UPDATE -- Havertys Updates Third Quarter Sales, the Share Repurchase Program and Enacted Tariffs
ATLANTA, Sept. 27, 2018 (GLOBE NEWSWIRE) -- HAVERTYS (NYSE: HVT and HVT.A) today reported members of the company’s senior management are scheduled to meet on September 27th in New York City with investors and discuss the company’s operations. In anticipation of these meetings, Havertys released updated sales and information on the share repurchase program and the enacted tariffs.
Havertys sales for the third quarter to date of 2018 are up approximately 3.5% over the same period last year and comparable store sales are up 4.5%. Total written sales for the third quarter to date of 2018 are up approximately 1.4% and written comparable store sales rose 2.3% over the same period last year.
The company repurchased 235,695 shares of its common stock during the third quarter for approximately $5.2 million. The total number of shares purchased for the year to date is 687,562 for approximately $14.5 million. The repurchases were made in accordance with announced authorizations approved by the company’s board of directors. The company has a remaining authorization of approximately $5.6 million for share repurchases.
The U.S. recently enacted tariffs on furniture, accessories, and components used in the manufacturing of furniture imported into the U.S. from China. The tariff is 10% effective September 24, 2018 and will rise to 25% on January 1, 2019. We imported approximately $100 million of finished goods in 2017 that were manufactured in China. We were the importer of record on approximately 12% of that amount and the remainder was purchased from vendors. Our current expectations are that there will not be a significant impact from the tariffs on our business in 2018. We placed orders in advance of our inventory needs and for imported finished goods from third-party suppliers we do not anticipate price increases for that merchandise. We are currently negotiating with our manufacturers and vendors on pricing and reviewing the possible shifting of production, and potential retail price increases. The overall impact of a 25% tariff beginning in 2019, given the impact on cost inputs and retail pricing, is not determinable.
The Company plans to announce third quarter 2018 sales on Friday, October 5, 2018, before the market opens and third quarter financial results on Tuesday, October 30, 2018, after the market closes.
Havertys (NYSE: HVT and HVT.A), established in 1885, is a full-service home furnishings retailer with 121 showrooms in 16 states in the Southern and Midwestern regions 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, havertys.com.
This press release includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which are not historical in nature. We intend for all forward-looking statements contained herein or on our website, and all subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf, to be covered by the safe harbor provisions for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Forward-looking statements may relate to, for example, future operations, financial condition, economic performance (including gross profit margins and expenses), capital expenditures, and demand for our products. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, the state of the economy; state of the residential construction and housing markets; the consumer spending environment for big ticket items; effects of competition; management of relationships with our suppliers and vendors and disruptions in their operations; the imposition of tariffs and other trade barriers and the effect of retaliatory trade measures; new regulations or taxation plans, as well as other risks and uncertainties discussed in the Company’s Annual Report on Form 10-K and from time to time in the Company’s filings with the SEC.
Contact: Haverty Furniture Companies, Inc., 404-443-2900 Richard B. Hare EVP & CFO Jenny Hill Parker SVP, Finance, Secretary and Treasurer SOURCE: Havertys