Havertys Q2 Profits Jump 15.1% on Lower Costs, Higher Margins

August 1, 2017  by Larry Thomas in Economic News, Financial Reports, Industry   

The Atlanta-based retailer said the quarterly profit of $6.19 million or 29 cents per share was aided by reduced administrative costs, the shifting of some marketing expenses into the third quarter, and improved gross margins, which jumped 90 basis points to 54.4%.

“We are pleased with the second quarter earnings results,” said Clarence Smith, chairman, president and CEO. “The improvement in gross margin was achieved by working with suppliers to develop great products and improve quality control, sales increases in items with higher margins, and our team’s commitment to convey the Havertys merchandise value message.

In last year’s second quarter, net income was $5.37 million or 24 cents per share.

The company said the top line was aided by a 6.2% increase in custom upholstery sales and a 3.1% increase in the average written ticket.

For the first six months of 2017, sales rose 2.1% to $397.3 million. Six-month net income jumped 21.2% to $12.2 million or 45 cents per share.

Havertys said total delivered sales for the third quarter to date are 0.6% lower than the same period last year, and comparable-store sales are down 1.1%. Total written sales for the third quarter to date, which include merchandise sold but not delivered, are 2.6% lower than the same period last year. Written comparable store sales decreased 3.1%.