The following is a summary of the Haverty Furniture Companies, Inc. (HVT) Q1 2024 Earnings Call Transcript:
Financial Performance:
Haverty Furniture posted Q1 sales of $184 million, down by 18.1% with comparable store sales also down by 18.5%.
Company managed to produce a pre-tax profit of $3.2 million, a substantial decrease from $15.4 million compared to the same quarter last year.
Gross profit margin increased by 120 basis points to 60.3% due to product selection and merchandising mix.
SG&A expenses fell by $9 million or 7.6%, to $109.4 million.
Net income for Q1 2024 was $2.4 million or $0.14 per share, versus a net income of $12.4 million or $0.74 per share during same period last year.
Haverty's strong balance sheet demonstrated over $100 million in cash, allowing for a dividend increase of 6.7% marking the 12th year of consistent dividend raises.
Business Progress:
Haverty Furniture continues to gain market share, despite a challenging economic environment, made important moves including zero funded debt and positioning in key growth markets.
The company invested in store growth and critical upgrades to both store and operating systems in order to enhance customer service.
Major remodel projects are underway in key markets, with completion expected next month.
Five new stores will be opened each year in 2024 and 2025, expanding presence in multiple market areas.
The company seeks to establish stronger foothold in Texas, planning stores in The Woodlands area and another at Baybrook Village.
Haverty unveiled a marketing campaign, 'FURnishing Happiness,' to boost customer experience and store traffic, focusing on choices, quality, design, and service.
Haverty Furniture has expanded into outdoor furniture, with positive early results.
Baths and dining room sales remain sluggish, while bedding sales are stable. The company is preparing to release several new products.
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