Havertys (HVT) Q3 Comps Rose 3.5%

Havertys (NYSE: HVT) reported sales for the quarter ended September 30, 2014.

Havertys sales for the third quarter 2014 increased 3.0% to $198.5 million, compared with $192.7 million for the third quarter of 2013. On a comparable store basis, sales for the quarter increased 3.5%. Comparable store sales do not include locations opened, closed or otherwise non-comparable during the last 12 months. Sales for the first nine months of 2014 totaled $555.4 million, compared with $549.9 million in 2013, representing an increase of 1.0%. On a comparable store basis, sales increased 1.9% for the first nine months.

*** The Street was looking for sales of $200.3 million.

Total written sales for the third quarter of 2014 increased 4.4% and written comparable store sales were up 4.6% over the same period last year.

Clarence H. Smith, chairman, president and CEO, said, "Our written sales for the full quarter finished strong with a record setting Labor Day holiday period and a better increase over last year for the rest of September. Our delivered sales for the third quarter were not as strong as we planned. As we reported midyear, supplier order fulfilment and sourcing of our case goods merchandise have been challenging. These issues resulted in lost business in this important category, especially of bedroom furniture, with case goods sales as a percentage of total sales off approximately two percent for both the quarter and the nine months. Our new and replenishment merchandise is arriving and stocking levels should be improving in the fourth quarter.

We have been encouraged by the performance of our two stores which opened in the third quarter and look forward to the four stores that will open in the next three months. These six showrooms, three of which are relocations, combined with the closing of two other stores, reflect our strategy of improving our store portfolio. Our inviting stores, fresh merchandising, and highly-rated customer experience differentiate us from the competition and should provide momentum for the remainder of 2014 and into next year," Smith concluded.

Although the Company does not issue sales or earnings guidance, it does from time to time provide certain information on margin and expense metrics. The Company has previously advised that SG&A expenses would be higher in the third quarter due largely to the costs of new stores, higher advertising expenditures, and the new personnel to support the Company`s in-home design initiative. Accordingly, using these metrics, third quarter sales did not increase at the approximately 6.5% rate necessary for the quarter`s earnings in 2014 to match those of the same quarter last year.

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