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Sep 30, 2021
Haverty Furniture Q3 2021 Earnings Report
Reported an increase in sales and earnings compared to the same quarter last year.
Key Takeaways
Havertys reported strong Q3 2021 results with a 19.7% increase in sales compared to Q3 2020. Diluted earnings per share increased to $1.31 from $0.97 in the prior year. The company's performance was driven by top-line growth and operating margin expansion, despite challenges related to product and freight costs, supply chain disruptions, and staffing.
Sales increased by 19.7% compared to the same quarter last year, reaching $260.4 million.
Comparable store sales rose by 17.7%.
Diluted earnings per share (EPS) increased to $1.31, compared to $0.97 in the prior year.
Gross profit margins increased by 60 basis points to 56.8% due to pricing discipline.
Forward Guidance
The company expects gross profit margins for the full year 2021 to be between 56.5% and 56.8%. Fixed and discretionary expenses within SG&A for the full year are expected to be in the $278.0 to $281.0 million range. The effective tax rate for 2021 is expected to be 24.0%.
Positive Outlook
- Gross profit margins are expected to remain strong.
- The company is investing in new stores and IT infrastructure.
- Domestic vendors are beginning to return to normal production levels as flow of their raw materials improves.
- Factories in Vietnam are beginning to reopen at varying levels of capacity.
- Delivered sales for the fourth quarter to date of 2021 are up approximately 17.5% versus the same period last year and up 41.5% over 2019.
Challenges Ahead
- Written business for the fourth quarter to date of 2021 is down approximately 3.5% versus the same period last year.
- Rising warehouse, compensation, and benefit costs are increasing fixed and discretionary expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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