HVT » Topics » 2008 Outlook

These excerpts taken from the HVT 10-K filed Mar 16, 2009.

2009 Outlook

There are no current indications that the very difficult macro environment is improving in the near term. Many home furnishing retailers have or are in the process of liquidating their businesses. We expect to gain share as these competitors exit the markets we serve. Our total sales for 2009 will likely decline and comparable store sales are expected to be negative.

 

2009 Outlook

We do not expect to implement heavy price promotions to stimulate sales. We believe that in this economic environment this approach would not produce benefits to offset the negative impact on our “everyday low pricing” integrity with our customers over the longer term. Instead, our strategy is to generally use promotional pricing selectively during traditional holiday and other sales events or to highlight specific products or categories. Supplementing the pricing promotions, we also expect to continue to offer free-interest and deferred payment financing with no down payments on larger purchases. We do see continued opportunities for maintaining gross profit margins as we work with our suppliers for better pricing and potential reductions in freight costs.

 

2009 Outlook

We expect that expenses will be lower in each major category of SG&A for 2009. Our occupancy costs are expected to be modestly lower as the increased costs of a full year of the higher rents of the two new and two replacement stores opened in 2008 will be offset by other reductions. We continue to analyze and improve the costs and efficiencies associated with our distribution system to reflect the current business conditions. We have reviewed our planned advertising expenditures for 2009 and believe we can reduce the level of spending and still maintain an effective delivery of our brand building message. We are managing our administrative costs very closely and expect that these should be reduced somewhat in 2009.

 

We believe that we have good controls over our spending and that 2009 sales levels of approximately $160 to $163 million per quarter at our current gross margins are needed to cover our expected fixed and variable operating costs.

 

 

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2009 Outlook



There are no current indications that the very difficult macro environment is improving in the near term. Many home furnishing retailers have or are in the process of liquidating their businesses. We expect to gain share as these competitors exit the markets we serve. Our total sales for 2009 will likely decline and comparable store sales are expected to be negative.



 



2009 Outlook



We do not expect to implement heavy price promotions to stimulate sales. We believe that in this economic environment this approach would not produce benefits to offset the negative impact on our “everyday low pricing” integrity with our customers over the longer term. Instead, our strategy is to generally use promotional pricing selectively during traditional holiday and other sales events or to highlight specific products or categories. Supplementing the pricing promotions, we also expect to continue to offer free-interest and deferred payment financing with no down payments on larger purchases. We do see continued opportunities for maintaining gross profit margins as we work with our suppliers for better pricing and potential reductions in freight costs.



 



2009 Outlook



We expect that expenses will be lower in each major category of SG&A for 2009. Our occupancy costs are expected to be modestly lower as the increased costs of a full year of the higher rents of the two new and two replacement stores opened in 2008 will be offset by other reductions. We continue to analyze and improve the costs and efficiencies associated with our distribution system to reflect the current business conditions. We have reviewed our planned advertising expenditures for 2009 and believe we can reduce the level of spending and still maintain an effective delivery of our brand building message. We are managing our administrative costs very closely and expect that these should be reduced somewhat in 2009.



 



We believe that we have good controls over our spending and that 2009 sales levels of approximately $160 to $163 million per quarter at our current gross margins are needed to cover our expected fixed and variable operating costs.



 



 






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These excerpts taken from the HVT 10-K filed Mar 13, 2008.

2008 Outlook

The current business environment is very challenging. We are actively working with our vendors to have them warehouse more of our products in Asia and are investigating alternative methods for shipping. This will help us to maintain an optimal level of inventory given the long lead times from order placement with our suppliers to receipt of the merchandise. We continue to analyze and improve the costs and efficiencies associated with our distribution system to reflect the current business conditions. We have reviewed our planned advertising expenditures for 2008 and believe we can reduce the level of spending and still maintain an effective delivery of our brand building message. Our occupancy costs are expected to rise for 2008. A full year of the higher rents of the three new and three replacement stores opened in 2007 will increase costs as will the new store and relocations scheduled to be opened in 2008. We are managing our administrative costs very closely and expect that these should not rise appreciably in 2008.

 

We believe that we have good controls over our spending and that 2008 sales levels of approximately $192 million per quarter at slightly improved gross margins are needed to cover our expected fixed and variable operating costs.

 

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2008 Outlook



The current business environment is very challenging. We are actively working with our vendors to have them warehouse more of our products in Asia and are investigating alternative methods for shipping. This will help us to maintain an optimal level of inventory given the long lead times from order placement with our suppliers to receipt of the merchandise. We continue to analyze and improve the costs and efficiencies associated with our distribution system to reflect the current business conditions. We have reviewed our planned advertising expenditures for 2008 and believe we can reduce the level of spending and still maintain an effective delivery of our brand building message. Our occupancy costs are expected to rise for 2008. A full year of the higher rents of the three new and three replacement stores opened in 2007 will increase costs as will the new store and relocations
scheduled to be opened in 2008. We are managing our administrative costs very closely and expect that these should not rise appreciably in 2008.



 



We believe that we have good controls over our spending and that 2008 sales levels of approximately $192 million per quarter at slightly improved gross margins are needed to cover our expected fixed and variable operating costs.



 



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This excerpt taken from the HVT 10-K filed Mar 13, 2007.

2007 Outlook

The current business environment is very challenging. We are actively working with our vendors to have them warehouse more of our products in Asia. This will help us to maintain an optimal level of inventory given the

 

 

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long lead times from order placement with our suppliers to receipt of the merchandise. We are currently adjusting our headcount in our distribution system to improve efficiencies and reflect the current business conditions. We have reviewed our planned advertising expenditures for 2007 and believe that we can reduce our expense and maintain an effective delivery of our brand building message. We are managing our administrative costs very closely and believe given our store opening plans, these should not rise appreciably in 2007.

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