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]

Core Viewpoint - Haverty Furniture is facing significant challenges in a contracting residential furniture market, with a notable decline in sales, but potential catalysts such as anticipated interest rate cuts could improve its outlook in the near future [2][4][8]. Company Overview - Haverty Furniture operates 120 stores across 17 states, focusing on premium products in the middle to upper-middle price ranges, and offers in-house designer services [2]. - The company has a dual-class share structure, with HVT holders receiving 105% of dividends compared to HVT.A holders, who have superior voting rights [3]. Financial Performance - Year-to-date, HVT and HVT.A shares have declined by -21% and -26% respectively, while the broader small-cap discretionary stocks have gained nearly 4% [3]. - Sales for Haverty have fallen by 16% in H1-24, compared to a 7% contraction in the overall furniture market [4]. - The SG&A margin has increased to 58.6% in H1-24, up from 53% in H1-23, indicating that cost reductions have not kept pace with declining sales [6]. Strategic Initiatives - Despite the downturn, Haverty is investing in new store openings and upgrades, aiming to open five new stores each in FY24 and FY25 [5]. - The company has maintained stable gross margins at 60.4%, with expectations to remain within the 60-60.5% range for FY24 [7]. Market Outlook - Anticipated interest rate cuts by the Federal Reserve could revive the housing market, benefiting premium retailers like Haverty as it approaches its strongest sales quarter [8]. - Comp-store sales declines have been easing, with Q1 at -18.5% and Q2 at -13.6%, suggesting potential for recovery [10]. Valuation and Investment Appeal - The expected EPS for FY25 is $2.75, reflecting a significant year-over-year growth of over 86%, with a forward P/E ratio of 9.83, indicating a 17% discount to its long-term average [10][11]. - Institutional investors have been increasing their stakes in Haverty, suggesting growing confidence in the company's future [13]. - The current dividend yield of 4.58% provides an attractive income stream for investors [15][16]. Technical Analysis - The stock has shown a strong uptrend from pandemic lows, with current support levels around $23-$24 and resistance at sub $35 levels, indicating a favorable risk-reward scenario [17]. Conclusion - Given the stable gross margin, potential earnings growth, attractive valuations, and institutional support, the recommendation for Haverty has been revised from HOLD to BUY [18].

Haverty Furniture (HVT) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.70 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this residential furniture and accessories retailer would post earnings of $0.33 per share when it actually produced earnings of $0.14, delivering a surprise of -57.58%. O ...

Financial Performance - Diluted earnings per share (EPS) decreased to $0.27 from $0.70 year-over-year[2] - Consolidated sales fell by 13.4% to $178.6 million, with comparable-store sales down 13.6%[2] - Net income for the second quarter was $4.4 million, down from $11.8 million in the same period last year[2] - Net income for the six months ended June 30, 2024, was $6,831,000, a decrease from $24,164,000 for the same period in 2023, reflecting a decline of approximately 71.7%[11] - EBITDA for the six months ended June 30, 2024, was $16,773,000, down from $38,310,000 for the same period in 2023, a decrease of about 56.2%[13] Expenses and Margins - Gross profit margin slightly decreased to 60.4% from 60.5%[2] - Selling, general and administrative (SG&A) expenses as a percentage of sales increased to 57.7% from 53.3%[6] - Fixed and discretionary SG&A expenses for 2024 are projected to be in the range of $282.0 to $284.0 million, an $8.0 million reduction from previous guidance[8] Cash Flow and Assets - Cash generated from operating activities was $17.5 million, a decrease from $40.1 million year-over-year[5] - Cash flows from operating activities for the six months ended June 30, 2024, were $17,542,000, significantly lower than $40,128,000 for the same period in 2023, a decline of approximately 56.3%[11] - Total current assets decreased to $240,410,000 as of June 30, 2024, down from $257,472,000 as of December 31, 2023, representing a decline of about 6.6%[10] - The company reported a decrease in cash, cash equivalents, and restricted cash equivalents of $11,710,000 during the period, compared to a decrease of $13,828,000 for the same period in 2023[11] Liabilities and Customer Deposits - Total liabilities increased to $350,607,000 as of June 30, 2024, compared to $335,007,000 as of December 31, 2023, indicating an increase of approximately 4.7%[10] - Customer deposits increased to $45,589,000 as of June 30, 2024, compared to $38,731,000 as of December 31, 2023, representing an increase of approximately 17.7%[10] Capital Expenditures and Future Plans - Planned capital expenditures for 2024 are approximately $33.0 million, with a retail square footage increase of about 3.4% expected[8] - Capital expenditures for the six months ended June 30, 2024, were $15,952,000, a decrease from $40,482,000 for the same period in 2023, reflecting a reduction of about 60.6%[11] - The company announced the opening of a second store in the Indianapolis market, expected in Q4 2024[2] Tax and Forward-Looking Statements - The effective tax rate for 2024 is expected to be 27.5%, an increase from the previous guidance of 26.5%[8] - Forward-looking statements indicate expectations for retail and operating margins, capital expenditures, and liquidity position for 2024, subject to various risks and uncertainties[19] Company Overview - The company has 125 showrooms across 17 states, focusing on middle to upper-middle price ranges for home furnishings[17]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (Address of principal executive offices) (Zip Code) Maryland 58-0281900 (404) 443-2900 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, ...

Haverty Furniture (HVT) came out with quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -57.58%. A quarter ago, it was expected that this residential furniture and accessories retailer would post earnings of $0.95 per share when it actually produced earnings of $0.89, delivering a surprise of -6.32%. ...

EXHIBIT 99.1 Havertys Announces Increase In Quarterly Dividend and First Quarter 2024 Results Atlanta, Georgia, May 1, 2024 – HAVERTYS (NYSE: HVT and HVT.A), today announced an increase to its quarterly dividend (the 12th consecutive annual increase) and reported operating results for the first quarter ended March 31, 2024. Dividend The board of directors declared a 6.7% increase in the quarterly dividend, from $0.30 per share to $0.32 per share on the company's common stock. The quarterly dividend for the ...