Havertys Posts Small Profit as Sales Decline 10 Percent

November 1, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on November 2007 Sales decreased at Havertys Furniture stores by 10 percent in the company’s third quarter, but the 123-store retailer was “modestly profitable” with net income of $643,000, down from $4.1 million in the same period of 2006.

In addition to announcing third quarter sales, a period that ended September 30, Atlanta-based Havertys reported that sales in October decreased 1.6 percent to $62.4 million and comp-store sales decreased 4.4 percent. Company officials said sales continue to be hurt by weakness in housing markets, but said the company is pleased with new merchandise that has recently arrived in stores, including several collections that have quickly become best sellers.

Net sales for the third quarter totaled $200.7 million. Same-store sales decreased 11.6 percent. “Our third quarter was modestly profitable on a low level of sales,” said President and CEO Clarence Smith. “We have been tightening up on costs where possible.” Later, he added, “We believe we have the financial strength to weather this difficult period in our industry and plan to focus on highlighting the quality merchandise values we offer and the high levels of consumer satisfaction we consistently provide.”

He said costs have been reduced in areas such as warehouse, delivery, advertising, labor, commissions and administrative expenses, but those savings have been partly offset by an increase in discount fees paid for outsourced free interest credit promotions with longer terms that the company has used more frequently due to the competitive environment.