AMSTERDAM, The Netherlands — While revenue was up 5% in constant currencies, report revenue for AkzoNobel’s third quarter was down 4.2%, while operating income and net income were up sharply for the period.

The company noted that revenue growth in constant currencies was mainly driven by pricing; volumes were flat, with higher volumes in Marine and Protective Coatings, Powder Coatings and Decorative Paints Asia and offset by soft demand in Industrial Coatings.

EBITDA for the third quarter ended Sept. 30 was €443 million, up 46% from €283 million in the same period last year.

Operating income increased nearly 111% over the year-ago period, which the company attributed to property divestments, partly offset by restructuring and acquisition-related costs for the Chinese Decorative Paints acquisition from Sherwin-Williams.

As of Sept. 30, the company’s net debt was €4.103 million vs. €4.089 million at the end of 2022. The net debt/EBITDA leverage ratio at the end of the quarter was 3.2, compared with 3.8 as of Dec. 31, 2022. Free cash flow was up significantly year-over-year to €243 million as compared with €54 million in the 2022 period.

In its outlook for the full year, AkzoNobel expects the economic conditions to continue to impact volume growth. It says cost reduction programs are expected to partly mitigate higher-than-expected inflationary pressure on operating expenses.

Based on current market conditions, the company projects around €1.45 billion adjusted EBITDA for the year.

For the full earnings report, click here.

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HIGH POINT – Over the pandemic, an influx of furniture suppliers sought to set up sourcing in Mexico. They wanted to avoid the severe supply delays and disruptions seen at the time, as well as ocean container rates that had soared nearly 10 times higher than their historic average.

Mexico was obviously a strong option, as it allowed suppliers to avoid ocean travel altogether, while still allowing for cheaper labor costs.

Four furniture suppliers – Legends Furniture, A-America, New Classic and American Woodcrafters – were just some of those to set up operations there, successfully launching new collections sourced from the country. The country represented a strong value proposition at first, but each began to wane their operations there as supply issues eased overseas and container rates plummeted. As of last April market, all four had either paused all operations there or had slowed down significantly.

This market, however, one of those companies – American Woodcrafters – returned to the region with a new collection: Santa Cruz.

“We did some scouting and found a factory that was run by a younger guy, and we liked him,” said Rusty Morris, vice president of sales and marketing. “We originally developed Santa Cruz for Indonesia, but we didn’t like it with the finish.”

But why the return?

“One advantage Mexico offers is better SKU management,” Morris said. “Minimum order requirements (MOQs) are larger for overseas and Indonesia. In Mexico, it’s more manageable to do smaller cuttings and with less of an investment.”

The initiative back to Mexico was largely led by Smith Foster, son of company president, Chuck Foster. The 23-year-old Smith is third generation and is being groomed to lead the company one day, Morris said.

“We’re really excited about the youthful presence in this partnership,” he said. “Smith worked with the factory in person and helped develop the line.”

The new collection includes all the categories offered by American Woodcrafters: bedroom, dining, entertainment and occasional. It also represents the first time a collection has featured all categories from the get-go. Features include solid pine construction, a rustic wood finish and natural distressing. In bedroom, a low-profile platform bed is offered, while dining options include a solid wood top table, upholstered side chairs and a server with four drawers.

The collection will be stocked in the company’s High Point warehouse, with an option to purchase by truckload. Pricing is in the company’s usual mid-range, with a bed retailing between $899 to $1,299.

Speaking about business overall, Morris said the company is up from a year ago, but just slightly. It continues to see more business from bigger retailers. Morris also believes the company is picking up some market share due to closures of its competitors, notably Klaussner.

See also:

• ‘Made in Mexico’ gaining momentum
• New Classic’s major new sourcing initiative: Mexico

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KUALA LUMPUR, Malaysia — The Malaysian International Furniture Fair (MIFF) will mark its 30th anniversary at its March 1-4, 2024, trade show. MIFF organizer Informa Markets expects the 2024 edition to draw buyers from 140 countries and regions.

The anniversary edition of MIFF follows the show’s best year ever in 2023, with 673 exhibitors and a record $1.21 billion in sales orders and nearly 20,000 attendees.

For the 2024 event, the exhibition will be anchored by an array of Malaysia’s biggest exporters, joined by suppliers from China, Indonesia, Singapore, South Korea, Taiwan, Thailand, Türkiye and Vietnam.

“The industry is looking at MIFF as a resilient source to future proof their business,” said Kelie Lim, general manager, MIFF, adding, “The overwhelming response from exhibitors taking up space, noticeably from foreign companies, is another clear positive indicator of the strong buying power converging at MIFF.”

Held at the Malaysia International Trade & Exhibition Centre (MITEC) and World Trade Centre Kuala Lumpur (WTCKL), exhibits are displayed across 17 halls at the two venues, offering contemporary home furnishings, office and hospitality furniture, in addition to accessories, decor, components and materials.

Top Malaysian manufacturers display in MITEC, at Rena Hall on level 2, and Muar Hall coordinated by the Muar Furniture Assn. at level 1. The MIFF Office segment is located at WTCKL, a short and free shuttle ride away.

Other curated areas include International Hall, Sofa Hall, the young designer zone for the xOrdinary showcase and MIFF Furniture Design Competition top entries.

Two exhibitor prizes will be awarded during the event: Best Presentation Award and Furniture Excellence Award. In addition, the MIFF Furniture Design Competition will honor winning designs from this year’s young designers. All award winners will be announced on the third day of the show.

For more about registration, exhibitors, products, accommodations and shuttle services, visit the MIFF website. With more first timers coming to the 2023 show, MIFF has extended its Valued Visitor Programme to include complimentary hotel accommodation for new international buyers on a first-come-first-served basis.

See also: MIFF 2023 expecting strong attendance for exhibitors, buyers at March event

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BANDAR SERI BEGAWAN, Brunei – Jackhan Sdn. Bhd opened a new Ashley store on Oct. 7 and held a ribbon cutting to commemorate the occasion.

Jackhan owns one additional Ashley store in the region. The 13,000-square-foot Sunway Centre store will employ approximately eight people and will be the flagship Ashley store in the country of Brunei. Ashley has more than 1,125 locations worldwide.

“We are hoping this new flagship store will allow us to bring the No. 1 furniture manufacturer in the world closer to our customers and provide a world class experience for our guests,” said Jason Son, managing director of Jackhan Sdn. Bhd. “At the same time, offering more new variety of home furnishing to Brunei’s market at exceptional values while providing the best customer service in the industry.”

The showroom features complete lifestyle vignettes, down to the final detail of lighting, rugs and wall art. Product categories include bedroom, dining room, upholstery, leather, occasional tables, home office, youth bedroom, recliners, mattresses and accessories. Technology enhances the environment, incorporating various elements to improve the customer shopping experience.

The new showroom is located on Unit A4-A7 Sunway Centre, Block A, Kg Sg Akar, Mukim Berakas ‘B’ Bandar Seri Begawan, Brunei.

See also:

• Ashley licensee adds store to its lineup Down Under
• Ashley betting big on sleep accessories for High Point Market

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HO CHI MINH CITY, Vietnam — HawaExpo 2024, the Vietnam export furniture fair, is set for March 6-9, 2024, and themed “Navigating the World of Possibility.”

Touted as the largest export furniture fair in the country, HawaExpo 2024 will have more than 700 exhibitors, spanning more than 3,000 booths and showcased in 56,000 square meters in the World Trade Center Binh Duong.

The tradeshow will feature three halls: Connect Hall, a hub for Vietnam’s furniture supply chain; Create Hall, a hub for interior design and innovation; and Craft Hall, connecting visitors with manufacturers of all sizes. Visitors can explore a complete catalog of local industry offerings, including furniture, original designs, lifestyle accessories, handicraft souvenirs, materials, hardware and related services.

HawaExpo 2024 offers free registration, 24/7 multi-channel support and a number of accommodation and travel discounts. Also, the expo’s 1 + 1 Program includes access to Hopefairs.com, the first furniture virtual exhibition platform in Vietnam.

See also:

• Vietnam Pavillion sets opening night event to launch its Market presentation
• VIFA Expo 2024 – Vietnam’s 16 years of presitge fair – set new dates in late February 2024

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GUANGZHOU, China — The 53rd edition of CIFF Guangzhou, a global furniture trade show, is set to offer phase 1 and phase 2 of the event in March 2024.

Following the theme “Design Trend, Global Trade and Full Supply Chain,” CIFF is scheduled for March 18-21 for home furniture, home décor and textiles, and outdoor and leisure furniture. Phase 2, set for March 28-31, will feature office furniture, commercial furniture, hotel furniture, and machinery and raw materials.

Some 4,000 exhibitors are expected to showcase at the Canton Fair Complex in Guangzhou Pazhou, offering 830,000 square meters of showroom space for an anticipated 380,000 visitors.

During Phase 1, the Home Furniture sector will feature pavilions in Areas A, B, C and E, dedicated to design, sofa and bed, and dining and living. The Home Décor and Textile sector will include 700 exhibitors in eight new pavilions in Area D. The third sector, for outdoor furnishings, will feature 300 exhibitors I five pavilions in Area B.

During the second phase, more than 1,000 exhibitors will present Office and Commerical Space. At the same time, CIFM/Interzum Guangzhou 2024 will host more than 1,400 Chinese and international brands, showcasing technologies, machinery, materials and components.Several thematic events, design exhibitions, seminars and conferences will be held throughout the two phases and eight days, ranging from the CMF Trend Lab to the China Smart Sleep Exhibition.In addition, organizers offer the InterBiz Club to offer services to international buyersCIFF also will organize factor visits to select companies based on buyers requests.

See also: CIFF Shanghai 2023 sees 10% increase in international attendance

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NEW YORK — In the wake of recent events in Israel, the Anti-Defamation League has been working closely with concerned individuals across the home furnishings industry and has prepared a statement in opposition to hate and terrorism in all its forms:

“We, members of the home furnishing industry, mourn the loss of innocent lives in Israel and strongly condemn all forms of terrorism. As we grieve with the families of those killed, injured and still missing, we collectively pray for peace for the entire Middle East region and the world as a whole.
“As an industry, we remain committed to working together to eliminate hatred and bigotry in all forms. We are a diverse group that will exhibit mutual respect as we strive to make the world a better place. We join together in our hope that one day we will experience peace throughout the world.”

The open letter campaign, to which all industry leaders and members can sign on, has already garnered more than 60 signatories including:

• American Home Furnishings Alliance
• Andrew Koenig
• Andrew P
• Andrew Vaysman
• Andy Counts
• April Aldridge
• Barry Cole
• Bassemiers Fireplace, Patio & Spas, Inc.
• Bedgear
• Bernie & Phyl’s Furniture
• Bowman’s Stove & Patio
• Bruce Birnbach
• Bruce Erickson
• Bruce Levy
• Carl Philips
• Charlie Birnbach
• Christopher Karman
• City Furniture
• Craig Smith
• Danielle Rubin
• Daniel’s Amish Collection
• David Cintorino
• Davis Direct
• Diane Bassemier
• Edward Massood
• Elegant Outdoor Living
• Eli Hymer
• Eric Easter
• Eugene Alletto
• Fruehauf’s Patio
• Gasper Home & Garden Showplace
• Gat Caperton
• Gefen Productions
• Global Furniture USA
• Interlude Home, Inc.
• Jackson Furniture/Catnapper
• Jake Rubin
• Joe Johnston
• Johnston Casuals
• Jordan’s Furniture
• Joshua Silver
• Judy Miller
• Karen Brams
• Keith Jackson
• Kevin Cole
• Kevin Fay
• Kim Smith
• Kith furniture
• Kittle’s Furniture
• Kristine Schultz
• Larry Rubin
• Lindsay Rubin
• M. Rubin
• Massood Logistics
• Max Home
• Michael Grossman
• Mike Najarian
• Morris Furniture Co.
• Najarian furniture
• Offenbachers Home Escapes
• O’Malia’s Living
• Out Back Patio Furnishings
• Patios Plus, Inc.
• Patricia Bowling
• Rachel Pepe
• Raymour & Flanigan
• Robert Rubin
• Salvador Llanos
• Scott Horvath
• Seth Goldberg
• Seth Weisblatt
• Summer Classics Home, Highland Park
• Terry England
• The North American Home Furnishings Assn.

Concerned industry members who would like to sign the letter can do so here.

The ADL also has a number of resources and statements on conflict available on its website to help companies deal with grief and trauma employees may be experiencing at this time.

To learn more about ADL’s Home Furnishings Industry Advisory Board and about ADL resources, please contact Jessica Schapiro, ADL Southern Division director of institutional impact, at JSchapiro@adl.org.

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DELFT, The Netherlands — Affordability is the watchword for Ikea’s global operations as the company doubles down on efforts to keep prices in line for its shoppers, as outlined in its fiscal year-end report.

“Intensification of internal efforts to reduce material and manufacturing costs led to a decrease in Ikea retail prices at the end of FY23,” said Jon Abrahamsson Ring, CEO of Inter Ikea Group. “In challenging times when inflation is high and many people struggle with the cost of living, the need for home furnishings solutions at affordable prices is high.

“This where we will continue to do what Ikea has always done: putting customers’ affordability first. Looking further ahead, the three main opportunities we see for Ikea are to become even more affordable, more accessible and more sustainable,” said Ring.

Inter Ikea Group, which handles retail concepts, products and supply for the worldwide Ikea franchise, recorded a 6.6% increase in retail sales for its fiscal year ended Aug. 31 based on total sales of EUR 47.6 billion for fiscal 2023 vs. EUR 44.6 billion for the 2022. Total sales include products, food and services sold by the 12 Ikea franchisees worldwide.

The company said that during the fiscal year product availability improved because of closer collaboration with partners across its supply chain to solve logistical constraints, such as those experienced during the pandemic-related supply chain shortages.

Among the achievements Inter Ikea Group cited were its 71 new stores, including many small format or plan-and-order points. Small stores were added in Copenhagen, Madrid, Rome, San Francisco and Toronto, among other locations. It also entered two new markets: South America, with a store in Colombia, and a first-ever site in New Zealand.

Store visitors rose during the year to 860 million, up from 822 million in fiscal 2022. Online visitors, while fewer than in past years (3.8 billion compared with 4.3 billion), accounted for 23% of sales vs. 22% the previous year.

Fiscal 2023 marked Ikea’s 80th anniversary, which was celebrated by rediscovering some favorite designs and reimagining them with new colors, materials and production techniques.

Ikea’s U.S. operations achieved more than $5.9 billion in sales in fiscal 2022, including $3.99 billion in furniture, bedding and accessories, to rank it No. 3 in the Furniture Today Top 100.

See also:

• Ikea befouls its own furniture in controversial Norway TV ads
• 2 things Ikea is doing to promote sustainability

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WASHINGTON — American consumers could lose $31 billion in spending power if U.S. tariffs are raised on common household products like microwaves and T-shirts imported from China, according to a new report by the National Retail Federation.

The study, “Estimated Impacts of Changes to China’s Tariff Status,” examines how ending the country’s permanent normal trade relations (PNTR) trade status would impact five specific consumer product categories including toys, furniture, apparel, household appliances and footwear.

Policymakers are expressing a growing interest in changing trade policy and practices between the United States and China, including the potential removal of China’s PNTR status. PNTR is a legal status that extends to China the same tariff rates applied to other U.S. trading partners. Congress approved China’s PNTR status in 2000 when it officially joined the World Trade Organization.

NRF and other industry organizations are examining the potential effect this would have on businesses, consumers and the economy. Eliminating China’s PNTR status would subject imports from China – both finished goods and inputs to production – to significantly higher tariff rates.

“Even though significant efforts have been made in recent years to diversify sourcing, China continues to play an important role in the supply chain of many retailers and other global industries, from sourcing raw materials to manufacturing and production,” NRF Vice President of Supply Chain and Customs Policy Jonathan Gold said. “It would be impossible for American families to escape the higher costs from dramatic tariff increases on necessities such as apparel, footwear, furniture, appliances and toys.”

Key findings in the report include:

• Higher U.S. tariffs on imports from China resulting from the revocation of PNTR for China would cost American consumers $31 billion, or $240 per household, in higher prices for widely used products.
• The prices of toys would increase by more than 21%, or $93 per household.
• The prices of other consumer goods would rise as well: Household appliances by nearly 7%; shoes by nearly 5%; furniture by 4%; and apparel by nearly 2%.
• Low-income households, which spend greater shares of their incomes on these products than high-income households, would be hit the hardest.
• These cost increases would negatively impact the effort to lower inflation for households overall.

The study was commissioned by NRF and prepared by Trade Partnership Worldwide LLC.

See also:

• Economy is expanding, but at a slower pace, says NRF economist
• Factory activity in China contracts for the first time in three months

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ASHEBORO, N.C. — According to several local news reports, a Canadian foam and fiber manufacturer, VPC Group, has bought a foam plant and fabrication plant that were operated by Klaussner Furniture Inds. before it closed on Aug. 7.

Both plants are located in Randolph County, N.C., and the new owner intends to rehire former employees, according to court records.

According to WFMY News 2, court documents show that VPC has paid “a substantial deposit, including a non-refundable portion.” Yahoo Finance reported that the deal to buy Prestige Fabricators for $7 million has been approved in N.C. Business Court.

Prestige produced foam materials for upholstery and is reported to have employed about 50 people at the two plants.

See also:

• Parker House buys Klaussner’s former Vietnam office
• EJ Victor taps former Klaussner exec to lead sales
• Liberty names Ashley, Klaussner veteran as new vice president of sales

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