Havertys continues upward pattern in second quarter

High 100 retailer Havertys plans to open a 3rd retailer within the Austin, Texas market later this yr. Architectural Photograph by Ed Wolkis,, www.wolkis.com

ATLANTA — Because it marked the anniversary of reopening its shops, High 100 retailer Havertys continued its upward trajectory within the quarter ended June 30.

The Atlanta-based retailer posted gross sales of $250 million within the second quarter, up from $110 million in the identical timeframe final yr. Its gross revenue margin was $141.5 million vs. $59.6 in the identical three months of 2020.

Diluted earnings per share within the quarter reached $1.21 vs. 72 cents in 2020.

Havertys closed all of its shops on March 19, 2020. It opened 103 on Could 1 of the yr and the remaining 17 have been again by June 20, 2020. Deliveries have been halted on March 21 and restarted on Could 5, 2020, with much less capability.

“Gross sales for the second quarter have been excellent, and we made some progress on lowering our backlog. Prospects are displaying a stronger inclination in the direction of purchases of in-stock merchandise as ‘pandemic endurance’ appears to be waning,” mentioned Clarence Smith, chairman and CEO. “We have now seen this in our upholstery enterprise because the lead instances for customized merchandise has grown considerably and gross sales have shifted from customized order gadgets to inline merchandise. Gross sales within the mattress class additionally elevated this quarter as availability of product improved.”

For the primary six months of 2021, Havertys recorded gross sales of $486.5 million and gross earnings of $276.5 million vs. $289.4 in gross sales and $159.2 in earnings over the identical span in 2020. Earnings per share are at $2.25 vs. 89 cents a yr in the past.

“We consider that the resurgence of the significance of the house shouldn’t be a short-lived pattern. Residence gross sales have seen speedy progress and stock shortages, pushed by low rates of interest and millennials becoming a member of older homeownership cohorts,” Smith mentioned. “These components and the final financial well being of our goal buyer and our geographic areas present favorable tailwinds for the longer term.”

In laying out expectations for the rest of 2021, Havertys officers count on gross revenue margins for 2021 to be between 56.5% to 56.8%. The retailer’s capital expenditures for 2021 whole round $37 million and embrace a retailer in Myrtle Seaside, S.C., that opened in February, a retailer opening in The Villages, Fla., in August and a brand new retailer in Austin, Texas, in November whereas closing one undisclosed retailer this yr. Further capital expenditures embrace new info expertise for its web site and the acquisition of a retailer and residential supply heart, each of that are at the moment below lease.

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