Haverty Furniture Companies, Inc. reported a challenging financial performance for the nine months ended September 30, 2024, with net income declining to $11.8 million from $41.3 million in the same period of 2023. This significant drop in profitability was attributed to decreased net sales and changes in working capital. Net sales for the nine months totaled $538.5 million, reflecting a 17.3% decrease compared to $651.4 million in the prior year. The company also experienced a decline in comparable store sales, which fell by 17.7% to $112.8 million.

For the third quarter of 2024, net sales were reported at $175.9 million, down 20.2% from $220.3 million in Q3 2023. The revenue breakdown for Q3 2024 indicated that upholstery remained the largest contributor at $77.7 million, followed by bedroom furniture at $26.1 million and dining room furniture at $19.2 million. The gross profit margin for Q3 2024 was 60.2%, slightly down from 60.8% in the same quarter of the previous year.

Operating cash flow also saw a decline, with net cash provided by operating activities decreasing to $42.0 million from $79.4 million in the prior year. This decline was primarily due to reduced net income and changes in working capital. Cash used in investing activities decreased significantly, attributed to lower capital expenditures, which totaled $24.3 million for the nine months ended September 30, 2024, compared to $46.4 million in the same period of 2023.

Haverty's total assets increased to $659.3 million as of September 30, 2024, from $654.1 million at the end of 2023. However, total stockholders' equity slightly decreased to $307.8 million from $308.4 million. The company declared dividends totaling $14.2 million for common stock and $1.1 million for Class A common stock during the nine months.

Strategically, Haverty plans to open several new retail locations in 2024, including stores in Memphis, Destin, Miami, Tampa, Greenwood, and Houston, while also closing a location in Pine Bluff, Arkansas. If all new stores open as planned, the company aims to achieve a net increase of five locations, bringing the total to 129 stores by the end of 2024. The company has also maintained a revolving credit facility of $80 million with no outstanding borrowings as of September 30, 2024.

About HAVERTY FURNITURE COMPANIES INC

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