Haverty Furniture Companies, Inc. (HVT) Bundle
A Brief History of Havertys
Havertys Furniture Companies, Inc. (NYSE: HVT) has been a significant player in the home furnishings retail sector since its founding in 1885. As of 2024, the company operates 129 showrooms across 17 states in the Southern and Midwestern United States, providing a wide range of quality home furnishings.
Financial Performance Overview
In the third quarter of 2024, Havertys reported a decline in performance compared to the same quarter in 2023. Key financial metrics include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $175.9 million | $220.3 million |
| Gross Profit | $105.9 million | $134.0 million |
| Gross Profit Margin | 60.2% | 60.8% |
| Net Income | $4.9 million | $17.2 million |
| Diluted EPS | $0.29 | $1.02 |
Year-to-Date Financial Data
For the nine months ending September 30, 2024, the financials reflect similar trends:
| Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Sales | $538.5 million | $651.4 million |
| Gross Profit | $324.9 million | $391.7 million |
| Net Income | $11.8 million | $41.3 million |
| Diluted EPS | $0.70 | $2.46 |
Operational Insights
Havertys' operational performance has also been impacted by external economic factors. The company has noted a cautious consumer environment, particularly affecting big-ticket purchases. The gross profit margin has fluctuated, influenced by promotional activities and changes in cost structures.
Cash Flow and Financial Position
As of September 30, 2024, Havertys reported the following liquidity metrics:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $127.4 million |
| Free Cash Flow | $17.7 million |
| Capital Expenditures | $24.3 million |
| Dividends Paid | $15.3 million |
Strategic Initiatives
Havertys continues to focus on expanding its footprint, with plans to open additional locations. The company aims to enhance its product offerings through strategic merchandising and improved customer engagement strategies.
Market Challenges
The retail environment remains challenging, with rising costs and changing consumer preferences impacting overall sales. The company’s management has indicated that adapting to these market conditions is crucial for future growth.
Overall, Havertys is navigating a fluctuating market landscape while striving to maintain its position as a leading home furnishings retailer.
A Who Owns Haverty Furniture Companies, Inc. (HVT)
Major Shareholders
As of 2024, the ownership of Haverty Furniture Companies, Inc. (HVT) is distributed among various institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| Clarence H. Smith (Chairman and CEO) | 12.5% |
| Vanguard Group Inc. | 11.2% |
| BlackRock Inc. | 10.8% |
| Dimensional Fund Advisors LP | 6.3% |
| State Street Corporation | 5.9% |
| Other Institutional Investors | 30.3% |
| Individual and Retail Investors | 23.0% |
Stock Performance
Haverty Furniture Companies, Inc. trades on the NYSE under the ticker symbol HVT. As of October 30, 2024, the stock price has experienced fluctuations influenced by market conditions and company performance. The following data reflects the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $19.50 |
| 52-Week High | $25.30 |
| 52-Week Low | $15.00 |
| Market Capitalization | $600 million |
| Dividend Yield | 4.1% |
Financial Overview
For the third quarter of 2024, Haverty reported significant changes in its financial performance compared to the previous year. Key financial figures are summarized in the following table:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $175.9 million | $220.3 million |
| Gross Profit | $105.9 million | $134.0 million |
| Net Income | $4.9 million | $17.2 million |
| Diluted EPS | $0.29 | $1.02 |
| SG&A Expenses | $100.9 million (57.4% of sales) | $112.7 million (51.1% of sales) |
Ownership Structure
The company’s ownership structure comprises various classes of stock, including common and Class A shares. The voting rights and dividends associated with each class are detailed below:
| Class of Stock | Voting Rights | Dividend Rate |
|---|---|---|
| Common Stock | 1 vote per share | $0.32 per share |
| Class A Common Stock | 1 vote per share | $0.30 per share |
Recent Developments and Strategic Direction
In 2024, Haverty Furniture Companies, Inc. continues to focus on expanding its retail footprint. The company plans to open three additional locations by the end of the year, bringing the total to 129 showrooms. Furthermore, management is actively refining its marketing strategies and enhancing customer engagement to drive sales growth amidst a challenging economic environment.
Haverty Furniture Companies, Inc. (HVT) Mission Statement
Current Mission Statement
As of 2024, Haverty Furniture Companies, Inc. focuses on providing high-quality home furnishings while enhancing customer experience through exceptional service and innovative solutions. The company emphasizes its commitment to sustainability and community involvement as core components of its mission.
Financial Overview
Havertys reported a significant decline in sales and profitability in 2024 compared to 2023. The company's performance metrics for the third quarter and nine months ended September 30, 2024, are as follows:
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Sales (in millions) | $175.9 | $220.3 | $538.5 | $651.4 |
| Gross Profit (in millions) | $105.9 | $134.0 | $324.9 | $391.7 |
| Net Income (in millions) | $4.9 | $17.2 | $11.8 | $41.3 |
| Diluted EPS | $0.29 | $1.02 | $0.70 | $2.46 |
| EBITDA (in millions) | $27.7 | $64.3 | $27.7 | $64.3 |
Sales Performance
In 2024, the company experienced a 20.2% decline in total sales and a 20.5% drop in comparable-store sales compared to the same quarter in the previous year. The total written business decreased by 15.3%, with design consultants contributing 34.5% of written business, up from 29.0% in 2023.
Cost Structure
The company’s cost of goods sold and selling, general, and administrative (SG&A) expenses as a percentage of sales for Q3 2024 are as follows:
| Expense Type | Q3 2024 (%) | Q3 2023 (%) |
|---|---|---|
| Cost of Goods Sold | 39.8% | 39.2% |
| SG&A Expenses | 57.4% | 51.1% |
Liquidity and Cash Flow
As of September 30, 2024, Havertys reported:
- Cash and cash equivalents: $121.2 million
- Free cash flow: $17.7 million
- Operating cash flow: $42.0 million
Capital Expenditures
The company invested $24.3 million in capital expenditures during the nine months ended September 30, 2024, with ongoing plans to expand its retail footprint by approximately 3.4%.
Dividend Payments
Havertys paid $15.3 million in dividends during the nine months ended September 30, 2024, compared to $14.3 million in the previous year.
Market Position
Havertys operates 126 showrooms across 17 states primarily in the Southern and Midwestern regions of the United States. The company remains committed to enhancing its market presence through strategic growth and customer engagement initiatives.
Future Outlook
Looking ahead, Havertys anticipates maintaining gross profit margins between 60.0% and 60.5% for the full year of 2024, supported by strategic marketing and merchandising efforts aimed at engaging its target customer base effectively.
How Haverty Furniture Companies, Inc. (HVT) Works
Business Overview
Haverty Furniture Companies, Inc. operates as a full-service home furnishings retailer, primarily in the Southern and Midwestern regions of the United States. As of 2024, the company maintains approximately 129 showrooms, offering a wide selection of quality merchandise in the middle to upper-middle price ranges.
Financial Performance
In the third quarter of 2024, Havertys reported a significant decline in sales compared to the previous year:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Sales | $175.9 million | $220.3 million |
| Gross Profit | $105.9 million | $134.0 million |
| Gross Profit Margin | 60.2% | 60.8% |
| Net Income | $4.9 million | $17.2 million |
| Diluted EPS | $0.29 | $1.02 |
For the nine months ended September 30, 2024, the financial results are as follows:
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Total Sales | $538.5 million | $651.4 million |
| Gross Profit | $324.9 million | $391.7 million |
| Net Income | $11.8 million | $41.3 million |
| Diluted EPS | $0.70 | $2.46 |
Sales and Operating Metrics
Havertys' operations saw a decline in key metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Comparable Store Sales Change | -20.5% | +6.2% |
| EBITDA | $27.7 million | $64.3 million |
| Sales per Square Foot | $164 | $199 |
| Average Ticket Price | $3,365 | $3,284 |
Cost Structure
Havertys' selling, general, and administrative (SG&A) expenses for Q3 2024 were reported as:
| SG&A Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Total SG&A Expenses | $100.9 million | $112.7 million |
| Variable SG&A Expenses | $33.2 million | $42.3 million |
| Fixed SG&A Expenses | $67.7 million | $70.4 million |
| SG&A as a % of Sales | 57.4% | 51.1% |
Balance Sheet Highlights
As of September 30, 2024, Havertys' balance sheet reflected the following:
| Balance Sheet Item | Amount |
|---|---|
| Cash and Cash Equivalents | $121.2 million |
| Inventories | $88.7 million |
| Total Assets | $659.3 million |
| Total Liabilities | $351.5 million |
| Stockholders’ Equity | $307.8 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, Havertys reported cash flows as follows:
| Cash Flow Item | Amount |
|---|---|
| Operating Cash Flow | $42.0 million |
| Capital Expenditures | ($24.3 million) |
| Dividends Paid | ($15.3 million) |
| Free Cash Flow | $17.7 million |
Market Trends and Strategic Initiatives
Havertys is focusing on enhancing its customer engagement strategies and expanding its retail footprint. In 2024, the company plans to open three additional locations, aiming for a total of five new net stores by year-end.
Design consultants now account for 34.5% of written business in 2024, up from 29.0% in 2023, indicating a shift in its sales approach towards personalized customer service.
The company maintains a robust liquidity position with no debt outstanding as of September 30, 2024, and credit availability of $80.0 million.
How Haverty Furniture Companies, Inc. (HVT) Makes Money
Revenue Streams
Haverty Furniture Companies, Inc. generates its revenue primarily through the sale of home furnishings, including furniture, mattresses, and accessories in its retail showrooms. As of September 30, 2024, the company reported:
| Period | Net Sales (in millions) | Gross Profit (in millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Q3 2024 | $175.9 | $105.9 | 60.2% |
| Q3 2023 | $220.3 | $134.0 | 60.8% |
| 9 Months 2024 | $538.5 | $324.9 | 60.3% |
| 9 Months 2023 | $651.4 | $391.7 | 60.1% |
Cost Structure
The main components of Haverty's cost structure include Cost of Goods Sold (COGS) and Selling, General, and Administrative (SG&A) expenses. For the third quarter of 2024:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| COGS | $69.995 | $86.349 |
| SG&A Total | $100.940 | $112.729 |
| Variable SG&A | $33.2 | $42.3 |
| Fixed SG&A | $67.7 | $70.4 |
Sales Performance
Haverty's comparable-store sales showed a decline in Q3 2024, with a decrease of 20.5% compared to the same quarter in 2023. The average ticket size also increased slightly:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Comparable Store Sales Change (%) | -20.5% | - |
| Average Ticket Size | $3,365 | $3,284 |
Profitability Metrics
In terms of profitability, the company reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $4.9 | $17.2 |
| Diluted EPS | $0.29 | $1.02 |
| Net Income Margin (%) | 2.8% | 7.8% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Haverty reported:
| Cash Flow Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Cash Flow | $42.0 | $79.4 |
| Free Cash Flow | $17.7 | $33.0 | Cash at Period End | $127.4 | $141.4 |
Debt and Capital Expenditures
As of September 30, 2024, Haverty reported no debt outstanding and planned capital expenditures of approximately $33.0 million for the full year 2024.
| Debt Metric | 2024 |
|---|---|
| Debt Outstanding | $0 |
| Capital Expenditures (2024, in millions) | $33.0 |
Market Position and Strategy
Haverty operates 129 locations and focuses on enhancing customer engagement and expanding its market presence. In 2024, the company plans to open five new stores, reflecting its growth strategy despite a challenging market environment.
| Metric | 2024 |
|---|---|
| Total Locations | 129 |
| New Stores Planned | 5 |
Conclusion
Haverty Furniture Companies, Inc. continues to adapt its business model to address market challenges while focusing on growth, profitability, and customer engagement.
Haverty Furniture Companies, Inc. (HVT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Haverty Furniture Companies, Inc. (HVT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Haverty Furniture Companies, Inc. (HVT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Haverty Furniture Companies, Inc. (HVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.