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Havertys reports results for Q3 2007
02 Nov '07
4 min read
Haverty Furniture Companies Inc reported earnings for the third quarter ended September 30, 2007. The net income for the third quarter of 2007 was $643,000 or $0.03 per diluted share of Common Stock, as compared to the third quarter 2006 net income of $4.1 million or $0.18 per diluted share of Common Stock.
For the nine months ended September 30, 2007, the net income was $123,000 or $0.01 per diluted share of Common Stock versus net income of $12.8 million or $0.56 per diluted share of Common Stock for the same period in 2006.
As previously reported, net sales for the third quarter of 2007 were $200.7 million, a decrease of 10.0% compared to sales of $222.9 million for the corresponding quarter in 2006. Comparable-store sales decreased 11.6% for the quarter.
Clarence H. Smith, president and chief executive officer, said, "Our third quarter was modestly profitable on a low level of sales. Gross profit as a percent of sales for the third quarter was flat compared with the margins for the full year of 2006 but approximately 30 basis points better than the first half of 2007.
We have been tightening up on costs where possible and SG&A expenses for the third quarter were $4.0 million or 3.8% lower than last year's quarter. We had substantial decreases in warehouse and delivery costs, advertising, labor, commissions and administrative expenses.
Partly offsetting these reductions was an increase in discount fees paid for outsourced freeinterest credit promotions as extended credit offers had longer terms and were used more frequently in the competitive environment for big ticket home furnishings. We also have experienced higher overall insurance costs and our new stores contributed to increased occupancy expenses.
For the nine months ended September 30, 2007, the net income was $123,000 or $0.01 per diluted share of Common Stock versus net income of $12.8 million or $0.56 per diluted share of Common Stock for the same period in 2006.
As previously reported, net sales for the third quarter of 2007 were $200.7 million, a decrease of 10.0% compared to sales of $222.9 million for the corresponding quarter in 2006. Comparable-store sales decreased 11.6% for the quarter.
Clarence H. Smith, president and chief executive officer, said, "Our third quarter was modestly profitable on a low level of sales. Gross profit as a percent of sales for the third quarter was flat compared with the margins for the full year of 2006 but approximately 30 basis points better than the first half of 2007.
We have been tightening up on costs where possible and SG&A expenses for the third quarter were $4.0 million or 3.8% lower than last year's quarter. We had substantial decreases in warehouse and delivery costs, advertising, labor, commissions and administrative expenses.
Partly offsetting these reductions was an increase in discount fees paid for outsourced freeinterest credit promotions as extended credit offers had longer terms and were used more frequently in the competitive environment for big ticket home furnishings. We also have experienced higher overall insurance costs and our new stores contributed to increased occupancy expenses.
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