Haverty Furniture Companies Inc (HVT.A) 2024 Q2 法說會逐字稿

Greetings and welcome to the Haverty's second quarter 2024 earnings call. (Operator instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Richard Hare, Chief Financial Officer. Thank you Mr. Hare, you may begin.

歡迎參加 Haverty 的 2024 年第二季財報電話會議。（操作員說明） 請注意，本次會議正在錄製中。現在我很高興向您介紹主持人，財務長理查德·黑爾 (Richard Hare)。謝謝你，野兔先生，你可以開始了。

Thank you, operator. During this conference call, we'll make forward-looking statements which are subject to risks and uncertainties. Actual results may differ materially from those made or implied in such statements, which speak only as of the date they are made and which we undertake no obligation to publicly update or revise the factors that could cause actual results to differ include economic and competitive conditions and other uncertainties detailed in the company's reports filed with the Securities Exchange Commission.

謝謝你，接線生。在本次電話會議中，我們將做出前瞻性聲明，這些聲明存在風險和不確定性。實際結果可能與此類聲明中做出或暗示的結果有重大差異，這些聲明僅說明截至聲明發布之日的情況，我們沒有義務公開更新或修改可能導致實際結果不同的因素，包括經濟和競爭條件以及該公司向美國證券交易委員會提交的報告中詳細說明了其他不確定性。

Our Chairman and CEO, Clarence Smith, will now give you an update on our results and our President, Steve Burdick will provide additional commentary.

我們的董事長兼執行長克拉倫斯史密斯現在將向您介紹我們的最新業績，我們的總裁史蒂夫伯迪克將提供更多評論。

Thank you for joining our second quarter conference call, total sales were $178.6 million, down 13.4% from last year, but an improvement over the 18.1% decline in the first quarter. We've been proactive in reducing costs where appropriate, and that has helped us produce a pretax profit of $6.5 million. Gross margins continue to be strong at 60.4%.

感謝您參加我們的第二季電話會議，總銷售額為 1.786 億美元，比去年下降 13.4%，但比第一季 18.1% 的降幅有所改善。我們一直在適當的情況下積極降低成本，這幫助我們實現了 650 萬美元的稅前利潤。毛利率持續保持強勁，達到 60.4%。

Our cash position of over $100 million remains solid and continues to be a major strength. Our balance sheet allows us to continue to invest in future growth opportunities even in tough times for the industry. And we're excited to announce the addition of our second store in Indianapolis in Greenwood, Indiana, which will open late this year.

我們超過 1 億美元的現金狀況依然穩固，並且仍然是我們的主要優勢。即使在行業困難時期，我們的資產負債表也使我們能夠繼續投資於未來的成長機會。我們很高興地宣佈在印第安納州格林伍德的印第安納波利斯開設第二家商店，該商店將於今年年底開業。

This location will be our fifth new store to open in 2024 and the fifth former Bed, Bath & Beyond. Building late this year, we'll open a new store in Pembroke Pines area in Southeast Florida and a store in St. Petersburg, strengthening our position in the St. Tampa, St. Pete region. Both are part of the Bed, Bath & Beyond lease acquisition with these openings, we will have 33 stores serving Florida, our largest state, our expanded Lakeland, Florida distribution center is ideally located on file for and allows for coastal specific products and quick delivery to the region.

該店將是我們於 2024 年開設的第五家新店，也是第五家前 Bed, Bath & Beyond 店。今年晚些時候，我們將在佛羅裡達州東南部的彭布羅克派恩斯地區開設一家新店，並在聖彼得堡開設一家新店，從而加強我們在聖坦帕、聖皮特地區的地位。兩者都是Bed, Bath & Beyond 租賃收購的一部分，隨著這些空缺，我們將擁有33 家商店，為我們最大的州佛羅裡達州提供服務，我們擴大後的佛羅裡達州萊克蘭配送中心地理位置優越，可提供沿海特定產品和快速交付到該地區。

We have been furnishing Texas homes for over 100 years. Our Austin and College Station stores have been serving the northern part of Houston and now our move back to Houston. Texas will be a significant effort for the coming years. We plan to open in Woodlands, Texas late this year and add a second store in 2025 and Baybrook Texas. We will end this year with 22 Texas stores, our second-largest state.

我們為德州住宅提供家具已有 100 多年的歷史。我們的奧斯汀和大學站商店一直為休士頓北部地區提供服務，現在我們搬回休士頓。德克薩斯州將是未來幾年的一項重大努力。我們計劃今年年底在德克薩斯州伍德蘭茲開設第二家商店，並於 2025 年在德克薩斯州貝布魯克開設第二家商店。今年年底，我們將在第二大州德克薩斯州開設 22 家商店。

We're actively working to add stores in the greater Houston market to add density and to support marketing and to build Haverty's brand position. All these stores will be served by our expanded Dallas, Texas distribution center, allowing for quick delivery and more western specific and regional merchandise, and we are on target for our goal to open five new stores in 2024 and in 2025, strengthening our service position throughout our 17 states.

我們正在積極努力在大休士頓市場增加商店，以增加密度並支持行銷並建立 Haverty 的品牌地位。所有這些商店都將由我們擴大後的德克薩斯州達拉斯配送中心提供服務，以便快速交付和提供更多西方特定和區域商品，我們正在實現在2024 年和2025 年開設5 家新商店的目標，從而加強我們的服務地位遍佈我們 17 個州。

We're very pleased with the new merchandise that is hitting our floors, which has quickly moved up to best sellers. We've added several locations to the better end of our lineup, which along with our enhanced special order and custom products can help move design business to 35% of sales. These are tough times for a cyclical industry like home furnishings, were closely tied to housing and interest rates.

我們對即將上市的新商品感到非常滿意，這些商品很快就成為暢銷商品。我們在產品陣容中增加了多個地點，再加上我們增強的特殊訂單和客製化產品，可以幫助將設計業務提高到銷售額的 35%。對於像家居這樣與住房和利率密切相關的週期性行業來說，現在是艱難時期。

What we have learned these past decades is the importance of consistent investment and serving and inspiring our customers. This means new locations, upgrading stores cutting IT systems and then most importantly, investing in talent. And these are expensive commitments and tough times. We believe that the down cycles provide important opportunities when we can make strategic investments for future growth and position Havertys for significant gains in the months and years ahead.

過去幾十年我們學到的是持續投資以及服務和激勵客戶的重要性。這意味著新地點、升級商店、削減 IT 系統，最重要的是投資人才。這些都是昂貴的承諾和艱難的時期。我們相信，下行週期提供了重要的機會，我們可以為未來的成長進行策略性投資，並使哈弗蒂斯在未來幾個月和幾年內獲得顯著收益。

I'll now turn the call over to Steve Burdette.

我現在將把電話轉給史蒂夫·伯德特。

Thank you, Clarence, and good morning. Our second quarter results faced the difficulties of higher interest rates and frozen housing activity. Our Memorial Day event was disappointing, which affected the outcome of the quarter. We hope the potential interest rate cuts being discussed for the September Fed meeting will be a start to getting the housing market moving as we head into 2025.

謝謝你，克拉倫斯，早安。我們第二季的業績面臨利率上升和房地產活動凍結的困難。我們的陣亡將士紀念日活動令人失望，這影響了本季的業績。我們希望 9 月聯準會會議討論的潛在降息將成為進入 2025 年時推動房地產市場發展的一個開始。

During the quarter, we were excited about the opening of our two new stores in Southaven, Mississippi, which is a part of our Memphis market, and Destin Florida, which is a part of our Pennsuco market store traffic in both stores has been robust, and we are pleased with the early results. Overall, our store traffic continued to improve slightly during the quarter, but we are seeing a more deliberate consumer, which has caused our closing rates to slip.

本季度，我們對在密西西比州南山文（孟菲斯市場的一部分）和佛羅裡達州德斯坦（彭蘇科市場的一部分）開設兩家新店感到興奮，這兩家店的客流量一直很強勁，我們對早期結果感到滿意。總體而言，本季我們的商店客流量持續略有改善，但我們看到消費者更加謹慎，這導致我們的關門率下滑。

However, those customers that are buying are spending more as our average ticket continues to rise over 4% to almost $3,500. Our design business continues to be a bright spot, growing over 24% for the quarter as a percentage of our business, our design and sales teams have been able to increase the number of customers participating in design to almost 19% of our customers, which continues to grow at a double-digit pace.

然而，隨著我們的平均票價繼續上漲 4% 以上，達到近 3,500 美元，那些購買的客戶的支出也增加了。我們的設計業務仍然是一個亮點，本季占我們業務的百分比增長超過 24%，我們的設計和銷售團隊已經能夠將參與設計的客戶數量增加到我們客戶的近 19%，這繼續以兩位數的速度成長。

Our average ticket is the driver of our design business as it moved higher to approximately $7,000, which is a 7% increase for the quarter. Our supply chain network continues to operate efficiently, which we feel puts Havertys at a competitive advantage. We have seen a minimal increase in our freight rates due to the container imbalance and the issues around the Red Sea, but have seen no real disruptions due to our partnerships with our carriers and suppliers.

我們的平均票價是我們設計業務的驅動力，因為它上漲至約 7,000 美元，本季成長了 7%。我們的供應鏈網路繼續高效運營，我們認為這使 Havertys 處於競爭優勢。由於貨櫃不平衡和紅海周圍的問題，我們的運費略有上漲，但由於我們與承運商和供應商的合作夥伴關係，我們沒有看到真正的中斷。

Our inventories continue to remain in excellent condition and were relatively flat with Q1 and approximately 20% down from Q2 2023. This gives us confidence that we will be able to maintain our margin guidance for the year. Our vendors continue to provide us with excellent lead times that vary between four to seven weeks. This has helped us to drive our special order business, which was up approximately 9% and dollars for the quarter.

我們的庫存持續保持良好狀態，與第一季相對持平，比 2023 年第二季下降約 20%。這讓我們相信我們將能夠維持今年的利潤指引。我們的供應商繼續為我們提供四到七週的出色交貨時間。這幫助我們推動了特殊訂單業務，本季該業務成長了約 9%。

Extended financing continues to be a part of our promotional calendars, but we continue to manage the use in length of terms, which has helped us to lower our credit costs for the quarter by over 16% as a percent of the business. Also, we have been continuing to make the necessary adjustments with our headcount throughout the organization to ensure that we are rightsized for the current business conditions, we are optimistic heading into the what is historically our largest promotional event of the year Labor Day.

延期融資仍然是我們促銷日曆的一部分，但我們繼續管理期限的使用，這幫助我們將本季的信貸成本降低了 16% 以上（佔業務的百分比）。此外，我們一直在繼續對整個組織的員工人數進行必要的調整，以確保我們的規模適合當前的業務狀況，我們對今年勞動節歷史上最大的促銷活動持樂觀態度。

I want to thank all the Haverty team members across the company for their hard work and dedication to furnishing happiness to our customers every day.

我要感謝公司所有哈弗蒂團隊成員的辛勤工作和奉獻精神，每天為我們的客戶帶來幸福。

Now I will turn the call over to Richard.

現在我將把電話轉給理查德。

Thank you, Steve. In the second quarter of 2024. Net sales were $178.6 million, a 13.4% decrease over the prior year quarter. Comparable store sales were down 13.6 over the prior year period. Our gross profit margin decreased 10 basis points to 60.4% from 60.5%. The decrease was driven by the change in the LIFO reserve, which generated an immaterial impact on gross profit in 2024 compared to a positive impact of $3.4 million in the second quarter of 2023.

謝謝你，史蒂夫。2024年第二季。淨銷售額為 1.786 億美元，比去年同期下降 13.4%。可比商店銷售額比去年同期下降 13.6%。我們的毛利率從 60.5% 下降 10 個基點至 60.4%。這一下降是由後進先出儲備金的變化造成的，與 2023 年第二季度 340 萬美元的積極影響相比，這對 2024 年的毛利產生了不大的影響。

Excluding the impact of our life reserve, our gross margins increased over 170 basis points over the prior year period. Selling, general and administrative expenses decreased $6.9 million or 6.3% to $103.1 million. As a percentage of sales, these costs approximated 57.7% of sales, up from 53.3% in the prior year quarter. We experienced decreased selling cost, advertising, warehouse and delivery expenses during the quarter.

剔除壽險儲備金的影響，我們的毛利率比去年同期增加了 170 個基點以上。銷售、一般和管理費用減少 690 萬美元，或 6.3%，至 1.031 億美元。作為銷售額的百分比，這些成本約佔銷售額的 57.7%，高於去年同期的 53.3%。本季我們的銷售成本、廣告、倉儲和運輸費用均有所下降。

Interest income was approximately $1.5 million during the second quarter as we earned more on our cash deposits due to higher interest rates. Income before income taxes decreased $9.4 billion to $6.5 million.

第二季的利息收入約為 150 萬美元，因為利率上升，我們的現金存款收入增加。所得稅前收入減少 94 億美元至 650 萬美元。

Our tax expense was $2.8 million during the first six months of 2024, which resulted in an effective annual tax rate of 29.2%. The primary difference in the effective rate and statutory rate is due to expected state income taxes and nondeductible items for the year.

2024 年前 6 個月，我們的稅務支出為 280 萬美元，有效年稅率為 29.2%。實際稅率和法定稅率的主要差異是由於當年預期的州所得稅和不可扣除項目造成的。

Net income for the second quarter of 2024 was $4.4 million or $0.27 per diluted share on our common stock compared to net income of $11.8 million or $0.7 per share in the comparable quarter last year.

2024 年第二季的淨利為 440 萬美元，即稀釋後每股普通股 0.27 美元，而去年同期淨利為 1,180 萬美元，即每股 0.7 美元。

Now turning to our balance sheet, at the end of the second quarter, our inventories were $92.4 million, which was down $1.6 million from the year-end balance and down $22.3 million versus the second quarter of 2023. At the end of the second quarter our customer deposits were $38.7 million, which was up $2.9 million from December 31, 2023 balance and down $6.9 million versus the Q2 2023 balance.

現在轉向我們的資產負債表，第二季末，我們的庫存為 9,240 萬美元，比年末餘額減少 160 萬美元，比 2023 年第二季減少 2,230 萬美元。截至第二季末，我們的客戶存款為 3,870 萬美元，比 2023 年 12 月 31 日餘額增加 290 萬美元，比 2023 年第二季餘額減少 690 萬美元。

We ended the quarter with $109.9 billion of cash and cash equivalents. We have no funded debt on our balance sheet at the end of the second quarter of 2024.

本季結束時，我們擁有 1,099 億美元的現金和現金等價物。截至 2024 年第二季末，我們的資產負債表上沒有融資債務。

Looking at some of our uses of cash flow, capital expenditures were $16 million for the first six months of 2024. We also paid out $10.1 million of regular dividends in the first six months of 2024. We didn't utilize our share repurchase program during the second quarter of this year, and we have approximately $13.1 million of existing authorization in our buyback program.

從我們現金流的一些用途來看，2024 年前六個月的資本支出為 1,600 萬美元。我們還在 2024 年前六個月支付了 1,010 萬美元的定期股息。今年第二季我們沒有利用股票回購計劃，我們的回購計劃現有授權約為 1,310 萬美元。

Our earnings release lists out several additional forward-looking statements indicating our future expectations of certain financial metrics. I will highlight a few, but please refer to our press release for additional commentary. We do expect our gross margins for 2024 to be between 60.0% and 60.5%. We anticipate gross profit margins will be impacted by our current estimates of product and freight costs.

我們的收益發布列出了幾項額外的前瞻性聲明，顯示我們對某些財務指標的未來預期。我將重點介紹其中一些，但請參閱我們的新聞稿以獲取更多評論。我們預計 2024 年的毛利率將在 60.0% 至 60.5% 之間。我們預計毛利率將受到我們目前對產品和運費成本的估計的影響。

Our fixed and discretionary type SG&A expenses for 2024 are expected to be in the $280 million to $284 million range, which is a reduction in our previous estimate, we anticipate continued reductions in advertising, incentive compensation and professional fees. The variable type costs within SG&A for 2024 are expected to be in the range of 19.7% to 20%.

我們 2024 年的固定和酌情類型 SG&A 費用預計將在 2.8 億美元至 2.84 億美元之間，這比我們先前的估計有所減少，我們預計廣告、激勵薪酬和專業費用將繼續減少。2024 年 SG&A 內的變動類型成本預計將在 19.7% 至 20% 之間。

We anticipate continued reductions in third-party credit costs as well as delivery costs. Our planned CapEx for 2024 is $33 million, anticipated new or replacement stores remodels and expansions account for $28 million. Investments in our distribution network are expected to be $2.5 million and investments in our IT. Our information technology are expected to be approximately $2.5 million. Our anticipated effective tax rate in 2024 is expected to be 27.5%. This projection excludes the impact of vesting of stock awards and any potential new tax legislation. This completes my commentary on the second quarter financial results.

我們預期第三方信貸成本和交付成本將持續降低。我們計劃 2024 年的資本支出為 3,300 萬美元，預計新建或更換商店改造和擴建費用為 2,800 萬美元。我們的分銷網絡和 IT 投資預計為 250 萬美元。我們的資訊技術預計約為 250 萬美元。我們預計 2024 年的有效稅率預計為 27.5%。該預測不包括股票獎勵歸屬和任何潛在的新稅收立法的影響。我對第二季財務表現的評論到此結束。

Operator, we would like to open the call at this time for any questions.

接線員，如果有任何問題，我們希望此時打開電話。

(Operator instructions)

（操作員說明）

Anthony Lebiedzinski, Sidoti.

安東尼·萊別津斯基，西多蒂。

Our demand, gentlemen, and thank you for taking the questions. So first, just wondering if you could comment on the sales trends throughout the quarter. I know you talked about Memorial Day being I guess somewhat disappointing, but just overall, as we look from April through June, how did that go in terms of written comps or however you want to handle that?

先生們，我們的要求，感謝您提出問題。首先，想知道您是否可以評論整個季度的銷售趨勢。我知道你談到陣亡將士紀念日，我想有些令人失望，但總的來說，從四月到六月，書面比較方面進展如何，或者你想如何處理？

Sure, Anthony, good morning. This is Richard on. In terms of the I can give you the written and deliberate trends. In April, our written business was down approximately 14%. Steve mentioned a disappointing Memorial Day in May, we were down approximately 18%. June, we were down approximately 8%. And then in terms of deliveries, April, we were down approximately 12. And in April about 6 in May and about 20% in June.

當然，安東尼，早安。這是理查德。就這一點而言，我可以為您提供書面的和經過深思熟慮的趨勢。4 月份，我們的書面業務下降了約 14%。史蒂夫提到 5 月的陣亡將士紀念日令人失望，我們的股價下跌了約 18%。6 月份，我們下跌了約 8%。然後就交付量而言，4 月我們下降了大約 12 個。4 月約 6%，5 月約 6%，6 月約 20%。

That's very helpful, Richard, thanks for that. And then so on your last conference call, you guys talked about a new media firm and a new media approach you can. Can you talk about that and then like what you've learned from that and how are you guys thinking about that for the back half of the year?

這非常有幫助，理查德，謝謝你。然後，在上次電話會議上，你們談到了一家新媒體公司和一種新媒體方法。您能談談這一點，然後談談您從中學到的東西嗎？

Yes, Anthony, this is Steve. Yes, we did introduce Carmichael Lynch started in April or rather the first impact that we started seeing that would have been in May. And it is too early to tell though, one of our indicators is traffic that we're looking at, and I made a comment that we're starting see a little bit of improvement in traffic.

是的，安東尼，這是史蒂夫。是的，我們確實介紹了卡邁克爾·林奇（Carmichael Lynch）從四月開始，或者更確切地說，我們開始看到的第一個影響是在五月。不過現在下結論還為時過早，我們的指標之一是我們正在關注的流量，我評論說我們開始看到流量有所改善。

So we consider that to be a positive with what they're doing on some of the changes I looked at it I talked about as from a TV perspective, we're still doing streaming and OTT, but we're also no local broadcast in our bigger markets on a balance there. And then we've kind of changed our search duration. What we're doing there in search to drive more traffic to the store. So we're encouraged right now. And so that's kind of why we're optimistic heading into the third quarter. And we'll continue to see those traffic trends improve.

因此，我們認為，他們正在做的一些改變是積極的，我從電視的角度來看，我談到了，我們仍在做串流媒體和 OTT，但我們也沒有本地廣播我們更大的市場在那裡平衡。然後我們改變了搜尋持續時間。我們在搜尋方面所做的事情是為了吸引更多商店的流量。所以我們現在受到鼓舞。這就是我們對第三季持樂觀態度的原因。我們將繼續看到這些流量趨勢的改善。

Yes, actually, I think, Steve, and then so I guess with the upcoming election year get, I guess, pivot to broadcast TV with the election coming up, will that kind of prevent you guys from doing as much broadcast TV as you would have normally like to do?

是的，實際上，我想，史蒂夫，然後我想隨著即將到來的選舉年，我想，隨著選舉的臨近，轉向廣播電視，這會阻止你們做盡可能多的廣播電視節目嗎？

We could be basically cut off because the election takes priority those ads, but we won't know that till we get there and they're probably more so in certain states than others in those states like Georgia and maybe North Carolina Virginia are really the states in our market where our footprint is better. I consider to be swing states. So in those states possibly So, but we'll monitor that and manage that our marketing team will with our with EPCON Carmichael Lynch.

我們基本上可能會被切斷，因為選舉優先考慮這些廣告，但我們不會知道，直到我們到達那裡，它們在某些州可能比其他州更是如此，例如佐治亞州，也許北卡羅來納州弗吉尼亞州真的是最重要的。我認為是搖擺州。因此，在這些州可能是這樣，但我們將與 EPCON Carmichael Lynch 一起監控並管理我們的行銷團隊。

Got it, okay. And then my last question before I pass it on to others. So you mentioned that you're happy with the two new stores that just opened, but just overall, given the acceleration in store growth as you've had, can you talk more broadly about the some of the other recent store openings, how have those done relative to your expectations?

明白了，好吧。然後是我將其傳遞給其他人之前的最後一個問題。所以你提到你對剛開業的兩家新店很滿意，但總的來說，考慮到商店增長的加速，你能更廣泛地談談最近新開的一些其他商店嗎？所做的事情？

Yeah. So I mentioned on the call, as you said, South Haven and just and I have both exceeded our expectations in. And then we opened one last year, Dayton, Ohio and Concord, North Carolina on. And both of those stores from a traffic perspective have done as well are closing out of the two new stores this year has been stronger than the two new stores last year from their initial start, but they are getting better and building strength.

是的。所以我在電話中提到，正如你所說，南黑文和我的表現都超出了我們的預期。去年我們在俄亥俄州代頓和北卡羅來納州康科德開設了一家。從客流量的角度來看，這兩家店的表現也都不錯，都在關門，今年的兩家新店從開業之初就比去年的兩家新店強，但它們正在變得更好，正在增強實力。

They are but we have been pleased with both with all four of those store openings and look forward to the two more that we're adding this year in Pembroke Pines, South Florida and then obviously St. Pete and Tampa, again, Florida being our largest concentration of stores. We're really looking forward to that along with Indiana and then getting into Houston.

是的，但我們對這四家新店的開業都很滿意，並期待今年我們在南佛羅裡達州彭布羅克派恩斯再開兩家店，然後顯然是聖皮特和坦帕，佛羅裡達州是我們的目標商店最集中。我們真的很期待與印第安納州的比賽，然後進入休士頓。

Got it. Thank you very much and best of luck.

知道了。非常感謝您，祝您好運。

Thank you.

謝謝。

Cristina Fernández, Telsey Advisory Group.

Cristina Fernández，特爾西諮詢小組。

Hi, good morning. I wanted to follow up on Anthony's question on the main end. And wanted to see if you looked at how the quarter progressed, particular Memorial Day event being disappointing or I guess what are you planning differently? How does it change your approach for the back half, particularly for like the big promotional holiday weekends like Labor Day, which you mentioned is the biggest of the year on that that would be helpful? Thank you.

嗨，早安。我想在主端跟進安東尼的問題。想看看您是否了解本季的進展情況，特別是陣亡將士紀念日活動是否令人失望，或者我猜您有什麼不同的計劃？它如何改變你下半年的做法，特別是像勞動節這樣的大型促銷假期週末，你提到這是一年中最大的節日，這會有幫助嗎？謝謝。

Chris Cramer versus three, we're focused on from a promotional standpoint. We're not going to change that. We don't feel like that for me that we need to go after right now lowering prices or be more aggressive in that state. We will certainly be out with our normal promotions, our credit financing as we're doing it.

克里斯·克萊默（Chris Cramer）對三人，我們從促銷的角度關注。我們不會改變這一點。對我來說，我們不認為我們需要立即降低價格或在州內採取更積極的行動。我們肯定會停止正常的促銷活動和信貸融資。

But what we're leaning on and feel really positive about is, again, like I talked about, our new media partner and what we're doing there to reach the consumer and driving more traffic to our stores because the end result, if we can increase our traffic to our stores, that gives us the opportunity obviously to close more business. That's that's the number one. And the thing we're focused on right now and driving. And so it's too early right now, come out of second quarter.

但我們所依賴並感到真正積極的是，正如我所說的，我們的新媒體合作夥伴以及我們正在做的事情來吸引消費者並為我們的商店帶來更多流量，因為最終結果是，如果我們可以增加我們商店的客流量，這顯然使我們有機會完成更多業務。那就是第一名。以及我們現在關注的事情和駕駛。所以現在還太早，第二季才出來。

We got some positive trends that we feel good on as they just started the first promotion with Memorial Day, but we feel confident what we got with our promotions that we have. There's no need to do anything different. We don't think that's the reason consumers are not buying. We just think there's a little more deliberate, little more cautious in this environment, and we're going to we're going to stay consistent, maintain our margins and continue to offer the customer quality and value prop.

我們看到了一些正面的趨勢，我們對此感到滿意，因為他們剛剛在陣亡將士紀念日開始了第一次促銷活動，但我們對我們的促銷活動所得到的結果充滿信心。沒有必要做任何不同的事情。我們認為這並不是消費者不購買的原因。我們只是認為在這種環境下需要更加深思熟慮、更加謹慎，我們將保持一致，維持我們的利潤並繼續為客戶提供品質和價值支援。

Thanks. And then the second question I have for Clarence or Steve. Clarence, you talked about investments in the business and talent and IT, can you expand on specifics like what what areas where do you need more talent and on IT legacy systems to supply chain?

謝謝。然後是我要問克拉倫斯或史蒂夫的第二個問題。Clarence，您談到了對業務、人才和 IT 的投資，您能否詳細說明哪些領域需要更多人才以及供應鏈的 IT 遺留系統？

The main lane investments, we continue to do there is enhancing our website and just everything about that to make sure that we're reaching the customer better than than anybody else. And getting our message across it is a continual investment. And it escalates is just so dad gum important that we are looked at as one of the better sites and easier to operate.

我們繼續在那裡做的主要投資是增強我們的網站以及與之相關的一切，以確保我們比其他任何人都能更好地接觸客戶。傳達我們的訊息是一項持續的投資。它的升級是如此重要，以至於我們被視為更好且更易於操作的網站之一。

So we we spent a lot of energy there. A lot of our team is dedicated to it. And certainly we're trying to stay on the leading edge for website and just making sure that we can easily communicate with our customer there.

所以我們在那裡花了很多精力。我們團隊的許多人都致力於此。當然，我們正在努力保持網站的領先地位，並確保我們可以輕鬆地與那裡的客戶溝通。

And then now anything on on talent, we're going to make investments?

那麼現在關於人才的事情，我們要進行投資嗎？

On talent, well, yes, we actually we have some issue. We have some changes that we will be making in the next several months, particularly in the merchandise area. We've had a couple of retirements, one of which we've already announced and we will be supplementing our team here and adding creative talent. We're excited about that opportunity and that is underway right now.

關於人才，是的，我們實際上存在一些問題。我們將在接下來的幾個月內做出一些改變，特別是在商品領域。我們已經有幾次退休，其中之一我們已經宣布，我們將補充我們的團隊並增加創意人才。我們對這個機會感到很興奮，而且現在正在進行中。

We've just we just promoted the RRT had a Greg Davis. He just was promoted. We had a retirement there, but we have a strong team there. And we feel good about our main interest right now is is supplementing our merchandising team here under John, Gail.

我們剛剛提升了 RRT 的 Greg Davis。他剛剛升職。我們在那裡退休了，但我們在那裡有一支強大的團隊。我們感覺良好，目前我們的主要興趣是補充約翰蓋爾領導下的銷售團隊。

Christina, we're making this is Steven. We're making a few investments in the store side of things. As far as the in-store experience, we have two test stores right now going that has to do with basically a point of purchase materials that are in the store to help consumers and help the salespeople in communicating and hopefully improving the closing rate by providing better information for the consumer there.

克里斯蒂娜，我們正在製作這是史蒂文。我們正在商店方面進行一些投資。就店內體驗而言，我們現在有兩家測試店，基本上與店內的購買材料有關，這些材料可以幫助消費者並幫助銷售人員進行溝通，並希望通過提供為那裡的消費者提供更好的信息。

So we're very excited about that is there's a change with the design centers. We're investing more with those providing a few more options, more like rug choices, bigger screens, bigger TVs to make the experience for the consumer better. So we're doing a test with that as well. So that that is an investment and then, of course, on the website, as Clarence mentioned. But A/B testing is something we continually are doing and evolving and changing.

因此，我們對設計中心的變化感到非常興奮。我們正在對那些提供更多選擇的產品進行更多投資，例如地毯選擇、更大的螢幕、更大的電視，以便為消費者提供更好的體驗。所以我們也在對此進行測試。因此，這是一項投資，當然，正如克拉倫斯所提到的，在網站上。但 A/B 測試是我們不斷進行、不斷發展和改變的事情。

Thank you. And the last question I had was on with the election coming up, there's also increase talking perhaps concern around tariffs on goods from China. I know your exposure it decreased to 15%. Can you talk if there were to be tariffs, how you can manage them this time and they maybe remind us of what you did last time. Is it pricing shifting goods to other countries, et cetera?

謝謝。我的最後一個問題是隨著選舉的臨近，人們對中國商品關稅的擔憂也有所增加。我知道你的曝光率下降到了 15%。您能否談談如果存在關稅，這次您如何管理它們，它們可能會讓我們想起您上次所做的事情。是否為將貨物轉移到其他國家等定價？

Yes, Cristina, our merchants already working with our suppliers. Basically, we have leather that's coming out of China, some fabric, but mainly leather. And we've already got a majority of our vendors already have alternate production either in Cambodia, Vietnam, Mexico, and that they're already in the midst of executing on. And so we have an alternative and do not expect any counter impact from tariffs that they would have come about for China additional tariffs.

是的，克里斯蒂娜，我們的商家已經與我們的供應商合作。基本上，我們有來自中國的皮革，還有一些布料，但主要是皮革。我們的大多數供應商已經在柬埔寨、越南、墨西哥進行了替代生產，而且他們已經在執行中。因此，我們有一個替代方案，並且預計關稅不會對中國徵收額外關稅產生任何反作用。

Thank you.

謝謝。

Thank you.

謝謝。

Budd Bugatch, Water Tower Research.

巴德·布加奇，水塔研究。

Good morning and thank you for taking my questions. And our first congratulations on really managing pretty well through this pretty difficult period. It's been a real challenge and you hear financials. They don't compare as well as you would like them. They look strong. So congratulations on that.

早上好，感謝您回答我的問題。我們首先祝賀你們在這個相當困難的時期確實表現得很好。這是一個真正的挑戰，你會聽到財務狀況。它們的比較效果不如您所希望的那樣。他們看起來很堅強。所以恭喜你。

I do have a couple of questions about the written business. And as you went through that from Richard, I think you said that Yum. June was down 8% or so. When you look at the change in customer deposits at the end of the quarter, that's down in the mid 10s. And I wonder if there's any relationship or any change in the relationship of deposits to backlog or what you are looking for out of the retail system going forward in terms of deliveries?

我確實有幾個關於書面業務的問題。當你從理查德那裡讀到這一點時，我想你是這麼說的。6月下降了8%左右。當您查看本季末客戶存款的變化時，會發現下降了 10 倍以上。我想知道存款與積壓的關係是否有任何關係或有任何變化，或者您在零售系統中尋找未來交付方面的內容？

Yeah, but as Richard of we, the overall relationship really hasn't changed over the quarter in terms of the relationship between deposits and in our backlog. So backlog is fairly consistent now with what has been throughout this calendar year.

是的，但作為我們的理查德，就存款和積壓之間的關係而言，本季的整體關係確實沒有改變。因此，現在的積壓情況與今年全年的情況相當一致。

Any read through that change, I know that Memorial Day might have been a disappointment. Stephen, I was wondering if you had or I thought about it still maybe why that was. We heard Memorial Day had mixed results across the industry show. Maybe what did you think maybe you did right or did wrong in Memorial Day, if any?

讀過這項變更後，我知道陣亡將士紀念日可能會令人失望。史蒂芬，我想知道你是否有過，或者我仍然思考過，也許這是為什麼。我們聽說陣亡將士紀念日整個產業的表現好壞參半。也許你認為你在陣亡將士紀念日做對或做錯了什麼（如果有的話）？

I don't know, we did. We were just on the wrong side of it that makes you just described. Obviously, we were not happy it still a great weekend. It just wasn't what our expectations and what it was last year. And it was probably it was equal to our President's Day. And typically, it's stronger Holiday Inn and Presidents' Day.

我不知道，我們做到了。我們只是站在了錯誤的一邊，這使得你剛才所描述的。顯然，我們並不高興這仍然是一個美好的周末。這不是我們的預期，也不是去年的情況。這可能相當於我們的總統日。通常情況下，假日酒店和總統日的表現會更強勁。

So it was not a harm and we can adjust was disappointing from a comparable basis of what we had done there, I think, but the consumer we've just seen has been a little more cautious and deliberate in their taking the money out of their wallets and spend it.

因此，這並不是一種傷害，我們可以根據我們在那裡所做的事情的可比基礎進行調整，我認為這是令人失望的，但我們剛剛看到的消費者在從他們的錢中取出錢時更加謹慎和謹慎。

So but we still feel we feel good where we are and what we're doing in the product. We have, as Clarence mentioned, we've got new product coming in is hitting some price points in places that we maybe had some voids on these clients that it's resonating and we still have more coming. So we're excited for that and excited to get that in.

所以，但我們仍然對我們所處的位置以及我們在產品中所做的事情感覺良好。正如克拉倫斯所提到的，我們已經推出了新產品，在某些地方我們可能有一些空白，它正在引起共鳴，但我們仍然有更多產品即將推出。所以我們對此感到很興奮，也很高興能把它加入進來。

And that does go to kind of the next area because we're seeing from others. And outside of the furniture industry, we're hearing a lot about the trade down issue and it looks like that's where the economy might be going over the immediate future or a your inventories are in awfully good shape, but maybe are they into good shape and how do you participate in the trade down?

這確實涉及下一個領域，因為我們從其他人那裡看到了這一點。在家具產業之外，我們聽到了很多關於貿易下降的問題，看起來這就是近期經濟可能會發生的情況，或者你的庫存狀況非常好，但也許它們狀況良好以及如何參與下跌交易？

That's not something Havertys is known for and I wouldn't expect you to change. I wouldn't want you to change your stripes, but you still have to be aware of what's going on around here?

這不是哈弗蒂斯出名的事情，我也不指望你會改變。我不希望你改變你的條紋，但你仍然必須了解這裡發生了什麼？

Budd we feel really good about our position. I do think we're reaching a better customer. We're actually on our deposits and the better product is higher than it was and we're doing more custom special order.

巴德，我們對自己的處境感到非常滿意。我確實認為我們正在接觸到更好的客戶。我們實際上是在我們的存款上，更好的產品比以前更高，我們正在做更多的客製化特殊訂單。

Richard, Steve talked about that. The bottom end of this industry is being devastated right now the bankruptcies that you're seeing, the cons, Babcock and maybe Bed Bath & Beyond is devastating to the promotional end of this business. And we certainly don't want to go get into that bailiwick. I was talking with some of our suppliers about the Mississippi parts of the market, which is where the promotional poultry come comes from.

理查、史蒂夫談到了這一點。這個行業的底層現在正在遭受毀滅性的打擊，你所看到的破產、缺點、Babcock 甚至 Bed Bath & Beyond 都對這個行業的促銷造成了毀滅性的打擊。我們當然不想進入那個轄區。我正在與我們的一些供應商談論市場的密西西比部分，這是促銷家禽的來源地。

And they are absolutely devastated we're not going down in price point. We are targeting a better customer. It's working. I do think we get more credit for we get more margin. I think we're taking some from that end of the market. And I think it will pay off for us. It might take a little while, but I think it will pay for the payoff for us.

他們對我們不降低價格感到非常震驚。我們的目標是更好的客戶。它正在發揮作用。我確實認為我們因獲得更多利潤而獲得更多榮譽。我認為我們正在從市場的這一端獲取一些。我認為這會為我們帶來回報。這可能需要一點時間，但我認為這會為我們帶來回報。

I don't disagree with that at all. And remind me again what you're planning to open the balance of this year. You got the St. Pete and --

我完全不同意這一點。再次提醒我你今年的結餘計畫是什麼。你得到了聖彼得和--

Yeah, we hope to open the Pembroke Pines before Labor Day is what we're hoping, frankly, before the end of the quarter, in the third quarter, we opened up a Greenwood, Indiana in sometime in middle of the fourth quarter and we'll open up a Houston. Our first store there in the Woodlands will be opened in late Q4. So that's that's what we have planned for the remainder of this year. We should with that store count to go somewhere around 129 stores for the year.

是的，我們希望在勞動節之前開設彭布羅克松樹店，坦白說，在本季度末之前，在第三季度，我們在第四季度中期的某個時候開設了印第安納州格林伍德，我們將開設休士頓。我們在兀蘭的第一家商店將於第四季末開業。這就是我們今年剩餘時間的計畫。根據這個商店數量，我們今年應該會有 129 家商店左右。

Budd, we budget to walk down the street for our store opening in St. Pete, we'll just see there.

巴德，我們計劃沿著街道步行去參加我們在聖彼得堡的新店開業，我們就去那裡看看。

I do that fairly often, and it there's not as much activity there going owners I'd like to say. So I'd like to see that open before the end of the quarter was we'll buy you a cup of coffee or a cookie or both. Okay.

我經常這樣做，而且我想說的是，那裡的業主沒有那麼多活動。所以我希望在本季度末之前看到我們會為您買一杯咖啡或一塊餅乾或兩者都開放。好的。

Mickey Legg, The Benchmark Company.

米奇萊格，基準公司。

Hey, guys. Thanks for taking my questions. Tom, looks like you touched on a bit of this already, so I'm trying to frame it from a fresh perspective if you could just talk about the competitive landscape a little bit. Are you seeing more companies going out of business and I know you don't engage in pricing promotion too much on your end, but are you seeing any trends on your competitors using more promotions?

嘿，夥計們。感謝您回答我的問題。湯姆，看起來你已經談到了這一點，所以如果你能稍微談談競爭格局的話，我會嘗試從一個新的角度來闡述它。您是否看到越來越多的公司倒閉，我知道您並沒有過多地進行價格促銷，但是您是否看到競爭對手使用更多促銷活動的趨勢？

And I think you also talked a little bit about this in your prepared remarks about maybe any weather related impact that may have impacted sales or how you were able to tell you that avoid that? Any color on that would be helpful. Thanks.

我想您在準備好的評論中也談到了這一點，可能會影響銷售的任何與天氣相關的影響，或者您如何能夠告訴您避免這種情況？任何顏色都會有幫助。謝謝。

We trauma to give weather reports. I mean sometimes it does impact, but no, we haven't really had any major impact there. You know, the reason these GOB sales really don't affect us, I mean, and that's not something that I feel impacts us most of the time that's up by close out people. It's still in the lower end of the market. We don't see that really affecting us. They'll be a lot of it and certainly in parts of our market.

我們創傷提供天氣預報。我的意思是有時它確實會產生影響，但不，我們並沒有真正產生任何重大影響。你知道，這些 GOB 銷售確實不會影響我們的原因，我的意思是，我認為這並不是大多數時候影響我們的事情，而是由關閉的人來完成的。它仍處於市場的低端。我們認為這並沒有真正影響我們。它們的數量將會很多，而且肯定會出現在我們市場的部分地區。

But I don't think come it might have very short-term impact, but nothing nothing significant yet from Nike, Steve, on the promotional side of things, I think is still there still consistent with the lower end players are going to be aggressive with credit and with price points trying to hit on that. I don't think any different than what a man they might be trying to seek out in their mind, but values are what they're putting out there.

但我不認為它可能會產生非常短期的影響，但耐吉、史蒂夫在促銷方面還沒有什麼重大影響，我認為仍然存在與低端玩家一致的侵略性憑藉信貸和價格點試圖達到這一點。我認為這與他們在腦海中試圖尋找的男人沒有什麼不同，但價值觀是他們所表現出來的。

But from our perspective, I don't see it being any different. And the upper end is still doing the same thing in promoting service and design and not as much credit on. So I don't really see a change in general. Still people are promoting when it gets around the holidays, you still see it, and there's still a lot of it.

但從我們的角度來看，我認為這沒有什麼不同。高端仍然在推廣服務和設計方面做同樣的事情，但沒有那麼多的認可。所以我並沒有真正看到總體上的變化。假期前後人們仍然在促銷，你仍然可以看到它，而且仍然有很多。

Got it. That's that's helpful. And then maybe just some additional color on the interest rate environment going forward. If we're expecting cuts over the next 12 months, how do you see that impacting the consumer environment and maybe a little bit on the timing of that impact?

知道了。這就是有幫助的。然後也許只是對未來利率環境的一些額外的描述。如果我們預計在未來 12 個月內進行削減，您如何看待這對消費者環境的影響，以及影響的時間？

Yeah, this is Richard. We certainly are pleased to see the Fed's recent indications or signals that the rates are going to be coming down this year and we're tied to housing and mortgage rates. And so we know it's come and we just don't know exactly when.

是的，這是理查。我們當然很高興看到聯準會最近的跡像或信號，即今年利率將下降，並且我們與住房和抵押貸款利率掛鉤。所以我們知道它已經到來，但我們只是不知道確切的時間。

But we certainly feel like based on things you're reading in the industry publications and things that nature of next year will certainly we should see an improvement in overall demand, which certainly will affect us in a positive way.

但我們當然認為，根據您在行業出版物中閱讀的內容以及明年的性質，我們肯定會看到整體需求的改善，這肯定會對我們產生積極的影響。

Great. That's all for me.

偉大的。這就是我的全部。

Thanks for Mickey.

謝謝你的米奇。

This concludes our question and answer session. I would like to turn the floor back over to Mr. Richard Hare for closing comments.

我們的問答環節到此結束。我想請理查德·黑爾先生發表總結意見。

While we thank you for your participation in today's call, and we look forward to talking to you in the future when we release our third quarter results later this year. Thank you.

我們感謝您參加今天的電話會議，並期待在我們今年稍後發布第三季業績時與您交談。謝謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。