Havertys (HVT) reported its third-quarter 2024 operating results, with diluted earnings per common share (EPS) of $0.29, falling short of the consensus estimate of $0.47. This represents a significant decrease from the $1.02 EPS reported in the third quarter of 2023. The company's revenue for the quarter was $175.9 million, marking a 20% decline compared to the prior year period and also missing analyst expectations.
Despite the top-line and earnings miss, Havertys maintained a strong balance sheet, holding over $121 million in cash as of the end of the third quarter with no funded debt. The company's design business showed resilience, reporting an increase in average ticket size and achieving 19% year-over-year growth. This highlights the effectiveness of its differentiated customer experience strategy.
Looking ahead, Havertys provided guidance for fiscal year 2024, anticipating an effective tax rate of 28% and capital expenditures of $33 million. The company expects gross profit margins to be in the range of 60% to 60.5%. Management also confirmed plans to open three additional new stores in the fourth quarter, continuing its strategic expansion.
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