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Jun 30, 2021
Haverty Furniture Q2 2021 Earnings Report
Reported operating results with sales increase due to stores reopening and comparable store sales increase.
Key Takeaways
Havertys reported outstanding sales for the second quarter, driven by the reopening of stores and a shift towards in-stock merchandise purchases. Gross profit margins improved despite supply chain challenges, and the company is focused on maintaining lower expenses and leveraging its strong cash position.
Diluted earnings per common share increased to $1.21, compared to $0.72 in the same quarter last year.
Consolidated sales increased to $250.0 million, a significant rise from $110.0 million in Q2 2020.
Comparable store sales increased by 46.9% compared to the previous year.
Gross profit margins increased to 56.6% due to pricing discipline.
Forward Guidance
Havertys anticipates continued growth, with written business up in the third quarter. They expect gross profit margins to remain strong and are managing fixed expenses while investing in strategic growth initiatives.
Positive Outlook
- Written business for the third quarter to date of 2021 is up approximately 4.1% versus the same period last year.
- Delivered sales for the third quarter to date of 2021 are up approximately 22.8% versus the same period last year.
- Gross profit margins for 2021 will be between 56.5% to 56.8%.
- Capital expenditures include amounts for new stores and investments in information technology.
- The company is purchasing a store and a home delivery center currently under lease.
Challenges Ahead
- Fixed and discretionary expenses within SG&A for the full year of 2021 are expected to be in the $275.0 to $278.0 million range, an increase over our previous 2021 estimate due to rising warehouse, compensation, and benefit costs.
- Variable SG&A expenses for the full year of 2021 are anticipated to be in the 17.3% to 17.5%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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