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Financial, Retail

Havertys Reports Record Operating Results for Fourth Quarter and Year End 2021

Home furnishings retailer Havertys Furniture reported record-breaking sales of $1 billion report, following another record-breaking quarter in sales.

2/15/2022
image of havertys furniture store exterior
Home furnishing retailer Havertys said sales soared to $1 billion in 2021, despite cost pressures.

ATLANTA -- HAVERTYS (NYSE: HVT and HVT.A), reported its operating results for the fourth quarter and year ended December 31, 2021.

Fourth quarter 2021 versus fourth quarter 2020:

-- Diluted earnings per common share (“EPS”) of $1.35 versus $1.37.
-- Consolidated sales increased 10.2% to $265.9 million.
-- Comparable store sales increased 9.2%.
-- Pre-tax income of $32.1 million versus $31.3 million.

FY 2021 versus FY 2020:

-- EPS of $4.90 versus $3.12 and Adjusted EPS for 2020 of $1.88.
-- Adjusted EPS for 2020 excludes $1.24 for gain on a sale-leaseback transaction.
--Consolidated sales increased 35.4% to a record $1,012.8 million.
-- Comparable store sales for the year rose 17.9%.
-- Pre-tax income of $118.5 million versus $76.7 million and Adjusted Pre-tax income for 2020 of $42.5 million.

Clarence H. Smith, chairman and CEO, said, “We are proud to report another record-breaking quarter in sales and building on the previous quarters’ outstanding results which drove our annual sales over a billion dollars. Our merchandising team carefully managed our product line-up and despite the impact from a $5.6 million LIFO charge, our gross profit margins in the fourth quarter were 56.4%. We experienced inflation pressure in our operating costs and residual demurrage fees. Our pre-tax income of $32.1 million was very strong and a record quarter of operating income at 12.1% of sales.

“The impact of COVID has been challenging but our agility, systems, and financial strength provided tools to work around and through many obstacles. However, it was primarily our people, the dedicated Havertys team members, that generated these outstanding results. Our sales for the year of $1.0 billion is a record that we acknowledge and celebrate. This was profitable sales growth as we improved our gross profit and operating margins amidst extraordinary cost increases. My sincere thanks to each member of the team for their contributions during these so called “uncertain times.”

“As a result of our strong performance and consistent with our commitment to returning capital to our shareholders, during 2021 we purchased $41.8 million in common shares, paid quarterly dividends of $17.4 million, and in December paid a special cash dividend of $35.0 million. During the first half of 2022, we plan to repurchase $25.0 million in shares under an existing authorization. We have paid an annual cash dividend since 1935 and increased our quarterly cash dividend payouts each year since 2008.

“We have a strong position in the fastest growing markets in the country and plan to open four stores in 2022. Our online presence is also being improved to drive engagement and sales. Our balance sheet is strong and funds from our expected results of operations should be sufficient to cover our strategic plans, while also allowing us to return amounts to our shareholders. We are confident that our strategy for expanding our profitable growth will enable us to surpass the high bar set in 2021.”

For the full financial report click here.
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