Haverty Furniture Companies (HVT) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 sales were $184.4 million, down 12.5% year-over-year, with comps down 13.7%.

• Full-year sales declined 16.1% to $722.9 million, with comps down 16.7%.

• Gross margins remained strong at 61.9% for Q4 and 60.7% for the year.

• Pre-tax profit for Q4 was $9.6 million (5.2% margin); full-year pre-tax profit was $26.2 million (3.6% margin).

• Opened five net new stores in 2024, including a return to Houston, TX after 40 years.

Financial highlights

• Q4 net income was $8.2 million ($0.49 per diluted share), down from $15 million ($0.90 per share) in Q4 2023.

• Q4 EBITDA was $9.6 million; FY EBITDA was $41.7 million.

• SG&A expenses fell $8.9 million (7.7%) to $105.8 million, but as a percentage of sales, rose to 57.4%.

• Free cash flow for FY 2024 was $26.8 million.

• Cash, cash equivalents, and restricted cash at year-end: $126.3 million; no debt outstanding.

Outlook and guidance

• 2025 gross profit margin expected between 60% and 60.5%.

• Fixed and discretionary SG&A projected at $291–$293 million, up 4–5% due to inflation and store growth.

• Variable SG&A expected at 19–19.3% of sales.

• Planned CapEx for 2025 is $27.1 million, with $22.7 million for new/replacement stores, remodels, and expansions.

• Effective tax rate for 2025 anticipated at 26.5%.