Q2 2024 Haverty Furniture Companies Inc Earnings Call Transcript
Key Points
- Haverty Furniture Companies Inc (HVT) reported a pretax profit of $6.5 million despite a challenging market environment.
- The company's gross margins remained strong at 60.4%, indicating effective cost management.
- Haverty Furniture Companies Inc (HVT) maintains a solid cash position with over $100 million, allowing for continued investment in growth opportunities.
- The company is expanding its footprint with new store openings in strategic locations, including a second store in Indianapolis and new stores in Florida and Texas.
- The design business segment showed significant growth, increasing over 24% for the quarter, with the average ticket rising to approximately $7,000.
- Total sales for the quarter were $178.6 million, a decrease of 13.4% compared to the previous year.
- Comparable store sales were down 13.6% over the prior year period, reflecting challenges in consumer demand.
- The Memorial Day event was disappointing, impacting the overall quarterly performance.
- The company experienced a decrease in net income to $4.4 million, or $0.27 per diluted share, compared to $11.8 million, or $0.70 per share, in the same quarter last year.
- Higher interest rates and frozen housing activity posed significant challenges, affecting consumer spending and sales trends.
Greetings and welcome to the Haverty's second quarter 2024 earnings call. (Operator instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Richard Hare, Chief Financial Officer. Thank you Mr. Hare, you may begin.
Thank you, operator. During this conference call, we'll make forward-looking statements which are subject to risks and uncertainties. Actual results may differ materially from those made or implied in such statements, which speak only as of the date they are made and which we undertake no obligation to publicly update or revise the factors that could cause actual results to differ include economic and competitive conditions and other uncertainties detailed in the company's reports filed with the Securities Exchange Commission.
Our Chairman and CEO, Clarence Smith, will now give you an update on our results and our President, Steve Burdick will provide additional commentary.
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