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]

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]