Havertys (NYSE: HVT) and (NYSE: HVT.A) reported its operating results for the fourth quarter ended December 31, 2023. The company's consolidated sales decreased 24.9% to $210.7 million, with comparable store sales decreasing 25.5% compared to the same period in 2022. The diluted earnings per common share ("EPS") was reported at $0.90, down from $1.42 in the fourth quarter of 2022.
Clarence H. Smith, Chairman and CEO, stated, "We delivered solid fourth quarter results of strong gross profit margins and expense control within a difficult environment for retail home furnishing sales. Higher interest rates and record low housing sales and inflation combined with prior years’ outsized sales results have generated challenging headwinds. Our strong balance sheet is enabling us to execute our strategic store growth plans and invest in our business."
The company reported pre-tax income of $18.5 million in the fourth quarter of 2023, down from $32.5 million in the same period of 2022. For the full year 2023, diluted EPS was $3.36, compared to $5.24 in 2022. Consolidated sales for the full year decreased 17.7% to $862.1 million, with comparable store sales decreasing 18.4%.
The company returned $42.1 million of capital to its shareholders in 2023, through share repurchases and dividends. The company has paid an annual cash dividend since 1935 and increased its quarterly cash dividend payouts each year since 2008.
Regarding the outlook for 2024, Smith commented, "We expect gross profit margins for 2024 will be between 59.5% to 60.0%. Fixed and discretionary expenses within SG&A for the full year of 2024 are expected to be in the $295.0 to $297.0 million range. Our effective tax rate for 2024 is expected to be 26.5% excluding the impact of potential tax credits and any new tax legislation."
The company's shares have declined by -7.9%, and are now trading at a price of $32.32.
The company's full 8-K submission is available here.
