Haverty Furniture Companies (HVT) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 20.2% year-over-year to $175.9 million, with EPS at $0.29 and net income at $4.9 million, down from $17.2 million last year.

• Comparable-store sales fell 20.5% in Q3, reflecting weaker demand and cautious consumer sentiment.

• Gross profit margin for Q3 2024 was 60.2%, down 60 bps year-over-year.

• Opened a new store in Pembroke Pines, FL, with three more openings planned, targeting 129 locations by year-end.

• Consumer caution, high interest rates, and low housing turnover continue to impact demand, but store traffic is improving.

Financial highlights

• Q3 2024 net sales: $175.9 million; Q3 2023: $220.3 million.

• Q3 2024 net income: $4.9 million; Q3 2023: $17.2 million.

• SG&A expenses fell $11.8 million to $100.9 million, but as a percent of sales rose to 57.4%.

• Cash and equivalents at quarter-end: $121.2 million; no debt outstanding.

• EBITDA for the nine months ended September 30, 2024 was $27.7 million, down from $64.3 million last year.

Outlook and guidance

• Gross margin for 2024 expected between 60.0% and 60.5%.

• SG&A expenses for 2024 projected at $279–$281 million, with variable SG&A at 19.6%–19.9% of sales.

• CapEx for 2024 planned at $33 million, with retail square footage to increase by about 3.4%.

• Effective tax rate for 2024 anticipated at 28%.

• Expansion goal of five net new locations in 2024, ending the year with 129 stores.