Haverty (HVT) Q3 Sales Growth Up 21%, Comps Improve 19.5%
Haverty Furniture Companies (HVT) is riding on the back of robust demand for housing, strong pricing and an innovative marketing campaign.
Haverty Furniture Companies, Inc. HVT recently shared business updates for third-quarter sales and comparable store sales performance. Management cited that the company’s sales for the third quarter to date grew more than 21% year over year. Also, comps improved 19.5% year over year in the same time frame.
Written business was up 2.7% and comps written business grew 1% year over year so far in the third quarter.
With respect to this, Clarence Smith, chairman and CEO, Haverty, said, “Our business continues to be strong as we work to deliver customers’ purchases and help them create their vision of home. Merchandise availability impacts our business and supply chain disruptions remain a concern, particularly as lockdowns continue in Vietnam."
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Over the past year, shares of Haverty have gained 83.1% compared with the Zacks Retail - Home Furnishings industry’s 75.4% rally. The price performance was backed by the company’s solid earnings and revenue surprise history, having surpassed the Zacks Consensus Estimate in six of the trailing seven quarters.
The trend is expected to continue in the near term as well, supported by the solid sales growth trajectory that it has been experiencing. Also, earnings estimates for 2021 of $4.95 per share, which have moved up 23.1% over the past 60 days, indicate whopping 163.3% year-over-year growth. Sales estimates also suggest 35.4% year-over-year growth for 2021.
Haverty has been banking on disciplined pricing, focus on expanding its existing distribution footprint and generating double-digit operating margins, strong housing demand, and the WE FURNISH HAPPINESS marketing campaign.
Zacks Rank & Other Key Picks
Haverty currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other top-ranked stocks in the same space include Tempur Sealy International, Inc. TPX, RH RH and Ethan Allen Interiors Inc. ETD. Tempur Sealy and RH currently sport a Zacks Rank #1, while Ethan Allen carries a Zacks Rank #2.
Tempur Sealy, RH, and Ethan Allen’s earnings for the current year are expected to surge 69.1%, 45.3%, and 12.7%, respectively.
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