2004 2005 2006 2007 2008 2009 2010

Sales 2057 10415 26701 51540 79191 90680 111451

Sales growth rate 406% 156% 93% 54% 15% 23%

Total furniture sales growth 5.15% 3.4% -1.50% -10.4% -13.40% 1.2%
Sales
Showrooms started in 2003 2057 3754 5224 6148 6341 5503 5636
Showrooms started in 2004 6,661 11,907 15,158 16,488 15,446 16,187
Showrooms started in 2005 9,570 16,651 19,785 20,951 22,847
Showrooms started in 2006 13,583 21,142 23,592 29,702
Showrooms started in 2007 15,435 22,001 30,466
Showrooms started in 2008 3,187 5,176
Showrooms started in 2009 1,437
Showrooms started in 2010
Showrooms started in 2011
Showrooms started in 2012
Showrooms started in 2013
Showrooms started in 2014
Showrooms started in 2015

2003 73.6% 34.6% 19.5% 15.1% 0.2% 1.2%

2004 72.9% 29.2% 21.4% 8.2% 3.6% 3.5%
2005 76.6% 32.6% 22.3% 7.8% 3.8% -3.1%
2006 73.7% 28.9% 24.4% 11.4% -1.2%
2007 64.6% 36.8% 26.2% 6.3%
2008 60.5% 35.7% 23.6%
2009 69.2% 36.6%
2010 70.4%
2011
70.2% 33.5% 22.9% 9.7% 1.6% 0.5%

Sales/squaTotal squarTotal sales in (000)

2012 110 510000 56100
2013 113.2 525000 59430
2014 116.6 560000 65296
2015 119.9 600000 71940
 2011 2012 2013 2014 2015 2016
134093 148218
20% 11%

3.1% 3.4% 3.05% 2.6% 2.2% 2.0%

5871 6034
17,279 17,869
24,451 24,499
34,105 34,824
39,628 43,541
7,244 9,257
2,507 3,540
3,008 5,300
3,354
56100
59430
65296
71940

1.0% -0.6%
0.0%
Teuer’s sales growth was a combination of organic growth from the operation of current showrooms and from the opening of n

examine the historic growth of Teuer’s existing showrooms as a function of how long they had been open (the cohort age).

Based on the firm’s model, the forecasts for sales per square foot were 110.0, 113.2, 116.6, and
119.9 for showrooms opened in 2012, 2013, 2014, and 2015, respectively.
 2004 2005 2006 2007 2008 2009 2010 2011
Sales 2,057 10,415 26,701 51,540 79,191 90,680 111,451 134,093

Cost of goods sold -1,463 -7,057 -17,424 -30,730 -43,834 -47,290 -49,068 -55,487
-71% -68% -65% -60% -55% -52% -44% -41%
Selling general and a -410 -1,812 -4,958 -9,230 -13,576 -14,679 -16,471 -18,698
-19.9% -17.4% -18.6% -17.9% -17.1% -16.2% -14.8% -13.9%
Advertising -203 -1,019 -2,411 -4,588 -6,585 -7,532 -8,367 -9,545
-9.9% -9.8% -9.0% -8.9% -8.3% -8.3% -7.5% -7.1%
Depreciation -72 -307 -669 -1,264 -2,075 -2,188 -2,032 -1,820
3.50% 2.95% 2.51% 2.45% 2.62% 2.41% 1.82% 1.36%
Lease -250 -1,080 -2,330 -4,240 -6,770 -7,380 -7,712 -8,450
12.15% 10.37% 8.73% 8.23% 8.55% 8.14% 6.92% 6.30%
Corporate expense -185 -729 -1,602 -3,092 -4,751 -5,441 -5,573 -6,705
-8.99% -7.00% -6.00% -6.00% -6.00% -6.00% -5.00% -5.00%
 2012
148,218

-61,955
-42%
-21,253
-14.3%
-10,744
-7.2%
-1,450
0.98%
-9,320
6.29%
-7,411
-5.00%
 2012 2013 2014 2015 2016 20
Sales 70.20% 33.50% 22.90% 9.70% 1.50% 0.30%

CGS 70.90% 63.70% 56.20% 39.70%

SGA 19.30% 18.30% 17.30% 13.60%
Advertising 10.60% 8.90% 8.20% 7.20%
Lease
Corporate expense
Year Stores opeTotal storeSales/squaSquarefee Total squarTotal sales in (000)

2012 3 29 110 16300 536700 59037

2013 2 31 113.2 16000 568700 64376.84
2014 2 33 116.6 16000 600700 70041.62
2015 2 35 119.9 15000 630700 75620.93