January2017_MonthlyUpdate-FINAL

MONTHLY UPDATE: JANUARY 2018
MONTHLY UPDATE
President’s Note Bew White and William White
Happy New Year to everyone! And we hope you had a wonderful Christmas. This has been an
amazing year for Summer Classics and Gabby. Gabby grew 40%, Contract grew 20% and SC
wholesale grew 9%. Not only that, but Retail grew more than 20% in what many people call the
most challenging brick and mortar period of our lifetime. And, we expect similar increases for 2018
in retail and contract.
Next week our new SC showroom opens in Atlanta in building one across from Gabby. The following
week Gabby opens a new showroom on the first floor entrance to the World Trade Mart in Dallas.
Then, we head to Las Vegas where we show all lines SC, Gabby, Wendy Jane and Private Label.
We will soon be announcing a joint venture with a boutique hotel here in Alabama opening in
March. This will give us a venue to display our products in multiple settings, including wedding
venue, hotel and conference.
The Jacksonville Store construction is underway and scheduled to finish in March. This building
was completed in 1926 and sits in downtown Jacksonville with immediate access to I-95. Upgrades
on our other locations are also underway.
Other big 2017 Accomplishments:
• Implementation of WMS
• Paid off the debt for almost 4 months
• Enclosed and added HVAC to the cushion factory
• Moved all operational offices to the center of the building
• Mew key hires that included: EVP of Business Development; Chief
Marketing Officer: 3 in-house sales representatives; new designer;
2 new visual merchants; in-house recruiter; director of customer
experience
• Implemented EOS
• Added our own print shop
• Introduced over 500 new products
• Started Wendy Jane
• Opened a new store/ licensee in DALLAS
Gabby Supplier of the
Year
• Showed Gabby, SC, and private label in same VEGAS showroom
• Hired an in house recruiter
• Implemented an in-house sales department
• Purchased a building in Jacksonville Florida to open a new store
• Implemented Essentials on Gabby and SC cushions on frames
• Reopened the cafe in headquarters building
• Added Gabby to Garden Party, and celebrated the largest
Garden Party in company history
• Added 100+ new fabrics to the line
• Moved container shipping to Mobile,AL
A special congratulations to the employees who won the most dedicated
employee of the year: Jamie Monroe (overall), Scott Deason (cushion plant) and Micah
Tricia Tao--last year’s Asia Employee of the Year
Ray(distribution). The D in design stands for dedicated and they exemplify that trait. And congratulations
to all of you for these great 2017 accomplishments––we look forward to the new promises
that 2018 has in store!
William and Bew
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MONTHLY UPDATE: JANUARY 2018
Accounting
Janet Roberson, CFO
As 2017 came to a close the Company marked another record setting year with the
highest revenues and profits in our history. We realized double digit sales growth, excellent
cash flow, and better than average profits as a percentage of net sales.
I want to thank each of you for your role in our success. Without great people no Company can
sustain the growth we’ve been privileged to realize in the last several years.
With the completion of our 2018 business plan I look forward to an even better year ahead. I
wish all of you a happy and prosperous new year and thank you in advance for your help in our
continued success.
Marketing and Design
Amy Myers, CMO
Mount Agung’s eruption that closed the Bali airport might have slightly delayed our design team
on their travels to Asia, but it didn’t stop them from having an incredibly productive trip. Matt,
Leigh Anne, Kai-ning, Jill, William, Chris, Tom, and Jim all visited many Gabby and SC factories
in Indonesia, Vietnam, and China. Gabby is working on product for High Point in April and has
many new exciting designs and finishes. SC is working on 2019 season launch and has some great
product as well. We are excited about the progress of the first prototypes – we are becoming more
efficient with our design process and making things that fit our customer’s needs as well as drive
market trends. We are all excited about the direction this upcoming year.
December was a busy month with our teams squeezing in one final Gabby photo shoot and
showroom preparations for Dallas and Atlanta. On top of that, the close of the Jacksonville property
has the team busy with orders and plans for the new space. Our graphics team has been busy
putting together materials for our three big January shows and planning for our big Gabby catalog.
Our social media has gained incredible traction in 2018, and we’ve forged great partnerships with
designers, including our StyleMakers. StyleMakers Park and Oak picked the Gabby Cassidy Coffee
Table as a top pick in the Layla Grace end-of-the-year newsletter.
We’d like to congratulate our
department’s Jamie Monroe for
winning the employee of the year this
year. It’s extremely well-deserved. And
we’re also thrilled with Jamie’s 2017
news ––Jamie and LeeAlice’s beautiful
November 11 wedding.
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Contract Update
Don Smith, VP of Sales SC Contract
MONTHLY UPDATE: JANUARY 2018
December has been a great month in the contract division! We had two reps come to the corporate
office for training at the beginning of the month. Lindsey Malone (Washington D.C. area) and Jennie
Harper (North Carolina, South Carolina, parts of Florida) were able to receive detailed training on
Summer Classics and Gabby while they were here. They will be well equipped to kick off the new
year and introduce the new 2018 SC Contract catalog to their customers.
Our department was so excited that Libby Fowler was recognized for 10 years of dedication to
Summer Classics at the Christmas party. Libby is a tremendous asset to our department. She is a
leader and always makes sure that the team has the information that they need to excel at their
jobs. Libby works very hard to ensure that all projects are executed efficiently and in a timely
manner. We appreciate her hard work every day and it was great to see her be recognized!
Throughout the year we install many resorts and unique hospitality projects across the country.
Sara Kaiser was thrilled to work on the J.W. Marriott in Scottsdale, AZ project with Leo A Daly in
Dallas, TX to design custom cabanas for their pool area. Custom cabanas are a luxurious amenity
for a hospitality property and create a unique space for the clientele. Our cabanas are custom
designed and engineered for the project’s specific design aesthetic.
The reps across the country have been excited to present the new 2018 SC Contract catalog to their
customers. The new collections have been very well received by the contract design community.
We are very excited about the upcoming year and the big projects that we are planning!
Libby Fowler recieves 10 Year Award
J.W. Marriott Camelback Inn
Resort & Spa in Scottsdale, AZ.
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Retail Update
MONTHLY UPDATE: JANUARY 2018
“Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience
can instill in us. Cheers to a new year and another chance for us to get it right.” ~Oprah Winfrey
2017 has been an AMAZING Year for Retail! We are so proud of the many WONDERFUL people
that work in our stores and the clients they serve. The continued growth both personally and
professionally with focus on what we “CAN DO” and Enjoying every minute of it. As a Team, we
CAN do anything and this year proved that with some INCREDIBLE Record Breaking Written Sales
Statistics:
#1 – Charlotte with 19% growth!
#2 – Atlanta with 35% growth!
#3 – Pelham Showroom with 12% growth!
#4 – Pelham Outlet with 18% growth!
#5 – Nashville with 39% growth!
#6 – Raleigh with 23% growth!
#7 – Louisville Licensee with 21% growth!
#8 – Chicago Licensee with 65% growth!
#9 – St. Louis with 42% growth!
Top Sellers in ALL of these stores which we will announce next month but let’s just say we Celebrated
our WINS and Enjoyed the month:
Nashville
Marianne Minogue, VP of Retail
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MONTHLY UPDATE: JANUARY 2018
San Antonio
Charlotte
Atlanta
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MONTHLY UPDATE: JANUARY 2018
Raleigh
Pelham
St. Louis
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MONTHLY UPDATE: JANUARY 2018
Sales Update Schon Duke, VP of Sales
Usain Bolt’s reaction time out of the starting blocks in the 100-meter final in Rio was 0.155 of a
second… “This incredible feat of getting out of the “blocks” faster than anyone else is a secret to
his dominance in sprinting…”
Happy New Year! Are you ready for 2018? What is your strategy? I am a big believer in getting out
of the runner’s blocks “fast” at the beginning of the year. We have some really exciting investments
and direction that should help our business grow in the first quarter. I am looking forward to
increased growth and market share gains in both of our brands in 2018. The national economy
story is improving, and I believe we are positioned perfectly to grow again. We are expecting
+10-15% growth at Summer Classics and +30% growth in Gabby in 2018. The outdoor category
continues to be the fastest growing category in the furniture industry and no one is positioned in
the ‘high end’ like Summer Classics. We are perfectly set as the “go-to designer brand,” and our
competition is struggling to find their identity. Quality, fashion/fabrics and compelling products
are all the hallmarks of the Summer Classics brand. Gabby is simply a “juggernaut” and in 9 years
has made its mark on the industry already. Gabby has great designs and value that are relevant
to the trends in the indoor furniture industry. Pricing concerns with the high-end brands continue
to mount and their pool of consumer that can purchase continues to shrink. Mid and high-end
designers/dealers are looking for lines to meet this changing environment in the furniture industry.
Gabby has the potential to be doubled again in 2018. Let’s take this unique opportunity that we
have and build on the momentum from 2017 and capitalize in 2018!
Highlights for January 2018:
• New Showroom in Atlanta Americas Mart (SC right next to the Gabby Showroom)
• New Showroom in Dallas World Trade Center (Gabby: Massive showroom on first floor just by the
main entrance of the building
• 2018 Essentials Products and program. This is where we “hang our hat on” in 2018. Tell this story!
Huge Investment in products!
• New Support Management: Steve Bennett (more to come on this)
• Las Vegas Market: continued investment in this market for our West Coast territories. Drive the
brand awareness and expose the design trade to our Brands.
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MONTHLY UPDATE: JANUARY 2018
Human Resources
The New Year brings the excitement and encouragement to start over or simply begin a new
healthier lifestyle. Goals for the new year should be realistic and achievable. Long-lasting
results are not overnight quick fixes. One way to achieve a healthier lifestyle is to balance
your food choices to help ensure you are getting a variety of nutrients in your diet.
Some tips include:
• Learn to read food labels.
• Avoid buying super-sized foods.
• Share a meal with a friend.
• Have your waiter half your entrée before you begin eating {plus then you’ll already have
lunch prepared for the next day!}.
• Use a smaller plate.
• Avoid immediately going back for seconds.
Being healthy is a revolutionary act. The crucial letters i wellness are we. Remember, we are
here for you!
Christmas Party Awards
10-Year Awards:
James Belyeu – Distribution (Corporate Office) 6/15/2007
Juston Fisher – Retail Warehouse (Charlotte, NC) 6/28/2007
Libby Fowler – Customer Service (Corporate Office) 4/16/2007
Carole Gaston – Retail Sales (Atlanta, GA) 9/28/2007
Terence Jones – Distribution (Corporate Office) 11/26/2007
Ellen Mims – Accounting & Finance (Corporate Office) 1/16/2007
Courtney Peoples – Distribution (Corporate Office) 5/22/2007
Josephine Wilson – Cushions (Corporate Office) 4/13/2007
Annual Awards
2017 Most Dedicate Employee:
Jamie Monroe
2017 Operations Employee
of the Year in Cushions:
Scott Deason
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2017 Operations Employee
of the Year in Distribution:
Micah Ray

MONTHLY UPDATE: JANUARY 2018
New Hires
Please help us welcome the following employees to our team!
Margo Scoggins
Travis Green
Christie Anderson
Morgan Runnels
Jonathan Neu
Wymarcus Smith
Lauren Monday
HR
Distribution
Cushions
Cushions
Retail - St. Louis
Distribution
Retail - Charlotte
WELCOME ABOARD!
W.I.T. Whatever It Takes Monthly Award
Alfonso Sanchez, Manual Cutter
Alfonso is an employee that everyone enjoys being around because he is
always smiling and always willing to help anyone. He truly demonstrates all
the CORE values. He is a hard worker, he is dedicated, he is a team player,
and he is enthusiastic all the time. He helps people in other departments
without asking anyone to do so. Ask anyone in the Cushion Plant about
him and they will say he is awesome.
Pam Cheung, VP of Asia Operations
As our VP of Asia Operations, Pam Cheung has a made a huge
difference. First and foremost, he has built a strong, enthusiastic
team that takes great pride in their work. They never complain
and they up for any challenge. They all work long hours and show pride in their work.
Managing inspections, improving production processes and strengthening relationships
with almost 30 suppliers across 4 countries in Asia is a big challenge but there’s no one we
would rather have leading that effort than Pam. He is constantly on the go, ensuring that our
products are made to our specs, safe and delivered on time. It’s not
uncommon for Pam to work all through the night if something needs
to be done.
We have made a great deal of progress thanks to his “whatever it takes
spirit.”
Pam credits his team for this honor and recognition and that’s what
humble leaders do. Please join me in congratulating Pam.
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MONTHLY UPDATE: JANUARY 2018

NAME DEPARTMENT BIRTHDATE
Kelly Johnstone Retail Management 1
Ed Lansaw Sales 2
Stevie Crews Distribution 3
Rachel Paster Accounting 5
Julie Campbell Accounting 6
Kimberly Gothard Cushions 6
Michael Dodwell Sales 6
Savonah Vidal Cushions 12
Brandon Brown Distribution 12
William White Executive Management 12
Lacristen Crews Cushions 13
Mochell Hughes Customer Service 18
Angela Hill Retail - Richmond January 19
Tom Livingston Executive Management 19
Paula Dunklin Cushions 20
Michele Simpson Sales-Customer Service 24
Lou Ann Allen Cushions 26
Kelynn Keegan Retail - Richmond 26
Michael Shears Distribution 27
Deanne Puryear Retail - Raleigh 27
Jeffery O’Bryant Retail Management 27
Jodie Talbert Quality Assurance 28
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MONTHLY UPDATE: JANUARY 2018
Christmas Party
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Inspiring Thoughts
MONTHLY UPDATE: JANUARY 2018
“Write it on your heart that every day is the best day in the year.”
– Ralph Waldo Emerson
“Your success and happiness lies in you. Resolve to keep happy, and
your joy and you shall form an invincible host against difficulties.”
– Helen Keller
“Every time you tear a leaf off a calendar, you present a new place for
new ideas and progress.”
– Charles Kettering
““Life begins at the end of your comfort zone.” – Neale Donald Walsch
“Tomorrow is the first blank page of a 365 page book. Write a good
one.” – Brad Paisley
“And suddenly you know: It’s time to start something new and trust the
magic of beginnings.”
– Meister Eckhart
CORE VALUES
Dedication | Enthusiasm | Synergy | Integrity | Goal-oriented | Nimble
OUR BRANDS:
WHOLESALE | CONTRACT SALES | PRIVATE LABEL | SC HOME STORES
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