On February 24, 2025, Haverty Furniture Companies Inc (HVT, Financial) released its 8-K filing detailing the financial results for the fourth quarter of 2024. Haverty Furniture Companies Inc, a specialty retailer of residential furniture and accessories, operates primarily in the Southern and Midwestern U.S., offering a wide range of products including sofas, tables, and bedroom furniture.
Performance Overview and Challenges
Haverty Furniture Companies Inc reported a diluted earnings per share (EPS) of $0.49 for the fourth quarter of 2024, a significant decline from $0.90 in the same period of 2023. This figure exceeded the analyst estimate of $0.17. Consolidated sales decreased by 12.5% to $184.4 million, while comparable store sales dropped by 13.7%. The gross profit margin slightly decreased to 61.9% from 62.4% in the previous year. These results highlight the challenges faced by the company amidst a housing market slowdown, impacting consumer spending on big-ticket items like furniture.
Financial Achievements and Strategic Initiatives
Despite the challenging environment, Haverty Furniture Companies Inc achieved several strategic milestones. The company successfully opened five net new stores in 2024, including a return to the Houston, TX market after approximately 40 years. Additionally, Havertys returned $25.5 million of capital to shareholders through share repurchases and dividend payouts, demonstrating a commitment to shareholder value.
Key Financial Metrics
For the full year 2024, Haverty Furniture Companies Inc reported a diluted EPS of $1.19, down from $3.36 in 2023. Consolidated sales for the year decreased by 16.1% to $722.9 million, with comparable store sales declining by 16.7%. The gross profit margin remained stable at 60.7% for both 2024 and 2023. These metrics underscore the impact of external economic factors on the company's performance.
Steven G. Burdette, President and CEO, commented, "Our team remained disciplined in managing our operations and executing our growth strategies, even amidst the housing slowdown. Our strong balance sheet and financial stability provide a solid foundation for continued growth investment, positioning us to benefit when the economic cycle improves."
Analysis and Outlook
Haverty Furniture Companies Inc's financial results reflect the broader challenges faced by the retail-cyclical industry, particularly in the context of a slowing housing market. The company's strategic focus on store growth and capital management positions it well for future recovery. However, the decline in sales and earnings highlights the need for continued adaptation to market conditions. Investors will be keen to see how Havertys navigates these challenges and leverages its strong financial foundation for long-term success.
Explore the complete 8-K earnings release (here) from Haverty Furniture Companies Inc for further details.
