Haverty Furniture Inc reported earnings for the first quarter ended March 31, 2006. Net income for the first quarter of 2006 was $5.1 million or $0.23 per diluted common share, a 60.8 percent and 64.3 percent increase, respectively, compared to the first quarter 2005 net income of $3.2 million or $0.14 per diluted common share.
As previously reported, net sales for the first quarter of 2006 were $209.1 million, an increase of 0.7 percent over sales of $207.6 million for the corresponding quarter in 2005. Comparable-store sales decreased 0.6 percent for the quarter.
Clarence H. Smith, president and chief executive officer, said, "Much improved gross profit margins led to an earnings increase even as our sales volume was less than planned and operating costs were higher than last year.
"Gross profit margins were positively impacted by the continuing migration to proprietary Havertys Collections(R) branded products, more imported merchandise and less reliance on widely distributed manufacturer brands. We also had a positive impact on gross profit in the first quarter from a $0.5 million favorable inventory adjustment that is not expected to recur.
"Our SG&A expenses were higher due to additional advertising expenditures and the cost of more competitive free-interest credit promotions, both designed to stimulate sales after a slower than expected start to the quarter. These were partly offset by lower warehouse expenses compared to the high cost of consolidating our Florida distribution facilities and relocating to a new center in early 2005. Stores added in two large new markets near the end of 2005 contributed to overall higher occupancy, delivery and administrative expenses.
marketing@alchempro.com
