38
2022 // SUPPLY CHAINS TO ADMIRE
Furniture
For 2022, Sleep Number places for a fourth consecutive year. Chasing the lower cost of labor, furniture manufacturers outsourced manufacturing and secured global sourcing relationships. As labor prices shifted, margins declined 80%, but returned to 2010 levels in the pandemic. Inventory Turns declined 75% from 2012-2021. Laggards in managing the global supply chain, regional players outpaced those with a more global presence.
Table 24. Furniture Sector Evaluation for the Period of 2012-2021
INDUSTRY: Furniture
COMPANY INFORMATION
IMPROVEMENT
PERFORMANCE
VALUE
RETURN ON INVESTED CAPITAL
GROWTH (Year Over Year Revenue)
2021 REVENUE
SUPPLY CHAIN INDEX
INVENTORY TURNS
OPERATING MARGIN
PRICE TO BOOK
MARKET CAPITALIZATION
NAME
2012 - 2021
Bassett Furniture Industry
$486.53
1
7.5%
3.07
3.8%
6.4%
1.30
225
Ethan Allen Interiors Inc
$685.17
3
0.5%
2.20
7.9%
9.1%
1.97
725
Flexsteel Industries
$478.93
4
4.3%
3.60
4.2%
5.5%
1.34
255
HNI Corp
$2,184.41
10
2.0%
10.75
5.9%
10.9% 3.52
1,755
Hooker Furniture
$540.08
9
15.3%
4.88
6.4%
7.7%
1.52
301
Howden Joinery Group
$2,880.39
2
8.5%
2.66
16.3%
46.8% 3.68
2,842
Hunter Douglas
$3,543.00
12
3.4%
2.51
6.9%
8.6%
0.87
1,578
MillerKnoll Inc
$2,465.10
5
3.9%
5.42
7.2%
13.1% 2.37
1,417
La-Z-Boy
$1,734.24
7
3.8%
5.43
10.5%
11.4% 4.41
5,532
Leggett & Platt
$5,072.60
11
4.2%
11.42
7.5%
11.9% 3.48
2,011
NACCO Industry
$191.85
8
-2.7%
2.99
-18.1%
8.9%
0.70
180
Natuzzi
$505.69
15
-2.1%
3.03
-3.8%
-9.7%
0.69
101
Sleep Number
$2,184.95
6
11.6%
7.68
8.1%
67.4% 4.33
1,402
Steelcase
$2,596.20
14
1.4%
11.84
5.2%
9.0%
2.38
1,843
Tempur Sealy
$4,930.80
13
15.4%
7.70
12.0%
10.8% 27.68
4,153
MEAN WITH OUTLIERS
4%
5.86
0.06
16%
4.01
1,414
MEAN WITHOUT OUTLIERS
1,807
4%
5.86
0.07
10%
2.41
1,414
Medical Device
For 2022, Intuitive Surgical places in the Winner's Circle for the third time and ResMed for the second time in nine years. Medtronic was an early leader that failed to place in the last five years. With high margins, the Medical Device industry is slow to build supply chain processes, and no company stepped up to be an industry leader in the building of value chains. Over the decade, operating margins were flat at 19% while Inventory Turns declined 14%.
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