Havertys 3Q Sales off 1.1%

November 2, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on November 3, 2011

Havertys Furniture Cos. (NYSE: HVT) reported third-quarter 2011 net income of $118,000 on net sales of $155.4 million.

Sales were off 1.1 percent from third-quarter 2010, when the Atlanta-based furniture retail chain had net income of $1.2 million. Written sales for the third quarter of 2011 increased 2.6 percent over the same quarter of last year.

Through 2011's first nine months, net sales of $452.6 million were down 1.2 percent from the same time in 2010. Year to date, Haverty's lost $1.5 million, compared with net income of $2.9 million through 2010's third quarter.

"The retail home furniture business remains challenging but we are committed to connecting with our customers by having great showrooms, excellent service and exciting new products," said Clarence H. Smith, president and CEO. "Our program for enhancing store interiors is complete in 33 stores and will continue through early 2013. We are working with a new marketing agency to develop a consumer segmentation model which will aid in more efficiently reaching our target customers with a resonating message. The review of manufacturers' new products is ongoing as we develop a merchandise assortment that embraces the Havertys brand of style, quality and value."

Gross profit margins for the fourth quarter are expected to rise around 1 percent from the 51 percent recorded in the fourth quarter of 2010.

Advertising and marketing expense are planned to be approximately 0.8% as a percent of sales greater in the fourth quarter of 2011 than in the comparable prior year period.

For the fourth quarter to date, delivered sales are up 4.9 percent and written sales are down 1.4 percent compared with the same period last year.

Click here for the full Havertys third-quarter performance release.