ATLANTA -- HAVERTYS (NYSE:HVT and HVT.A), today reported its operating results for the second quarter ended June 30, 2023.
Second quarter 2023 versus second quarter 2022:
•. Diluted earnings per common share ("EPS") of $0.70 versus $1.27.
•. Consolidated sales decreased 18.5% to $206.3 million. Comparable-store sales decreased 19.1%.
•. Gross profit margin increased to 60.5% from 57.9%.
Clarence H. Smith, chairman and CEO said, "The impact of inflation and rising interest rates have caused some consumers to pull back on discretionary home related spending. Our second quarter sales reflected this challenge, particularly early in the quarter. The second quarter's average ticket was an all-time high aided by our free in-home design service involvement in 28.6% of sales. Gross profit margin also reached a historic high as freight and product costs declined. Operationally, we are identifying processes for improvement and cost reductions to further improve our efficiency and performance.
We were pleased to secure four excellent locations from the Bed Bath & Beyond bankruptcy. These stores will allow us to reach more consumers in the Memphis, Tennessee, and Destin, Florida, markets, southeast Florida near Miami, and St. Petersburg in the Tampa Bay Area, which is one of the hottest markets in the country. We expect these locations will open as Havertys stores in the first half of 2024. The sites are within our current footprint enabling us to further leverage our investment in a best-in-class distribution network.
We are carefully watching the economic green shoots in the housing market as we enter the second half of the year. Our financial strength and experienced teams position us to capitalize on the opportunities ahead."