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].
Haverty Furniture(HVT_A) - 2024 Q2 - Quarterly Report