Havertys reports 2Q loss
By Furniture Today Staff -- Furniture Today, August 6, 2007
Atlanta — Full-line retailer Haverty Furniture reported a second-quarter loss of $1.4 million, or 6 cents per share, as sales at the Top 100 chain dipped 11.3%.
In last year's second quarter, the midpriced chain turned a profit of $3.6 million, or 16 cents per share.
Sales in the latest quarter came to $187.1 million, compared with $211 million in 2006's second quarter. Same-store sales declined 12.7%.
President and CEO Clarence H. Smith said, "Severely weak sales volume early in the quarter created a difficult hurdle for us and produced a quarterly loss.... We were heartened by the improvement in volume and return to profitability for June.
"The close management of our merchandise flow and clearance activity resulted in a reduction in inventory of $15.5 million, or 13.1%, as compared to year-ago levels. The increased clearance sales contributed to a 64 basis-point reduction in gross profit margins versus the second quarter of last year," he said. "The second quarter is typically the weakest for Havertys. We expect to return to profitability in the second half."
For the six months, Havertys net loss was $520,000, or 2 cents per share, versus net income of $8.7 million, or 38 cents per share, in the comparable 2006 period. Sales dropped 10% from $420.1 million in 2006's first half to $378.2 million in the latest six months.
In the latest quarter, the company made a $234,000 provision for doubtful accounts, a big jump from the $82,000 it set aside in the 2006 second quarter.
Havertys operates 122 stores in 17 states in the South and Midwest.
| Quarter ended 6/30 | 2007 | 2006 | Change |
|---|---|---|---|
| Sales | $187,104,000 | $211,034,000 | (11.3%) |
| Operating income | (2,806,000) | 5,317,000 | — |
| Net income | (1,351,000) | 3,591,000 | — |
| Earnings per share | (0.06) | 0.16 | — |
| 6 months ended 6/30 | 2007 | 2006 | Change |
| Sales | $378,177,000 | $420,122,000 | (10.0%) |
| Operating income | (2,502,000) | 11,541,000 | — |
| Net income | (520,000) | 8,694,000 | — |
| Earnings per share | (0.02) | 0.38 | — |
