Havertys Reports Sales for Fourth Quarter and Impact of Tax Act
January 08 2018 - 6:29AM
HAVERTYS (NYSE:HVT) (NYSE:HVT.A) today reported sales for the
quarter ended December 31, 2017.
Havertys sales for the fourth quarter 2017
decreased 2.6% to $215.0 million, compared with $220.6 million for
the fourth quarter of 2016. On a comparable store basis,
sales for the quarter were down 3.5%. Comparable store sales
do not include locations opened, closed or otherwise non-comparable
during the last 12 months. Sales for the twelve months of
2017 totaled $819.9 million, compared with $821.6 million in 2016,
representing a decrease of 0.2%. On a comparable store basis,
sales decreased 1.3% for the twelve months.
Total written sales for the fourth quarter of
2017 were up 0.3% and written comparable store sales decreased 0.7%
over the same period last year.
|
|
Sales in
Millions(unaudited) |
TotalSales%
Change |
ComparableStore
Sales% Change |
|
|
2017 |
2016 |
Fourth Quarter |
|
$215.0 |
$220.6 |
-2.6% |
-3.5% |
Twelve Months |
|
$819.9 |
$821.6 |
-0.2% |
-1.3% |
|
|
|
|
|
|
Clarence H. Smith, chairman, president and CEO,
said, “The fourth quarter sales were disappointing. There was a
heavy concentration of traffic and sales during the traditional
shopping period around Thanksgiving and much softer business before
and afterwards. We did see an increase in our conversion rate on
traffic and the average ticket increased 2.2% over last year’s
quarter.
We believe the recently enacted tax law changes
will be beneficial to our customers and to Havertys. Our effective
tax rate has historically included a 35% Federal rate and the
lowering to 21% along with the immediate deductions for certain new
investments instead of deductions for depreciation expense over
time will be favorable to our financial results.”
Impact of Tax Act
On December 22, 2017, the President signed into
law Public Law No. 115-97, commonly referred to as the Tax Cuts and
Jobs Act (the “Tax Act”). The Tax Act contains significant changes
to corporate taxes, including a permanent reduction of the
corporate tax rate from 35% to 21% effective January 1, 2018. The
reduction in the corporate rate will require a one-time revaluation
of certain tax-related assets. Based on preliminary estimates, it
is currently expected the revaluation will result in a one-time tax
charge of $3.5 million to $4.0 million, which will be recorded
as additional income tax expense in Havertys’ consolidated
statement of comprehensive income for the fourth quarter of 2017.
This estimated range is based upon a review and analysis of the net
deferred tax assets at September 30, 2017, and expected adjustments
in the fourth quarter. Havertys actual write-down may vary
from this range as it is dependent on the final net deferred tax
assets as of December 31, 2017.
Havertys anticipates subsequent regulations and
interpretations to be released associated with the Tax Act that
will provide additional guidance on its application; however, we
currently estimate that Havertys effective tax rate for 2018 will
be in the range of 24% to 26%.
The Company will release fourth quarter 2017
financial results on Tuesday, February 20, 2018, after the market
closes. Havertys will host a conference call with analysts and
investors on Wednesday, February 21, 2018 at 10:00 a.m.
(ET).
About Havertys
Havertys (NYSE:HVT) (NYSE:HVT.A), established in
1885, is a full-service home furnishings retailer with 124
showrooms in 16 states in the Southern and Midwestern regions
providing its customers with a wide selection of quality
merchandise in middle to upper-middle price ranges. Additional
information is available on the Company’s website havertys.com.
News releases include forward-looking
statements, which are subject to risk and uncertainties. Factors
that might cause actual results to differ materially from future
results expressed or implied by such forward-looking statements
include, but are not limited to, general economic conditions, the
consumer spending environment for large ticket items, competition
in the retail furniture industry and other uncertainties detailed
from time to time in the Company’s report filed with the SEC.
Contact:
Haverty Furniture Companies, Inc.
404-443-2900Richard B. Hare EVP &
CFOJenny Hill Parker SVP, Finance,
Secretary and Treasurer
Source: Havertys
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