NYSE$HVT

Haverty Furniture Companies Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported an increase in sales and earnings compared to the same quarter last year.

Havertys reported strong Q3 2021 results with a 19.7% increase in sales compared to Q3 2020. Diluted earnings per share increased to $1.31 from $0.97 in the prior year. The company's performance was driven by top-line growth and operating margin expansion, despite challenges related to product and freight costs, supply chain disruptions, and staffing.

  • Sales increased by 19.7% compared to the same quarter last year, reaching $260.4 million.
  • Comparable store sales rose by 17.7%.
  • Diluted earnings per share (EPS) increased to $1.31, compared to $0.97 in the prior year.
  • Gross profit margins increased by 60 basis points to 56.8% due to pricing discipline.

Headline financials

Total Revenue

$260M

Previous: $218M+19.7%
EPS (adj)

$1.31

Previous: $0.97+35.1%
Capital Expenditures

-$28.1M

Previous: -$7.21M-289.5%
Free Cash Flow

-$3.83M

Previous: $11.1M-134.6%
Net Income

$24.2M

Previous: $18.3M+32.7%
Operating Income

$31.8M

Previous: $26.9M+18.5%
Gross Profit

$148M

Previous: $122M+21.1%
Cash & Equivalents

$226M

Previous: $212M+6.5%
Total Assets

$764M

Previous: $699M+9.2%

Revenue & EPS history

Haverty Furniture · Revenue · Quarterly

$260M

Q3 2021+19.7%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company expects gross profit margins for the full year 2021 to be between 56.5% and 56.8%. Fixed and discretionary expenses within SG&A for the full year are expected to be in the $278.0 to $281.0 million range. The effective tax rate for 2021 is expected to be 24.0%.

Tailwinds

  • Gross profit margins are expected to remain strong.
  • The company is investing in new stores and IT infrastructure.
  • Domestic vendors are beginning to return to normal production levels as flow of their raw materials improves.
  • Factories in Vietnam are beginning to reopen at varying levels of capacity.
  • Delivered sales for the fourth quarter to date of 2021 are up approximately 17.5% versus the same period last year and up 41.5% over 2019.

Headwinds

  • Written business for the fourth quarter to date of 2021 is down approximately 3.5% versus the same period last year.
  • Rising warehouse, compensation, and benefit costs are increasing fixed and discretionary expenses.
  • Suppliers paused their manufacturing operations in Vietnam in July due to COVID-19, which may impact merchandise availability in future quarters.
  • Merchandise availability and costs remain a key issue across the industry.
  • Shutdown will likely impact availability in the latter part of the fourth quarter and into the first quarter of 2022.

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 Q3 2021

Historical avgQ3 2021

+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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