Haverty Furniture Companies Reports Strong Third Quarter Results

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HVT Stock Fair Value – “We are very pleased to report our eleventh consecutive quarter of year-over-year sales and earnings growth,” said Clarence Smith, Haverty ($NYSE:HVT)s’ chairman, president and CEO. “Our strong third quarter results reflect continued execution of our strategic initiatives, which position us well for the future.” The increase in gross margin was driven by favorable product mix and higher delivery revenues, partially offset by increased transportation costs and higher promotional activity.

The increase was primarily due to new store growth and higher wages, partially offset by lower bad debt expense and lower advertising expense. The increase was driven by higher gross margin and lower selling, general and administrative expenses, partially offset by new store growth. The decrease was primarily due to lower average borrowings and higher interest income on cash balances.

Earnings

Haverty Furniture Companies reported strong third quarter results, with total revenue reaching $1018.5 million and net income of $89.6 million. Compared to the same period last year, this represents a 0.6% increase in total revenue and a 1.3% decrease in net income. Haverty Furniture Companies has seen strong growth over the past three years, with total revenue increasing from $748.3 million to $1018.5 million.

The company attributes this growth to continued expansion in its retail footprint and robust online sales. Looking ahead, Haverty Furniture Companies is well-positioned to continue its strong performance, with a strong balance sheet and a commitment to delivering value to shareholders.

Market Price

On Tuesday, Haverty Furniture Companies stock opened at $27.1 and closed at $26.9, up by 1.2% from last closing price of 26.6. Haverty’s CEO, Clarence Smith, attributed the strong results to the company’s focus on providing a great customer experience, both online and in-store.

VI Analysis – HVT Stock Fair Value

The company operates in the retail furniture industry and is headquartered in Atlanta, Georgia. The company’s fundamentals reflect its long-term potential. The intrinsic value of Haverty Furniture Companies shares is around $32.1, calculated by the VI Line. The company’s stock is currently trading at $26.9, which represents a fair price that is undervalued by 16%.

VI 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 is a publicly traded company on the New York Stock Exchange and is a leading retailer of home furnishings in the United States. The company’s product offerings include living room, dining room, and bedroom furniture, as well as home office furniture and outdoor furniture. Haverty Furniture Companies also offers a wide range of mattress options, including innerspring, memory foam, and latex mattresses.

Investing in Haverty Furniture Companies can be a smart move for investors looking to gain exposure to the retail sector. The company has a strong track record of growth and profitability, and its shares have outperformed the broader market over the long term.