Daily News
From Home Furnishing Business
Haverty’s Reports Third Quarter Operating Results Ending Sept. 30
November 2,
2022 by HFBusiness Staff in Business Strategy, Industry 
Clarence H. Smith, Haverty’s chairman and CEO, said, "Our strong earnings (this quarter) were the result of increased sales and gross margin improvement. We made progress in delivering customer backorders as we received a near record number of containers from vendors.”
Smith continued, “We had a strong Labor Day as customers returned to more traditional shopping patterns with softer traffic outside these peak periods. Written business compared to last year's record pace was down 7.2% but up 15.8% compared to the pre-pandemic third quarter of 2019.”
“Our sales associates and design consultants are providing excellent service to each customer and this quarter's average ticket was up 8.2% over last year.”
Haverty’s reported diluted earnings per common share (EPS) of $1.46 in 2022 third quarter versus $1.31 during the third quarter 2021. Consolidated sales increased 5.4% to $274.5 million, and comparable store sales increased 6.3%.
The gross profit margin during the same period (3Q) was 57.1% in 2022 versus 56.8% in 2021.
"The last quarter of 2022 will be challenging as consumers face continued inflation, rising interest rates, market volatility, and geopolitical concerns. We are well positioned to service our growing customer base and will continue to use our financial strength to invest in growth initiatives to drive the business in 2023 and beyond."
Third Quarter ended Sept. 30 Compared to Same Period of 2021
· Total sales up 5.4%, comp-store sales up 6.3% for the quarter. Total written sales were down 7.2% and written comp-store sales declined 6.9% for the quarter.
· Gross profit margins increased 30 basis points to 57.1% in 2022 from 56.8% in 2021 due to pricing discipline and merchandise mix.
· SG&A expenses were 45.4% of sales versus 44.6% and increased $8.4 million.
Balance Sheet and Cash Flow
· Cash and cash equivalents on Sept. 30 are $144.0 million.
· Generated $38.2 million in cash from operating activities primarily from solid earnings performance, offset by funding of a $25.3 million increase in inventories and a $7.3 million increase in other operating assets and liabilities.
· Purchased approximately 1.1 million shares of common stock for $30.0 million and paid $13.4 million in quarterly cash dividends during the nine months ended Sept. 30.
· The Company has no funded debt