Personal Finance
HVT

Shares of Haverty Furniture Jump 10% After Solid Quarter

Product floor at a furniture store

What happened?

Shares of Haverty Furniture Companies Inc. (NYSE: HVT) , a home-furnishings and mattress retailer, jumped nearly 10% Tuesday after the company announced solid first-quarter results.

So what

Investors were obviously pleased with the results, and the data shows a lot of improvement across the board. Starting from the top, Haverty's net sales moved 3% higher to $200.4 million, just slightly topping analysts' consensus estimates. Part of the increase was powered by a 1.6% increase in comparable-store sales, and its average written ticket was up 2.9%. Its gross profit margins increased 100 basis points to 54.7%, thanks to lower freight costs on imported products and a stronger merchandise sales mix. All of that helped generate earnings of $0.28 per share, a jump over last year's $0.21 per share and well ahead of analysts' calls for $0.23 per share.

Product floor at a furniture store

Image source: Getty Images.

Now what

Clarence H. Smith, chairman, president and CEO, said in a press release:

We are pleased with the first quarter sales and earnings given the choppy retail environment. Our merchandising team has developed a great assortment of products to meet the discerning tastes of the on-trend consumer. The upholstery category continues to drive our business with strong sales and favorable margins, and we had good results from the mattress and accessory groups.

It's clear that management's focus will be improving the profitability of each store, rather than solely focusing on growth by store openings. Management is making adjustments to its media mix to zero in on localized marketing, enhancing its website and improving its associate training to produce higher in-store closing rates. If the company can execute on those strategies, this won't be the last strong earnings result for investors to enjoy.

10 stocks we like better than Havertys

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Havertys wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of May 1, 2017

Daniel Miller has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

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.

In This Story

HVT

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More