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Jun 30, 2022
Haverty Furniture Q2 2022 Earnings Report
Reported strong earnings driven by gross margin improvement and attention to operating costs.
Key Takeaways
Havertys reported a 1.3% increase in consolidated sales, reaching $253.2 million, and EPS of $1.27. Gross profit margin improved to 57.9% due to pricing discipline and merchandise mix.
Diluted EPS increased to $1.27 compared to $1.21 in the second quarter of 2021.
Consolidated sales rose by 1.3% to $253.2 million, with comparable store sales up by 1.1%.
Gross profit margin improved to 57.9% from 56.6% due to pricing discipline and merchandise mix.
Total written sales decreased by 13.3% compared to the previous year but increased by 23.2% over the pre-pandemic second quarter of 2019.
Forward Guidance
Havertys expects gross profit margins for 2022 to be between 57.7% and 58.0%. Fixed and discretionary expenses within SG&A for the full year of 2022 are expected to be in the $293.0 to $295.0 million range. Variable SG&A expenses for the full year of 2022 are anticipated to be in the 18.2% to 18.4% range in 2022.
Positive Outlook
- Gross profit margins are expected to remain strong for the remainder of the year.
- Company is making investments in information technology to enhance online presence.
- Retail square footage will be relatively flat as we plan to open three stores and close three in 2022.
- Effective tax rate for 2022 is expected to be 25% excluding certain impacts.
- Company is restoring operating inventory levels and reducing backlog of orders.
Challenges Ahead
- The second half of the year could be challenging due to rising inflation, market volatility, and geopolitical concerns.
- There have been declines in in-store traffic outside of peak periods.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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