Havertys in Red for 1Q

May 4, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on May 5, 2011

Haverty Furniture Cos. (NYSE: HVT)
reported first-quarter 2011 sales of $154.2 million, a 1.2 percent drop from prior-year levels.

Comparable store sales were off 0.6 percent, the first drop for that figure in five quarters. For the period ended March 31, Havertys lost $671,000, compared with net income of $2.35 million in first-quarter 2010.

"Our target customer is a homeowner and our business is influenced by housing market activity which has suffered historic declines. Housing trends improved modestly last year until the new buyer tax credits expired," said Clarence H. Smith, president and chief executive officer. "Since then, further declines in home values and increased foreclosures have not helped the environment for furniture sales. Although we have lowered our operating costs over the last few years, our SG&A costs were impacted this quarter by rising fuel prices, wage increases and higher group insurance premiums.

Havertys, established in 1885, is a full-service home furnishings retailer with 118 showrooms in 17 states in the Southern and Midwestern regions.