The economic slump has left several industries weakened. The automotive industry is one good example. With the Canadian dollar continually becoming stronger against the US dollar, automakers have been unable to gain a lot of profits on vehicles they manufacture in Canada. This trend also applies to the furniture industry.
Several companies have already started implementing their turnaround plan to return to profitability this year. Aaron Rents, Inc. though survived the tough fiscal year. The company which leases and sells residential and office furniture among others recently reported that the last quarter of 2007 proved to be a good one for them.
R. Charles Loudermilk Sr., chairman and chief executive officer of said company said: "Fiscal year 2007 was a record for us in revenues and earnings, and a year of rapid expansion in store base. Although conditions in some of our markets are currently challenging, we are confident that the products and services we offer to credit constrained consumers will continue to be in high demand in the future."
According to the company's report, company revenues increased by 14 percent compared to the last quarter of 2006. The lease and Ownership division of the company also reported an increase in revenue by 16 percent. Apart from that, the division also reported an increase in same store revenues by 3.9 percent. All this will translate to diluted earnings per share of about $.28 per share.
The expansion during the last quarter of 2007 which Loudermilk talked about is centered on the setting up of 61 company-operated stores. That number of newly-opened stores is expected to create a huge boost for the companies in the very near future. Apart from those company-operated stores, there were also 38 franchised stores added during the last quarter of 2007.
Mr. Loudermilk though said that while the company posted good figures for the said period, they were lower than expected. "Same store revenue growth for our Company-operated stores, although still good, was less than expected during the quarter," he said. He pointed out though that they have "made progress in reducing write-offs over the last several months".
"The expenses incurred in expanding our store base substantially reduced profitability compared to the fourth quarter a year ago. As previously announced, we have slowed down our new store plans for 2008 and will concentrate on improving overall profitability as well as revenue growth in existing stores," he added.
For this year, Loudermilk said that they would be aiming to emulate their performance last year or even better that although not by adding items to their product list such as candle holders.
"Our collective franchised stores during 2007 outperformed Company- operated stores and our priority in 2008 is to raise Company stores to a similar level of performance," said Loudermilk. "We are also especially pleased with the demand for new franchised stores as evidenced by the record number of new area development agreements during the fiscal year."
Author Resource:-
Chad Isenberg is an antique collector. This 33-year old is based in the Midwest constantly on the road looking for antiques. He is also venturing on his own furniture business. On his free time, he can be found designing new furniture/fixtures.
![[Valid RSS feed]](/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
