Haverty Furniture(US:HVT)2021-02-18 21:43Financial Data and Key Metrics Changes - In Q4 2020, delivered sales reached $241.3 million, a 12.9% increase compared to the same quarter in 2019 [5][15] - Earnings per share for Q4 2020 were $1.37, up from $0.31 in the same period last year [5][18] - Gross profit margin increased by 280 basis points from 54.2% to 57% due to better pricing discipline and reduced promotional activity [6][15] - Selling, general and administrative expenses decreased by $1.6 million or 1.5% to $107 million, representing 44.3% of sales compared to 50.8% in the previous year [6][16] Business Line Data and Key Metrics Changes - Internet sales accounted for 4.3% of total sales since reopening, with "buy online, pick up in store" increasing to 16%, tripling from previous years [6] - Total written sales for Q4 2020 were up 16.7%, with written comparable store sales increasing by 17.5% [15] Market Data and Key Metrics Changes - The largest markets produced record levels and were significant profit contributors [6] - Customer deposits at the end of Q4 2020 were $86.2 million, up $56.1 million from the previous year [19] Company Strategy and Development Direction - The company plans to open new stores in Myrtle Beach, South Carolina, and Central Florida, while closing one store, ending the year with 122 stores [7] - Investments in the website are planned to enhance customer interaction and improve service levels [11][12] - The company aims to exceed long-term productivity goals of sales over $200 per square foot in 2021 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about overcoming supply chain challenges and improving service levels compared to competitors [10] - The company anticipates gross margins for 2021 to be between 55.3% and 55.8%, impacted by product and freight costs [22] - Management acknowledged the ongoing supply chain issues but noted improvements in inventory positions for best-selling products [34] Other Important Information - The company returned approximately $70 million to shareholders in 2020 through dividends and share repurchases [21] - Capital expenditures for Q4 2020 were $3.7 million, with planned expenditures for 2021 around $23 million [20][24] Q&A Session Summary Question: How did same-store sales progress in Q4? - Management noted that delivered sales were up over 20% in October, down mid-single digits in November, and back up over 20% in December [29] Question: What product categories are facing inventory issues? - Management indicated challenges in domestic upholstery due to labor and supply issues, as well as import container shortages [34] Question: Will price increases offset higher delivery costs? - Management confirmed that they are increasing prices to recover costs, with expectations that freight costs will decrease later in the year [37] Question: Can you quantify the backlog? - Management stated that the backlog is at a record high but did not provide a specific dollar amount, indicating it is several multiples higher than last year [39] Question: How long will supply chain issues persist? - Management expects supply chain challenges to continue through the summer, with improvements anticipated by fall [42] Question: How has the recent weather impacted operations? - Management reported that about 30% of stores were down for several days due to severe weather, impacting deliveries significantly [51]