HAVERTY FURNITURE COMPANIES, INC. (NYSE: HVT – News, HVT.A – News) today reported earnings for the second quarter ended June 30, 2013.
Net income for the second quarter was $3.6 million or $0.16 per diluted share of Common Stock, as compared to the second quarter 2012 net income of $1.3 million or $0.06 per diluted share of Common Stock.
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For the six months ended June 30, 2013, net income was $8.7 million or $0.38 per diluted share of Common Stock versus net income of $4.5 million or $0.20 per diluted share of Common Stock for the same period in 2012.
Net sales for the second quarter of 2013 were $211.0 million, an increase of 9.7% over sales of $192.4 million for the corresponding quarter in 2012. As previously reported, comparable-store sales increased 7.8% for the quarter.
Clarence H. Smith, president and chief executive officer, said, “Results for the second quarter reflect our sales increases for May and June and the improved gross profit margins we are achieving with the growth of our proprietary Havertys Collections® branded products. The flow of imported merchandise is better managed this year through our recently expanded main distribution center. This has helped us increase sales by improving our in- stock position and fulfill orders in a shorter time frame. Our top line also benefited from higher average sales tickets generated from selected sales events and longer free-interest, no down payment credit promotions.
“Total SG&A expenses were up 8 basis points as a percent of net sales compared to the second quarter last year. With the increased sales we leveraged expenses in the advertising, warehouse, occupancy and administrative areas. Our customers have primarily selected the credit promotions we offer through a third-party finance company. We pay an up-front discount on these transactions that is included in selling expenses. Due to the popularity of the programs and higher discount, this cost increased by 114 basis points as a percent of net sales for the quarter compared to last year’s quarter. We also had higher local delivery expense in the current quarter which combined with greater credit costs led to the small overall SG&A increase.
“The provision for doubtful accounts and interest expense were each 21 basis points of sales lower in the second quarter this year, due partly to a greater use of our in-house credit promotions in last year’s quarter.
“Our efforts continue to be focused on building consumer awareness of the Havertys Collections® merchandise and strengthening our connection with our target customers. We are also intent on becoming more efficient in running our business so that costs can be further contained and leveraged as we grow. We look forward to demonstrating progress on these fronts in the remainder of 2013.”
Havertys is a full-service home furnishings retailer with 119 showrooms in 17 states in the Southern and Midwestern regions providing its customers with a wide selection of quality merchandise in middle- to upper-middle price ranges. Additional information is available on the Company’s website at http://www.havertys.com.
News releases include forward-looking statements, which are subject to risks and uncertainties. Factors that might cause actual results to differ materially from future results expressed or implied by such forward-looking statements include, but are not limited to, general economic conditions, the consumer spending environment for large ticket items, competition in the retail furniture industry and other uncertainties detailed from time to time in the Company’s reports filed with the SEC.
The company will sponsor a conference call Thursday, August 3, 2013 at 10:00 a.m. Eastern Daylight Time to review the second quarter. Listen-only access to the call is available via the web at havertys.com (For Investors) and at streetevents.com (Individual Investor Center), both live and for a limited time, on a replay basis.
