Havertys Reports Q1 Earnings

May 3, 2016  by in Financial Reports, Industry   

Total net sales increased 1.7 percent to $194.5 million. Comparable store sales increased 0.9 percent during the same period last year. 

“Our earnings results reflect the previously announced modest sales increase,” said Clarence Smith, chairman, president and CEO of Havertys. “Our expansion and remodeling strategy had yielded nine new locations and two significantly remodeled and expanded stores over the past 21 months. The sales results for these locations, including those in new markets, combined with the overall slower growth in some of our existing markets has not yet allowed us to outpace the additional fixed costs.”

Smith added that Havertys is pleased with its mobile friendly website as its seen strong increases in traffic and sales.

“We will continue to use our website to stimulate interest in Havertys via email marketing, search engine campaigns, display ads and social media,” Smith said. “Operationally, we are nearing the completion of the migration to a new supply chain import network system, expansion of our Florida distribution infrastructure, and conversion to more collaborative cloud based systems for our management teams.”

Total written sales were down 1.3 percent and written comparable store sales decreased 2.2 percent. Average written ticket was up 1.1 percent and sales of custom order upholstery grew 4 percent. Gross profit margins of 53.7 percent were flat and slightly better than Havertys’ estimates.

“With the continued uncertain economic and political climate, we are pleased that our top line growth has improved thus far in the seasonally weaker second quarter,” Smith said. “We are in a strong financial position and remain committed to increasing shareholder value.”