Fri, May 2, 4:15 PM (21 days ago)
**Haverty Furniture Companies, Inc. (HVT) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $181.6 million, a 1.3% decrease from Q1 2024 ($184.0 million). - **Profit Margins:** Gross profit margin increased to 61.2% in Q1 2025, up from 60.3% in Q1 2024. Net income was $3.8 million, up from $2.4 million in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $6.2 million, an increase from $3.1 million in Q1 2024. Cash used in investing activities was $6.1 million, slightly lower than the $6.4 million in Q1 2024. Cash used in financing activities increased to $8.1 million from $6.7 million in Q1 2024 due to common stock repurchases. **Earnings Changes and Trends:** - **Earnings Per Share (EPS):** Basic EPS for Common Stock was $0.24, up from $0.15 in Q1 2024. For Class A Common Stock, basic EPS was $0.21, up from $0.13. - **Dividends:** Cash dividends per share were $0.32 for Common Stock and $0.30 for Class A Common Stock, slightly higher than the previous year. **Quarterly Performance Discussion:** - **Sales Performance:** Comp-store sales decreased by 4.8%, impacted by a weak housing market, inflation, and economic uncertainty. Written business and written comp-store sales also declined. - **Operational Efficiency:** SG&A expenses decreased by 2.0%, driven by lower selling, warehouse, delivery, and advertising costs. However, occupancy and administrative expenses increased. **Uncertainties and Future Operations:** - **Economic Factors:** The company faces uncertainties due to tariffs, inflation, and economic conditions. The housing market and consumer spending remain volatile. - **Strategic Initiatives:** Havertys is reevaluating store plans and capital expenditures to mitigate the impact of increased tariffs. The company plans to open and close several stores in 2025. - **Liquidity:** With $111.9 million in cash and cash equivalents, and a $80.0 million revolving credit facility, Havertys believes it has sufficient liquidity for operating requirements and capital expenditures. **Future Outlook:** - **Store Plans:** Havertys plans to open new stores in Houston, TX, and Daytona, FL, and close stores in Atlanta, GA, Waco, TX, and Houston, TX. The company aims to end 2025 with 129 stores. - **Capital Expenditures:** The company is reevaluating its capital expenditures to manage increased tariffs and economic uncertainties. **Ticker:** HVT