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]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Haverty Furniture (HVT) due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Haverty Furniture is expected to report quarterly earnings of $0.17 per share, reflecting a significant year-over-year decrease of 80.9% [3]. - Projected revenues for the quarter are $182.02 million, which is a decline of 13.6% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 27.66% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Haverty Furniture is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +9.09% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is generally a strong indicator of an earnings beat, especially when combined with a favorable Zacks Rank [8]. - However, Haverty Furniture currently holds a Zacks Rank of 5, complicating the prediction of an earnings beat despite the positive Earnings ESP [11]. Historical Performance - In the last reported quarter, Haverty Furniture was expected to earn $0.48 per share but only achieved $0.29, resulting in a surprise of -39.58% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Conclusion - While the potential for an earnings beat exists, Haverty Furniture does not appear to be a compelling candidate for such an outcome, and investors should consider other influencing factors before making decisions [16].

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]

Company Overview - HAVERTYS is a home furnishings retailer with 127 showrooms in 17 states, focusing on the Southern and Midwestern regions, and specializes in middle to upper-middle price ranges [1] Leadership Transition - On Nov 12, 2024, HAVERTYS announced that CEO Clarence H. Smith will retire and transition to executive chairman effective Jan 1, 2025, after 50 years with the company [2] Q3 2024 Earnings Report - HAVERTYS reported Q3 2024 earnings of $0.29, missing consensus estimates by $0.19 or 39.6%, with sales falling 20.2% to $175.9 million and comparable-store sales decreasing 20.5% [3][4] - Design consultants accounted for 34.5% of written business compared to 29% last year [3] Market Conditions - The company noted that consumers remain cautious about making big-ticket purchases, influenced by lower home sales and stagnant homeowner movement [4] - Despite the challenges, HAVERTYS opened a new store in the quarter and plans to open three more locations, expecting to end 2024 with 129 locations [4] Financial Performance - Gross margin held steady at 60.2%, slightly down from 60.8% the previous year [4] - Analysts have cut earnings estimates for 2024 and 2025, with the 2024 Zacks Consensus Estimate dropping to $0.93 from $1.45, a 71% decrease from 2023 earnings of $3.25 [6] Balance Sheet Strength - HAVERTYS maintains a strong balance sheet with no outstanding debt as of Sep 30, 2024, and credit availability of $80 million [7][8] - Cash and cash equivalents totaled $127.4 million, and the company has consistently paid cash dividends since 1935, currently yielding 5.5% [8] Stock Performance - HAVERTYS shares are at multi-year lows due to pessimism in the furniture market, trading with a forward P/E of 24.9 [9] - The stock has moved in tandem with other housing-related stocks, and investors interested in a housing rebound should consider keeping HAVERTYS on their watch list [9]

Sales Performance - Total sales for Q3 2024 decreased by $44.4 million, or 20.2%, compared to Q3 2023, with comp-store sales down 20.5% or $44.9 million [45]. - For the nine months ended September 30, 2024, total sales decreased by $112.8 million, or 17.3%, with comp-store sales down 17.7% or $114.0 million compared to the same period in 2023 [46]. Profitability - Gross profit margin for Q3 2024 was 60.2%, a decrease of 60 basis points from 60.8% in Q3 2023 [49]. - The company expects annual gross profit margins for 2024 to be between 60.0% and 60.5% [51]. Expenses - SG&A costs as a percentage of sales for Q3 2024 were 57.4%, up from 51.1% in Q3 2023, largely due to decreased sales [52]. - The company anticipates variable SG&A expenses for the full year of 2024 to be between 19.6% and 19.9% [58]. Cash and Capital Expenditures - Cash and cash equivalents at September 30, 2024, totaled $121.2 million, with an additional $6.2 million in restricted cash equivalents [59]. - Total capital expenditures for the full year of 2024 are estimated to be $33.0 million, depending on the timing of spending for capital projects [66]. Store Expansion - The company plans to open five net new locations, ending 2024 with a total of 129 stores, increasing net selling space by approximately 3.4% over 2023 [66]. Cash Flow - Operating cash flow for the first nine months of 2024 was $42.0 million, down from $79.4 million during the same period in 2023 [64]. Market Risk - The company's exposure to market risk has not changed materially since December 31, 2023 [68].

Financial Data and Key Metrics Changes - Consolidated sales were $175.9 million, down 20.2% from the previous year [5][18] - Earnings per common share were $0.29 compared to $1.02 in the prior year [5][21] - Comparable store sales decreased by 20.5% year-over-year [18] - Gross profit margin decreased by 60 basis points to 60.2% from 60.8% [18] - SG&A expenses decreased by $11.8 million or 10.4% to $100.9 million, representing 57.4% of sales, up from 51.1% in the prior year [19] - Net income for Q3 2024 was $4.9 million, down from $17.2 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - The design business grew over 19% for the quarter, contributing to an average ticket of approximately $7,300, a 5% increase [14] - Special order business accounted for 36% of upholstery business, up 10% from last year [15] - Store traffic is improving, but closing rates remain below last year's levels [13] Market Data and Key Metrics Changes - The Midwest and central districts outperformed other districts, while Florida and the West underperformed [34] - The company experienced a decline in sales due to high interest rates and a challenging housing market [8][9] Company Strategy and Development Direction - The company plans to open three additional stores this year and aims to establish a significant presence in the Greater Houston market [6][7] - The focus remains on store growth in key markets, with Houston being a top priority for the next two years [7][8] - The company is committed to maintaining a strong balance sheet, being debt-free with over $100 million in cash [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improved consumer traffic post-elections and following interest rate cuts [9][16] - The impact of hurricanes on operations was noted, with expectations for a longer-term demand increase as housing is rebuilt [28][30] - Management remains focused on maintaining strong margins and controlled expenses despite a difficult sales environment [16] Other Important Information - The company has made enhancements to its merchandising team, bringing in new talent to improve product offerings [41][42] - The company is not planning to change its marketing strategy significantly, focusing on digital and traditional media [37] Q&A Session Summary Question: Impact of hurricanes on demand - Management anticipates a demand increase in three to six months as housing is rebuilt, with quicker recovery expected in Florida [28][30] Question: Store openings and consumer position - The company plans to continue its strategy of opening five stores annually, with a focus on Houston [31] Question: Monthly sales trends - Written business trends showed a consistent decline throughout the quarter, with an average decrease of 15.3% [33] Question: Inventory management - Management does not foresee further significant reductions in inventory, feeling comfortable with current levels [35][36] Question: Marketing strategy changes - The company is pleased with recent changes in media buying, which have led to improved traffic [37] Question: October traffic trends - There has been a slight improvement in traffic, but the consumer remains cautious [39][40] Question: Houston market potential - The company aims to establish at least five stores in the Houston market to cover growth areas [47]

Company Performance - Haverty Furniture reported quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.48 per share, and down from $1.02 per share a year ago, representing an earnings surprise of -39.58% [1] - The company posted revenues of $175.91 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 8.78%, and down from $220.35 million year-over-year [2] - Over the last four quarters, Haverty Furniture has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates [2] Stock Performance - Haverty Furniture shares have declined approximately 31.6% since the beginning of the year, contrasting with the S&P 500's gain of 22.3% [3] - The current Zacks Rank for Haverty Furniture is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $200.8 million, and for the current fiscal year, it is $1.40 on revenues of $756.35 million [7] - The outlook for the Retail - Home Furnishings industry is unfavorable, currently ranking in the bottom 19% of over 250 Zacks industries, which may impact Haverty Furniture's stock performance [8]

EXHIBIT 99.1 Havertys Reports Operating Results for Third Quarter 2024 Atlanta, Georgia, October 30, 2024 – HAVERTYS (NYSE: HVT and HVT.A), today reported operating results for the third quarter ended September 30, 2024. Third quarter 2024 versus third quarter 2023: • Diluted earnings per common share ("EPS") of $0.29 versus $1.02. • Consolidated sales decreased 20.2% to $175.9 million. Comparable-store sales decreased 20.5%. • Gross profit margin was 60.2% compared to 60.8%. Clarence H. Smith, Chairman and ...