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, with SG&A dollars decreasing by $11.8 million, or 10.5% [52]. Cash Flow 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]. - Net cash provided by operating activities was $42.0 million in the first nine months of 2024, down from $79.4 million during the same period in 2023 [64]. - 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]. Design Contribution - Design consultants contributed to 34.5% of total written sales in Q3 2024, with an average written ticket of $7,312, up from 29.0% and $6,937 in Q3 2023 [47]. Market Risk - The company's exposure to market risk has not changed materially since December 31, 2023 [68].

Financial Performance - Diluted earnings per share (EPS) decreased to $0.29 from $1.02, reflecting a significant decline in profitability [2] - Consolidated sales fell by 20.2% to $175.9 million, with comparable-store sales down 20.5% [2] - Net income for the nine months ended September 30, 2024, was $11,759 thousand, down from $41,317 thousand for the same period in 2023 [13] - EBITDA for the nine months ended September 30, 2024, was $27,666 thousand, compared to $64,334 thousand for the same period in 2023 [15] Expenses and Margins - Gross profit margin decreased to 60.2% from 60.8%, impacted by changes in the LIFO reserve [5] - Selling, general and administrative (SG&A) expenses were 57.4% of sales, an increase from 51.1% in the previous year [5] - The company plans to continue its strategic initiatives to enhance retail and operating margins in 2024 [22] Business Operations - Total written business declined by 15.3%, while comparable-store written business decreased by 16.3% [5] - Design consultants contributed 34.5% of written business in 2024, up from 29.0% in 2023 [5] - The company operates 126 showrooms across 17 states, focusing on middle to upper-middle price ranges [20] Cash Flow and Assets - Cash, cash equivalents, and restricted cash equivalents totaled $127.4 million as of September 30, 2024 [6] - Operating cash flow generated was $42.0 million, down from $79.4 million in the previous year [9] - Total assets as of September 30, 2024, were $659,302 thousand, a slight increase from $654,133 thousand at December 31, 2023, but a decrease from $676,681 thousand at September 30, 2023 [11][12] - Cash and cash equivalents at the end of the period were $127,365 thousand, down from $141,352 thousand at the end of the same period in 2023 [13] Inventory and Liabilities - Inventories decreased to $88,688 thousand as of September 30, 2024, from $102,334 thousand at September 30, 2023 [11] - Total current liabilities decreased to $137,798 thousand as of September 30, 2024, from $151,406 thousand at September 30, 2023 [12] - Customer deposits increased to $43,940 thousand as of September 30, 2024, from $46,308 thousand at September 30, 2023 [12] Capital Expenditures - Planned capital expenditures for 2024 are approximately $33.0 million, with a retail square footage increase of about 3.4% expected [7] - Capital expenditures for the nine months ended September 30, 2024, were $(24,285) thousand, compared to $(46,428) thousand for the same period in 2023 [13] Taxation - The effective tax rate for 2024 is projected to be 28.0%, an increase from the previous guidance of 27.5% [7]

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 ...