Haverty Provides Update On Q2 Sales, Repurchases Shares

Haverty Furniture Companies Inc. (NYSE:HVT) had been facing difficult market conditions, as reflected in its dismal first quarter 2016 results. However, the company still has solid fundamentals and boasts a strong cash position. Its solid store expansion plans are expected to strengthen its presence in key markets with additional or repositioned stores. Recently, the company provided an update on its second quarter sales and also repurchased shares to reward its shareholders.

The Atlanta-based company reported sales growth of approximately 3.6% to date in the second quarter of 2016, driven by comparable store sales growth of 3.2% over the same period. Total written sales for the second quarter of 2016 to date are up approximately 7%. Written comparable store sales had risen 6.7% over the same period last year. The growth in written comparable store sales in the current quarter has been driven by Memorial Day sales, partly offset by softer written business in early June. Haverty's stores were closed for Easter and the positive impact on second quarter written sales to date from the holiday occurring in March this year versus April last year is estimated at 1.9%.

In addition, the home furnishing retailer has repurchased approximately 1.15 million shares during the second quarter for approximately $21.0 million. The company has less than $0.1 million remaining for purchases under a previously approved authorization. We note that last month, the company approved a new authorization of up to $10 million under its stock repurchase program.

This indicates that the company has a strong balance sheet and is cash rich to invest in the business and return value to its shareholders.

The company has paid a cash dividend each year since 1935. On May 10, the company’s board declared a cash dividend of the two classes of $1 par value common stock of the company at a rate of 10 cents per share on the common stock and 9.5 cents per share on the Class A common stock. The dividend will be paid on Jun 9, 2016 to holders of record as on May 25, 2016.

This residential furniture and accessories retailer plans to announce its full second quarter 2016 sales on Jul 8 and is scheduled to release its full quarterly results on Aug 1, 2016, after the market closes.

Haverty has a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the home furnishing industry include Ethan Allen Interiors Inc. (NYSE:ETH) and Fortune Brands Home & Security, Inc. (NYSE:FBHS) . Another stock worth considering in the broader retail sector is The Children's Place, Inc. (NASDAQ:PLCE) . All of them carry a Zacks Rank #2 (Buy).