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Haverty Furniture(HVT) - 2025 Q2 - Quarterly Report
2025-08-05 15:43
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number: 1-14445 HAVERTY FURNITURE COMPANIES, INC. (Exact name of registrant as specified in its charter) Maryland 58-0281900 (State ...
Haverty Furniture(HVT) - 2025 Q2 - Earnings Call Transcript
2025-07-31 15:00
Financial Data and Key Metrics Changes - Company reported Q2 2025 sales of $181 million, a 1.3% increase year-over-year, with comparable store sales down 2.3% [3][18] - Gross margin improved to 60.8% from 60.4%, reflecting product selection and merchandising mix [18] - Pre-tax profits decreased to $4.3 million, with an operating margin of 2.4%, down from $6.5 million and 3.6% in Q2 2024 [3][18] - Earnings per share (EPS) for the quarter was $0.16, compared to $0.27 in the same quarter last year [3][18] Business Line Data and Key Metrics Changes - Total written sales increased by 0.4%, while design and special order business saw a mid-single-digit decline due to tariff impacts [4][9] - Average ticket size decreased slightly to just under $3,400, while designer average ticket grew approximately 5% to over $7,600 [4][9] - Upholstery and bedroom categories outperformed with low to mid-single-digit positive sales, while dining room and decor categories experienced high single-digit declines [9] Market Data and Key Metrics Changes - Traffic remained positive in the mid-single digits compared to the same period last year, with a notable increase during the Memorial Day event [4][6] - Organic traffic increased by 15.6% following the implementation of Adobe's Edge delivery service [7] - Web sales grew by 8.4% for the quarter, attributed to improved digital marketing strategies [7] Company Strategy and Development Direction - Company aims to return to positive same-store sales and is focused on enhancing customer experience through new point of purchase and tagging programs [10][12] - Plans to open five new stores annually, with two new stores in Houston and one relocation in Daytona Beach planned for 2025 [12][14] - Company is actively managing supply chain challenges and tariff uncertainties while maintaining gross margin guidance [11][15] Management's Comments on Operating Environment and Future Outlook - Management noted a struggling housing market with high interest rates and inflation concerns but highlighted consumer resilience [4][15] - Confidence in maintaining gross margin guidance despite potential tariff impacts, with proactive vendor communication [11][22] - Management expressed optimism about gradual improvement in sales trends and plans to invest more in marketing strategies [37][48] Other Important Information - Selling, general, and administrative expenses increased by 4.1% to $107.3 million, representing 59.3% of sales [19] - Company has no funded debt and ended the quarter with $107.4 million in cash and cash equivalents [20][21] - Anticipated capital expenditures for 2025 remain at $24 million, focusing on new store openings and IT investments [23] Q&A Session Summary Question: Can you speak to the cadence of your written sales throughout the quarter and any notable regional differences? - Written business was down around 2% in April, up almost 1% in May, and up around 2.5% in June, with no significant regional differences noted [26] Question: Can you quantify the impact of suspending special orders from China on same-store business? - Management acknowledged the impact on design business but could not quantify the exact effect [27][28] Question: Have you taken any pricing actions regarding tariffs, and what are your expectations? - Pricing adjustments were made in May, and management is prepared to adjust pricing based on final tariff outcomes [29][30] Question: What marketing strategies do you believe will be most impactful in driving same-store sales? - New pricing strategy and successful marketing campaigns, including extended promotions, are expected to drive traffic and conversion rates [35][36] Question: How do you view the promotional environment across the industry? - Management feels confident in their promotional strategies and plans to increase marketing investments while maintaining brand integrity [40][42] Question: What is the outlook for store openings and the real estate environment? - Store openings have been pushed to 2026, but management remains optimistic about finding suitable locations and maintaining reasonable rents [49][51]
Haverty Furniture (HVT) Q2 Earnings and Revenues Beat Estimates
ZACKS· 2025-07-30 22:55
Group 1: Earnings Performance - Haverty Furniture reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.27 per share a year ago, representing an earnings surprise of +6.67% [1] - The company posted revenues of $181.03 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.34%, compared to year-ago revenues of $178.6 million [2] - Over the last four quarters, Haverty Furniture has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Haverty Furniture shares have declined approximately 5% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.29 on revenues of $185.3 million, and for the current fiscal year, it is $1.15 on revenues of $740.85 million [7] Group 3: Industry Context - The Retail - Home Furnishings industry, to which Haverty Furniture belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Haverty Furniture's stock performance [5] - Williams-Sonoma, another company in the same industry, is expected to report quarterly earnings of $1.78 per share, reflecting a year-over-year change of +2.3% [9]
Haverty Furniture(HVT) - 2025 Q2 - Quarterly Results
2025-07-30 20:31
[Havertys Furniture Q2 2025 Earnings Release](index=1&type=section&id=Havertys%20Furniture%20Q2%202025%20Earnings%20Release) [Operating Results Highlights](index=1&type=section&id=Operating%20Results%20Highlights) The company reports its first year-over-year sales growth since Q4 2022, though diluted EPS declined - The company achieved **year-over-year sales growth for the first time since Q4 2022**, alongside strong gross margins and positive traffic trends, despite a challenging economic environment[2](index=2&type=chunk) Q2 2025 vs. Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Diluted EPS | $0.16 | $0.27 | | Consolidated Sales | $181.0M (+1.3%) | $178.6M | | Comparable Store Sales | -2.3% | N/A | | Gross Profit Margin | 60.8% | 60.4% | [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) A detailed analysis of sales, profitability, expenses, balance sheet, and cash flow for Q2 and H1 2025 is presented [Second Quarter 2025 vs. Second Quarter 2024](index=2&type=section&id=Second%20Quarter%202025%20vs.%20Second%20Quarter%202024) Q2 2025 saw a 1.3% sales increase and improved gross margin, but higher SG&A expenses impacted profitability Q2 2025 Sales Performance | Metric | Change | | :--- | :--- | | Total Sales | +1.3% | | Comp-Store Sales | -2.3% | | Total Written Business | +0.4% | | Comp-Store Written Business | -2.1% | - **Gross profit margins increased to 60.8%** in Q2 2025 from 60.4% in Q2 2024[7](index=7&type=chunk) - **SG&A expenses increased by $4.2 million**, driven by higher administrative, occupancy, and advertising costs[7](index=7&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company maintained a strong balance sheet with $113.8 million in cash and no debt as of June 30, 2025 - The company has a strong balance sheet with **$113.8 million in cash** and cash equivalents and no debt outstanding as of June 30, 2025[7](index=7&type=chunk) Cash Flow and Shareholder Returns (Six Months Ended June 30, 2025) | Item | Amount (in millions) | | :--- | :--- | | Cash from Operating Activities | $13.4 | | Capital Expenditures | ($11.7) | | **Free Cash Flow** | **$1.7** | | Dividends Paid | $10.4 | | Share Repurchases | $2.0 | | **Total Cash Returned to Shareholders** | **$12.4** | [2025 Outlook and Guidance](index=2&type=section&id=2025%20Outlook%20and%20Guidance) Full-year 2025 guidance is reaffirmed for gross margin and fixed SG&A, with a lowered outlook for variable SG&A - The company is monitoring tariff developments and the current guidance **excludes the effects of additional proposed tariffs**[7](index=7&type=chunk) Full Year 2025 Guidance | Metric | Guidance Range/Value | | :--- | :--- | | Gross Profit Margins | 60.0% to 60.5% (Unchanged) | | Fixed & Discretionary SG&A | $291.0M to $293.0M (Unchanged) | | Variable SG&A (% of sales) | 18.5% to 18.8% (Decreased) | | Effective Tax Rate | ~26.5% (Excluding discrete items) | | Capital Expenditures | ~$24.0M | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Unaudited condensed financial statements provide a quantitative view of the company's performance and position [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 net income fell to $2.7 million from $4.4 million year-over-year due to higher SG&A expenses Q2 2025 Income Statement Highlights (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $181,025 | $178,636 | | Gross profit | $110,102 | $107,984 | | SG&A | $107,333 | $103,099 | | Income before income taxes | $4,326 | $6,453 | | Net income | $2,689 | $4,438 | | Diluted EPS (Common) | $0.16 | $0.27 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets were $642.7 million as of June 30, 2025, with cash decreasing and inventories increasing Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $107,357 | $120,034 | | Inventories | $93,270 | $83,419 | | Total current assets | $236,148 | $238,896 | | Total assets | $642,672 | $648,747 | | Total current liabilities | $130,514 | $131,565 | | Total liabilities | $337,801 | $341,186 | | Stockholders' equity | $304,871 | $307,561 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $13.4 million for the first six months of 2025, driven by inventory changes Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,377 | $17,542 | | Net cash used in investing activities | ($11,683) | ($15,900) | | Net cash used in financing activities | ($14,237) | ($13,352) | | **Net decrease in cash** | **($12,543)** | **($11,710)** | | Cash at end of period | $113,771 | $116,067 | [Supplemental Information](index=8&type=section&id=Supplemental%20Information) Additional context includes non-GAAP reconciliations, metric definitions, and investor information [GAAP to Non-GAAP Reconciliation](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) EBITDA for the first six months of 2025 increased to $18.7 million from $16.8 million in the prior year EBITDA Reconciliation (Six Months Ended June 30, in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Income before income taxes | $9,619 | $9,648 | | Interest income, net | ($2,746) | ($3,022) | | Depreciation and amortization | $11,831 | $10,147 | | **EBITDA** | **$18,704** | **$16,773** | [Definitions and Classifications](index=8&type=section&id=Definitions%20and%20Classifications) Key definitions for comp-store sales and classifications for gross profit and SG&A expenses are provided - **Comparable-store sales** indicate the performance of existing stores and the website by comparing sales growth over the corresponding month in the prior year[16](index=16&type=chunk) - The company's **gross profit may not be comparable to other retailers** because it includes most occupancy and home delivery costs within SG&A expense rather than Cost of Goods Sold[17](index=17&type=chunk) - SG&A expenses are classified as **variable** (selling, delivery) and **fixed/discretionary** (rent, advertising, administrative)[18](index=18&type=chunk) [Company and Investor Information](index=8&type=section&id=Company%20and%20Investor%20Information) Logistical and legal information for investors includes conference call details and a Safe Harbor statement - A conference call is scheduled for **July 31, 2025, at 10:00 a.m. ET**[19](index=19&type=chunk) - Havertys, established in 1885, is a full-service home furnishings retailer with **129 showrooms in 17 states**[20](index=20&type=chunk) - The release contains **forward-looking statements** subject to the safe harbor provisions, which involve risks and uncertainties[21](index=21&type=chunk)[24](index=24&type=chunk)
3 High-Yield Bargains to Watch in 2025's Second Half
MarketBeat· 2025-07-17 13:34
Group 1: Bloomin' Brands - Bloomin' Brands is facing challenges such as weak comparable store growth and rising costs, exacerbated by the divestiture of its Brazilian holding as part of a long-term repositioning strategy [3][4] - The company is focusing on core operations, simplifying the menu, improving efficiencies through technology investments, and implementing a value-oriented marketing campaign [4] - Despite business contraction, the dividend yield stands at 6.27% with a recent annual dividend of $0.60, and the payout ratio is notably high at -2,000% [3][4] Group 2: Flowers Foods - Flowers Foods is transitioning from traditional baked goods to healthier options, supported by strategic acquisitions to enhance its good-for-you portfolio [8][9] - The company has a dividend yield of 6.34% with an annual dividend of $0.99 and a payout ratio of 91.67%, indicating sustainability due to strong cash flow and a healthy balance sheet [8][9] - Institutional ownership is significant, with approximately 75% of shares held by institutions, and they have been actively buying in recent quarters [10] Group 3: Haverty Furniture Company - Haverty Furniture Company is experiencing sluggish home sales and consumer pullback, leading to eight consecutive quarters of revenue contraction, although growth is expected to resume in the latter half of 2025 [13][14] - The dividend yield is 6.16% with an annual dividend of $1.28, but the payout ratio is concerning at 101.59%, indicating higher risk [12][13] - The company maintains a strong balance sheet with no debt and a total liability of slightly more than one times equity, providing a robust financial position [15]
HVT vs. WSM: Which Stock Is the Better Value Option?
ZACKS· 2025-07-01 16:41
Core Viewpoint - The comparison between Haverty Furniture (HVT) and Williams-Sonoma (WSM) indicates that HVT may offer better value for investors at this time due to its stronger earnings outlook and favorable valuation metrics [1][3]. Group 1: Zacks Rank and Earnings Outlook - HVT has a Zacks Rank of 2 (Buy), while WSM has a Zacks Rank of 3 (Hold), suggesting that HVT has a stronger improvement in its earnings outlook compared to WSM [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for value investors [2]. Group 2: Valuation Metrics - HVT has a forward P/E ratio of 15.65, significantly lower than WSM's forward P/E of 19.15, indicating that HVT may be undervalued relative to WSM [5]. - HVT's PEG ratio is 1.30, while WSM's PEG ratio is 2.64, further suggesting that HVT is more attractive in terms of expected earnings growth [5]. - HVT's P/B ratio is 1.08, compared to WSM's P/B of 9.3, highlighting HVT's better valuation in terms of market value versus book value [6]. Group 3: Value Grades - HVT has earned a Value grade of A, while WSM has a Value grade of C, reinforcing the notion that HVT is the superior choice for value investors at this time [6].
Are Investors Undervaluing Haverty Furniture Companies (HVT) Right Now?
ZACKS· 2025-07-01 14:41
Core Viewpoint - Haverty Furniture Companies (HVT) is currently identified as a strong value stock, holding a Zacks Rank 2 (Buy) and an "A" grade in the Value category, indicating its potential for undervaluation in the market [4][8]. Valuation Metrics - HVT has a Forward P/E ratio of 10.98, significantly lower than the industry average of 20.76, with historical fluctuations between 9.18 and 23.87 over the past 12 months [4]. - The PEG ratio for HVT stands at 0.92, compared to the industry average of 2.34, indicating a favorable valuation relative to expected earnings growth [5]. - HVT's P/S ratio is 0.46, which is much lower than the industry average of 1.26, suggesting that the stock is undervalued based on sales performance [6]. - The P/CF ratio for HVT is 7.64, compared to the industry average of 13.84, reflecting a strong cash flow outlook and further supporting the undervaluation thesis [7]. Investment Outlook - The combination of HVT's strong earnings outlook and favorable valuation metrics positions it as one of the market's strongest value stocks, appealing to value investors [8].
Haverty Furniture(HVT) - 2025 Q1 - Quarterly Report
2025-05-02 16:14
PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 2025 financial statements reflect a **57.9% increase in net income** to **$3.8 million** despite a slight sales decrease, alongside improved operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to **$642.7 million**, with a reduction in cash and a marginal decrease in stockholders' equity Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$642,690** | **$648,747** | | Cash and cash equivalents | $111,941 | $120,034 | | Inventories | $88,704 | $83,419 | | **Total Liabilities** | **$337,329** | **$341,186** | | **Total Stockholders' Equity** | **$305,361** | **$307,561** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2025 net sales slightly decreased by **1.3%** to **$181.6 million**, but net income significantly increased by **57.9%** to **$3.8 million** Q1 2025 vs. Q1 2024 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $181,567 | $183,997 | -1.3% | | Gross Profit | $111,083 | $111,019 | +0.1% | | Income Before Income Taxes | $5,293 | $3,195 | +65.7% | | **Net Income** | **$3,778** | **$2,393** | **+57.9%** | | Diluted EPS (Common) | $0.23 | $0.14 | +64.3% | - Cash dividends per share for Common Stock increased to **$0.32** in Q1 2025 from **$0.30** in Q1 2024[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 net cash from operating activities increased to **$6.2 million**, while cash used in financing activities rose due to **$2.0 million** in stock repurchases Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,154 | $3,135 | | Net cash used in investing activities | ($6,122) | ($6,351) | | Net cash used in financing activities | ($8,058) | ($6,698) | | **Decrease in cash** | **($8,026)** | **($9,914)** | - The company repurchased **$2.0 million** of common stock in Q1 2025, whereas no repurchases were made in Q1 2024[11](index=11&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, single reportable segment operations, **44.8%** of sales from upholstery, and an **$80.0 million** revolving credit facility with no outstanding borrowings Revenue by Product Category - Q1 2025 vs Q1 2024 (in thousands) | Category | Q1 2025 Net Sales | % of Sales | Q1 2024 Net Sales | % of Sales | | :--- | :--- | :--- | :--- | :--- | | Case Goods | $58,052 | 32.0% | $59,085 | 32.1% | | Upholstery | $81,415 | 44.8% | $82,935 | 45.1% | | Mattresses | $15,804 | 8.7% | $16,600 | 9.0% | | Accessories and Other | $26,296 | 14.5% | $25,377 | 13.8% | - The company operates as a single reportable segment, with financial and operational decisions made on a market area approach[23](index=23&type=chunk) - As of March 31, 2025, the company had full availability of **$80.0 million** under its revolving credit facility, with no outstanding borrowings[20](index=20&type=chunk)[55](index=55&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **1.3%** Q1 2025 net sales decline to macroeconomic factors, while gross profit margin improved to **61.2%** and SG&A expenses decreased by **2.0%** [Net Sales](index=17&type=section&id=Net%20Sales) Q1 2025 net sales decreased by **1.3%** to **$181.6 million**, with comparable-store sales down **4.8%** due to macroeconomic factors, though in-home design services showed positive trends Q1 Sales Performance | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $181.6M (-1.3%) | $184.0M (-18.1%) | | Comp-Store Sales Change | -4.8% | -18.5% | - Written business for Q1 2025 was down **2.6%** compared to Q1 2024, with written comp-store sales down **6.3%**[47](index=47&type=chunk) - In-home design consultants drove **33.2%** of total written sales in Q1 2025, up from **32.4%** in Q1 2024, with the average ticket increasing from **$6,782** to **$7,422**[48](index=48&type=chunk) [Gross Profit](index=17&type=section&id=Gross%20Profit) Gross profit margin for Q1 2025 improved by **90 basis points** to **61.2%**, driven by favorable product selection and merchandising mix - Gross profit margin increased to **61.2%** in Q1 2025 from **60.3%** in Q1 2024, a **90 basis point** improvement[49](index=49&type=chunk) [Selling, General and Administrative Expenses](index=17&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) Q1 2025 SG&A expenses decreased by **$2.2 million** (**2.0%**) to **$107.2 million**, improving to **59.0%** of sales due to lower variable costs SG&A Expense Breakdown (in thousands) | Expense Type | Q1 2025 | % of Sales | Q1 2024 | % of Sales | | :--- | :--- | :--- | :--- | :--- | | Variable | $33,647 | 18.5% | $36,986 | 20.1% | | Fixed and discretionary | $73,555 | 40.5% | $72,370 | 39.3% | | **Total SG&A** | **$107,202** | **59.0%** | **$109,356** | **59.4%** | [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$111.9 million** in cash and full availability of its **$80.0 million** credit facility, with operating cash flow improving to **$6.2 million** - At March 31, 2025, the company had **$111.9 million** in cash and cash equivalents and **$6.3 million** in restricted cash[54](index=54&type=chunk) - Net cash provided by operating activities increased to **$6.2 million** in Q1 2025 from **$3.1 million** in Q1 2024[59](index=59&type=chunk) - Cash used in financing activities increased by **$1.4 million** YoY, primarily due to **$2.0 million** in common stock repurchases in Q1 2025[61](index=61&type=chunk) [Store Plans and Capital Expenditures](index=19&type=section&id=Store%20Plans%20and%20Capital%20Expenditures) The company is managing its store portfolio with planned openings and closures, while re-evaluating 2025 store plans and capital expenditures due to potential tariff impacts 2025 Store Activity Plan | Location or Market | Planned Quarter | Activity | | :--- | :--- | :--- | | Houston, TX | Q1-25 | Open | | Daytona, FL | Q2-25 | Relocation | | Atlanta, GA | Q2-25 | Closure | | Waco, TX | Q3-25 | Closure | | Houston, TX | Q3-25 | Open | - The company is re-evaluating its store plans and capital expenditures for 2025 to minimize the impact of increased tariffs[62](index=62&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes to its market risk exposure since the end of fiscal year 2024 - There has been no material change in the company's market risk exposure since December 31, 2024[64](index=64&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[65](index=65&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[66](index=66&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=20&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending legal proceedings expected to have a material adverse effect on its financial condition or operations - The company is subject to various claims in the ordinary course of business but currently has no pending legal proceedings expected to have a material adverse effect[40](index=40&type=chunk)[68](index=68&type=chunk) [Item 1A. Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred from the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes from the risk factors described in the company's Form 10-K have occurred[69](index=69&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=20&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) In Q1 2025, the company repurchased **93,741** common shares for approximately **$2.0 million**, with **$6.1 million** remaining under the repurchase program Q1 2025 Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Jan 2025 | 0 | $— | $8,121,000 | | Feb 2025 | 0 | $— | $8,121,000 | | Mar 2025 | 93,741 | $21.34 | $6,121,000 | [Item 5. Other Information](index=20&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement in Q1 2025[72](index=72&type=chunk) [Item 6. Exhibits](index=21&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and financial statements in inline XBRL format - Key exhibits filed include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and financial data in inline XBRL format (Exhibit 101)[74](index=74&type=chunk)
Haverty Furniture(HVT) - 2025 Q1 - Earnings Call Transcript
2025-05-01 15:02
Financial Data and Key Metrics Changes - Q1 2025 sales were $181.6 million, a decrease of 1.3% year-over-year, with comparable store sales down 4.8% [3][18] - Gross margins increased to 61.2% from 60.3%, reflecting improved product selection and merchandise mix [4][18] - Pre-tax profits rose to $5.3 million, with an operating margin of 2.9%, compared to $3.2 million and 1.7% in Q1 2024 [4][19] - Net income for Q1 2025 was $3.8 million, or $0.23 per diluted share, compared to $2.4 million, or $0.14 per share in the same quarter last year [19] Business Line Data and Key Metrics Changes - The design business accounted for approximately 33% of total business, with an average ticket of over $3,300, up about 4% [6] - The designer average ticket grew to over $7,400, an increase of over 9% [6] - Weakness was noted in dining and occasional categories, while upholstery, bedroom, and mattress categories performed in line with expectations [6] Market Data and Key Metrics Changes - Written sales were down 2.6% with comparable sales down 6.3% [3] - Sales for Presidents' Day were disappointing, down roughly 10% over the two-week period [5] - Traffic softened but remained positive in the low single digits, with conversion rates stabilizing and showing some improvement compared to last year [5] Company Strategy and Development Direction - The company plans to roll out a new point of purchase and tagging program to enhance the in-store customer experience [7] - The strategy includes increasing inventories of best-selling products to mitigate supply chain disruptions due to tariffs [11][12] - The company aims to open five new stores annually, with a cautious approach based on current market conditions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with Q1 results despite challenges such as housing market lows, high interest rates, and declining consumer confidence [4][16] - The company is well-positioned to navigate challenges due to its strong brand, debt-free balance sheet, and customer focus [17] - Future guidance includes expectations for gross margins between 60% and 60.5% for 2025, factoring in current tariffs [21][22] Other Important Information - Inventory levels increased by approximately $5 million or about 6% since year-end 2024 [11] - The company has no funded debt and ended Q1 with $111.9 million in cash and cash equivalents [20] - CapEx for Q1 2025 was $6.1 million, with a planned reduction to $24 million for the year due to tariff uncertainties [22] Q&A Session Summary Question: Impact of winter storms on business - Management noted that January was down almost 2% in written business, February down about 5%, and March was flat, with multiple storms impacting operations [26][27][28] Question: Price increases due to tariffs - Management confirmed targeted price increases will be implemented, but they expect minimal impact on consumers due to supplier cooperation [31][32] Question: Changes in competition - Management observed aggressive promotions from competitors but did not believe promotional activity was the primary issue affecting sales [34][35] Question: Reduction in CapEx guidance - Management explained the $3 million reduction in CapEx was due to tariff uncertainties, leading to a cautious approach on store expansion [36][37] Question: Performance of new stores - Management expressed satisfaction with new store performance, noting they leverage existing distribution networks and initial traffic has been good [47][48]
Haverty Furniture(HVT) - 2025 Q1 - Earnings Call Transcript
2025-05-01 15:02
Financial Data and Key Metrics Changes - Q1 2025 sales were $181.6 million, a decrease of 1.3% year-over-year, with comparable store sales down 4.8% [3][18] - Gross margins increased to 61.2% from 60.3%, reflecting improved product selection and merchandise mix [4][18] - Pre-tax profits rose to $5.3 million, with an operating margin of 2.9%, compared to $3.2 million and 1.7% in Q1 2024 [4][19] - Net income for Q1 2025 was $3.8 million, or $0.23 per diluted share, compared to $2.4 million, or $0.14 per share, in the same quarter last year [19] Business Line Data and Key Metrics Changes - The design business accounted for approximately 33% of total business, with an average ticket of over $3,300, up about 4% [6] - The designer average ticket grew to over $7,400, an increase of over 9% [6] - Weakness was noted in dining and occasional categories, while upholstery, bedroom, and mattress categories performed in line with expectations [6] Market Data and Key Metrics Changes - Written sales were down 2.6% with comparable sales down 6.3% [3] - Sales for the Presidents' Day event were disappointing, down roughly 10% over the two-week period [5] - Traffic softened but remained positive in the low single digits, with conversion rates stabilizing and showing some improvement compared to last year [5] Company Strategy and Development Direction - The company plans to roll out a new point of purchase and tagging program to enhance the in-store customer experience [7] - The strategy includes increasing inventories of best-selling products to improve service speed and mitigate tariff impacts [11][12] - The company aims to open five new stores annually, with a cautious approach due to current market conditions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with Q1 results despite challenges from the housing market, high interest rates, and consumer confidence issues [4][16] - The company is well-positioned to navigate challenges due to its strong brand, debt-free balance sheet, and customer focus [17] - Future guidance includes expectations for gross margins between 60% and 60.5% for 2025, factoring in current tariffs [21][22] Other Important Information - SG&A expenses decreased by $2.2 million or 1.9% to $107.2 million, representing 59% of sales [19] - Inventory levels increased by approximately $5 million or about 6% since year-end 2024 [11][20] - The company has halted most direct shipments from China due to tariffs, which could cause temporary supply disruptions [10] Q&A Session Summary Question: Impact of winter storms on business - Management noted that January was down almost 2% in written business, February down about 5%, and March was flat, with multiple storms impacting operations [26][27][28] Question: Price increases due to tariffs - Management confirmed targeted price increases will be implemented, but they expect minimal impact on consumers due to supplier cooperation [31][32] Question: Changes in competition - Management observed aggressive promotions from competitors but did not believe promotional activity was the primary issue affecting their performance [34][35] Question: Reduction in CapEx guidance - Management explained the $3 million reduction in CapEx was due to tariff uncertainty, prompting a cautious approach to store expansion [36][37] Question: Performance of new stores - Management reported positive performance from new stores, leveraging existing distribution networks, and noted that initial traffic has been good [47][48]