Haverty Furniture Companies (HVT) Small-Cap Virtual Conference summary

Company overview and positioning

• Operates 129 stores across 17 states, with major presence in Florida, Texas, Georgia, and the Carolinas.

• Targets suburban, college-educated families with household incomes above $150,000.

• All products are Haverty branded, and all operations are handled by in-house associates; no outsourcing.

• Maintains a debt-free balance sheet, emphasizing operational integrity and efficiency.

• Positioned in the upper-middle market, competing with brands like Crate & Barrel and Pottery Barn.

Growth strategy and store expansion

• Aims for five new stores per year but will net zero growth in 2024 due to equal openings and closures.

• Focuses expansion in Florida and Texas, with additional growth in major metropolitan markets and contiguous states.

• Recent relocations, such as in Daytona, have improved traffic and business performance.

• New stores typically take about a year to reach internal profitability and three years to fully contribute.

• Sees current uncertainty as an opportunity to position for future housing market recovery.

Marketing, digital initiatives, and customer engagement

• Shifted to a new media partner, Carmichael Lynch, increasing broadcast and digital presence, including Pinterest.

• Website overhaul in late 2022 led to double-digit organic growth in Q1 and Q2 after initial setbacks.

• E-commerce sales remain in the low single digits, with a long-term goal of reaching 10% of total business.

• Regret-free guarantee differentiates the brand, reducing markdowns and maintaining low exchange rates.

• Credit card program accounts for about a third of sales, with high approval rates and promotional financing options.