NYSE$HVT

Haverty Furniture Companies Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported strong operating results for the fourth quarter and year ended December 31, 2020.

Havertys reported a strong fourth quarter with a 12.9% increase in consolidated sales, reaching $241.3 million, and diluted EPS of $1.37. Comparable store sales increased by 13.7%.

  • Diluted earnings per share was $1.37, up from $0.31 in Q4 2019.
  • Adjusted EPS was $1.37 compared to $0.40 in Q4 2019.
  • Consolidated sales increased by 12.9% to $241.3 million.
  • Comparable store sales increased 13.7%.

Headline financials

Total Revenue

$241M

Previous: $214M+12.9%
EPS (adj)

$1.37

Previous: $0.40+242.5%
Total Written Sales Growth

16.7%

No prior period
Net Income

$25.4M

Previous: $6.1M+316.9%
Gross Profit

$138M

Previous: $116M+18.8%
Cash & Equivalents

$200M

Previous: $75.7M+164.1%
Total Assets

$680M

Previous: $560M+21.5%

Revenue & EPS history

Haverty Furniture · Revenue · Quarterly

$241M

Q4 2020+12.9%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Havertys provided guidance for 2021, including gross profit margins between 55.3% and 55.8% and fixed and discretionary expenses within SG&A expected to be in the $261.0 to $263.0 million range. The effective tax rate for 2021 is expected to be 24.0%. Planned capital expenditures are approximately $23.0 million.

Tailwinds

  • Expect gross profit margins for 2021 will be between 55.3% to 55.8%.
  • Capital expenditures include amounts for a store in Myrtle Beach, S.C., a new market for Havertys.
  • Capital expenditures include a new store in The Villages, Fla.
  • Capital expenditures include another location in an existing market.
  • Retail square footage is expected to increase approximately 1% versus 2020.

Headwinds

  • Gross profit margins fluctuate quarter to quarter in relation to promotional cadence.
  • Estimated gross profit margins are based on changes in product and freight costs and its impact on LIFO reserve.
  • Fixed and discretionary expenses within SG&A are expected to be in the $261.0 to $263.0 million range.
  • Variable SG&A expenses are anticipated to be in the 18.2% to 18.4% range based on potential increases in selling and delivery costs.
  • Company will close one store in 2021.

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 Q4 2020

Historical avgQ4 2020

+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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