Havertys' suspends quarterly stock dividend
Response to weak sales environment
Furniture Today Staff -- Furniture Today, 11/13/2008 7:37:34 AM
ATLANTA — Havertys' board has voted to suspend the furniture retailer's quarterly stock dividend, citing the weak sales environment."The historic slowdown in the retail home furnishings industry has caused us to suspend our dividend," said Clarence Ridley, chairman of the 123-store retailer's board.
"Over the last several weeks, the general economy and capital markets have experienced declines that could not be predicted," he said. "We are making this decision as part of our strategic plan to preserve capital, protect the strength of our balance sheet and enhance our financial flexibility as we manage through these difficult times.
"Although we have no term debt and have adjusted all aspects of our business to the current conditions, we believe this is a prudent step and will reassess our decision on an ongoing basis."
The third-quarter dividend, paid in September, was 6.75 cents per share of common stock and 6.25 cents per share of Class A stock.
