Zacks Investment Research upgraded
Haverty Furniture Companies Inc
) to a Zacks Rank #1 (Strong Buy) on Jan 14, after the company
reported impressive fourth quarter and full year sales on Jan 8.
However, Haverty is expected to report its full year 2013 results
Why the Upgrade?
On Jan 8, this home furnishing retailer reported strong sales
result for the fourth quarter and full year 2013, with sales
growth across its entire home furnishings line. Haverty provides
quality merchandise in the middle to upper-middle price range and
has a presence in 16 states in the Southern and Midwestern
Sales increased 7.6% year over year to $196.2 million in the
fourth quarter, in line with the Zacks Consensus Estimate,
attributable to strong comparable store sales increase of 9.5%.
Continued expansion of the custom order business, free in-home
design service, and higher average ticket led to sales growth in
the quarter. Also, Haverty's sales have been boosted by the
consistent rise in home sales.
For 2013, sales grew 11.3% to $746.1 million, fueled by
comparable store sales growth of 11.0%. The company's 2013 sales
were also in line with the Zacks Consensus Estimate.
In addition, Haverty announced that total written sales for
the fourth quarter of 2013 increased 6.3% and written comparable
store sales increased 7.7% year over year. The increase was
attributable to the gradual housing market recovery. The company
believes that the housing market recovery will help increase
sales and market share in 2014 as well.
Besides, Haverty has solid store expansion plans for 2014 to
strengthen its presence in key markets with additional or
repositioned stores. Haverty will open a 19,000 selling
square-feet store in the Buckhead Square shopping center in
Atlanta, GA in the third quarter of 2014, while it is slated to
open another store in Alliance, Texas in the fourth quarter of
2014. Other than this, Haverty is relocating one of its four
Orlando, Fla. stores to replace a location on S Orange Blossom
Trail in Orlando. The new store will cover 30,000 selling
square-feet and is expected to open in the fourth quarter of
The company is encouraged about the positive customer response
to its enhanced store displays and therefore investing heavily in
store improvements to better serve customers.
This retailer witnessed sharp upward estimate revisions after
announcing its fourth quarter 2013 sales. The Zacks Consensus
Estimate for the fourth quarter increased 5.6% and that for full
year 2013 went up 3.0% over the last 7 days.
Other Stocks to Consider
Other stocks worth considering in the home furnishing industry
Tempur Sealy International Inc
). While Kirkland's sports a Zacks Rank #1, Tempur Sealy and
Williams-Sonoma hold a Zacks Rank #2 (Buy).
HAVERTY FURNIT (HVT): Free Stock Analysis
KIRKLANDS INC (KIRK): Free Stock Analysis
TEMPUR SEALY (TPX): Free Stock Analysis
WILLIAMS-SONOMA (WSM): Free Stock Analysis
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