The Rowe Companies operates two subsidiaries in the home furnishings industry: Rowe Furniture, Inc. (Rowe), a manufacturer of upholstered furniture serving the middle and upper middle market; and Storehouse, Inc. (Storehouse), a retailer of home furnishings. Rowe's products encompass a full line of upholstered furniture including sofas, loveseats, occasional and dining chairs, ottomans and sleep sofas. These products are available in over 1,000 different fabrics. Certain selected pieces are available covered in leather. Styles offered include traditional, contemporary and transitional designs. Rowe sells its products to over 1,200 accounts with normal credit terms being net 30 days. Shipments to its top three unaffiliated customers, as a percentage of consolidated net shipments were 7% in each of FY 05 (Nov.), FY 04 and FY 03. Shipments to Rowe's top ten unaffiliated customers as a percent of consolidated net shipments amounted to 13% in each of FY 05, FY 04 and FY 03. Shipments to Storehouse were $20,217,000 in FY 05, $19,557,000 in FY 04 and $19,898,000 in FY 03. As of April 2006, Storehouse operated 69 retail stores in the Southeastern, Southwestern and Mid-Atlantic regions, mainly in the Atlanta, Georgia metropolitan area, the Washington, DC/Baltimore metropolitan area and in Florida and Texas. These stores sell upholstered furniture (most provided by Rowe); leather furniture; case goods, such as tables, bedroom furniture, chairs and entertainment centers; and lamps, rugs and other accessories. Approximately 49% of Storehouse's product purchases were from foreign vendors in FY 05.
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