Haverty Furniture(US:HVT)2021-10-29 18:11Financial Data and Key Metrics Changes - The company reported record sales of $260.4 million for Q3 2021, a 19.7% increase compared to the prior year [4][25] - Net income for Q3 2021 was $24.2 million, or $1.31 per diluted share, compared to $18.3 million, or $0.97 per share in the same quarter last year [30] - Gross profit margin increased by 60 basis points to 56.8% due to better merchandise pricing and less promotional activity [26] - Selling, general and administrative expenses rose by $16.1 million, or 16%, to $116.2 million, but as a percentage of sales, these costs declined to 44.6% from 46% [27] Business Line Data and Key Metrics Changes - Comparable store sales increased by 17.7% over the prior year period [25] - The company added over 500 online exclusive products, which received a positive response [7] - Warehouse inventory levels rose over 8% during Q3 2021, indicating improved supply chain management [16] Market Data and Key Metrics Changes - The company expects to end 2021 with 121 stores, one more than last year, and plans to open five new stores in 2022 [9] - Customer deposits increased to $120.1 million, up $34 million from December 31, 2020 [31] Company Strategy and Development Direction - The company is focused on reducing backlogs and improving customer service by bringing in sole merchandise [6] - Investments in IT and marketing are aimed at upgrading the website to enhance customer experience [12] - The expansion of the Virginia distribution center is a key investment to improve logistics and reduce costs [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4 2021 despite challenges in supply chain and staffing [23][21] - The company anticipates a slowdown in imports from Vietnam but expects improved shipping times from domestic suppliers [23] - Management believes the importance of home furnishings will continue to grow due to changing consumer behaviors post-COVID [38] Other Important Information - The company incurred significant demurrage costs of approximately $2.3 million due to port congestion [28] - Capital expenditures for the first nine months of 2021 were $28.1 million, with plans to maintain a similar range for 2022 [32] Q&A Session Summary Question: What is the size of the backlog and its potential impact on sales? - The backlog is up over 40% from last year, indicating a healthy backlog going into Q4 [43] Question: What factors are affecting written sales? - Out-of-stocks have impacted sales, particularly for best-selling items, leading to delays in customer orders [46][49] Question: How is the company managing special orders? - Special order lead times have stabilized, but delays still affect customer purchasing behavior [48]