Upholstery Business Helps Drive Q1 Profit Hike at Havertys

May 2, 2017  by Larry Thomas in Economic News, Industry   

Net income totaled $5.99 million or 28 cents per share. That was up from $4.67 million or 21 cents per share in last year’s first quarter.

Sales were $200.4 million in the most recent quarter, up from $194.5 million in the same quarter last year. Comparable store sales were up 1.6%.

“We are pleased with the first quarter sales and earnings given the choppy retail environment,” said Clarence Smith, chairman, president and CEO. “Our merchandising team has developed a great assortment of products to meet the discerning tastes of the on-trend consumer.”

In addition to upholstery, Smith said the retailer had good results from the mattress and accessories categories.

“Adjustments to our media mix, localized marketing, enhancements to our website, and associate training have yielded higher in-store closing rates,” he added. “Our product mix, in-home design service, and suggested complimentary merchandise has resulted in ten straight quarters of increases in average ticket over comparable periods. We believe our customer centered focus and strategies will further separate us from our competition and create better returns for our stockholders.”  

The average written ticket was up 2.9%, and the retailer’s custom upholstery written business jumped 10.3%, said Smith.

During the quarter, Havertys opened a new store in Lubbock, Texas, that replaced a store destroyed by a storm in late 2015. And the retailer is set to open a store this week in Greensboro, N.C., and will open a replacement store in Columbia, S.C., in September.

The store openings will boost its total selling space by about 0.3% in 2017.