Haverty Furniture Companies, Inc. has recently released its annual report, providing an insight into the company's financial performance and operations. Established in 1885 and headquartered in Atlanta, Georgia, Haverty Furniture operates as a specialty retailer of residential furniture and accessories in the United States, offering a wide range of furniture merchandise under the Havertys brand name, as well as custom upholstery products, mattresses, and private label products.
The company's 10-K report for the year ended December 31, 2023, highlights its focus on capturing more market share and improving profitability, driven by efforts to enhance customer interactions, introduce new products, and leverage technology. Haverty Furniture's strategies for profitability include a focus on gross margin, targeted marketing initiatives, productivity and process improvements, and efficiency and cost-saving measures.
Key performance indicators outlined in the report include net sales, comparable store sales, sales per weighted average square foot, gross profit, selling, general and administrative costs as a percentage of sales, operating income, cash flow, and earnings per share. Notably, the report provides a detailed breakdown of the company's financial results, including net sales, gross profit, selling, general and administrative expenses, income before income taxes, net income, and diluted earnings per common share for the years 2020 to 2023.
In 2023, Haverty Furniture reported net sales of $862.1 million, representing a 17.7% decrease from the previous year. The company's gross profit as a percentage of net sales was 60.7% in 2023, compared to 57.7% in 2022, primarily due to reductions in freight and product costs. However, selling, general and administrative expenses as a percentage of sales increased to 52.9% in 2023 from 46.4% in 2022, driven by the reduction in sales and lower variable costs, and less leveraging of fixed costs.
The company's effective tax rate was 22.5% in 2023, compared to 25.2% in 2022, with the rates varying from the U.S. federal statutory rate primarily due to state income taxes. Haverty Furniture reported having $120.6 million in cash and cash equivalents, and $7.1 million in restricted cash equivalents at the end of 2023, with access to a $80.0 million revolving credit facility.
The 10-K report also provides insights into the company's long-term debt, lease obligations, and share repurchases, offering a comprehensive overview of Haverty Furniture's financial and operational landscape for the year ended December 31, 2023. Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $33.3. If you want to know more, read the company's complete 10-K report here.
