NYSE$HVT

Haverty Furniture Companies Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Havertys' second quarter earnings declined due to decreased sales, but gross profit margin improved.

Havertys reported a decrease in consolidated sales by 18.5% to $206.3 million, with comparable-store sales down 19.1%. Diluted earnings per share decreased to $0.70 from $1.27 year-over-year. However, gross profit margin increased to 60.5% from 57.9%. The company is also planning to open four new locations in the first half of 2024.

  • Diluted earnings per share decreased to $0.70 compared to $1.27 in the same quarter last year.
  • Consolidated sales decreased by 18.5% to $206.3 million.
  • Comparable-store sales declined by 19.1%.
  • Gross profit margin increased to 60.5% from 57.9%.

Headline financials

Total Revenue

$206M

Previous: $253M-18.5%
EPS (adj)

$0.70

Previous: $1.27-44.9%
Gross Profit Margin

60.5%

Previous: 57.9%+4.5%
Capital Expenditures

-$40.5M

Previous: -$13.5M-198.8%
Free Cash Flow

-$28.7M

Previous: $8.16M-451.6%
Net Income

$11.8M

Previous: $21.7M-45.7%
Operating Income

$14.9M

Previous: $28.6M-48.0%
Gross Profit

$125M

Previous: $147M-14.8%
Cash & Equivalents

$109M

Previous: $143M-23.9%

Revenue & EPS history

Haverty Furniture · Revenue · Quarterly

$206M

Q2 2023-18.5%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Havertys expects gross profit margins for 2023 to be between 59.5% and 60.0%. Fixed and discretionary expenses within SG&A for the full year are expected to be in the $286.0 to $289.0 million range. The effective tax rate for 2023 is expected to be 25%. Planned capital expenditures for the full year are approximately $57.0 million and retail square footage is expected to increase approximately 1.6% in 2023.

Tailwinds

  • Gross profit margins are expected to remain strong for the rest of the year.
  • Fixed and discretionary expenses within SG&A are expected to be lower than previous guidance.
  • The company anticipates opening four stores and closing one during the year, leading to an increase in retail square footage.
  • Company has no debt outstanding at June 30, 2023 and credit availability of $80.0 million.
  • The change in the LIFO reserve generated a positive impact on gross profit of $3.4 million compared to a negative impact of $2.5 million in 2022.

Headwinds

  • Gross profit margins fluctuate quarter to quarter in relation to promotional cadence.
  • The impact of inflation and rising interest rates have caused some consumers to pull back on discretionary home related spending.
  • Second quarter sales reflected this challenge, particularly early in the quarter.
  • Total sales down 18.5%, comp-store sales down 19.1% for the quarter.
  • Total written sales were down 14.7% and written comp-store sales declined 15.2% for the quarter.

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 2023

Historical avgQ2 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro