Berkshire Hathaway’s furniture stores rebound in Q3

OMAHA, Neb. — Berkshire Hathaway’s retailing revenues rebounded in the third quarter, thanks in part to a surge in business at its home furnishings chains.


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Retailing group revenues increased 4.3% to $4.2 billion in the quarter and were down 4.2% to $11.2 billion for the first nine months vs. the same periods a year ago. Home furnishings group revenues increased 8.5% in the third quarter and were off 4.9% through the first nine months.

Berkshire didn’t break out pre-tax earnings for the furniture business but for the overall retailing group, pre-tax earnings rose 64.4% in the third quarter to $309 million and were up 1.7% to $590 million through the first nine months.

Berkshire’s furniture division includes Nebraska Furniture Mart (and its Homemakers division), R.C. Willey, Star Furniture and Jordan’s Furniture. Combined, they account for about 20% of the company’s retailing revenues. 

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Other retailer group businesses include Berkshire Hathaway Automotive — its largest — three jewelry store chains, See’s Candies, Pampered Chef, Oriental Trading Company, and a Germany-based retailer of motorcycle accessories. 

In its quarterly statement, Berkshire noted how the spread of COVID-19 resulted in temporary closures and restricted operations at some stores and “significantly lower sales in the first half of the year.

“The severity and duration of the effects on our operations from the pandemic have varied widely,” it said. “Sales volumes increased and operating results improved beginning in the latter part of the second quarter as our operations slowly reopened.”

All business segments and holdings combined, Berkshire posted third-quarter net earnings of $30.41 billion, up from $16.52 billion a year ago, driven largely by big gains in its stock portfolio. Total revenues declined slightly to $63.02 billion.

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Clint Engel

Clint Engel is a veteran home furnishings industry journalist and executive editor of Home News Now. Please share your feedback with him at clint@homenewsnow.com

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