Sales for the fourth quarter were $76.5 million, down 13% from fourth quarter 2005 levels. Net income was $0.4 million compared with $2.1 million in the fourth quarter of 2005. Year-to-date, sales were $328.2 million, down 2% from the prior year. Net income was $5.4 million compared with $9.8 million in 2005.

On a wholesale basis, net sales were $65.9 million for the fourth quarter of 2006, 14% below the $77.1 million sales level attained in the fourth quarter of 2005. For the year, wholesale sales were $284.8 million, 5% below sales levels attained in 2005. Overall, the segment’s gross margins increased by one percentage point in 2006 compared with 2005 and year-over-year operating earnings increased  by $2.5 million. This improvement was primarily driven by an improved mix of imported products and the performance of the upholstery division. Upholstery shipments and operating earnings continued to improve thanks to new imported leather products introduced to the company’s range over the past several years as well as the retail acceptance of the company’s custom programmes.

Retail sales for the fourth quarter were $21.5 million, 10% below fourth quarter 2005 levels. For the year, sales were $84.4 million, up $13.9 million from 2005. The increase in sales for 2006 was as a result of the company  acquiring more stores during 2005.

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