HAVERTYS HVT continues to be struggling because the housing market stays in a recession. Will earnings lastly flip round in 2025 for this Zacks Rank #5 (Sturdy Promote)?
HAVERTYS is a house furnishings retailer with 127 showrooms in 17 states, particularly within the Southern and Midwestern areas. Based in 1885, it makes a speciality of merchandise within the center to upper-middle value ranges.
HAVERTYS Transitions to a New CEO
On Nov 12, 2024, HAVERTYS introduced that long-time CEO and chairman of the board, Clarence H. Smith, will retire from CEO and transition to govt chairman of the board, efficient Jan 1, 2025.
Smith had been with the corporate for 50 years, and CEO for 21 years.
Steven G. Burdette, presently president, will succeed Smith as CEO and can be on the board of administrators.
He can be solely the 7th CEO within the firm’s 139-year historical past.
HAVERTYS Missed on Q3 2024 Earnings
On Oct 30, 2024, HAVERTYS reported third quarter earnings and missed by $0.19, or 39.6%. Earnings have been $0.29 versus the consensus of $0.48.
Gross sales fell 20.2% to $175.9 million and the all essential comparable-store gross sales decreased 20.5%.
HAVERTYS noticed beneath plan gross sales, together with within the Labor Day sale. It did start to see an enchancment in visitors because the quarter progressed.
Design consultants accounted for 34.5% of written enterprise in comparison with 29% final 12 months.
The corporate mentioned the patron stays cautious on making big-ticket postponeable purchases. The decrease residence gross sales and the dearth of motion amongst householders, who usually purchase new furnishings once they transfer, has additionally dampened demand.
It opened a brand new retailer within the quarter and three extra places are anticipated to open within the fourth quarter. It expects to finish 2024 with 129 places.
In excellent news, gross margin held up effectively at 60.2% in comparison with 60.8% final 12 months.
It had no important harm to its shops from the current Florida and Carolina hurricanes.
Analysts Reduce 2024 and 2025 Earnings Estimates
Till housing turns round, the furnishings retailers will proceed to wrestle.
2 earnings estimates have been lower within the final 30 days for each 2024 and 2025.
The 2024 Zacks Consensus Estimate has fallen to $0.93 from $1.45 simply 30 days in the past. That’s down 71% from 2023 when the corporate made $3.25.
The 2025 Zacks Consensus Estimate has additionally fallen to $1.87 from $2.63 within the final 30 days. However that is earnings development of 100.5%.
HAVERTYS Has a Nice Steadiness Sheet
Regardless of the robust market situations within the furnishings business, HAVERTYS continues to have an amazing steadiness sheet.
It had no debt excellent as of Sep 30, 2024 and credit score availability was $80 million.
Money, money equivalents and restricted money equivalents as of Sep 30, 2024, was $127.4 million.
It paid $15.3 million in quarterly money dividends. HAVERTYS has paid a money dividend yearly since 1935.
The dividend is presently yielding 5.5%.
Shares at Multi-12 months Lows
Given the pessimism on furnishings, it shouldn’t be shocking that HAVERTYS shares are at multi-year lows.
Nevertheless, till just lately, they moved in tandem with different housing associated shares like Residence Depot.
Picture Supply: Zacks Funding Analysis
With earnings additionally declining, the shares aren’t low cost on a price-to-earnings (P/E) foundation. HAVERTYS trades with a ahead P/E of 24.9.
For buyers excited by enjoying a rebound in housing, they need to hold HAVERTYS on their watch checklist.
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Haverty Furniture Companies, Inc. (HVT) : Free Stock Analysis Report
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