by Company also reports increase in net income and gross profit
ATLANTA — Retailer Havertys Furniture reported a drop in sales but an increase in profitability during its first quarter ended March 31.
The company reported $181.6 million in consolidated sales, down 1.3% from $164 million the same period last year, while comparable-store sales declined 4.8%.
Net income totaled $3.8 million, or 23 cents per share, compared with net income of $2.4 million, or 14 cents per share, the same period last year.
Gross profit totaled $111.1 million, compared with $111 million the same period last year, and gross profit as a percentage of sales was 61.2% compared with 60.3% last year.
Other highlights of the report were as follows:
+ SG&A expenses were 59% of sales, compared with 59.4%, decreasing by $2.2 million. The company said this was because off a drop in variable costs tied to commission-based compensation expenses and third-party creditor costs. In addition, the company reported a $1.7 million decrease in warehouse and delivery costs driven by lower salaries and related benefit costs. The company also reported a $1.1 million decrease in advertising costs it said aligned with the drop in sales.
+ It also reported a $1.6 million increase in occupancy costs related to new locations and a $1 million increase in administration expenses primarily from increased salaries and stock compensation costs.
+ It reported cash, cash equivalents and restricted cash equivalents of $118.3 million and invested $6.1 million in capital expenditures.
+ It said it generated $6.2 million in cash from operating activities “primarily from earnings and changes in working capital including a $5.3 million increase in inventories, $2.0 million increase in customer deposits and a $4.5 million decrease in accrued liabilities and vendor repayments.”
+ It purchased about 94,000 in shares of common stock for $2 million.
+ It reported no debt outstanding as of March 31 and credit availability of $80 million.
+ It also said it paid $5.2 million in quarterly cash dividends.
“We are pleased to report solid first-quarter results with improved gross margins, earnings and expense control, despite facing several headwinds, including a weak housing market, atypical winter weather in the South, low consumer confidence and significant shifts in trade policy,” said President and CEO Steven G. Burdette.
“Throughout our 140-year history, we have consistently demonstrated resilience in navigating changes in U.S. economic policy. This experience, along with our solid balance sheet, has equipped us to effectively manage the dynamic U.S. trade policy environment while continuing to serve our customers and deliver value to our shareholders.”
