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].

Haverty Furniture Companies, Inc. (NYSE:HVT) Q4 2023 Earnings Conference Call February 22, 2024 10:00 AM ET Company Participants Richard Hare - Executive Vice President and Chief Financial Officer Clarence Smith - Chairman and Chief Executive Officer Steve Burdette - President Conference Call Participants Anthony Lebiedzinski - Sidoti Michael Legg - The Benchmark Company Cristina Fernandez - Telsey Advisory Group Operator Greetings and welcome to Haverty’s Fourth Quarter 2023 Earnings Call. At this time, al ...

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 ...

Haverty Furniture Companies, Inc. (NYSE:HVT) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Richard Hare – Chief Financial Officer Clarence Smith – Chairman and Chief Executive Officer Steve Burdette – President Conference Call Participants Anthony Lebiedzinski – Sidoti & Company Michael Legg – The Benchmark Company Cristina Fernández – Telsey Group Budd Bugatch – Water Tower Research Operator Greetings, and welcome to Haverty’s Third Quarter 2023 Earnings Call. At this t ...

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]