Share this on

Havertys 4Q profits drop 22.4%

By Clint Engel -- Furniture Today, February 16, 2003

Atlanta — Retailer Havertys' fourth-quarter profits were down 22.4% from a record quarter last year, but were up for all of 2002 as imports and its proprietary Havertys brand continued to shine in a tough business climate.

Fourth-quarter earnings came to $7.9 million. Sales were up 0.4% to $188.4 million as same-store sales declined 6.3% from the comparable quarter a year earlier.

For the full year, net income rose 7.1% from the previous year to $24.3 million, while sales grew 3.8% to $704 million. Same-store sales for the Top 100 company, which has 111 stores in 14 southern and central states, increased 0.7%.

Havertys met the fourth-quarter earnings guidance it had given earlier, despite a "more challenging than expected sales environment," said Clarence Smith, president and chief executive officer. "Gross profit margins were stronger than last year as sales of imports and our private-label brand performed well."

This year, the Havertys brand has surpassed Broyhill as the retailer's No. 1 selling brand, Smith said in a conference call to the investment community. Havertys sees its own brand continuing to grow as it moves more non-branded merchandise on the floor under the label.

Smith added that import quality from China and the Far East continues to improve. The retailer is starting to receive its first fabric upholstery from China "and we're excited about it," he said.

Havertys' selling, general and administrative expenses rose as expected in the fourth quarter — to $81.7 million from $72.9 million a year ago — partly because of higher overhead associated with eight new stores, three larger relocated stores and two distribution centers opened last year.

This year, Havertys plans to open four stores: a relocated, larger store in Jackson, Miss., which already has opened; a store in Palm Beach, Fla.; its first San Antonio store, late in the second quarter or in the third quarter; and a Bowie, Md., store in the fourth quarter.

Maryland will be Havertys' 15^th state. The retailer is further filling out the greater Washington market, where it has performed well in its converted HomeLife Furniture locations.

All told, Havertys plans to add 128,000 square feet of selling space this year, a 3.4% increase.

"Many economic conditions and uncertainties lead us to remain cautious about our near-term sales and earnings outlook," Smith said.

But he said that with the recent strength in home sales, Havertys believes there is strong pent-up demand for furniture, and that Havertys is well positioned to take advantage of any upturn in the economy.

Haverty Furniture
Earnings per share are fully diluted, and all figures in parentheses are loses or declines.
Quarter ended 12/31	2002	2001	Change
(a) Excludes credit service charge income of $2.4 million in the 2002 quarter, $2.5 million in the 2001 quarter, $9.1 million in the 2002 year and $11.1 million in the 2001 year. (b) Based on average shares outstanding of 21.9 million in the 2002 quarter, 21.7 million in the 2001 quarter, 22.1 million in the 2002 year and 21.5 million in the 2001 year.
Sales(a)	$188,434,000	$187,753,000	0.4%
Operating income	10,712,000	17,358,000	(38.3%)
Net income	7,934,000	10,229,000	(22.4%)
Earnings per share(b)	0.36	0.47	(23.4%)
Year ended 12/31	2002	2001	Change
Sales(a)	$703,959,000	$678,112,000	3.8%
Operating income	35,416,000	39,597,000	(10.6%)
Net income	24,315,000	22,710,000	7.1%
Earnings per share(b)	1.10	1.06	3.8%

Share this on

Havertys' earnings decline 40% in 4Q on flat sales

Mar 1, 2011

Havertys earns $9.2M in 4Q

Mar 8, 2010

Havertys loses $2.3 million

Aug 10, 2008

Havertys plans to remodel 40 stores this year

Mar 2, 2011

Havertys profit plunges 84%

May 6, 2007

Also by this author

Also by Clint Engel

Featured Company

Brandwise Inc.

Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more

Related Resources

Shopatron: Bicycles & eCommerce

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.