Haverty Furniture Companies (HVT) investor relations material

Company overview and positioning

• Operates 129 stores across 17 states, with major presence in Florida, Texas, and Georgia.

• Targets suburban, college-educated families with household incomes above $150,000.

• All products are Haverty branded, and all operations are handled by in-house associates.

• Debt-free status and operational efficiency are highlighted as key strengths.

• Positioned in the upper-middle market, competing with brands like Crate & Barrel and Pottery Barn.

Growth strategy and store expansion

• Aims for five new stores per year but will net zero growth in 2024 due to equal openings and closures.

• Focused on expanding in Florida and Texas, with additional opportunities in major metropolitan areas and contiguous states.

• Recent relocations and new stores in markets like Houston, Indianapolis, and St. Louis.

• New stores typically take up to three years to reach full profitability.

• Growth is seen as a strategic move to be ready for a housing market rebound.

Marketing, customer engagement, and digital initiatives

• Shifted to a new media partner, Carmichael Lynch, resulting in improved traffic trends.

• Expanded digital presence with platforms like Pinterest and enhanced broadcast advertising.

• Launched a new website in late 2022, leading to double-digit organic growth in Q1 and Q2.

• E-commerce sales remain in the low single digits, with a long-term goal of reaching 10%.

• Regret-free guarantee introduced, reducing markdowns and differentiating from competitors.