Haverty Furniture Reports Sales For September Haverty Furniture Companies

Furniture World Magazine

Havertys' September sales increased 2.0% to $56.8 million compared with $55.7 million in September 2001. On a comparable-store basis, September sales decreased 3.7%. Comparable-store sales do not include one expanded store nor locations opened, closed or otherwise non-comparable during the last 12 months. Sales for the first nine months of 2002 totaled $515.5 million versus $490.4 million for 2001, representing an increase of 5.1%. On a comparable- store basis, sales increased 3.3% for the first nine months. "Comparable-store sales for the month of September were below the flat results we were expecting," said John E. Slater, Jr., CEO. "Consumers continue to be cautious when making discretionary spending decisions in light of concerns over the economy, equity markets and hostilities in the Middl East. Sales volume is ramping up in the normal fashion at the eight new Havertys stores opened in August, seven of which were renovations of well-located existing retail sites. We remain excited about having affordably entered three new markets with the opening of these stores. "Gross margins were above plan for both the month and the quarter. With the lower September sales, however, we are reducing our earnings guidance for the third quarter by $0.02 to a range of $0.23 to $0.25 per share. Our fourth quarter guidance is being lowered by $0.05 to a range of $0.35 to $0.37 per share due to a softer near-term sales outlook. Fourth quarter comparable- store sales are now expected to be flat to slightly down versus our previous assumption of a two to three percent increase," Slater continued. "The volume through our two new distribution centers is increasing as the transition to these facilities progresses. We are successfully gaining experience with the new delivery methods and enhanced systems now employed. Our considerable expansion this year has not kept us from further strengthening our balance sheet. Total debt has been reduced by approximately $70 million thus far during 2002 to a balance of less than $100 million. The third quarter portion of this reduction was $50 million and resulted from a sale-leaseback transaction together with cash flow from operating activities. "For over a century, Havertys has survived and thrived through all of the uncertainties and world events that have occurred by remaining focused on providing quality furnishings and excellent service to our customers for the haven that is their home. We will enthusiastically continue with this mission," Slater concluded. Havertys is a full-service home furnishings retailer with 111 showrooms in 14 southern and central states providing its customers with a wide selection of quality merchandise in middle- to upper-middle price ranges. Additional information is available on the Company's website at http://www.havertys.com. This release includes forward-looking statements, which are subject to risks and uncertainties. Factors that might cause actual results to differ materially from future results expressed or implied by such forward-looking statements include, but are not limited to, general economic conditions, the consumer spending environment for large ticket items, competition in the retail furniture industry and other uncertainties detailed from time to time in the Company's reports filed with the SEC.