Haverty Furniture Reports Sales for December

Furniture World Magazine

Havertys' December sales decreased 6.5% to $73.9 million compared with $79.1 million in December 2005. On a comparable-store basis, December sales decreased 9.2%. Comparable-store sales do not include locations opened, closed or otherwise non-comparable during the last 12 months. Sales for the twelve months of 2006 totaled $859.1 million versus $827.7 million for 2005, representing an increase of 3.8%. On a comparable-store basis, sales increased 1.8% for the twelve months. "The economic environment for residential furniture sales continues to be difficult," said Clarence H. Smith, president and chief executive officer. "Total written sales for December were approximately 3% lower than in 2005. Our business on both a written and delivered basis was relatively flat during the first half of December and grew weaker in the second half of the month. Sales activity has remained weak into 2007. Gross profit margins were maintained as expected. "We had two fewer delivery days in December 2006 compared to 2005. We chose to eliminate one delivery day due to improved service capabilities and lower demand, and the second day was lost due to calendar differences. "We are pleased to announce the assumption of the MasterCraft retail furniture store lease in the very desirable Rockville, Maryland market. This store, scheduled to open late in the third quarter, will be Havertys' seventh location in greater Washington and will better enable us to serve this dynamic area." Havertys is a full-service home furnishings retailer with 120 showrooms in 17 states in the Southern and Midwestern regions 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 www.havertys.com .