Daily News
From Home Furnishing Business
Havertys Reports 8.6 Percent Sales Decline
May 2,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on May 2007
Sales at Havertys stores dropped 8.6 percent in the first quarter, and the Atlanta-based companys net income declined to $0.8 million from $5.1 million a year ago, the 121-store retailer reported Thursday.
Net sales totaled $191 million, and comparable-store sales declined 10.4 percent during the quarter that ended March 31.
Our earnings for the quarter were significantly impacted by the lower sales volumes and negative comparable-store sales, said Clarence Smith, president and CEO. We have chosen not to be overly aggressive with pricing promotions and our gross profit percentage declined very modestly... We continue to look for ways to improve efficiencies and scale our operations to the current sales environment.
In response to slower business conditions, Smith said the chain cut its inventory on hand by $5 million from year-end levels.
The housing sector, which is tied to our industry, has been in a severe slump, Smith said. It is difficult to predict when there will be sustained improvement in the sales of retail home furnishings.
He said the company entered a new market during the quarter with the May opening of a store in Huntsville, Ala., and added that opportunities for store locations are likely to rise sharply as weak retailers are unable to sustain a prolonged decline in business.