Havertys reports increases in Q3 sales, income

ATLANTA — Retailer Havertys reported an increase in sales and earnings for the third quarter ended Sept. 30.

The company’s consolidated net sales rose 5.4% to $274.5 million, from $260.4 million the same period last year. Comp-store sales were up 6.3% for the quarter.

Meanwhile, total written sales were down 7.2% and written comp-store sales were down 6.9% for the quarter.

Net income was $24.6 million, or $1.46 per share, up 1.3% from the $24.2 million, or $1.31 per share reported last year. The company also reported a gross profit margin of 57.1% compared to 56.8% last year.

“Our strong earnings were the result of increased sales and gross margin improvement,” said Chairman and CEO Clarence Smith. “We made progress in delivering customer backorders as we received a near record number of containers from vendors. We also had a strong Labor Day as customers returned to more traditional shopping patterns with softer traffic outside these peak periods.”

He also noted that while written business was down compared to “last year’s record pace” it was up 15.8% compared to the pre-pandemic third quarter of 2019.

“Our sales associates and design consultants are providing excellent service to each customer and this quarter’s average ticket was up 8.2% over last year,” he added, also noting that he believes the last quarter of this year will be challenging as “consumers face continued inflation, rising interest rates, market volatility, and geopolitical concerns. We are well positioned to service our growing customer base, and will continue to use our financial strength to invest in growth initiatives to drive the business in 2023 and beyond.”

Other highlights of the report were as follows:

+ Cash and cash equivalents as of Sept. 30 are $144 million.

+ The company generated $38.2 million in cash from operating activities primarily from solid earnings performance, offset by funding of a $25.3 million increase in inventories and a $7.3 million increase in other operating assets and liabilities.

+ The company purchased about 1.1 million shares of common stock for $30.0 million and paid $13.4 million in quarterly cash dividends during the nine months ended Sept. 30, 2022.

+ It also reported no funded debt.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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