UPDATE -- Havertys Updates Third Quarter Sales, the Share Repurchase Program and Enacted Tariffs
September 27 2018 - 12:29PM
HAVERTYS (NYSE: HVT and HVT.A) today reported members of the
company's senior management are scheduled to meet on September 27th
in New York City with investors and discuss the company’s
operations. In anticipation of these meetings, Havertys released
updated sales and information on the share repurchase program and
the enacted tariffs.
Havertys sales for the third quarter to date of
2018 are up approximately 3.5% over the same period last year and
comparable store sales are up 4.5%. Total written sales for the
third quarter to date of 2018 are up approximately 1.4% and written
comparable store sales rose 2.3% over the same period last
year.
The company repurchased 235,695 shares of its
common stock during the third quarter for approximately $5.2
million. The total number of shares purchased for the year to
date is 687,562 for approximately $14.5 million. The repurchases
were made in accordance with announced authorizations approved by
the company's board of directors. The company has a remaining
authorization of approximately $5.6 million for share
repurchases.
The U.S. recently enacted tariffs on furniture,
accessories, and components used in the manufacturing of furniture
imported into the U.S. from China. The tariff is 10% effective
September 24, 2018 and will rise to 25% on January 1, 2019. We
imported approximately $100 million of finished goods in 2017
that were manufactured in China. We were the importer of record on
approximately 12% of that amount and the remainder was purchased
from vendors. Our current expectations are that there will not be a
significant impact from the tariffs on our business in 2018. We
placed orders in advance of our inventory needs and for imported
finished goods from third-party suppliers we do not anticipate
price increases for that merchandise. We are currently negotiating
with our manufacturers and vendors on pricing and reviewing the
possible shifting of production, and potential retail price
increases. The overall impact of a 25% tariff beginning in 2019,
given the impact on cost inputs and retail pricing, is not
determinable.
The Company plans to announce third quarter 2018
sales on Friday, October 5, 2018, before the market opens and third
quarter financial results on Tuesday, October 30, 2018, after the
market closes.
About Havertys
Havertys (NYSE: HVT and HVT.A), established in
1885, is a full-service home furnishings retailer with 121
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.
Safe Harbor
This press release includes statements that
constitute forward-looking statements within the meaning of the
federal securities laws. Generally, the words "believe," "expect,"
"intend," "estimate," "anticipate," "project," "will" and similar
expressions identify forward-looking statements, which are not
historical in nature. We intend for all forward-looking statements
contained herein or on our website, and all subsequent written and
oral forward-looking statements attributable to us or persons
acting on our behalf, to be covered by the safe harbor provisions
for forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and the provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 (which Sections were adopted as
part of the Private Securities Litigation Reform Act of 1995).
Forward-looking statements may relate to, for example, future
operations, financial condition, economic performance (including
gross profit margins and expenses), capital expenditures, and
demand for our products. The Company cautions that its
forward-looking statements involve risks and uncertainties, and
while we believe that our expectations for the future are
reasonable in view of currently available information, you are
cautioned not to place undue reliance on our forward-looking
statements. Actual results or events may differ materially from
those indicated as a result of various important factors. Such
factors may include, among other things, the state of the economy;
state of the residential construction and housing markets; the
consumer spending environment for big ticket items; effects of
competition; management of relationships with our suppliers and
vendors and disruptions in their operations; the imposition of
tariffs and other trade barriers and the effect of retaliatory
trade measures; new regulations or taxation plans, as well as other
risks and uncertainties discussed in the Company's Annual Report on
Form 10-K and from time to time in the Company's filings with the
SEC.
Contact: Haverty Furniture Companies, Inc.,
404-443-2900 Richard B. Hare EVP & CFO Jenny
Hill Parker SVP, Finance, Secretary and
Treasurer SOURCE: Havertys
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