Havertys' 1Q profit triples as sales rise 13.8%
Larry Thomas -- Furniture Today, May 6, 2013
ATLANTA - Top 100 retailer Havertys said its first-quarter profits were more than triple last year's first quarter as sales rose 13.8%.
The company said same store sales rose 11.5% while gross margins climbed 1.3 percentage points to 53.5%.
"We are very pleased with the continued positive trends in our results," said Clarence Smith, chairman, president and CEO. "The execution of our strategy to focus on the ‘on trend' consumer with fashionable products and a great shopping experience is delivering growth in sales and operating margins."
Sales for the quarter ended March 31 totaled $186.1 million, up from $163.6 million in the same quarter last year.
Net income came to $8.26 million or 36 cents per share. That was up from $2.46 million or 11 cents per share in last year's first quarter. An accounting adjustment related to its accrual process and the recognition of certain vendors' pricing allowances added 2 cents per share to the most recent quarter.
Smith said the positive sales momentum is continuing into the second quarter, noting that delivered sales are up about 14% to date.
"We remain alert to the uncertainty of a sustained housing recovery and the shifts in consumer confidence, but believe Havertys' agile operating structure and financial strength provide a competitive advantage," he said.
The retailer closed its store in Clearwater, Fla., in January and ended the quarter with 121 locations.
Since the quarter ended, a store in Mississippi has been closed, and a store in Virginia will close later this month.
Smith said three stores are being expanded as part of a major remodeling, while another 18 will undergo "store refreshes" this year.
Earnings per share are fully diluted.
Quarter ended 3/31
Earnings per share