Haverty Furniture Companies, Inc. Reports Record Sales For August

Furniture World Magazine

Haverty Furniture Companies, Inc. (NYSE: HVT and HVT.A) reported record sales for the month ended August 31, 2000. Havertys' August billed sales increased 10.0% to $59.9 million compared with $54.5 million in August 1999. On a comparable-store basis, August billed sales increased 8.0%, on top of the 10.8% increase reported last year. Comparable-store sales do not include two expanded stores nor locations opened, closed or otherwise non-comparable during the last 12 months. Billed net sales for the first eight months of 2000 totaled $452.1 million versus $398.9 million for 1999, representing an increase of 13.3%. Comparable-store sales increased 9.9% for the eight-month period. John E. Slater, Jr., President & CEO said, "We were pleased with our August sales volume which came in modestly ahead of expectations following a very robust July. Sales increases continue to be the strongest in the three states with the most Havertys' stores -- Texas, Florida and Georgia. August sales activity was at a fairly even pace throughout the month and there were no calendar differences that influenced the comparison to the prior year. "Gross margins thus far in the third quarter are within the expected range -- higher than the second quarter of 2000, but below last year's third quarter." Slater concluded, "Sales activity during the Labor Day holiday period continued to be strong, serving as a positive indicator that September should be another good month for Havertys." As previously announced, the Company has changed its accounting method for recognizing revenues and is now recording merchandise sales upon delivery to the customer. Historically, sales were recognized and "billed" prior to delivery. In order to provide investors with an indication of business trends in 2000 relative to the prior-year period, the Company is continuing to report its monthly and comparable-store sales activity using the same "billed" method as was used during 1999 and prior years. Earnings for 2000 are being determined using the "delivered" sales amounts, which are being announced at the end of each quarter. Havertys is a full-service home furnishings retailer with 103 showrooms in 14 southern and central states providing its customers with a wide selection of quality merchandise in middle- to upper-middle price ranges. Additional information is available on the Company's website at http://www.havertys.com .