Havertys 4Q sales, profits jump
By Clint Engel -- Furniture Today, February 15, 2004
ATLANTA — Havertys' fourth-quarter profits jumped 24% before an accounting change, and same-store sales grew 5.7% as the retailer's private-label goods continued to shine.
Earnings came to $9.8 million, or $10.9 million after a non-cash adjustment because of the accounting change, which involved consolidation of balance sheet items.
Fourth-quarter sales grew 8.9% to $205.3 million. For the full year, Havertys' net income was flat before the accounting change at $24.1 million, while sales increased 5.8% to $744.6 million and same-store sales rose 1%.
"The real star for the fourth quarter and for all of 2003 was the success of our Havertys Collections," said Clarence Smith, president and CEO of the 113-store Top 100 company.
The profitable private-label goods grew to a run rate of 30% of sales by year's end, from 15% the year before, and are expected to hit a rate of 50% by the end of this year.
In March, the retailer will introduce a Havertys-branded bedding program, made by Simmons and including exclusive foam bedding, which will be priced at the upper middle of its bedding selection.
Havertys has been moving Thomasville product out of its stores and adding premium lines from other manufacturers. A new case goods group from Bernhardt will join the lineup soon, Smith said.
Havertys also has been preparing to shift its sourcing if duties are levied on Chinese wood bedroom furniture. Chinese suppliers already have secured production capacity in countries such as Vietnam, Malaysia and Indonesia, and Havertys is sending its merchandising team to Asia this week to continue probing other sources.
"We believe that we will weather the antidumping storm and will be stronger than our competition when it finally plays out," Smith said.
Also, the retailer plans to open three stores this year — in Columbia, Md., San Antonio and a yet-to-be disclosed market in Ohio — and will expand two stores in Savannah, Ga., and Fairfax, Va. Two other openings in metro Washington are being pushed back to early 2005.
Havertys also will open a distribution center in Lakeland, Fla., in October to support stores in what has become its highest-volume state.
"We believe we new store opportunities in Maryland, Virginia, Delaware, Florida, Ohio, Indiana and South Texas that can all be served from existing distribution centers," Smith said.
| Haverty Furniture | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are loses or declines. | |||
| Quarter ended 12/31 | 2003 | 2002 | Change |
| (a) Excludes credit service charge income of $1.4 million in the 2003 quarter, $2.4 million in the 2002 quarter, $6.4 million in the 2003 year and $9.1 million in the 2002 year. (b) Includes a $1 million extraordinary gain, the cumulative effect of an accounting change. (c) Based on average shares outstanding of 23.1 million in the 2003 quarter, 21.9 million in the 2002 quarter, 22.4 million in the 2003 year and 22.1 million in the 2002 year. | |||
| Sales (a) | $205,269,000 | $188,434,000 | 8.9% |
| Operating income | 14,503,000 | 10,712,000 | 35.4% |
| Net income (b) | 10,899,000 | 7,934,000 | 37.4% |
| Earnings per share (c) | 0.47 | 0.36 | 30.6% |
| Year ended 12/31 | 2003 | 2002 | Change |
| Sales (a) | $744,635,000 | $703,959,000 | 5.8% |
| Operating income | 49,364,000 | 60,511,000 | (18.4%) |
| Net income (b) | 25,331,000 | 24,315,000 | 4.2% |
| Earnings per share (c) | 1.13 | 1.10 | 2.7% |
-
Havertys 2Q sales up 9.7%
Aug 20, 2006 -
Havertys 1st-quarter profits surge 25.6%
May 2, 2004 -
Havertys sales rise, profits fall
Mar 20, 2005 -
Havertys 3Q profits drop 9.9%
Nov 20, 2005 -
Havertys 2Q sales rise 7.1% as profits plummet 64.1%
Aug 21, 2005
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