Havertys' sales down 14.2% in May, 11.4% year to date
By Furniture Today Staff -- Furniture Today, June 11, 2007
Atlanta — Up against a tough year-ago comparison, Havertys' May same-store sales dipped 15.5% and total sales fell 14.2 % to $64 million, from $74.6 million for the same month in 2006.
The retailer's same-store sales were down 12.9% for the first five months of the year, and total sales were off 11.4% to $308.7 million.
The midpriced to upscale Top 100 company continues to struggle with a poor business climate for the furniture industry. Havertys said it has made changes, but continues to look for ways to cut costs while increasing sales.
"Our May sales reflect the continued weakness in the retail furniture sector," said Clarence Smith, president and CEO of Havertys, with 122 stores in 17 states in the South and Midwest.
"We faced difficult comparisons against last year's strong May comparable store sales increase of 17.9%. Our total written sales did improve from earlier in the year with May off by 4% from last year and Memorial Day weekend up 2%. The increase was encouraging because our promotional program was consistent with last year yielding similar gross margins," he said.
Smith added that the company has made changes to adjust operations to meet current lower sales levels.
"However, our current quarter-to-date sales are tracking below our first quarter results and current break-even levels," he said. "We are evaluating additional methods designed to increase sales and continuing our efforts in reducing our operating costs."
