Wall Street expects a year-over-year decline in earnings on lower revenues when Haverty Furniture (HVT) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may ...

Key PointsIf the Fed cuts interest rates in 2024, as forecasted, the impact could trigger a bump in furniture sales, and two furniture companies are poised to benefit.Hagerty Furniture's sales have returned to pre-COVID levels, and its CEO believes the bottom for the housing market and furniture sales is in.La-Z-Boy remains optimistic about housing demand recovering with interest rate cuts, which would drive a rebound in furniture sales.5 stocks we like better than Haverty Furniture CompaniesThe housing mar ...

Key PointsSymbotic builds fully automated warehouse robots integrating artificial intelligence (AI), automation and Internet-of-Things (IoT) technology to bolster productivity and efficiency for customers like Walmart, Target and Albertsons.Intuitive Machines provides lunar access, data and mobility solutions with lunar lander commercial payload services to NASA.Wayfair saw Q4 2023 revenues inch up 0.4%, which outperforms brick-and-mortar furniture retailer competitors Haverty and La-Z-Boy, who suffered a 2 ...

Store Operations and Expansion - As of December 31, 2023, Havertys operated 124 stores across 16 states, with approximately 4.4 million retail square feet[32]. - The company aims to open five new stores per year and increase retail square footage by approximately 2.8% in 2024[33]. - The company opened 4 new stores in 2023, increasing total store count to 124, with plans to increase net selling space by approximately 2.8% in 2024[157]. - The total number of stores increased to 124 in 2023 from 122 in 2022[131]. - The company has 124 showrooms across 16 states as of December 31, 2023, maintaining its retail presence without franchising[216]. Sales and Financial Performance - Net sales for 2023 were $862.1 million, a decrease of 17.7% compared to $1,047.2 million in 2022[131]. - Comparable store sales decreased by 18.4% in 2023, following a 3.4% increase in 2022[131]. - Gross profit for 2023 was $523.1 million, representing 60.7% of net sales, up from 57.7% in 2022[131]. - Net income for 2023 was $56.3 million, or 6.5% of net sales, down from 8.5% in 2022[131]. - Diluted earnings per share decreased to $3.36 in 2023 from $5.24 in 2022[131]. - The average ticket size for sales increased to $3,278 in 2023 from $3,171 in 2022[131]. - Cash dividends paid in 2023 totaled $35,240, compared to $33,948 in 2022, reflecting a commitment to returning value to shareholders[215]. Supply Chain and Inventory Management - The largest ten suppliers accounted for approximately 40.2% of product purchases in 2023, with 19.4% of case goods and 9.2% of upholstery sales generated by direct imports[38][39]. - Approximately 61% of the company's total furniture purchases in 2023 were sourced from non-domestic goods[63]. - The average time between purchase and delivery for in-stock items is 3 to 5 days, while special order items take 5 to 7 weeks[42]. - Significant fluctuations in the prices of raw materials could adversely affect the company's profits, with potential supply chain disruptions impacting order fulfillment[68]. - The distribution system relies on third-party providers and is sensitive to transportation costs, which could adversely affect profitability if costs exceed what can be passed on to consumers[86]. - Inventories are stated at the lower of cost or market, with cost determined using the last-in, first-out (LIFO) method[221]. Employee and Operational Management - As of December 31, 2023, Havertys employed a total workforce of 2,574, with 1,561 in retail operations and 779 in warehouse and delivery[43]. - High employee turnover in the retail industry could lead to increased costs for hiring and training, impacting service levels and brand image[80]. - The company must attract and retain skilled employees across various functions, including distribution and technology, to maintain operational efficiency[81]. - The company has a strong safety program to ensure a hazard-free environment for employees and customers[44]. Risk Management and Cybersecurity - Cybersecurity threats are a concern, and any successful cyber-attacks could result in data breaches, harming customer relationships and the company's reputation[77]. - The company has implemented a cybersecurity framework to manage risks, although the sophistication of threats continues to increase[94]. - The board of directors oversees the company's cybersecurity risk management, with regular updates from the Chief Information Officer[96]. - The company faces risks related to potential increases in retail prices due to changes in exchange rates or tariffs, which could negatively impact gross profit[64]. - The company relies on third-party producers for product supply, and any operational difficulties with these manufacturers could adversely affect product quality and timely delivery[65]. Financial Position and Capital Expenditures - The company had $120.6 million in cash and cash equivalents as of December 31, 2023, with no funded debt and $80.0 million available under a revolving credit facility[144][146]. - Capital expenditures for 2023 amounted to $53.1 million, with planned expenditures of approximately $32.0 million for 2024 to support operations and strategic expansion[155][145]. - Total current assets decreased to $251,593 in 2023 from $276,253 in 2022, primarily due to a reduction in inventories[209]. - Total liabilities decreased to $345,767 in 2023 from $359,650 in 2022, indicating improved financial stability[209]. - The effective tax rate decreased to 22.5% in 2023 from 25.2% in 2022, primarily due to state income taxes[143]. Governance and Compliance - The company has adopted a Code of Conduct for its directors and officers, which is available on its website[183]. - The independent registered public accounting firm issued an unqualified opinion on the consolidated financial statements for the year ended December 31, 2023[176]. - The management concluded that the internal control over financial reporting is effective as of December 31, 2023[170]. - The audit conducted by Grant Thornton LLP expressed an unqualified opinion on the company's internal control over financial reporting as of December 31, 2023[204]. - There were no critical audit matters identified during the current period audit, indicating a stable financial reporting environment[207].

Havertys Reports Operating Results for Fourth Quarter 2023 ATLANTA, GA / ACCESSWIRE / February 21, 2024 / HAVERTYS (NYSE: HVT) and (NYSE: HVT.A), today reported its operating results for the fourth quarter ended December 31, 2023. Fourth quarter 2023 versus fourth quarter 2022: FY 2023 versus FY 2022: Clarence H. Smith, chairman and CEO, said, "We delivered solid fourth quarter results of strong gross profit margins and expense control within a difficult environment for retail home furnishing sales. Higher ...

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 September 30, 2023 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) (State or other jurisd ...

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, 2023 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) (State or other jurisdictio ...

Financial Data and Key Metrics Changes - In Q2 2023, net sales were $206.3 million, an 18.5% decrease compared to the prior year quarter [10][16] - Comparable store sales decreased by 19.1% over the prior year period [10] - Gross profit margins increased by 260 basis points to 60.5% from 57.9% due to reductions in freight and a positive LIFO inventory adjustment [10] - Net income for Q2 2023 was $11.8 million or $0.70 per diluted share, down from $21.7 million or $1.27 per share in the comparable quarter last year [13][17] - Selling, general and administrative expenses decreased by $8.1 million or 6.9% to $110 million, representing 53.3% of sales, up from 46.7% in the prior year quarter [11] Business Line Data and Key Metrics Changes - Incoming orders or written sales were down 14.7%, with written comparable store sales down 15.2% [17] - Special order business was up over 50% compared to last year, representing 30% of the upholstered business for the quarter [26] - The design business grew to over 28% of total business for the quarter, with average ticket growing close to 6% over last year [27] Market Data and Key Metrics Changes - The company experienced a significant drop in written business in April, down 20%, but saw improvements in May and June, with declines of approximately 13% and 11% respectively [7] - The overall market is facing challenges due to consumer pullback in home-related spending and the impact of higher interest rates on home sales [16] Company Strategy and Development Direction - The company is focused on strengthening its store locations from Maryland to Texas and has acquired leases on four stores from the Bed Bath & Beyond bankruptcy auction [19][21] - Plans to open three new stores by the end of the year and five stores annually within its distribution footprint are in place [40][41] - The company is investing heavily in its website and enhancing customer relationships through physical stores [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q2 but expressed optimism about recent improvements in incoming orders and customer reactions to new product introductions [23] - The company is committed to executing its strategic plan and believes it is well-positioned to grow its market share despite current economic conditions [40] Other Important Information - Capital expenditures for Q2 were $33.8 million, including the repurchase of the Florida distribution facility for $28.2 million [34] - The effective tax rate for Q2 2023 was 25.5%, with a tax expense of $4 million [32] Q&A Session Summary Question: Recent improvements in incoming orders - Management noted a significant drop in written business in April but improvements in May and June, with trends leveling back to the low teens [6][7] Question: Sustainability of average ticket growth - Management indicated that average ticket growth is driven by the design business, which has not been an issue and is expected to continue growing [46] Question: Outlook for credit promotions - The company is being more disciplined with credit promotions, offering 0% financing for 36 months but for shorter periods than in the previous year [48][62] Question: Need for further headcount reductions - Management is comfortable with current staffing levels but will continue to review and make adjustments as necessary [53][66] Question: Timeline for opening acquired Bed Bath & Beyond stores - The company anticipates completing refurbishments for the acquired stores in the first half of next year, with allocated capital for renovations [55][68]

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 March 31, 2023 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) (State or other jurisdicti ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Havertys is a specialty retailer of residential furniture and accessories operating over 120 stores - Havertys operates **over 120 stores** in 16 states, primarily in the Southern and Midwest regions, and does not franchise its stores[26](index=26&type=chunk) - The company targets well-educated women in middle to upper-middle-income households, offering a wide range of styles from traditional to contemporary[27](index=27&type=chunk)[28](index=28&type=chunk) - The in-home design service is a significant driver of sales, accounting for approximately **24.7% of business in 2022**, with an average sales ticket double that of in-store sales[31](index=31&type=chunk) - Total online sales were approximately **3.8% of total sales in 2022**, making the website the company's highest-performing 'store'[35](index=35&type=chunk) - The company's supply chain relies heavily on imports, with the top ten suppliers accounting for **41.3% of product purchases in 2022**[37](index=37&type=chunk) - As of December 31, 2022, Havertys employed 2,831 people, with the majority in retail store operations (1,599) and warehouse/delivery (990)[45](index=45&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from competition, supply chain reliance on foreign suppliers, and IT vulnerabilities - The home furnishings retail market is highly fragmented and competitive, with threats from internet-only retailers, specialty stores, and national chains[59](index=59&type=chunk) - Approximately **77% of the company's furniture purchases in 2022 were from foreign sources**, exposing it to risks from tariffs, exchange rates, and political instability[64](index=64&type=chunk) - The business relies on three large distribution centers, making it operationally vulnerable if one is damaged or experiences significant interruption[73](index=73&type=chunk) - The company is extensively dependent on IT systems for daily operations, making it susceptible to disruptions from cyber-attacks and security breaches[74](index=74&type=chunk)[76](index=76&type=chunk) - The business is sensitive to general economic conditions affecting consumer spending on discretionary items, such as inflation, recession fears, and interest rates[83](index=83&type=chunk) [Unresolved Staff Comments](index=15&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[89](index=89&type=chunk) [Properties](index=15&type=section&id=Item%202.%20Properties) The company operates 122 stores across 16 states, owning 40 locations and leasing the remaining 82 Store Count by State (Top 3) | State | Number of Stores | | :--- | :--- | | Florida | 30 | | Texas | 22 | | Georgia | 16 | - At year-end 2022, the company **owned 40 retail locations** and leased the other 82[90](index=90&type=chunk) - The company leases most of its distribution facilities, with the largest being an **808,000 square foot center** in Braselton, Georgia[91](index=91&type=chunk) [Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) Management believes no pending legal cases will have a material adverse effect on the company's financials - The company reports no pending legal proceedings that are expected to have a material adverse effect on its financials[93](index=93&type=chunk) [Mine Safety Disclosures](index=16&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[94](index=94&type=chunk) [Information about our Executive Officers](index=17&type=section&id=Information%20about%20our%20Executive%20Officers) This section details the company's executive officers, their positions, and business experience - Clarence H Smith serves as Chairman of the Board and Chief Executive Officer[97](index=97&type=chunk) - Richard B Hare is the Executive Vice President and Chief Financial Officer[97](index=97&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=18&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE, it pays regular dividends, and repurchased $30 million in shares in 2022 - The company's Common Stock (HVT) and Class A Common Stock (HVTA) are traded on the New York Stock Exchange (NYSE)[99](index=99&type=chunk) - Havertys has paid a cash dividend every year since 1935 and intends to continue paying quarterly dividends, subject to Board approval[103](index=103&type=chunk) - During 2022, the company spent **$30.0 million to repurchase 1.1 million shares** of Common Stock, with **$20.0 million remaining** under the authorization[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Record 2022 sales of $1.047 billion were driven by backlog fulfillment, though net income slightly declined [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Record 2022 net sales were offset by higher SG&A expenses, resulting in slightly lower net income Key Financial Performance (2022 vs 2021) | Metric | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,047.2M | $1,012.8M | +3.4% | | Gross Profit | $604.2M | $574.6M | +5.2% | | Gross Profit % | 57.7% | 56.7% | +100 bps | | SG&A Expenses | $486.3M | $456.3M | +6.6% | | SG&A as % of Sales | 46.4% | 45.1% | +130 bps | | Net Income | $89.4M | $90.8M | -1.6% | | Diluted EPS | $5.24 | $4.90 | +6.9% | Quarterly Net Sales and Comp-Store Sales Growth (%) vs Prior Year | Period | 2022 Net Sales % Increase | 2022 Comp-Store % Increase | | :--- | :--- | :--- | | Q1 | 1.0% | 0.2% | | Q2 | 1.3% | 1.1% | | Q3 | 5.4% | 6.3% | | Q4 | 5.5% | 5.7% | | Year | 3.4% | 3.4% | - The **100 basis point increase in gross profit margin** for 2022 was primarily due to merchandise price increases and disciplined discounting[129](index=129&type=chunk) - SG&A expenses as a percentage of sales increased to **46.4% in 2022 from 45.1% in 2021**, driven by higher selling, warehouse, and administrative costs[136](index=136&type=chunk) - For 2023, the company expects annual gross profit margins between **58.0% and 58.5%** and variable SG&A costs between **19.5% and 19.7%** of sales[131](index=131&type=chunk)[139](index=139&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with $123.1 million in cash and no debt at year-end 2022 - As of December 31, 2022, the company had **$123.1 million in cash and cash equivalents** and **no outstanding long-term debt**[142](index=142&type=chunk)[143](index=143&type=chunk) Cash Flow Summary (in millions) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash from operating activities | $51.0 | $97.2 | | Net cash used in investing activities | ($28.3) | ($34.0) | | Net cash used in financing activities | ($65.6) | ($97.1) | - Net cash from operating activities decreased to $51.0 million in 2022, largely due to a **$50.9 million reduction in customer deposits** as the company worked through its order backlog[149](index=149&type=chunk) Capital Expenditures (in thousands) | Category | Proposed 2023 | 2022 Actual | | :--- | :--- | :--- | | New or replacement stores | $9,700 | $7,700 | | Remodels/expansions | $2,900 | $4,400 | | Distribution | $5,800 | $6,900 | | Information technology | $2,500 | $2,800 | | **Total** | **$27,600** | **$28,400** | - The company plans to open five new stores in 2023 and close two, resulting in a net selling space increase of approximately **2.2%**[157](index=157&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuation, which is not considered material - The company's main market risk is interest rate fluctuation on its cash and cash equivalents[165](index=165&type=chunk) - Management does not believe a **100 basis point change in interest rates** would have a material effect on operating results or financial condition[165](index=165&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and the independent auditor concluded that the company's controls and procedures were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[168](index=168&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2022[169](index=169&type=chunk) - The independent auditor, Grant Thornton LLP, provided an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[170](index=170&type=chunk)[174](index=174&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Security Ownership](index=31&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information on governance, compensation, and ownership is incorporated by reference from the 2023 Proxy Statement - Information regarding Directors, Executive Officers, and Corporate Governance (Item 10) is **incorporated by reference** from the 2023 Proxy Statement[183](index=183&type=chunk) - Details on Executive Compensation (Item 11) are **incorporated by reference** from the 'Compensation Discussion and Analysis' section of the 2023 Proxy Statement[184](index=184&type=chunk) - Information on Security Ownership (Item 12) and Certain Relationships and Related Transactions (Item 13) is **incorporated by reference** from the 2023 Proxy Statement[185](index=185&type=chunk)[187](index=187&type=chunk) - Information on Principal Accounting Fees and Services (Item 14) is **incorporated by reference** from the 'Audit Matters' section of the 2023 Proxy Statement[189](index=189&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=32&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the 10-K report - This section provides a list of all documents filed with the report, including financial statements, schedules, and exhibits[191](index=191&type=chunk)[192](index=192&type=chunk) Financial Statements and Supplementary Data [Consolidated Balance Sheets](index=37&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities decreased in 2022, driven by lower cash and customer deposits respectively Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$649,049** | **$686,290** | | Cash and cash equivalents | $123,126 | $166,146 | | Inventories | $118,333 | $112,031 | | **Total Liabilities** | **$359,650** | **$430,320** | | Customer deposits | $47,969 | $98,897 | | Total lease liabilities | $221,287 | $230,352 | | **Total Stockholders' Equity** | **$289,399** | **$255,970** | [Consolidated Statements of Comprehensive Income](index=38&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net sales and gross profit increased in 2022, but higher SG&A led to a slight decline in net income Income Statement Highlights (in thousands) | Account | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net Sales | $1,047,215 | $1,012,799 | $748,252 | | Gross Profit | $604,225 | $574,625 | $418,994 | | SG&A | $486,298 | $456,267 | $377,288 | | Net Income | $89,358 | $90,803 | $59,148 | | Diluted EPS (Common) | $5.24 | $4.90 | $3.12 | [Consolidated Statements of Cash Flows](index=40&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased significantly in 2022 due to a reduction in customer deposits Cash Flow Summary (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $51,015 | $97,242 | | Net cash (used in) provided by investing activities | $(28,325) | $(34,002) | | Net cash used in financing activities | $(65,622) | $(97,149) | | (Decrease) increase in Cash | $(42,932) | $(33,909) | [Note 2: Revenues and Segment Reporting](index=45&type=section&id=Note%202%2C%20Revenues%20and%20Segment%20Reporting) The company operates as a single segment, with upholstery and case goods as the top product categories Net Sales by Product Category (% of Net Sales) | Category | 2022 | 2021 | | :--- | :--- | :--- | | Upholstery | 42.5% | 42.8% | | Case Goods | 35.5% | 34.8% | | Mattresses | 8.1% | 8.9% | | Accessories and Other | 13.8% | 13.5% | - Customer deposits on undelivered merchandise totaled **$47.97 million** at the end of 2022, down from **$98.90 million** at the end of 2021[254](index=254&type=chunk) [Note 8: Leases](index=49&type=section&id=Note%208%2C%20Leases) The company holds $221.3 million in operating lease liabilities with a weighted-average term of 7.6 years Operating Lease Liabilities (in thousands) | Liability Type | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Current lease liabilities | $34,442 | $33,581 | | Non-current lease liabilities | $186,845 | $196,771 | | **Total operating lease liabilities** | **$221,287** | **$230,352** | - The weighted-average remaining lease term was **7.6 years** and the weighted-average discount rate was **5.52%** as of year-end 2022[276](index=276&type=chunk) - In May 2020, a sale and leaseback transaction of three facilities generated a gain of **$31.6 million**[273](index=273&type=chunk)