Note 4 - Inventories

3 Months Ended

Mar. 01, 2014

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

4. Inventories

Inventories are valued at the lower of cost or market. Cost is determined for domestic furniture inventories using the last-in, first-out (LIFO) method. The costs for imported inventories are determined using the first-in, first-out (FIFO) method.

Inventories were comprised of the following:

	March 1, 2014			November 30, 2013
Wholesale finished goods	$	27,665		$	28,450
Work in process		333			277
Raw materials and supplies		8,155			8,029
Retail merchandise		26,531			25,167
Total inventories on first-in, first-out method		62,684			61,923
LIFO adjustment		(7,488	)		(7,561	)
Reserve for excess and obsolete inventory		(1,351	)		(1,293	)
	$	53,845		$	53,069

We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, taking into account future demand, market conditions and the respective valuations at LIFO. The need for these reserves is primarily driven by the normal product life cycle. As products mature and sales volumes decline, we rationalize our product offerings to respond to consumer tastes and keep our product lines fresh. If actual demand or market conditions in the future are less favorable than those estimated, additional inventory write-downs may be required. In determining reserves, we calculate separate reserves on our wholesale and retail inventories. Our wholesale inventories tend to carry the majority of the reserves for excess quantities and obsolete inventory due to the nature of our distribution model. These wholesale reserves primarily represent design and/or style obsolescence. Typically, product is not shipped to our retail warehouses until a consumer has ordered and paid a deposit for the product. We do not typically hold retail inventory for stock purposes. Consequently, floor sample inventory and inventory for delivery to customers account for the majority of our inventory at retail. Retail reserves are based on accessory and clearance floor sample inventory in our stores and any inventory that is not associated with a specific customer order in our retail warehouses.

Activity in the reserves for excess quantities and obsolete inventory by segment are as follows:

	Wholesale Segment			Retail Segment			Total
Balance at November 30, 2013	$	1,001		$	292		$	1,293
Additions charged to expense		407			93			500
Write-offs		(389	)		(53	)		(442	)
Balance at March 1, 2014	$	1,019		$	332		$	1,351

Our estimates and assumptions have been reasonably accurate in the past. We have not made any significant changes to our methodology for determining inventory reserves in 2014 and do not anticipate that our methodology is likely to change in the future.