Havertys Reports Operating Results for Fourth Quarter 2023

February 22, 2024  by HFBusiness Staff in Business Strategy, Industry   

Clarence H. Smith, chairman and CEO, said, "We delivered solid fourth quarter results of strong gross profit margins and expense control within a difficult environment for retail home furnishing sales.”

Fourth quarter 2023 versus fourth quarter 2022:
• Diluted earnings per common share (“EPS”) of $0.90 versus $1.42.
• Consolidated sales decreased 24.9% to $210.7 million. Comparable store sales decreased 25.5%.
• Gross profit margin of 62.4% versus 57.0%.
• Pre-tax income of $18.5 million versus $32.5 million.

FY 2023 versus FY 2022:
• Diluted earnings per common share (“EPS”) of $3.36 versus $5.24.
• Consolidated sales decreased 17.7% to $862.1 million. Comparable store sales decreased 18.4%.
• Gross profit margin of 60.7% versus 57.7%.
• Pre-tax income of $72.7 million versus $119.5 million.

Smith continued, “Higher interest rates and record low housing sales and inflation combined with prior years’ outsized sales results have generated challenging headwinds. Our strong balance sheet is enabling us to execute our strategic store growth plans and invest in our business.”

“In 2023, we returned $42.1 million of capital to our shareholders. We purchased $6.9 million in common shares, paid quarterly dividends of $19.1 million, and in December paid a special cash dividend of $16.1 million. We have paid an annual cash dividend since 1935 and increased our quarterly cash dividend payouts each year since 2008.”

"Our team members remain focused on our business objectives and dedicated to delivering excellent service to our customers. The Havertys legacy of quality furniture and service is foundational for our "Regret-Free Guarantee" now featured in our marketing."