Haverty Furniture (HVT) Gaining Momentum, Q1 Sales Up Y/Y

Haverty Furniture Companies Inc. (NYSE:HVT) has recently posted improved first quarter 2017 sales results. The company is scheduled to release its full quarterly results on May 1.

Haverty registered a 3% improvement in sales in the first quarter of 2017 to $200.4 million, better than the 2.2% growth recorded in the preceding quarter. Sales however missed the Zacks Consensus Estimate of $201.8 million. On a comparable store basis, sales for the first quarter grew 1.6%. The quarter sales improved on the back of strong President's Day and March promotional sales events. Sales in the upholstery, mattress and accessories categories increased significantly in the quarter.

Total written sales for the first quarter of 2017 increased 2.5% and written comparable store sales improved 1.0% than the prior-year quarter on the back of higher average tickets. This quarter’s written sales were negatively impacted by 1.9% as last year got the benefit of one extra day due to leap year. However, the company estimates positive impact of 1.2% from the holiday occurring in April than the prior-year period.

During the quarter, the company opened its new Lubbock, TX store in early March replacing a temporary location that was destroyed in late 2015, and is scheduled to debut in the Greensboro, NC market this quarter. The company also closed one of the stores in Columbia, South Carolina.

We remain encouraged by the solid fundamentals of the company and its solid store expansion plans to strengthen its presence in key markets with additional or repositioned stores. Moreover, the company is making innovations with respect to its technology developments. Also, its shareholder-friendly moves are noteworthy.

Shares of this retailer of full-service home furnishings gained 31.5% over the past one year. The company outperformed the Zacks categorized Retail-Home Furnishings industry, which declined 13.9%. Notably, the industry is part of the bottom 21% of the Zacks Classified industries (202 out of the 265). The broader Retail and Wholesale sector is also placed at the bottom most of the Zacks Classified sectors (16 out of 16).

Also, the stock exhibits a VGM Score ‘A,’ instilling confidence about its momentum. Moreover, this Zacks Rank #3 (Hold) company has posted an average earnings surprise of 10.9%.

Key Picks

Investors interested in the broader retail space may consider Burlington Stores Inc. (NYSE:BURL) , Foot Locker, Inc. (NYSE:FL) and The Children's Place, Inc. (NASDAQ:PLCE) . While Children’s Place and Burlington sport a Zacks Rank #1 (Strong Buy) and have long-term earnings growth of 8.0% and 15.9%,respectively, Foot Locker carrying a Zacks Rank #2 (Buy), has growth rate of 9.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

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