Haverty Furniture Companies (HVT) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales were $178.6M, down 13.4% year-over-year, with comparable-store sales down 13.6%.

• Net income for Q2 2024 was $4.4M ($0.27 per diluted share), down from $11.8M ($0.70 per share) last year.

• Gross margin remained strong at 60.4%, nearly flat year-over-year.

• SG&A expenses fell in dollar terms but rose as a percentage of sales to 57.7%.

• Store expansion continues, with five new stores planned in 2024, including former Bed Bath & Beyond locations and new sites in Texas, Florida, and Indiana.

Financial highlights

• Six-month 2024 net sales were $362.6M, down from $431.0M in 2023.

• Six-month 2024 net income was $6.8M, down from $24.2M in 2023.

• Cash and equivalents at quarter end ranged from $109.9M to $116.1M, with no funded debt.

• Inventories at $92.4M, down $22.3M from Q2 2023.

• Customer deposits at $38.7M, up $2.9M from year-end, but down $6.9M year-over-year.

Outlook and guidance

• 2024 gross margin expected between 60.0%-60.5%.

• SG&A expenses forecasted at $282M-$284M, with variable costs at 19.7%-20%.

• CapEx planned at $33M, with $28M for new stores, remodels, and expansions; retail square footage to increase by 3.4%.

• Effective tax rate projected at 27.5% for 2024.

• Net selling space projected to increase by 3.4% by year-end 2024.