Havertys continues upward pattern in second quarter

Prime 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, Prime 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 Might 1 of the yr and the remaining 17 had been again by June 20, 2020. Deliveries had been halted on March 21 and restarted on Might 5, 2020, with much less capability.

“Gross sales for the second quarter had been excellent, and we made some progress on decreasing our backlog. Clients are exhibiting a stronger inclination in direction of purchases of in-stock merchandise as ‘pandemic persistence’ appears to be waning,” mentioned Clarence Smith, chairman and CEO. “We now have seen this in our upholstery enterprise because the lead instances for customized merchandise has grown considerably and gross sales have shifted from customized order objects 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 income of $276.5 million vs. $289.4 in gross sales and $159.2 in income 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 isn’t a short-lived pattern. Dwelling gross sales have seen speedy development and stock shortages, pushed by low rates of interest and millennials becoming a member of older homeownership cohorts,” Smith mentioned. “These components and the overall financial well being of our goal buyer and our geographic areas present favorable tailwinds for the long run.”

In laying out expectations for the rest of 2021, Havertys officers anticipate gross revenue margins for 2021 to be between 56.5% to 56.8%. The retailer’s capital expenditures for 2021 complete round $37 million and embody a retailer in Myrtle Seashore, 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 embody new data know-how for its web site and the acquisition of a retailer and residential supply middle, each of that are at the moment beneath lease.

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