Haverty Furniture (HVT) Q1 Sales Up Y/Y, Miss Estimates - Analyst Blog

Haverty Furniture Companies Inc.HVT reported 5.3% increase in sales for the first quarter of 2015 to $191.3 million driven by growth in comparable store sales. Sales, however, missed the Zacks Consensus Estimate of $194 million, possibly due to a volatile retail sales environment.

Comparable store sales increased 3.8% in the first quarter, as against an increase of 8.3% in the fourth quarter and a decline of 0.9% last year. Comps increased on the back of higher average tickets due to involvement of design staff in more sales transactions. Sales came ahead of management's expectations as announced during the fourth quarter 2014 conference call.

This home furnishing retailer also reported 6.3% increase in the total written sales for the first quarter of 2015 and 4.8% increase in the written comparable store sales on a year over year basis. The increase can be attributed to the gradual housing market recovery. Also, there were some imported product availability issues as a result of the West Coast port slowdown, which contributed to the increase in written business in the quarter. The written business was slightly better than the company's expectations of 6.1% growth at the beginning of the first quarter.

Haverty delivered better-than-expected results for the fourth quarter of 2014. Net sales increased 8.6% to $213.0 million, driven by an 8.3% increase in comparable store sales. Total written business was up 6.7% in total and increased 5.9% for comparable stores.

The company believes that the housing market recovery will help increase sales and market share in 2015. Haverty also has solid store expansion plans for 2015 to strengthen its presence in key markets with additional or repositioned stores.

Haverty has a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked stocks in the home furnishing industry include Restoration Hardware Holdings Inc. RH and Tempur Sealy International Inc. TPX . Both stocks carry a Zacks Rank #2 (Buy). Investors can also consider The Kroger Co. KR from the wider retail sector. It also carries a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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