Haverty Furniture Companies, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with net sales totaling $722.9 million, a decrease of 16.1% from $862.1 million in 2023. The decline was attributed to a housing recession, inflationary pressures, and cautious consumer spending amid economic uncertainty. Despite the drop in sales, the average ticket value increased by 3.0% to $3,371, with design consultant engagement accounting for 33.6% of total written sales, reflecting a strategic focus on enhancing customer service.
The company's gross profit margin remained stable at 60.7%, with gross profit amounting to $439.1 million, down from $523.1 million in the previous year. Selling, general, and administrative (SG&A) expenses decreased by 8.0% to $419.2 million, primarily due to lower sales and reduced variable costs. The company reported net income of $20.0 million, a significant decline from $56.3 million in 2023, resulting in diluted earnings per share of $1.19 compared to $3.36 in the prior year.
Operationally, Havertys maintained 129 stores across 17 states, with a total retail square footage of approximately 4.5 million. The company opened six new stores in 2024, including its first location in Houston, Texas, while closing one store. The company plans to continue expanding its footprint, targeting an average of five new store openings per year, contingent on market conditions. Additionally, Havertys has invested in enhancing its in-store experience, with a program aimed at improving visual merchandising and customer engagement set to roll out over the next three years.
Looking ahead, Havertys anticipates continued challenges due to macroeconomic conditions, including inflation and consumer spending patterns. The company plans to focus on increasing its retail footprint, enhancing its online presence, and improving operational efficiency to drive profitability. Management remains committed to capturing market share and improving customer interactions through targeted marketing initiatives and product offerings tailored to consumer preferences. The outlook for 2025 includes an estimated capital expenditure of approximately $27.1 million to support these strategic initiatives.
About HAVERTY FURNITURE COMPANIES INC
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