Havertys profit doubles in quarter as sales rise 12.9%
Larry Thomas, Furniture Today -- Home Accents Today, 8/1/2013 11:30:36 AM
Top 100 retailer Havertys said second-quarter profits more than doubled on a 12.9% increase in sales.
The company, which has 119 stores in the South and Midwest, said same-store sales rose 11.2% and the average ticket was up 7.7%.
Net sales for the three months ended June 30 were $171.1 million, up from $151.5 million in last year's second quarter.
Net income totaled $4.83 million or 21 cents per share. That was up from $2.36 million or 11 cents per share in the same quarter last year.
"Our initiatives to improve the productivity of our stores and the efficiency of our operations continue delivering positive results," said Clarence Smith, chairman, president and CEO. "The execution of our marketing and merchandising strategies increased our average sales ticket and improved store traffic."
He said housing sales, a key growth driver, are growing in the regions served by Havertys stores.
"We believe our financial strength and positioning of the Havertys brand will allow us to outpace our competition as housing and employment improves," Smith added.
For the six months ended June 30, sales rose 13.4% to $357.2 million. Same-stores sales were up 11.3% and the average ticket increased 10.3%.
Six-month net income was $13.1 million, or 58 cents per share. That was up from $4.82 million, or 22 cents per share, in the first half of 2012.
The company said it expects a 2% drop in selling space during 2013 because three stores were closed in the first half of the year, and several others are in the midst of remodeling and expansion.
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