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Havertys Q1 Sales Edge Up

Advertising spending up, particularly for digital
Posted on April 8, 2016 by David Gill

Havertysstorefront3x2ATLANTA-The increasingly competitive retail environment held specialty home retailer Havertys to a 1.7 percent increase in first quarter sales, which totaled $194.5 million.

“The slowing in consumer spending that continued from late 2015 has generated a highly promotional competitive environment in retail,” said Clarence Smith, Havertys’ chairman, president and CEO in a preliminary statement on the quarter.“We increased our advertising spending over the prior year, particularly in the digital arena, but did not alter our pricing stance.

“Although Internet sales are less than 2 percent of our total sales, our website is critical in the customer buying journey,” Smith said. “We have substantially improved the online experience, enhancing the display for mobile devices, accelerating response times, and highlighting furnishings inspirations. Our custom order capabilities and free in-home design service helps grow our overall average ticket and sets us apart from the competition.”

Same-store sales in the quarter, which ended on March 31, rose 0.9 percent. Total written sales for the first quarter of 2016 were down 1.3 percent and written same-store sales decreased 2.2 percent. Because Havertys’ stores are closed on Easter, the retailer’s first quarter sales were off 1.4 percent in March; the holiday was in April last year.

Havertys will release the full report of its first-quarter results on May 2.