Havertys reports solid third quarter earnings

Havertys-web

November 2018—

Havertys Furniture this week reported earnings per share of $0.39 for the third quarter of the year, compared to $0.28 for the third quarter in 2017. The earnings per share for the nine months ended September 30, 2018 is $0.98, compared to $0.84 for the same period last year.

Clarence H. Smith, chairman, president and chief executive officer, said the company’s improved gross margins and new product lines contributed to the company’s success, but he cautioned that that success would be difficult to carry over into the fourth quarter and 2019 given the 10 percent tariff imposed on Chinese furniture entering the country. That tariff will increase to 25 percent come Jan. 1.

“We have been working closely with our vendor partners to find workable solutions related to this new cost,” said Smith. “We do not believe that the tariffs will have a significant impact on our results from operations for the fourth quarter of 2018. The result of an increase to 25% is less clear and more pessimistic for the start of next year.”

Smith said the company is negotiating with suppliers on 2019 pricing and options for moving production to other countries.

“We anticipate having better visibility on resolution on many of these variables by the end of the year,” Smith said.