ATLANTA — A consumer tendency toward waiting to make big-ticket purchases was felt in Havertys’ third quarter earnings for the period ended Sept. 30, the Atlanta-based Top 100 retailer reported.
“The consumer remains cautious on making big-ticket postponeable purchases and the lack of housing turnover has additionally dampened demand,” said Clarence H. Smith, CEO and chairman. “We believe our strategies on store growth, merchandising and marketing geared towards our target customer are key to Havertys’ long-term success. Our strong balance sheet and financial strength enable us to execute on these strategies in the current economic environment.”
For the three months, Havertys reported net sales of $175.9 million, down 20.15% vs. $220.3 million over the same three-month span in 2023. Net income for the quarter totaled $4.9 million, or 29 cents per diluted share, compared with $17.2 million, or $1.02 per diluted share in the third quarter of 2023 — a difference of 71.51%.
“Our earnings for the quarter reflect the impact of below plan sales including the Labor Day holiday written results which mirrored the quarterly sales declines,” Smith said. “We did begin to see improvement in traffic during the quarter and average ticket rose slightly.”
Three quarters into the fiscal year, Havertys posted net sales of $538.5 million, down 17.33% vs. $651.4 million through the first three quarters of 2023. Its net income totaled $11.8 million, or 70 cents per diluted share, a decline of 71.43% vs. net income of $41.3 million, or $2.46 per diluted share a year ago.
Through the first three quarters of the year, Havertys’ average ticket was $3,365 compared with $3,284 a year ago. Design consultants accounted for 34.5% of written business in 2024 compared with 29% in 2023.
Havertys paid $15.3 million in quarterly cash dividends, has no debt outstanding as of Sept. 30 and credit availability of $80.0 million.
Smith said Havertys opened a new store in the third quarter and expects to bring three more online in the fourth, meeting its expansion goal of five new net stores, which would give the Atlanta-based retailer 129 locations. Planned capital expenditures for the full year of 2024 are approximately $33 million.
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