Leading global manufacturer of innovative luxury outdoor furniture and accessories including outdoor kitchens
Considered the gold standard in outdoor furnishings due to company’s iconic, award winning designs and quality
Designs, manufactures and markets retail and contract furnishings under the brand names Brown Jordan, Tommy Bahama, Pompeii, Winston, Vineyard, Molla, Tradewinds, Stuart Clark, Werner Woods, Casual Living, Loewenstein, Charter, Lodging by Charter, Wabash Valley, Texacraft, and Tropic Craft.
Headquartered in Pompano Beach, Florida, with offices and manufacturing facilities located both domestically and internationally.
Opportunities and Challenges:
EBITDA had decreased from a run rate of $40M to annualized $17M
Overhead had increased three-fold
Layered, non-responsive corporate office had been established
Inventory levels and costs were out of control
Off-shore sourcing in constant state of disruption
Poor quality in company’s own facilities
Solutions and Results:
Focus efforts on overhead and operating costs
Eliminate “corporate office” structure
Establish four distinct market-focused SBUs
Utilize China sourcing and logistics
Increased Mexican manufacturing efforts and enhanced efficiency of Mexican operations
Refocus SKU management and responsibilities
Reduce SKUs by over 40% in the “traditional” market channel
Establish detailed focus on cost
No “Silver Bullets”; enforce cost and quality discipline
EBITDA doubled in two years, tripled in three.
Drove manufacturing cost efficiencies from operating margin in low 20s to mid-40s
Improved “big box” channel profitability by 30% – from an average of 14% to 18%
Each SBU became its own profit center
Regained leadership position “channel-by-channel” in product offering and design through disciplined product design and replacement process and procedures
Improved employee turnover while reducing employee costs with consumer-driven health insurance