ATLANTA–Haverty Furniture Company’s profits for the fourth quarter ended December 31 plummeted on declining sales, and investors saw the income of their shares fall by almost half.
Net income for the quarter reached $1.6 million, down 48 percent from the $3.17 million during the same period the year before. Income per diluted share was 7 cents, down 46 percent over the year.
On a full year basis, the financial performance of the 120 year old vertical company were even bleaker. Profits were down 89 percent, and per-share income, ending at 8 cents, was down 88 percent from 70 cents in 2006.
One bright spot in the picture was Haverty’s decline in selling, general and administrative expenses in both the quarterly and yearly periods.
Clarence H. Smith, president and chief executive officer, also cited the company’s improved inventory control, which was “reflected in improved gross margins as we had lower close out and mark-down activity during the quarter.” The firm also showed a lower volume of “internally financed no-interest credit promotions.” Smith added that Haverty expects “modest improvement in gross profit margin in 2008.”