NYSE$HVT

Haverty Furniture Companies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong earnings driven by gross margin improvement and attention to operating costs.

Havertys reported a 1.3% increase in consolidated sales, reaching $253.2 million, and EPS of $1.27. Gross profit margin improved to 57.9% due to pricing discipline and merchandise mix.

  • Diluted EPS increased to $1.27 compared to $1.21 in the second quarter of 2021.
  • Consolidated sales rose by 1.3% to $253.2 million, with comparable store sales up by 1.1%.
  • Gross profit margin improved to 57.9% from 56.6% due to pricing discipline and merchandise mix.
  • Total written sales decreased by 13.3% compared to the previous year but increased by 23.2% over the pre-pandemic second quarter of 2019.

Headline financials

Total Revenue

$253M

Previous: $250M+1.3%
EPS (adj)

$1.27

Previous: $1.21+5.0%
Gross Profit Margin

57.9%

Previous: 56.6%+2.3%
Capital Expenditures

-$13.5M

Previous: -$10.9M-23.9%
Free Cash Flow

$8.16M

Previous: $11.9M-31.5%
Net Income

$21.7M

Previous: $22.9M-5.0%
Operating Income

$28.6M

Previous: $29.1M-1.9%
Gross Profit

$147M

Previous: $142M+3.6%
Cash & Equivalents

$143M

Previous: $235M-39.0%
Total Assets

$694M

No prior period

Revenue & EPS history

Haverty Furniture · Revenue · Quarterly

$253M

Q2 2022+1.3%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Havertys expects gross profit margins for 2022 to be between 57.7% and 58.0%. Fixed and discretionary expenses within SG&A for the full year of 2022 are expected to be in the $293.0 to $295.0 million range. Variable SG&A expenses for the full year of 2022 are anticipated to be in the 18.2% to 18.4% range in 2022.

Tailwinds

  • Gross profit margins are expected to remain strong for the remainder of the year.
  • Company is making investments in information technology to enhance online presence.
  • Retail square footage will be relatively flat as we plan to open three stores and close three in 2022.
  • Effective tax rate for 2022 is expected to be 25% excluding certain impacts.
  • Company is restoring operating inventory levels and reducing backlog of orders.

Headwinds

  • The second half of the year could be challenging due to rising inflation, market volatility, and geopolitical concerns.
  • There have been declines in in-store traffic outside of peak periods.
  • Written business was down 13.3% for the quarter compared to last year.
  • Capital expenditure estimate reflects a deferral of the conversion of our home delivery center in Virginia to a regional distribution facility due to availability and pricing of building materials.
  • Consumer discretionary spending is expected to be impacted by rising inflation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.3%

Avg return

30 days after

56%

36 / 64 earnings

Positive

+15.5%

Q2 2020

Best reaction

-18.9%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.3%+4.9%+11.4%
Q4 2025+2.1%-5.9%-15.6%
Q3 2025+7.8%+11.1%+17.7%
Q1 2025+8.7%+3.8%+15.4%
Q4 2024+9.1%+8.3%-1.6%
Q3 2024-8.8%-9.9%-2.8%
Q2 2024+3.4%-2.4%-4.2%
Q1 2024-7.4%-4.3%-7.8%
Q4 2023-6.8%-3.3%-9.1%
Q3 2023+6.6%+14.2%+23.6%
Q2 2023-7.9%-5.6%-12.1%
Q1 2023-13.8%-12.8%-12.8%
Q4 2022+1.7%+3.8%-15.5%
Q3 2022+4.1%+16.5%+18.5%
Q2 2022+4.7%+5.2%-3.7%
Q1 2022+8.7%+9.5%+11.0%
Q4 2021-2.6%-4.2%+5.8%
Q3 2021-9.6%-4.4%-1.7%
Q2 2021-5.2%-6.3%-6.0%
Q1 2021+13.2%+13.1%+13.1%
Q4 2020+1.0%+5.7%+14.4%
Q3 2020+7.7%+10.7%+20.1%
Q2 2020+15.5%+23.1%+38.7%
Q1 2020+4.5%+8.8%+7.5%
Q4 2019-15.0%-14.2%-38.9%
Q3 2019-14.5%-12.2%-5.2%
Q2 2019-1.9%-3.2%+5.5%
Q1 2019-18.9%-19.3%-25.8%
Q4 2018+5.9%+6.7%+4.5%
Q3 2018-0.2%+4.2%+6.8%
Q2 2018+3.8%+5.8%+10.3%
Q1 2018+9.1%+7.2%+10.2%
Q4 2017-5.1%+0.0%-11.2%
Q3 2017+4.8%+2.1%+0.6%
Q2 2017+6.8%+3.9%+0.7%
Q1 2017+3.9%+3.0%-2.8%
Q4 2016+8.6%+2.9%+4.0%
Q3 2016+3.6%+8.3%+19.3%
Q2 2016+8.9%+10.9%+8.5%
Q1 2016-3.6%
Q4 2015-2.4%
Q3 2015+3.0%
Q2 2015-0.1%
Q1 2015-1.5%
Q4 2014-6.3%
Q3 2014-4.4%
Q2 2014+0.1%
Q1 2014-3.3%
Q4 2013+1.7%
Q3 2013-3.2%
Q2 2013+1.4%
Q1 2013+1.6%
Q4 2012+0.9%
Q3 2012-1.7%
Q2 2012-0.6%
Q1 2011+0.2%
Q1 2012+1.5%
Q4 2011+1.7%
Q3 2010+3.1%
Q3 2011+3.1%
Q2 2011-6.3%
Q4 2010-3.7%
Q2 2010-1.0%
Q1 2010-2.6%

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