Gross Margins Improve 650 basis points
SPRINGFIELD, Mo., Nov. 4 /PRNewswire-FirstCall/ -- Decorize, Inc. a recognized leader in the home furnishings and accessories industry announced its fiscal year 2009 results.
The Company posted a full year profit for the first time in the history of the Company. The Company posted record operating income of $307,000 versus $15,000 a year ago and net income of $9,000 for its fiscal year ended June 30, 2009 versus a net loss of $585,000 last fiscal year. Gross margins were up 650 basis points from 34.4% a year ago to 40.9% for fiscal year 2009.
"The Decorize team achieved these phenomenal results in an extremely challenging economic climate," said Decorize Board of Directors member Rick Chalker. "The home furnishings industry has been hit hard by the recent drop in consumer spending. Posting record earnings during these challenging times is a testament to the Company's management and vertically integrated business model."
"Our vertically integrated design, production and logistics model, including our wholly-owned manufacturing facilities in Indonesia and China, allows us to stay ahead of the curve and react more quickly to changing business environments than our competitors," said President and Chief Executive Officer Steve Crowder. "Additionally, we have been able to substantially reduce manufacturing and logistics costs by maintaining our own overseas production facilities which has lead to significant increases in our gross margins over the past several years."
"Even more impressive than our fiscal year 2009 results is the fact that the recently concluded High Point Market was the Company's most successful market ever," said Chief Financial Officer Dan Graham. "While we are extremely pleased with fiscal year 2009, we are poised for even better results in fiscal year 2010. Our fiscal year 2010 plan calls for operating income of more than double that of 2009. Our results for the first quarter ended September 30, 2009 show that we are right on target to meet our fiscal year 2010 plan."
About GuildMaster
GuildMaster, Inc. specializes in designing, manufacturing and delivering the finest premium home accents directly from its production facilities in Indonesia and China to retailers across the U.S. The company has developed a vertically integrated design, sourcing and logistics model that reduces costs traditionally channeled into home furnishings. This model allows the company to remain on the leading edge of the market by identifying trends and developing product significantly faster than others. Because of its vertical integration, GuildMaster is able to serve its customers with shortened delivery times for custom orders. GuildMaster serves more than 3,000 retail accounts, including national brand names such as Neiman Marcus, May/Federated Stores, Rooms To Go, Broyhill Furniture Industries, Dillards, OfficeMax, Home Depot, and Sears-The Great Indoors. For more information, visit the GuildMaster web site at www.guildmaster.com or on facebook at www.facebook.com/pages/GuildMaster-on-Tour/47980244486
Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements about the future performance of GuildMaster, economic trends, and other forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including and without limitation, continued acceptance of GuildMaster's products, increased levels of competition for the company, new products and technological changes, GuildMaster's dependence on third-party suppliers, and other risks. GuildMaster provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release.
Contact
GuildMaster, Inc.
Steve Crowder, CEO
(417) 879-3326
s.crowder@guildmaster.com
SOURCE Decorize, Inc.
For further information: Steve Crowder, CEO of GuildMaster, Inc., +1-417-879-3326, s.crowder@guildmaster.com
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