Havertys Reports Sales for Second Quarter

Rhea-AI Summary

Havertys (NYSE: HVT) reported a total sales drop to $110.0 million for Q2 2020, down from $191.9 million in Q2 2019. Despite store closures due to COVID-19, written sales for the two months ending June 30, 2020, rose 13.9% year-over-year. However, sales from May 5 to June 30 fell by 13.4% compared to the same period in 2019. The company remains cautiously optimistic amid ongoing uncertainties, focusing on delivery operations and staffing adjustments.

Positive

• Total written sales for the two months ended June 30, 2020, increased by 13.9% year-over-year.
• Comparable store sales rose by 17.5% in the same period.

Negative

• Total sales for Q2 2020 decreased to $110.0 million from $191.9 million in Q2 2019.
• Sales from May 5 through June 30 dropped by 13.4% compared to the same period in 2019.

ATLANTA, July 08, 2020 (GLOBE NEWSWIRE) -- HAVERTYS (NYSE: HVT and HVT.A) today reported sales for the quarter ended June 30, 2020.

Havertys stores closed on March 19 and deliveries were halted on March 21. Most stores reopened on May 1 and total written sales for the two months ended June 30, 2020 were up 13.9% and written comparable store sales were up 17.5% compared to the same period in 2019. Deliveries resumed on May 5 with reduced personnel and capacity and total sales from May 5 through June 30 were down 13.4% compared with the same period of 2019.

Total sales for the second quarter 2020 were $110.0 million compared with $191.9 million for the second quarter of 2019. Sales for the first six months of 2020 totaled $289.4 million, compared with $379.1 million in 2019.  Comparable store sales information for the quarter and six months is not meaningful due to the cessation of operations during the first and second quarter.

Clarence H. Smith, chairman, president and CEO, said, “We are encouraged by the quarter’s written business but remain cautious amid the continuing uncertain health and economic environment. We are analyzing our staffing needs and accelerating hiring in our delivery operations. I am immensely proud of our team members’ hard work, dedication, and customer focus, which exemplifies Havertys’ values.”

About Havertys

Havertys (NYSE:  HVT and HVT.A), established in 1885, is a full-service home furnishings retailer with 120 showrooms in 16 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 havertys.com.

Safe Harbor  

This press release may contain forward-looking statements subject to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are subject to risks and uncertainties and change based on various important factors, many of which are beyond our control.

All statements in the future tense and all statements accompanied by words such as “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “would,” “could,” “should,” “position,” “will,” “project,” “intend,” “plan,” “on track,” “anticipate,” “to come,” “may,” “possible,” “assume,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expected ability to operate and protect our team members and customers during the COVID-19 pandemic, the execution and effect of our cost savings initiatives, the use of proceeds from our sale-leaseback transaction, our expectations for selling square footage and capital expenditures for 2020, our liquidity position to continue to operate during these highly uncertain times, and our efforts and initiatives to help us emerge from the pandemic well-positioned. 

We caution that our forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information you are cautioned not to place undue reliance on our forward-looking statements and they should not be relied upon as a prediction of actual results. Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include, but are not limited to: the extent and duration of the disruption to our business operations caused by the health crisis associated with the COVID-19 pandemic, including the effects on the financial health of our business partners and customers, on supply chains and our suppliers, and on access to capital and liquidity provided by the financial and capital markets; our ability to maintain compliance with debt covenants and amend such credit facilities as necessary; disruptions in our suppliers' operations, including from the impact of COVID-19, including potential problems with inventory availability and the potential result of the volatility or higher cost of product and international freight due to the high demand of products and low supply for an unpredictable period of time; disruptions in our third-party producers’ operations in foreign countries; changes in national and international legislation or government regulations or policies, including changes to import tariffs and the unpredictability of such changes; failure of vendors to meet our quality control standards or to react to changes in legislative or regulatory frameworks; disruptions in our distribution centers; changes in general economic conditions, including unemployment, inflation (including the impact of tariffs); labor shortages and the Company's ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in our disclosure controls and procedures and internal controls over financial reporting; disruptions caused by a failure or breach of the Company's information systems and information technology infrastructure, as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2019 (all of which risks may be amplified by the COVID-19 pandemic) and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC. 

Contact: Haverty Furniture Companies, Inc., 404-443-2900

Richard B. Hare

EVP & CFO

Jenny Hill Parker

SVP, Finance, Secretary and Treasurer

Source: Havertys

FAQ

What were Havertys' sales figures for Q2 2020?

Havertys reported total sales of $110.0 million for Q2 2020, down from $191.9 million in Q2 2019.

How did COVID-19 impact Havertys' sales?

Due to COVID-19, Havertys experienced store closures and reduced sales, with sales from May 5 to June 30 down 13.4% compared to the same period in 2019.

What increase did Havertys see in written sales?

Havertys reported a 13.9% increase in total written sales for the two months ended June 30, 2020, compared to the previous year.

What is Havertys' outlook following Q2 2020 results?

Havertys remains cautiously optimistic, focusing on staffing and delivery operations amid ongoing uncertainties.