With the Support of Tempur-Pedic, Havertys Furniture is Donating More than 70 Mattresses to NC-Based Non-Profit and Hosting a Military Appreciation Event on May 3 Across All Its 130 ShowroomsATLANTA, May 1, 2025 /PRNewswire/ -- Havertys Furniture is proud to announce its Military Appreciation Event, taking place on Saturday, May 3, across all 130 Havertys showrooms. This event kicks off Military Appreciation Month, and recognizes and celebrates local military families, both active and veterans, for their br ...

Haverty Furniture Companies (HVT) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Richard Hare, Chief Financial Officer. Thank you, sir. You may begin. Speaker1 Thank you, operator, and good morning. During this conference call, we'll make forward looking statements, which are subject to risks and uncertainties. Actual results may differ materially from those made or implied in such statements, which spea ...

Haverty Furniture (HVT) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 64.29%. A quarter ago, it was expected that this residential furniture and accessories retailer would post earnings of $0.17 per share when it actually produced earnings of $0.47, delivering a surprise of 176.47%. ...

EXHIBIT 99.1 Havertys Reports Operating Results for First Quarter 2025 First quarter 2025 versus first quarter 2024: Steven G. Burdette, President and CEO said, "We are pleased to report solid first quarter results with improved gross margins, earnings, and expense control, despite facing several headwinds, including a weak housing market, atypical winter weather in the South, low consumer confidence, and significant shifts in trade policy. Throughout our 140-year history, we have consistently demonstrated ...

Store Operations and Expansion - As of December 31, 2024, Havertys operated 129 stores with approximately 4.5 million retail square feet, an increase from 124 stores and 4.387 million square feet in 2023[29]. - The company plans to open an average of five new stores per year, with the first store in Houston, TX, opened in 2024, targeting former "big box" retail sites[32]. - The company operates 129 retail stores totaling approximately 4.5 million square feet as of December 31, 2024[112]. - The number of stores increased to 129 in 2024, up from 124 in 2023[148]. Sales and Revenue - In 2024, approximately 33.6% of written sales resulted from consultations with in-home designers, with average sales tickets for designer visits being twice that of in-store sales[28]. - Total online sales for 2024 accounted for approximately 3.0% of Havertys' total business[36]. - Net sales for 2024 decreased by $139.2 million or 16.1% compared to 2023, attributed to the housing recession, inflationary pressures, and cautious consumer spending[148]. - Comparable store sales decreased by 16.7% in 2024, compared to a decrease of 18.4% in 2023[148]. - The average ticket value in 2024 was $3,371, reflecting a 3.0% increase over the previous year[148]. Financial Performance - Gross profit as a percentage of net sales remained stable at 60.7% for both 2024 and 2023, with a 100 basis point increase in gross profit margins excluding LIFO impact[150]. - Selling, general and administrative (SG&A) expenses decreased by $36.6 million or 8.0% in 2024, with SG&A as a percentage of net sales rising to 58.0% from 52.9% in 2023[155]. - The effective tax rate increased to 23.7% in 2024 from 22.5% in 2023[157]. - The company had $120.0 million in cash and cash equivalents and $6.3 million in restricted cash equivalents as of December 31, 2024[158]. - Net cash provided by operating activities in 2024 was $58.9 million, driven primarily by net income of $20.0 million and non-cash adjustments of $27.9 million[167]. Supply Chain and Sourcing - In 2024, Havertys' merchandise purchases from the largest ten suppliers accounted for approximately 41.3% of total product purchases[43]. - Approximately 20.8% of case goods sales and 5.9% of upholstery sales in 2024 were generated by direct imports[44]. - Approximately 58% of total furniture purchases in 2024 were for goods not produced domestically, exposing the company to political and economic risks associated with global sourcing[72]. - The company relies on third-party producers for nearly all products, which may lead to operational difficulties and affect timely delivery and quality[73]. - The company’s ability to forecast supply chain needs is critical, as significant deviations from projected demand may negatively impact operations and financial condition[78]. Employee and Training - As of December 31, 2024, Havertys' total workforce was 2,334, with 1,480 in retail operations and 645 in warehouse and delivery[49]. - The company invested approximately 117,000 hours in employee training and development in 2024[54]. - High employee turnover in the retail industry may lead to increased hiring and training costs, impacting operational efficiency[90]. - The company emphasizes the importance of attracting and retaining key management personnel to support strategic growth plans[92]. Risk Factors - The company faces significant competition from various retailers, including internet-only retailers and national department stores, which may impact market share and profitability[64]. - Cyber threats are evolving, and the company invests in security technology to protect against data breaches and cyber-attacks[87]. - The company faces risks from cybersecurity threats, with processes in place to manage these risks as part of its enterprise risk management[103]. - Economic downturns could adversely affect consumer spending on discretionary items, impacting sales and profitability[94]. - Rising oil and gasoline prices may negatively impact profitability due to increased transportation costs[97]. - The company is subject to risks associated with tariffs and import measures, which could lead to increased costs and affect pricing strategies[75]. Financial Reporting and Compliance - The consolidated financial statements of Haverty Furniture Companies, Inc. for the year ended December 31, 2024, present a fair view of the company's financial position compared to 2023[218]. - The audit opinion expressed an unqualified view on the financial statements, indicating no material misstatements were found during the audit[219]. - The company has maintained compliance with the PCAOB standards, ensuring the integrity of its financial reporting[221]. - No critical audit matters were identified during the audit, suggesting a stable financial reporting environment[222]. - The company’s internal control over financial reporting was evaluated, confirming its effectiveness as of December 31, 2024[219]. Capital Expenditures and Investments - Capital expenditures are expected to be approximately $27.1 million in 2025 to support operations and strategic expansion[159]. - Cash used in investing activities in 2024 consisted primarily of $32.1 million of capital expenditures, compared to $53.1 million in 2023[170][171]. - Total capital expenditures for stores in 2024 were $27.3 million, with planned outlays for 2025 projected at $22.7 million[173]. Stock and Dividends - The company has paid a cash dividend every year since 1935 and plans to continue quarterly cash dividends for the foreseeable future[128]. - The stock repurchase program has authorized an additional $25.0 million as of August 5, 2022, with approximately $8,121,000 remaining for repurchase as of December 31, 2024[129][130]. - The company repurchased 214,500 shares of Common Stock for $5.0 million during 2024, with approximately $8.1 million remaining under the existing authorization[163].

Financial Data and Key Metrics Changes - Fourth quarter sales were $184.4 million, down 12.5% year-over-year, with comparable store sales down 13.7% [5][20] - Total sales for the year decreased 16.1% to $722.9 million, with comparable sales down 16.7% [5] - Gross margins remained strong at 61.9% for the quarter and 60.7% for the year, despite a decrease of 50 basis points from the previous year [5][21] - Pre-tax profit for the quarter was $9.6 million, resulting in a 5.2% operating margin, while the annual pre-tax profit was $26.2 million with a 3.6% operating margin [6][21] - Net income for Q4 was $8.2 million or $0.49 per diluted share, compared to $15 million or $0.90 per share in the same quarter last year [24] Business Line Data and Key Metrics Changes - The design business accounted for approximately 32% of total business, with an average ticket of over $7,200, up over 8% [8] - Upholstery continued to perform well, with notable improvements in bedroom and mattress sales during the quarter [9] Market Data and Key Metrics Changes - Traffic improved slightly year-over-year in the low single digits for the quarter, with conversion rates stabilizing [7] - The average ticket rose by approximately 4% to just under $3,400 [8] Company Strategy and Development Direction - The company plans to roll out a new point of purchase and tagging program over the next two to three years to enhance customer experience [10] - Six new stores were opened in 2024, with plans for additional openings in Houston and other markets [12][13] - The supply chain team managed inventories effectively, reducing them by over 11% for the year, with expectations to increase inventories by 5% to 10% in the coming quarters [14][15] Management Comments on Operating Environment and Future Outlook - Management expressed concerns about the housing market due to rising mortgage rates, which could affect affordability [6][48] - The company anticipates a challenging demand environment in 2025, but hopes for improvements in the latter part of the year [51] - Management is committed to driving volume and maintaining stable margins despite potential tariff impacts [40][41] Other Important Information - The company ended the year with zero funded debt and over $120 million in cash [6][25] - Capital expenditures for 2024 were $32.1 million, with plans for $27.1 million in 2025 [25][28] Q&A Session Summary Question: Can you provide details on monthly trends for written or delivered sales? - Delivered sales were down in the low teens for October, November, and December, averaging 12.5% for the quarter, while written sales showed improvement towards the end of the quarter [32][33] Question: Has any positive momentum carried into the first quarter? - Management refrained from commenting on Q1 performance [35] Question: Were there regional differences in performance during Q4? - Florida and the central part of the country showed a bounce back, while the west and east were slightly weaker [37] Question: Can you elaborate on gross margin guidance and tariff impacts? - Management plans to mitigate tariff impacts through vendor relations and pricing adjustments, expecting stable margins in 2025 [39][40] Question: What is the demand environment expected in 2025? - Management anticipates a tough environment due to housing struggles and rising mortgage rates, but hopes for improvements later in the year [48][51] Question: What are the challenges in converting traffic to orders? - Conversion remains a key opportunity, with management testing strategies to improve this metric [52][53] Question: What is driving the increase in fixed SG&A guidance? - The increase is attributed to general inflation and occupancy costs related to new store openings [55]

Group 1: Earnings Performance - Haverty Furniture reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, but down from $0.89 per share a year ago [1] - The earnings surprise was 176.47%, while the previous quarter saw a negative surprise of -39.58% [2] - The company posted revenues of $184.35 million for the quarter, surpassing the Zacks Consensus Estimate by 1.29%, but down from $210.74 million year-over-year [3] Group 2: Stock Performance and Outlook - Haverty Furniture shares have declined approximately 5% since the beginning of the year, contrasting with the S&P 500's gain of 2.2% [4] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $176.33 million, and for the current fiscal year, it is $1.57 on revenues of $746.77 million [8] - The Zacks Rank for Haverty Furniture is currently 5 (Strong Sell), indicating expected underperformance in the near future [7] Group 3: Industry Context - The Retail - Home Furnishings industry, to which Haverty Furniture belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, suggesting a challenging environment [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Haverty's stock performance [6]

Financial Performance - Diluted earnings per share (EPS) for Q4 2024 decreased to $0.49 from $0.90 in Q4 2023, while full-year EPS dropped to $1.19 from $3.36[5] - Consolidated sales for Q4 2024 decreased by 12.5% to $184.4 million, and full-year sales fell by 16.1% to $722.9 million[5] - Comparable store sales declined by 13.7% in Q4 2024 and 16.7% for the full year[9] - Net income for the twelve months ended December 31, 2024, was $19,956,000, a decrease of 64.5% compared to $56,319,000 in 2023[15] - EBITDA for the twelve months ended December 31, 2024, was $41,682,000, down 51.5% from $85,805,000 in 2023[17] Profitability and Margins - Gross profit margin for Q4 2024 was 61.9%, down from 62.4% in Q4 2023, and remained at 60.7% for the full year[5] - SG&A expenses as a percentage of sales increased to 57.4% in Q4 2024 from 54.4% in Q4 2023[9] Cash Flow and Capital Expenditures - Cash generated from operating activities was $58.9 million, with a decrease in inventories of $10.5 million[9] - Net cash provided by operating activities decreased to $58,909,000 in 2024 from $97,203,000 in 2023, reflecting a decline of 39.4%[15] - Capital expenditures for 2024 were $32,092,000, a reduction of 39.5% compared to $53,115,000 in 2023[15] - The company plans capital expenditures of approximately $27.1 million for 2025[9] Shareholder Returns - The company returned $25.5 million to shareholders in 2024, including $5.0 million in share repurchases and $20.5 million in dividends[4] - Dividends paid in 2024 totaled $20,468,000, down 42.1% from $35,240,000 in 2023[15] Store Operations - The company opened five net new stores in 2024, marking a return to the Houston, TX market after approximately 40 years[3] Tax and Financial Metrics - The effective tax rate for 2025 is expected to be 26.5%[9] - The company emphasizes the importance of EBITDA as a meaningful measure for investors, supplementing GAAP financial results[16] - Comparable-store sales metrics are used to assess the performance of existing stores and online sales, indicating growth trends[18] Asset Management - Cash, cash equivalents, and restricted cash equivalents at the end of the period were $126,314,000, a slight decrease from $127,777,000 at the beginning of the period[15] - The company reported a net gain on the sale of land, property, and equipment of $153,000 in 2024, compared to a gain of $71,000 in 2023[15] - Changes in inventories resulted in a cash inflow of $10,537,000 in 2024, significantly lower than the inflow of $24,377,000 in 2023[15]

The market expects Haverty Furniture (HVT) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if ...

Group 1 - The stock of Haverty Furniture Companies, Inc. (HVT) is experiencing significant attention due to high implied volatility in the options market, particularly the Feb 21, 2025 $20 Call option [1] - Implied volatility indicates market expectations for future price movements, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Currently, Haverty Furniture holds a Zacks Rank of 5 (Strong Sell) in the Retail - Home Furnishings industry, with no analysts increasing earnings estimates for the current quarter and one analyst revising the estimate downward from 23 cents to 17 cents per share [3] Group 2 - The high implied volatility surrounding Haverty Furniture may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]