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Sep 30, 2024
Haverty Furniture Q3 2024 Earnings Report
Haverty's sales and earnings decreased due to a challenging retail environment.
Key Takeaways
Haverty Furniture reported a decrease in sales and earnings for the third quarter of 2024, impacted by below-plan sales and a cautious consumer environment. Consolidated sales decreased by 20.2% to $175.9 million, and diluted earnings per share decreased to $0.29 from $1.02 in the same quarter of the previous year. The company opened one new store in the third quarter and expects to open three more in the fourth quarter, aiming to end the year with 129 locations.
Diluted earnings per share decreased to $0.29 compared to $1.02 in the third quarter of 2023.
Consolidated sales decreased by 20.2% to $175.9 million.
Comparable-store sales decreased by 20.5%.
Gross profit margin was 60.2%, a decrease from 60.8% in the same period last year.
Forward Guidance
Haverty expects gross profit margins for the full year 2024 to be between 60.0% and 60.5%. Fixed and discretionary expenses within SG&A are projected to be in the $279.0 to $281.0 million range. The effective tax rate for 2024 is expected to be 28.0%. Planned capital expenditures for the full year are approximately $33.0 million, with retail square footage expected to increase by approximately 3.4% over 2023.
Positive Outlook
- Gross profit margins are expected to remain between 60.0% and 60.5%.
- Fixed and discretionary expenses within SG&A are projected to be in the $279.0 to $281.0 million range, a reduction from previous guidance.
- Variable SG&A expenses are anticipated to decrease by 10 basis points from previous guidance.
- The company expects retail square footage will increase approximately 3.4% in 2024 over 2023.
- No significant damage to any locations from recent hurricanes.
Challenges Ahead
- Consumer remains cautious on making big-ticket postponeable purchases.
- Lack of housing turnover has dampened demand.
Historical Earnings Impact
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