HAVERTY FURNITURE COMPANIES Reports Fourth Quarter FY2022 Earnings Results on February 21 2023

Earnings Overview

On February 21 2023, HAVERTY FURNITURE COMPANIES ($NYSE:HVT) released its financial results for the fourth quarter of FY2022, which ended on December 31 2022. Total revenue for the quarter came in at USD 23.7 million, a drop of 2.3% compared to the same period of last year. Net income however was USD 280.6 million, a 5.5% increase from the same quarter of the previous year.

Transcripts Simplified

In the fourth quarter of 2022, net sales were $280.6 million, a 5.5% increase over the prior quarter. Comparable store sales were up 5.8% over the prior year. Gross profit margins increased 60 basis points to 57% from 56.4% due to better pricing discipline and merchandising. SG&A expenses increased $10.5 million or 8.9% to $128.5 million. Income before income taxes increased $400,000 to $32.5 million. Tax expense was $8.8 million resulting in an effective tax rate of 26.9%.

Net income for the fourth quarter of 2022 was $23.7 million or $1.42 per diluted share on our common stock compared to $24.3 million or $1.35 per share in the prior year. At the end of the fourth quarter, inventories were $118.3 million, customer deposits were $48 million, and cash and cash equivalents were $123.1 million. We amended our revolving credit facility and increased the revolving loan commitments from $60 million to $80 million, extended the term of the commitment to October 2027 and replaced the LIBOR rate with a SOFR rate as the interest rate benchmark. We paid $17.8 million of regular dividends and $16.1 million in the form of special dividends in Q4 of 2022, and purchased $30 million of common shares equating to 1,087,378 shares.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Market Price

In the stock market, HAVERTY FURNITURE COMPANIES opened at $36.1 and closed at $35.0, a decrease of 4.0% from the previous closing price of $36.5. In addition to the disappointing earnings results, the company also saw a decline in its market share in the furniture industry. This could be attributed to increased competition from other brands and the rise of e-commerce companies selling furniture online.

Overall, the HAVERTY FURNITURE COMPANIES’ fourth quarter earnings results were below expectations, leading to a decrease in its stock price and a decline in its market share. It will be interesting to see how the company responds to these changes and if it can recover in the coming quarters. Live Quote…

Analysis

At GoodWhale, we have analyzed the fundamentals of HAVERTY FURNITURE COMPANIES and assessed them as a low risk investment. Our risk rating system takes into account financial and business aspects when assessing companies. For HAVERTY FURNITURE COMPANIES, our analysis has detected one risk warning in the balance sheet that should be taken into account by potential investors. To access this information and more details about the company, please register on goodwhale.com. We are confident that our insights and analysis will help you make an informed decision when it comes to investing in HAVERTY FURNITURE COMPANIES. More…

Peers

The furniture market is highly competitive, with many companies vying for market share. Among these is Haverty Furniture Companies Inc, which competes with the likes of Maisons du Monde France SA, Temple & Webster Group Ltd, Arhaus Inc, and others. In order to succeed, Haverty Furniture must offer a unique and appealing product that resonates with consumers.

– Maisons du Monde France SA ($OTCPK:MDOUF)

With a market cap of 423.92M as of 2022, Maisons du Monde France SA is a large company with a ROE of 9.35%. The company specializes in selling furniture and home decor items.

– Temple & Webster Group Ltd ($ASX:TPW)

Temple & Webster Group Ltd is an online home furnishings and decor retailer based in Australia. As of 2022, the company had a market capitalization of 677 million Australian dollars and a return on equity of 8.34%. The company sells a range of home furnishings and decor products through its website, including furniture, homewares, and lighting. It also offers a home styling service, which provides customers with advice on how to style their homes.

– Arhaus Inc ($NASDAQ:ARHS)

Arhaus Inc. is a publicly traded company with a market capitalization of $1.17 billion as of 2022. The company’s return on equity, a measure of profitability, was 50.99% as of the same year. Arhaus is a retailer of home furnishing products, specializing in sofas, chairs, and other upholstered items. The company operates a chain of retail stores in the United States and also offers its products online.

Summary

Haverty Furniture Companies reported their fourth quarter of FY2022 earnings results on February 21 2023. Revenue for the quarter was USD 23.7 million, a 2.3% decrease from the previous year. Net income was USD 280.6 million, a 5.5% increase from the prior year. The stock price dropped on the day of the announcement. Investors should analyze Havertys’ financials carefully to determine whether the company is doing well and if it is a good investment at this time. Factors to consider include revenue growth, income growth, and overall performance of the industry.

Additionally, investors should pay attention to the company’s balance sheet and cashflow statements. It’s important to consider the potential risks and rewards of investing in Haverty Furniture Companies.