Sales Performance - Total sales for Q2 2024 decreased by $27.7 million, or 13.4%, compared to Q2 2023, with comp-store sales also down 13.6% or $27.7 million [37]. - Year-to-date total sales for the first six months of 2024 decreased by $68.4 million, or 15.9%, with comp-store sales down 16.2% or $69.1 million compared to the same period in 2023 [38]. - Written business for Q2 2024 decreased by 15.2% compared to Q2 2023, with written comp-store sales down 15.8% [40]. Profitability and Margins - Gross profit margin for Q2 2024 was 60.4%, a slight decrease of 10 basis points from 60.5% in Q2 2023, while year-to-date gross profit margin improved to 60.4% from 59.8% [41]. - The company expects annual gross profit margins for 2024 to be between 60.0% and 60.5% [41]. Expenses - Selling, General and Administrative (SG&A) expenses as a percentage of sales increased to 57.7% in Q2 2024 from 53.3% in Q2 2023, with SG&A dollars decreasing by $6.9 million, or 6.3% [42]. - SG&A costs for the first six months of 2024 were 58.6% of sales, up from 53.0% in the same period of 2023, with total SG&A dollars decreasing by $15.9 million, or 7.0% [43]. - The company’s variable SG&A expenses for the full year of 2024 are expected to be between 19.7% and 20.0%, a decrease of 20 basis points from previous estimates [46]. Cash and Capital Expenditures - Cash and cash equivalents as of June 30, 2024, totaled $109.9 million, with an additional $6.1 million in restricted cash equivalents [47]. - The company anticipates total capital expenditures for 2024 to be approximately $33.0 million, depending on the timing of capital project spending [53]. Internal Controls and Reporting - No changes in the Company's internal control over financial reporting were identified during the fiscal quarter ended June 30, 2024 [56]. - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period [55]. - The financial reporting process is designed to provide reasonable assurance for accurate and timely reporting of financial results [56]. - The Company continues to evaluate the impact of any changes to its internal control over financial reporting [56]. - The Company has reviewed its accounting estimates and none were deemed critical for the accounting periods presented [54]. - There were no significant changes in critical accounting estimates since the last annual report [54]. - The Company's exposure to market risk has not changed materially since December 31, 2023 [54]. - The Company is committed to timely decisions regarding disclosure as per SEC rules and forms [55]. Expansion Plans - The Company plans to open new locations in Memphis, TN, Destin, FL, Tampa, FL, Miami, FL, Greenwood, IN, and Houston, TX in 2024 [57]. - Pine Bluff, AR location is planned for closure in Q-1-24 [57].

Financial Performance - Total net sales for Q1 2024 decreased by $40.8 million, or 18.1%, compared to Q1 2023, with comp-store sales down 18.5% or $41.4 million[43] - Gross profit margin for Q1 2024 was 60.3%, an increase of 120 basis points from 59.1% in Q1 2023, attributed to product selection and merchandising mix[47] - SG&A expenses as a percentage of sales increased to 59.4% in Q1 2024 from 52.7% in Q1 2023, with total SG&A dollars decreasing by $9.0 million, or 7.6%[50] - Written business for Q1 2024 was down 12.6% compared to Q1 2023, with written comp-store sales down 13.0%[45] Future Projections - The company expects annual gross profit margins for 2024 to be between 60.0% and 60.5%, a 50 basis points increase from previous estimates[48] - Variable SG&A expenses for the full year of 2024 are anticipated to be between 19.9% and 20.2% of sales[54] Cash Flow and Capital Expenditures - Cash and cash equivalents at the end of Q1 2024 were $111.8 million, with an additional $6.0 million in restricted cash equivalents[55] - Net cash provided by operating activities was $3.1 million in Q1 2024, down from $11.1 million in Q1 2023, primarily due to changes in working capital[61] - Total capital expenditures for 2024 are estimated to be $32.0 million, depending on the timing of spending for capital projects[64] Expansion Plans - The company plans to open new stores in Memphis, Destin, Tampa, Miami, and Houston in 2024, which is expected to increase net selling space by approximately 3.4% by the end of 2024[63]

Financial Performance - First quarter 2024 consolidated sales decreased by 18.1% to $184.0 million compared to $224.8 million in Q1 2023, with comparable-store sales down 18.5%[5][6] - Gross profit margin improved to 60.3% in Q1 2024 from 59.1% in Q1 2023, despite a decline in sales[5][11] - Diluted earnings per share (EPS) fell to $0.14 in Q1 2024 from $0.74 in Q1 2023[5][12] - For the three months ended March 31, 2024, the company reported an EBITDA of $6,586,000, a decrease of 65.0% compared to $18,790,000 in the same period of 2023[16] - Income before income taxes for Q1 2024 was $3,195,000, down 79.3% from $15,438,000 in Q1 2023[16] Cash Flow and Expenditures - Operating cash flow generated was $3.1 million in Q1 2024, down from $11.1 million in Q1 2023[8][14] - Capital expenditures for Q1 2024 were $6.4 million, with planned total capital expenditures for the year expected to be approximately $32.0 million[11][14] - Cash, cash equivalents, and restricted cash equivalents at March 31, 2024, totaled $117.9 million, down from $127.0 million at the end of Q1 2023[8][13] - Fixed and discretionary SG&A expenses for the full year of 2024 are expected to be in the range of $290.0 to $292.0 million[11] Growth and Expansion Plans - The company plans to open five new stores in 2024 and five more in 2025, including a new store in Houston, TX[4][11] - The company operates 124 showrooms across 17 states, focusing on middle to upper-middle price ranges for home furnishings[21] Tax and Regulatory Considerations - The effective tax rate for 2024 is expected to be 26.5%, excluding the impact from discrete items and any new tax legislation[11] - The company has a commitment to quality control and compliance with legislative and regulatory frameworks affecting its operations[24] Forward-Looking Statements - Forward-looking statements indicate expectations for retail and operating margins, selling square footage, and capital expenditures for 2024[23] - The company cautions that forward-looking statements involve risks and uncertainties, including economic conditions and supply chain disruptions[24] - The company plans to continue funding its growth initiatives while managing liquidity effectively[23] Shareholder Returns - Quarterly dividend increased by 6.7% from $0.30 to $0.32 per share for common stock, and from $0.28 to $0.30 for Class A common stock[2] Conference Call Information - The conference call for Q1 2024 results is scheduled for May 2, 2024, at 10:00 a.m. ET[20] SG&A Expenses - The company classified its SG&A expenses into variable and fixed categories, with variable expenses primarily related to selling and delivery costs[19] - The company emphasizes the importance of EBITDA as a meaningful measure for investors, supplementing GAAP financial results[16]

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 operated 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 $1.05 billion in 2022[131]. - Gross profit for 2023 was $523.1 million, representing 60.7% of net sales, an increase 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]. - Comparable store sales decreased by 18.4% in 2023, compared to an increase of 3.4% in 2022[131]. - The average ticket size for sales was $3,278 in 2023, up from $3,171 in 2022[131]. - The company reported a basic earnings per share of $3.48 for 2023, down from $5.43 in 2022, a decline of 35.9%[211]. Supply Chain and Distribution - 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]. - 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]. - Havertys' distribution system includes three distribution centers and four home delivery centers, providing next-day delivery for prepped merchandise within a 250-mile radius[41]. - The company utilizes three large distribution centers, making it vulnerable to operational interruptions that could affect timely product delivery[74]. Workforce and Employee Development - The total workforce as of December 31, 2023, was 2,574, with 1,561 in retail operations and 779 in warehouse and delivery[43]. - The company has a strong focus on employee development, with team members consuming approximately 93,000 hours of learning in 2023[48]. - High employee turnover in the retail industry may lead to increased costs associated with hiring and training, impacting service levels and brand image[80]. Risks and Challenges - Approximately 61% of the total furniture purchases in 2023 were for goods not produced domestically, exposing the company to risks related to exchange rates and tariffs[63]. - The company relies on third-party producers for substantially all products, which may lead to operational difficulties and impact the timely delivery of quality merchandise[65]. - Significant fluctuations in the price and availability of raw materials could adversely affect profits, with potential supply chain disruptions impacting order fulfillment[68]. - Cyber threats are evolving, and a successful cyber-attack could result in significant data breaches, harming customer relationships and incurring potential liabilities[78]. - The company faces risks related to compliance with international trade rules, which could lead to penalties or enforcement actions affecting business operations[71]. - Increased shipping costs and delays could negatively impact margins and customer satisfaction, potentially leading to order cancellations[73]. Financial Management and Governance - The company has a cybersecurity framework in place to manage risks, although increasing threats may pose challenges[94]. - The board of directors oversees strategic and operational risks, including cybersecurity, with regular updates from management[96]. - The company has maintained effective internal control over financial reporting as of December 31, 2023, with no critical audit matters identified[206]. - The independent auditor's report confirmed the effectiveness of the company's internal control over financial reporting based on COSO criteria[175]. - The company has adopted a Code of Conduct for its directors and officers, which is available on its website[183]. Capital Expenditures and Investments - 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]. - The company expects to continue prioritizing investments in the business and may return excess cash to shareholders through share repurchases or special dividends[145]. - The company has a stock repurchase program with approximately $13.9 million remaining for future purchases as of December 2023[116]. Cash and Liquidity - As of December 31, 2023, the company had $120.6 million in cash and cash equivalents, with no funded debt[144][146]. - Cash dividends paid in 2023 totaled $35,240, compared to $33,948 in 2022, reflecting an increase of 3.8%[215]. - The company had no outstanding borrowings under its Credit Agreement during 2023 and 2022, which bears interest based on variable rates[166]. Audit and Compliance - An independent registered public accounting firm issued an unqualified opinion on the company's consolidated financial statements for the year ended December 31, 2023[176]. - The financial statements are in conformity with accounting principles generally accepted in the United States[203]. - The audit was conducted in accordance with PCAOB standards, ensuring rigorous evaluation of financial reporting[206].

Sales Performance - Fourth quarter 2023 consolidated sales decreased 24.9% to $210.7 million, with comparable store sales down 25.5%[4] - Net income for the twelve months ended December 31, 2023, was $56,319,000, a decrease of 37% compared to $89,358,000 in 2022[13] - EBITDA for FY 2023 was $85,806,000, down 36.4% from $134,809,000 in FY 2022[15] Profitability - Gross profit margin increased to 62.4% in Q4 2023 from 57.0% in Q4 2022, reflecting a 540 basis point improvement[10] - Pre-tax income for Q4 2023 was $18.5 million, down from $32.5 million in Q4 2022, representing a decline of 43.8%[4] - The company expects gross profit margins for 2024 to be between 59.5% and 60.0%[10] Cash Flow and Investments - Operating cash flow for FY 2023 was $97.2 million, significantly higher than $51.0 million in FY 2022[6] - Net cash provided by operating activities increased to $97,203,000 in 2023 from $51,015,000 in 2022, representing an increase of 90.5%[13] - Capital expenditures for FY 2023 were $53,115,000, significantly higher than $28,411,000 in FY 2022, indicating a focus on investment[13] - Planned capital expenditures for 2024 are approximately $32.0 million, with an expected retail square footage increase of 2.8%[10] Shareholder Returns - The company returned $42.1 million to shareholders in 2023, including $6.9 million in share repurchases and $35.2 million in dividends[3] - Dividends paid in FY 2023 totaled $35,240,000, compared to $33,948,000 in FY 2022, reflecting a commitment to returning value to shareholders[13] Expenses and Taxation - Fixed and discretionary SG&A expenses for 2024 are anticipated to be in the range of $295.0 to $297.0 million[10] - The effective tax rate for 2024 is expected to be 26.5%, excluding potential tax credits and new tax legislation[10] Inventory Management - Changes in inventories showed an increase of $24,378,000 in 2023, contrasting with a decrease of $6,303,000 in 2022, indicating a shift in inventory management[13] Future Outlook - The company plans to continue its growth strategies, including potential expansions and capital expenditures for 2024[22] - Forward-looking statements indicate expectations for future performance, subject to various risks and uncertainties, including economic conditions and consumer spending trends[23] - The company emphasizes the importance of comparable store sales as a key performance indicator for existing stores and online sales[16]

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 ...

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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Maryland 58-0281900 (State of Incorporation) (IRS Employer Identification Number) 780 Johnson Ferry Road, Suite 800, Atlanta, Georgia 30342 (Address of principal executive offices) FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For th ...

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, 2022 OR (Address of principal executive offices) (Zip Code) Maryland 58-0281900 (404) 443-2900 (Registrant's telephone number, including area code) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Com ...