Q3 2024 Haverty Furniture Companies Inc Earnings Call Transcript
Key Points
- Haverty Furniture Companies Inc (HVT) is expanding its store footprint, with plans to open three additional stores by the end of the year, including a return to the Houston market after 43 years.
- The company is investing in store growth in key regions, positioning itself strongly in some of the best markets in the country for future growth.
- Haverty Furniture Companies Inc (HVT) has a strong cash position, ending the quarter with $121.2 million in cash and cash equivalents and no funded debt.
- The company's design business is thriving, growing over 19% for the quarter, with an increase in average ticket size.
- Despite a challenging sales environment, Haverty Furniture Companies Inc (HVT) maintains strong margins and controlled expenses, with inventories balanced and a focus on productivity and execution.
- Consolidated sales for the third quarter were down 20.2% from the previous year, with comparable store sales also down 20.5%.
- Earnings per share significantly decreased to $0.29 from $1.02 in the same quarter last year.
- The company faced disruptions due to two hurricanes, which caused store closures and impacted sales and operations in affected regions.
- High interest rates and an unaffordable housing market continue to pose challenges, contributing to a cautious consumer environment.
- Gross profit margin decreased by 60 basis points, driven by changes in the LIFO reserve, impacting overall profitability.
Greetings, and welcome to Havertys' third-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. Please go ahead.
Thank you, operator, and good morning. 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. 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 SEC.
Our Chairman and CEO, Clarence Smith, will now give you an update on our results and our President, Steve Burdette, will provide additional commentary about our business.
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