The annual revenue of American furniture brands fell by 13%. Here are the reasons

Recently, Sensen Holdings released its 2020 annual report. The report shows that Sensen Holdings' American brands, including Global Furniture, Traditional Classic Furniture, Baker and Kraft, had a total revenue of US$397.6 million in 2020, a decrease of 13% from US$457.24 million in 2019.

The data showed that the company lost $15.7 million, or $0.45 per share, for the full year ended December 31, far lower than the $48.5 million, or $1.56 per share, reported in 2019.

According to Sen Sen Holdings, the company's revenue decline was mainly related to the global outbreak of the COVID-19 pandemic and the shortage of international containers, which was the main reason for the delay in confirming orders and shipments. The company also said that its one-time non-cash loss of $41.3 million in a Chinese subsidiary was caused by trade tensions between China and the United States . As the global COVID-19 pandemic continues, the fixed costs associated with it remain.

In addition to the above brands, Lacquer Craft Mfg, Legacy Classic Kids, Grand Manor Furniture and LacquerCraft Hospitality were also affected. Most of the company's revenue of $397.6 million during the reporting period came from the US market, with the rest coming from China and other countries, and almost all of its revenue came from furniture sales.

The report also listed the company's total net assets at $151.1 million, down from $167.5 million in 2019. Its cash and cash equivalents fell to $26 million from $62.7 million on December 31, 2019. The report also noted that by 2020, the company had received $12.76 million in government grants in the United States and $479,000 in government grants in China to obtain financial support to maintain its subsidiaries' salaries and operating expenses during the pandemic.

In fact, the COVID-19 pandemic has had a significant impact on the entire furniture industry and the Sen Sen Group. Despite the extended lockdown and supply chain disruptions in the furniture industry caused by the COVID-19 pandemic, Sen Sen's e-commerce has still grown.

Customers are open to new sales models, and Sen Sen has reduced its reliance on offline store sales. It has also introduced new home delivery and cross-season sales, and established new relationships with partners. This has been beneficial to Sen Sen, and its online business has continued to develop and expand.

Sensen Holdings

Annual Report

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