Haverty Furniture Companies (NYSE:HVT) reported a 7.7% increase in net sales for the second quarter of 2023, totaling $194.9 million, with comparable-store sales rising by 8%. The company achieved net income of $5.3 million, or $0.32 per diluted share, compared to $2.7 million, or $0.16 per share, a year prior. Written sales increased 12.6%, marking the fourth consecutive quarter of positive written and delivered comparable sales, according to President and CEO Steve Burdette.
Strong performance was noted across all merchandise categories, with average ticket prices rising 14% to over $3,800. Design sales accounted for 36.5% of revenue, with a 15.7% rise in average ticket size. The gross margin expanded to 61.4%, bolstered by approximately $1.5 million in tariff refunds. Haverty plans to open six new stores in the second half of 2023 and expects total capital expenditures of about $34 million for the year.
Inventory decreased to $100.5 million, and the company currently holds $104.3 million in cash and equivalents, with no funded debt. Haverty’s ongoing management strategy includes refreshing store layouts and enhancing its Design business, which it believes has potential for further growth, currently engaging only a small percentage of its customer base.
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