Havertys Q2 Net More Than Doubles
ATLANTA-With strong gains in sales and average ticket, Havertys' net income rose by 104.6 percent to $4.8 million.
Net sales for the quarter, which ended on June 30, were up 12.9 percent to $171.1 million, including a gain in same-store sales of 11.2 percent. Havertys said its total written business grew 16.6 percent and average ticket increased 7.7 percent. The latter pickup helped the retailer to a gross margin rise of 73 basis points to 53.4 percent.
Clarence Smith, Havertys' chairman, president and CEO, attributed the strong sales numbers to its merchandising and marketing strategies, which helped bolster both average sales ticket and store traffic. Macroeconomic factors also pitched in to help. "Housing sales in our regions, a key driver of business, are growing," Smith said.
Operating expenses, while increasing 9.8 percent in dollars, were down 138 basis points as a percentage of sales to 48.8 percent. "Our initiatives to improve the productivity of our stores and the efficiency of our operations continue delivering positive results," Smith said.
Havertys also reported that, to date, third-quarter sales have risen 9.8 percent over the same period of last year. Smith said, "We believe our financial strength and positioning of the Havertys brand will allow us to outpace our competition as housing and employment improves."