HAVERTY FURNITURE COMPANIES Reports Q2 FY2023 Results on August 1, 2023
August 16, 2023
🌥️Earnings Overview
On August 1 2023, HAVERTY FURNITURE COMPANIES ($NYSE:HVT) reported their results for the second quarter of FY2023 (ending June 30 2023). Total revenue was USD 206.3 million, a decrease of 18.5% year over year. Net income was down 45.7%, coming in at USD 11.8 million.
Market Price
The company opened its stock at $34.2 and closed at $33.9 at the end of the day, marking a 4.8% decrease from the previous closing price of 35.6. The stock price dropped due to the company’s slow economic growth and gloomy outlook for the future. The company saw a decline in sales compared to the same period last year. This was mainly due to the ongoing pandemic and its effect on the economy and consumers’ buying behaviour. The company also witnessed a fall in its gross profit margin for the quarter as a result of the increasing costs of materials and labour.
Despite the challenging environment, the company managed to stay afloat by taking cost-cutting measures such as reducing headcount, optimising inventory levels, and shifting to a more online sales model. The company also announced its plans to launch new product lines in the coming months to strengthen its market position. Overall, HAVERTY FURNITURE COMPANIES reported a challenging quarter but is hopeful that this strategy will help it achieve long-term success despite the current situation. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HVT. More…
| Total Revenues | Net Income | Net Margin |
| 986.1 | 72.45 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HVT. More…
| Operations | Investing | Financing |
| 64.84 | -55.29 | -43.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HVT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 656.19 | 350.61 | 18.22 |
Key Ratios Snapshot
Some of the financial key ratios for HVT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.4% | 184.3% | 9.4% |
| FCF Margin | ROE | ROA |
| 1.0% | 19.6% | 8.9% |
Analysis
As part of our analysis of Haverty Furniture Companies, GoodWhale ran a Star Chart to assess its wellbeing. The results showed that Haverty Furniture Companies had a strong performance in dividend and profitability, and a medium performance in asset and growth. We assigned a health score of 9/10, which indicates that the company is capable of paying off debt and funding future operations. We classified Haverty Furniture Companies as ‘rhino’, indicating that the company has achieved moderate revenue or earnings growth. This makes it an attractive investment for those looking for steady returns without too much risk. It could be a great option for investors who are looking for steady income, while not wanting to take on too much risk. 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 disappointing second quarter earnings for FY2023, with total revenue declining by 18.5% year over year and net income decreasing by 45.7%. This resulted in a drop in the company’s stock price on the same day. Given this poor financial performance, investors should carefully assess the potential risks of investing in Haverty Furniture in the short and long term. They should consider the company’s financial strength, competitive advantage, and future growth prospects before making an investment decision.
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