Havertys breaks $1 billion for second consecutive year

ATLANTA — Top 100 retailer Havertys posted strong fourth quarter numbers and surpassed $1 billion in sales for the second year in a row.

In its quarterly earnings report, released today, the Atlanta-based retailer noted that the period ended Dec. 31 continued several quarters of success.

“”We are pleased to report continued record-breaking quarterly sales and our second year of annual sales over a billion dollars. Our fourth quarter gross profit margins remained strong and for the year reached a new high of 57.7%,” said Clarence Smith, chairman and CEO. “Inflation and rising interest rates impacted our operating costs for wages and benefits and third-party financing. Our pre-tax income of $32.5 million was the 11th consecutive quarter we have achieved our goal of double-digit operating income as a percentage of sales.”

In the quarter, sales totaled $280.6 million, up 5.5% from $265.9 million in the same period of 2021, while same-store sales rose 5.8%. Net income was reported at $23.7 million, down 2.47% from the fourth quarter of 2021’s $24.3 million, but earnings per share came in at $1.42, up 5.2% from 2021’s $1.35.

For the year, net sales totaled $1.047 billion, up 3.4% from 2021’s $1.012 billion, while same-store sales increased by the same percentage. Net income for the year was $89.4 million, a slight drop of 1.5% from $90.8 million the year before, but earnings per share totaled $5.24, a jump of 6.9% compared with $4.90 in 2021.

For the year to come, Havertys expects to increase retail square footage 2.2% as it opens five stores and closes one. Smith said the retailer is optimistic despite a few potential economic headwinds on the horizon.

“Looking ahead, we face an uncertain consumer spending environment, and rising interest rates have impacted the housing industry, particularly new home sales, which have a high correlation with our business,” he said. “Despite these headwinds, we remain cautiously optimistic that our store expansion plan supported by our improved online presence, high-quality merchandise and helpful service will drive market share gains.

“We are planning for profitable long-term growth and have the financial strength, systems and importantly the people to achieve our goals and deliver investor value.”

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