Haverty Furniture Companies saw sales rise along with earnings in the third quarter, but sales started to slow in the fourth quarter and the business is expected to face challenges.
The Atlanta company, parent of the Havertys chain of stores, reported earnings of $1.2 million, or five cents a share in the third quarter. Year-ago earnings were $501,000, or two cents a share.
In a conference call, Haverty president and chief executive officer Clarence H. Smith said sales increases for the third quarter were half of what the company has experienced in the first nine months of the year. The company has seen shoppers leave the store with slightly lower average tickets, he said.
The fourth quarter has started slowly and sales are expected to stay flat. Smith said tougher business conditions will make it challenging to maintain Haverty's margins, but that he believes the company can do it.
"I don't think that consumer appetites are better," he said. "I think we're doing a better job of presenting the product."
Haverty is enhancing its store displays, adding brighter colors. The company has developed new collections and is looking to grow its market share by adding more locations while real estate prices remain low.
It has added a store in Columbus, Ga., closed one in Kentucky and plans to close another in Texas. There are 119 Havertys stores in 17 states.
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