HAVERTY FURNITURE COMPANIES Reports FY2022 Q4 Earnings Results for December 31, 2022 on February 21, 2023

Earnings Overview

Haverty Furniture Companies ($NYSE:HVT) released their fourth-quarter earnings results for FY2022, ending December 31, 2022, on February 21, 2023. Total revenue for the quarter was USD 23.7 million, a decrease of 2.3% compared to the same period in the prior year. Net income for the quarter, however, rose 5.5% year-over-year to USD 280.6 million.

Transcripts Simplified

For 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%. SG&A expenses increased 8.9% to $128.5 million. Other income and expense in the fourth quarter was negligible. Interest income increased $920,000 during the quarter. Income before taxes increased $400,000 to $32.5 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 compared to $24.3 million or $1.35 in the comparable quarter last year. At the end of the fourth quarter, inventories were $118.3 million, customer deposits were $48 million, and cash and cash equivalents totaled $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 purchased $30 million of common shares equating to 1,087,378 shares and have approximately $20 million of existing authorization in our buyback program. During the year, we returned approximately $64 million to shareholders in the form of share repurchases, regular dividends, and special dividends.

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

The stock opened at $36.1 and closed at $35.0, representing a 4.0% decrease from the previous closing price of 36.5. Despite this decrease in earnings, company officials maintain that they are confident in their long-term growth strategies and are optimistic about the future of the company. Going forward, the company has revealed plans to open eight new stores in the U.S., increase their online presence, and expand their product line to include more home decor items. Investors and analysts alike are keeping a close eye on the company’s performance in the upcoming quarter, eager to see if the company can turn their fortunes around and produce results similar to those of the previous year. Live Quote…

Analysis

GoodWhale has analyzed the financials of HAVERTY FURNITURE COMPANIES. According to our Star Chart, HAVERTY FURNITURE COMPANIES is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Therefore, investors who are looking for companies with steady growth may find this company attractive. Furthermore, HAVERTY FURNITURE COMPANIES is strong in dividend and profitability, and medium in asset and growth. This company also has a high health score of 10/10 with regard to its cashflows and debt, which means that it is capable to sustain future operations even in times of crisis. As a result, this company can provide a good return on investment for investors who are looking for long-term gains. 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 FY2022 Q4 earnings results on February 21, 2023. Total revenue for the quarter was USD 23.7 million, a decrease of 2.3% compared to the same period last year. Net income for the quarter increased 5.5% year over year to USD 280.6 million. Despite these positive results, the stock price moved down the same day.

This could be due to investor concerns over the decrease in revenue and the uncertain macroeconomic environment in the near future. Looking ahead, investors should carefully monitor sales trends and Haverty Furniture Companies’ cost reduction efforts in order to make a prudent investment decision.