Havertys Sales up 6.1% in 1st Quarter

May 2, 2012  by in UnCategorized   

By Home Furnishings Business in Financial Reports on May 3, 2012

Haverty Furniture Cos. (NYSE: HVT) reported first-quarter 2012 sales of $163.6 million, a 6.1 percent increase over the prior-year period.

The Atlanta-based furniture retailer had net income for the three months ended March 31 of $2.5 million, compared with a loss of $671,000 in the first quarter of 2011.

First-quarter 2012 same-store sales were up 5.7 percent year-over-year.

"We are pleased with the earnings results for the first quarter which were better than our expectations. Our investments in the customer experience, both in the store and on our website, are important elements for our long term profitable growth," said Havertys President and CEO Clarence H. Smith. "During the second quarter of 2012 we will complete the roll out of a new point of sale system that enables our sales associates to more efficiently complete transactions allowing them to further focus on meeting customers' needs. Visits to havertys.com increased over 28 percent in the first quarter of 2012 compared to the same period last year and its recent facelift will be revealed next week to coincide with the launch of a mobile version of our Web site."

He added that the retailer's new "discover something you" television campaign, which began airing in late February, has received praise for a fresh and fun approach to women's personal connections to their furniture.

"We will be spending our advertising dollars in a more specific market-driven and media targeted approach beginning in the second quarter of this year based on in-depth consumer research," Smith said. "March was the first of the monthly "Inspiration Sessions" we are hosting in each of our stores to provide information and empower our customers' desires to rejuvenate their homes. The feedback has been positive and we are strengthening our brand as the furniture retailer for fashion, value, quality and service."

Looking ahead, gross profit margins for the full year of 2012 are now expected to be approximately 52 percent, modestly better than the previous view.

Havertys expects to recognize other income during the second quarter of approximately $400,000 for gains resulting from insured damages caused by a faulty fire sprinkler system at one of its stores.

Selling square footage is estimated to increase 2.5 percent in 2012 based on opening a new store in Baltimore, Md.; entering the Midland, Texas market early in the third quarter; a new location in Dallas; and a replacement store in Atlanta later in the year.

For the second quarter to date delivered sales are up 6.2 percent and written business is flat. Retailers and analysts often combine March and April given the impact of shifts in the Easter holiday and timing of advertising and promotions. For this two-month comparison written business is up 5.4 percent.

Click here for the full Haverty Furniture Cos. first-quarter release.