Havertys (HVT) Q2 Sales Slightly Below Views; Comps Rose 3.8%

HAVERTYS (NYSE: HVT) reported sales for the quarter ended June 30, 2016.

Havertys sales for the second quarter 2016 increased 3.8% to $194.8 million, compared with $187.7 million for the second quarter of 2015. On a comparable store basis, sales for the quarter rose 3.8%. Comparable store sales do not include locations opened, closed or otherwise non-comparable during the last 12 months. Sales for the first six months of 2016 totaled $389.3 million, compared with $379.1 million in 2015, representing an increase of 2.7%. On a comparable store basis, sales increased 2.3% for the first six months.

*** The Street was modeling Q2 revenue of $196.3 million.

Written total and comparable store sales for the second quarter of 2016 both rose 6.0% over the same quarter last year. Havertys' stores are closed for Easter and the positive impact on second quarter written sales from the holiday occurring in March this year versus April last year is estimated at 1.5%.

Clarence H. Smith, chairman, president and CEO, said, “Our sales results for the second quarter were as expected and in line with our June 15th sales update. The upholstery, mattress, occasional, and accessories product categories led the year over year sales increases for the second quarter. Havertys’ in-home designers were integral to our second quarter sales as they spurred purchases of custom upholstery and accessories.

Consumer spending continues to coalesce around traditional holiday sales events reinforcing the importance of a strong brand, excellent online and instore experiences, and demonstrable value propositions. Our written business for the four-day July 4th holiday sales period was up approximately 9.5% in total and 9.0% for comparable stores versus the same period last year. We have new advertising in place and promotional activities planned for the coming weeks to inspire new and existing customers to consider a summer refresh of their home furnishings.”

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