ATLANTA - Havertys (NYSE:HVT)(NYSE:HVTA), the Atlanta-based furniture retailer, disclosed today that Clarence H. Smith will retire from his role as CEO but will continue as the executive chairman of the board. Steven G. Burdette is set to take over as president and CEO on January 1, 2025, and will join the board of directors.
Smith, who has been at the helm since 2003, played a pivotal role in steering the company through the financial crisis of 2007 and the global COVID-19 pandemic. Under his leadership, Havertys transitioned into a specialty branded retailer, selling its own line of quality furniture.
Burdette, who started with Havertys as a manager trainee in 1983, has been appointed president in 2021. His extensive experience across various operational roles within the company, including store management, distribution, operations, merchandising, and marketing, has prepared him to lead Havertys into its next chapter. Burdette, 63, holds a Bachelor of Business Administration in Finance from the University of Georgia.
The planned succession reflects Havertys' strategic approach to leadership transitions, aiming for stability and growth. Tom Hough, lead independent director of Havertys' board, expressed confidence in Burdette's ability to guide the company, citing his deep industry knowledge and commitment to the company's values.
Burdette acknowledged the responsibility and expressed enthusiasm for continuing the legacy of serving Havertys' customers, suppliers, team members, and shareholders with integrity and accountability.
Havertys, established in 1885, operates 127 showrooms across 17 states in the Southern and Midwestern United States. The company is known for offering a wide range of home furnishings in the middle to upper-middle price segments. This leadership change announcement is based on a press release statement from Havertys.
InvestingPro Insights
As Havertys prepares for this significant leadership transition, InvestingPro data provides valuable context for investors. Despite recent challenges, the company maintains a solid financial foundation. Havertys boasts a market capitalization of $378.9 million and an attractive P/E ratio of 14.1, suggesting a reasonable valuation relative to earnings.
One of the most striking InvestingPro Tips is that Havertys "has maintained dividend payments for 50 consecutive years." This remarkable track record of consistent shareholder returns aligns with the company's long-standing commitment to stability, which is evident in their carefully planned leadership succession.
Additionally, InvestingPro data reveals a substantial dividend yield of 9.65%, underscoring Havertys' commitment to rewarding shareholders. This high yield, combined with the company's impressive dividend history, may be particularly appealing to income-focused investors during this transition period.
However, it's worth noting that analysts anticipate a sales decline in the current year, with revenue growth at -19.6% over the last twelve months. This challenging environment likely influenced the timing of the leadership change, as the company seeks to navigate evolving market conditions.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide deeper insights into Havertys' financial health and future prospects during this pivotal time.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.