In a challenging year for retailers, Haverty Furniture Companies Inc . (NYSE:HVT) stock has touched a 52-week low, dipping to $21.09. According to InvestingPro analysis, the stock appears slightly undervalued at current levels, despite maintaining impressive gross profit margins of 60.9%. The furniture retailer, known for its wide range of home furnishings, has faced significant headwinds, reflected in the stock's performance over the past year. Investors have witnessed a substantial decline, with HVT experiencing a 1-year change of -36.22%. Yet, the company maintains financial stability with a notable 5.9% dividend yield and an impressive 50-year streak of consecutive dividend payments, as revealed by InvestingPro data. This latest price level underscores the pressures faced by the sector and raises questions about the company's strategy moving forward. While analysts anticipate sales declines this year, HVT maintains strong financial health with a current ratio of 1.82 and moderate debt levels. For deeper insights into HVT's valuation and future prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Havertys, a prominent home furnishings retailer, reported a decrease in Q3 sales and earnings per share in its Third Quarter 2024 Earnings Call. The company's consolidated sales reached $175.9 million, a 20.2% decline compared to the previous year, and earnings per share fell to $0.29 from $1.02. Despite challenging conditions, including the impact of hurricanes and cautious consumer spending, Havertys showed resilience with signs of recovering store traffic and plans for expansion, including a significant expansion in Houston, Texas.
The company's design business grew by over 19%, with an average ticket size increasing to nearly $3,500. Havertys also reported a gross profit margin of 60.2% and reduced SG&A expenses by 10.4%. The company maintains a strong balance sheet with $121.2 million in cash and no debt. Capital expenditures for 2024 are planned at $33 million, focusing on new stores, distribution networks, and IT.
According to recent analyst notes, high interest rates and housing affordability issues continue to impact sales, but the company shows strong credit metrics and inventory management. Havertys aims to open five new stores annually, with a potential increase to six, focusing on the Houston market. These are the recent developments concerning Havertys.
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