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Jun 30, 2024
Haverty Furniture Q2 2024 Earnings Report
Havertys' second quarter earnings decreased compared to the same period last year, with sales declining and gross profit margin remaining relatively stable.
Key Takeaways
Havertys reported a decrease in sales of 13.4% to $178.6 million and a decrease in EPS to $0.27 compared to $0.70 in the second quarter of 2023. The gross profit margin remained relatively stable at 60.4% compared to 60.5% in the prior year.
Diluted earnings per share decreased to $0.27 from $0.70 year-over-year.
Consolidated sales decreased by 13.4% to $178.6 million.
Comparable-store sales decreased by 13.6%.
Gross profit margin was 60.4%, slightly down from 60.5% in the prior year.
Forward Guidance
Havertys expects gross profit margins for 2024 to remain between 60.0% and 60.5%. Fixed and discretionary expenses within SG&A are projected to be in the $282.0 to $284.0 million range. The effective tax rate for 2024 is expected to be 27.5%. Planned capital expenditures for the full year are approximately $33.0 million, with retail square footage expected to increase by about 3.4%.
Positive Outlook
- Gross profit margins are expected to remain stable at 60.0% to 60.5%.
- Fixed and discretionary expenses within SG&A reduced by $8.0 million from previous guidance.
- Reduction in variable SG&A expenses by 20 basis points driven by third party credit expense and delivery costs.
- Strong financial position enables investments during demand downturns.
- Store growth strategy is on track with plans to open a net of five new stores in 2024 and 2025.
Challenges Ahead
- Effective tax rate for 2024 increased from previous guidance of 26.5% to 27.5%.
- Total sales down 13.4%, comp-store sales down 13.6% for the quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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