‘Changing sales environment’ affects Q3 results for Havertys

ATLANTA — While third quarter numbers for Top 100 retailer Havertys didn’t reach levels set a year ago, it remained profitable amid a “changing sales environment.

The Atlanta-based retailer reported sales of $220.3 million for the three months ended Sept. 30, down 19.7% vs. $274.5 million over the same three-month span of 2022. Total written sales were down 11.5%, and written comp-store sales declined 12.6% for the quarter.

Havertys totaled $17.2 million in net income, or $1.02 per diluted share for the quarter, down 30.1% compared to $24.6 million, or $1.46 per diluted share in the third quarter of 2022.


“Our third quarter results reflect a retrenching consumer and the agility of our teams to pivot operationally in a changing sales environment,” said Clarence Smith, chairman and CEO. “These efficiencies and the continued focus on serving the customer helped drive the quarter’s performance.”

Through the first nine months of 2023, Havertys reported sales of $651.4 million, down 15%, lined up against $766.7 million over the same span in 2022. Its net income through the first three quarters was $41.3 million, or $2.46 per diluted share, down 37% vs. $65.6 million, or $3.83 per diluted share.

Havertys reported EBITDA of $64.3 million through the first nine months of the fiscal year, giving it an EBITDA margin of 9.87%. It also reported an average ticket of $3,284, up 2.21% compared with an average ticket of $3,213 in 2022.

Smith said Havertys is focused on maintaining its gross margins, growing its average ticket and expanding its store base within its distribution footprint as it turns its attention to the fourth quarter.

“Our merchants have developed a winning assortment for our sales teams and in-home designers to offer our customers. In October, we opened an additional location in the Charlotte, N.C., market and entered the Dayton, Ohio, market,” Smith said. “The conversion of the four Bed Bath & Beyond locations in the Memphis, Tenn., market and in the Florida markets of Destin, St. Petersburg and metro Miami are underway, and we are evaluating other store opportunities for growth in the coming year.

“The macro-environment is challenging, and we are cautious in our near-term expectations,” he continued. “Our strong financial, geographic and brand positions support our long-term strategy of delivering profitable growth in the years ahead.”

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