Havertys 1Q Sales Slip

April 8, 2014  by in Financial Reports, Industry   

Same store sales dropped 0.9 percent in the quarter.

Total written sales for the first quarter of 2014 increased 0.9 percent and written same store sales were up 2.6 percent over the same quarter last year.  The company took into account that its stores are closed on Easter adjusted the amounts downward 1.3 percent to compensate for the holiday falling in March last year and April this year.

"Our first quarter total sales were 2.5 percent below last year with comparable store sales down slightly," said Clarence H. Smith, chairman, president and CEO. "Last year's first quarter comparable store sales were up 11.5 percent. The severe winter weather did not impact 30 of our more southern locations which posted increased comparable store sales of 7.3 percent for the quarter. We have not altered our promotional stance and gross profit product margins should be in line with our previous guidance."

Smith said the retailer's custom-order upholstery and in-home design sales helped boost its written business in the first quarter.

"We have recently obtained commitments from our custom order suppliers to shorten lead times from six to four weeks from sale to customer delivery," Smith said. "This contrasts with some of our overseas wood furniture manufacturers that have fallen behind fulfilling our orders and are requiring longer lead times."