Haverty (HVT) Tops Q3 EPS by 1c

Haverty (NYSE: HVT) reported Q3 EPS of $0.34, $0.01 better than the analyst estimate of $0.33. Revenue for the quarter came in at $211.7 million versus the consensus estimate of $211.7 million.

Clarence H. Smith, chairman, president and chief executive officer, said, “Our third quarter earnings were flat with the prior year as modest sales increases and improved gross margins were offset by expanded operating costs. Sales gains were made across most product categories and our average ticket grew 3.2%. Our efforts to control fixed costs continue but were negatively impacted by rising health care benefit expenses which were $1 million higher in the third quarter compared to the prior year. As expected, opening and ongoing additional overhead expenses were incurred for two new stores and expansion of our Florida Distribution Center. Operating inventory levels have been trimmed as our supply chain team works closely with vendor partners and refines product flow and forecasts. We increased the quarterly cash dividend 20% to our common stockholders and year to date have made $21.3 million in stock repurchases and are confident of our ability to generate sufficient cash to grow our business and stockholder value.

“Given the potential negative impact to our associates and customers by Hurricane Matthew, we are relieved that the destruction was not greater. Our business was impacted in several markets with 23 of our locations closed for one or more days over the Columbus Day holiday weekend but no stores suffered significant physical damage. As we move into the important selling months of November and December, we will be executing the merchandising and marketing strategies geared for our target customer and believe we are in a good position to make market share gains.”

For earnings history and earnings-related data on Haverty (HVT) click here.

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