Same-store sales boost Havertys profits to $2.36 million

Furniture Today Staff -- Furniture Today, August 2, 2012

ATLANTA — Powered by a same-store sales increase of 5.6%, Havertys reversed a net loss in the quarter ended June 30.

The Top 100 retailer said it recorded a profit of $2.36 million, or 11 cents per share, in the second quarter. In last year's second quarter, the bottom line was a net loss of $942,000, or 4 cents per share.

Sales in the most recent quarter totaled $151.5 million, up 5.9% from $143.1 million in the same quarter last year.

"The advancements made by our team over the past year in improving the customer service, emphasizing our assortment of ‘better' price point merchandise and strengthening the Havertys brand are gaining traction in the markets we serve," said Clarence Smith, president and CEO. "We are pleased with our quarterly performance: delivering top line sales growth, improving profitability, and returning quarterly dividends to our stockholders."

Results for the first six months of 2012 followed a similar pattern, as sales rose 6% to $315.1 million.

First half net income was $4.82 million, or 22 cents per share. That compares with a net loss of $1.61 million, or 7 cents per share, in the first half of 2011.

Gross margins for the first six months increased 1.1 percentage points to 52.4%, and Smith said he expects margins to be approximately 52% in the second half of the year.

Havertys has 120 stores in 17 states, including a location in Baltimore that opened during the second quarter. The retailer plans to open stores in Midland and Dallas, Texas, later this year.