.55 per share, compared to $322.4 million, or $5.80 per share – the latter of which the company explained had included a net aftertax credit totaling $205.8 million ($3.90 per share). HTT
Williams-Sonoma Launches Another Brand SAN FRANCISCO — In time for the holiday season, Williams-Sonoma Inc. is launching a new direct-to-customer brand, Mark and Graham, which specializes in personalized gifts and accessories. Mark and Graham offers products personalized with a choice of more than 50 custom monograms and creative type treatments.
The new markandgraham. com site offers a range of products that can be personalized and/or monogrammed. In home textiles, that list includes table and kitchen linens, throws, decorative pillows, bath and guest towels, aprons, robes, wine bags, and baby linens like bibs. The brand also includes a direct mail catalog. Williams-Sonoma Inc. pres-
ident and ceo Laura Alber said with Mark and Graham, “our goal is to create a destination for beautiful, high-quality, thoughtful gifts that are personalized by the artful use of typography.” The Mark and Graham brand was originally conceived in San Francisco by a small team, led by svp of strategy and business development for Williams-Sonoma Inc., Marta
Benson, and in collaboration with graphic designer Jennifer Morla. The concept came from “the need to offer quality, modern and thoughtful gift options with a personal sentiment to make the gifting experience unique and memorable,” the company said. As Benson explained, “For a brand to resonate with people, it has to have meaning and a
sense of purpose. At Mark and Graham our mission is to help you celebrate the people in your life and to make gift giving personable and fun. The name ‘Mark and Graham’ is a play on words about creating one’s own mark or monogram. We want to share our passion for typography and design, and give customers the tools to create beautiful gifts.” HTT
11/8/2012 2:52:51 PM
CLASSIFIEDS HELP WANTED
THEY’RE LOOKING FOR YOU
Production Manager Home Textile importer based out of New Jersey seeks a Mandarin Speaking professional to oversee production time lines, sample development, quality and color from factories in China. Will act as a liaison between China and the USA ofﬁces. Must have Soft Home Product knowledge. Send Resume to: email@example.com
ABW is a distributor of stock lots, seconds and textile waste products. We are currently looking for salespeople and buyers to work out of our ofﬁce in Philadelphia. We are seeking aggressive energetic people who thrive on performance goals and objectives. Please send resumes to firstname.lastname@example.org or by fax to 215-482-6190
HOME TEXTILES TODAY CLASSIFIEDS
Now offering custom borders! Ask how we can make your ad stand out from the rest!
Delivered via eMail - to your Inbox
SPENCER WHITTLE: email@example.com ph 336.605.1027 fax 336.605.1143
Only $169.97 for the Digital Edition
KAREN HANCOCK: firstname.lastname@example.org ph 336.605.1047 fax 336.605.1143
Subscribe Today! 866-456-0405 U.S. 515-247-2984 outside
www.hometextilestoday.com . www.hometextilestoday.com .
small space BIG RESULTS !
SUBSCRIBE Home Textiles Today is
www.hometextilestoday.com . www.hometextilestoday.com .
the fashion and business source home textiles
www.hometextilestoday.com . www.hometextilestoday.com .
industry executives turn to every week to learn the latest developments bound to affect their businesses.
Go to: hometextilestoday.com
and subscribe today!
THEY’RE LOOKING AT OUR CLASSIFIEDS
TAKE YOUR AIM! ADVERTISE WITH US
s d e i f i s s cla
Lines Offered (Reps) Help Wanted Retail Recruitment Real Estate Showroom Space
For Sale/Lease Factoring Services Announcements Legal Notices Parts
SPENCER WHITTLE: email: SWhittle@sandowmedia.com ph: 336.605.1027 • fax: 336.605.1143 KAREN HANCOCK: email: KHancock@sandowmedia.com ph: 336.605.1047 • fax: 336.605.1143
11/8/2012 9:56:05 AM
November 5, 2012
Home Textiles Today
360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com www.facebook.com/httmag
WithIt to Give Kathy Ireland Legacy Award G REENSBORO , N.C. — WithIt, the as well as jewelry and bridal gowns. women’s leadership development netIreland is also an author as well as a work serving the home and furnishings wife and mother of three, and she has industry, will present its Legacy Award been recognized internationally for her to Kathy Ireland during the humanitarian and philanthrop2013 WOW Awards dinner ic efforts, including initiatives and ceremony on Jan. 27 at that support veterans, the AntiWorld Market Center - Las Defamation League, the war Vegas. against HIV/AIDS, anti-poverIreland is the ceo and ty efforts, education and family chief designer of Kathy Ireissues, with a specific focus on land Worldwide, and has women and children. been involved in the home KATHY IRELAND The WOW Awards, which WithIt said honor “the leaderfurnishings industry for almost a decade. Her compaship achievements of individuny makes $2 billion in retail sales from als and businesses in the home furnishher line of products that include bed- ings industry,” is produced by WithIt in ding, rugs, and furniture within home partnership with World Market Center
Las Vegas and is sponsored by leading industry brands. “I’m honored to present Kathy Ireland with the 2013 Legacy Award in recognition of her innovation, resilience and dedication to never accepting ‘no’ as the final answer,” said WithIt president Julia Rosien, SocialNorth. com. “Kathy has transformed the face of the furniture industry and dedicated herself to bringing visibility to the true power in this industry – the end consumer.” Tickets are on sale now at www.withit.org. WOW Awards sponsorship opportunities are still available; for more information, contact Sara Lyke, director@WithIt.org. HTT
California Market Center Becomes ASID Industry Partner LOS ANGELES — The California Market Center has become an industry partner of the American Society of Interior Designers, the country’s oldest and largest professional organization for interior designers. The move reinforces the CMC’s mission to further expand design center and position the CMC as a premier West Coast destination for interior designers, architects and hospitality specifiers. “As the core of the interior design profession, ASID is eager to welcome
the prestigious California Market Center as a key participant,” said Katherine Fern, president of ASID Los Angeles. “It has been long been known that Los Angeles leads design, interiors, architecture, graphics, and fashion. As a new industry partner, The CMC Design Center will synergistically extend our mutual leadership in the eyes of the public, as well throughout the design community.” “ASID is the gold standard for interior design professional designations” said Penny Haptor, of Haptor Barrett.
“Haptor Barrett, as an industry partner, has always placed great value in our alliance and support of this organization. The benefits of ASID not only apply to the designers who affiliate themselves with this society but also to trade showrooms and other businesses in the design community. Ultimately this all benefits the consumer who, when looking for the professional services of an interior designer, can have the confidence that his or her designer has met the educational and professional standards of ASID. HTT
EDITOR-IN-CHIEF Jennifer Marks 10 Ocean Blvd #8B Atlantic Highlands, N.J. 07716 (732) 204-2012 | email@example.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | firstname.lastname@example.org SENIOR EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | email@example.com MANAGING EDITOR Julie Murphy (646) 805-0224 | firstname.lastname@example.org CONTRIBUTING GRAPHIC ARTIST Desiree Nunez (646) 805-0233 | email@example.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | firstname.lastname@example.org ASSOCIATE PUBLISHER, ACCOUNT MANAGER SOUTH/EAST/CHINA Jeff Reeves (336) 605-1009 | email@example.com ACCOUNT MANAGER NORTHEAST/MIDWEST/ WEST COAST/CANADA Mary McLoughlin (646) 805-0227 | firstname.lastname@example.org CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 email@example.com Karen Hancock (336) 605-1047 firstname.lastname@example.org MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | email@example.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91 22 2305 9305 Fax: 91-22-66634596 | Kaushal@kaushals.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | firstname.lastname@example.org DIRECTOR, WEB OPERATIONS Chris Schultz | (336) 605-1076 | email@example.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | firstname.lastname@example.org E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | email@example.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | firstname.lastname@example.org PRESIDENT, FURNITURE TODAY GROUP Kevin Castellani (336) 605-1034 | email@example.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 1979-2011
SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow CFO/COO Christopher Fabian VP CREATIVE AND EDITORIAL Yolanda E. Yoh SUBSCRIPTIONS: U.S.A. (866) 456-0405 All other countries: (515) 247-2984 HTTcustserv@cdsfulfillment.com
Sears to Join Kmart in Opening on Thanksgiving Day H OFFMAN E STATES , I LL . — Kmart’s been doing it for the past 21 years, and now its sister retailer Sears is following suit, opting to open its doors on Thanksgiving Day across the United Sates, with a few market exceptions. The move comes in response to requests from customers and members of the company’s “Shop Your Way”
program. Parent company Sears Holdings explained the program’s members and shoppers said recently that they needed “more fl exible Black Friday in-store shopping times” and also showed “eagerness to shop doorbuster deals.” Most Sears stores will open at 8
p.m. local time on Thanksgiving Day and stay open overnight until 10 p.m. on Black Friday. Kmart stores will be open from 6 a.m. local time until 4 p.m. and from 8 p.m. to 3 a.m. on Thanksgiving Day, and reopen from 5 a.m. to 11 p.m. on Black Friday. Both retailers will be closed Christmas Day. HTT
FAX SUBSCRIPTIONS: 1-866-310-7181 THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010 Telephone: (646) 805-0227 Fax: (646) 365-2307 USPS 497-490 HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 29 times a year except for the weeks of 1/16, 2/6, 2/20, 3/12, 3/26, 4/9, 4/23, 5/7, 5/21, 6/4, 6/18, 7/2, 7/16, 7/30, 8/13, 8/27, 9/17, 10/1, 10/15, 10/29, 11/12, 11/26, 12/10, 12/24 by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3731 NW 8th Ave, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2012 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail . All payments must be made in U.S. currency. Subscription inquiries: HOME TEXTILES TODAY, PO Box 5879, Harlan, IA 51593-1379. Phone: (866) 456-0405. HOME TEXTILES TODAY and THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. (Posted under Canadian International Publication Agreement No.40624074. Sandow Media/CDS (Mint Hill) POSTMASTER: Send address changes to HOME TEXTILES TODAY, P.O. Box 5879, Harlan, IA, 51593-1379 Email: HTTcustserv@cdsfulfillment.com. Return undeliverable Canadian addresses to: RCS International; APC; PO Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6
11/8/2012 5:25:24 PM
STILL MADE IN THE USA AT MOHAWK HOME, WE KNOW THAT EVERY MOMENT OF EVERY DAY IS AN OPPORTUNITY TO MAKE OUR COMPANY GREAT. WE’RE PROUD OF WHAT WE DO AND THE PRODUCTS WE MAKE.
AND THEY’RE STILL MADE RIGHT HERE IN THE USA.
Scan with your Smartphone to see our story
Home Textiles Todday provides the latest news from the world of home textiles manufacturing and retailing.