Haverty Furniture Companies (HVT) 10-Q 5 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Jun. 30, 2022	Aug. 01, 2022
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-14445
Entity Registrant Name	HAVERTY FURNITURE COMPANIES, INC
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	58-0281900
Entity Address, Address Line One	780 Johnson Ferry Road,
Entity Address, Address Line Two	Suite 800
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30342
City Area Code	404
Local Phone Number	443-2900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000216085
Common Stock
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	HVT
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		15,051,761
Common Class A
Entity Listings [Line Items]
Title of 12(b) Security	Class A Common Stock
Trading Symbol	HVTA
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		1,283,260

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 143,454	$ 166,146
Restricted cash and cash equivalents	6,722	6,716
Inventories	134,053	112,031
Prepaid expenses	10,523	12,418
Other current assets	14,653	11,746
Total current assets	309,405	309,057
Property and equipment, net	131,230	126,099
Right-of-use lease assets	222,702	222,356
Deferred income taxes	18,769	16,375
Other assets	12,190	12,403
Total assets	694,296	686,290
Current liabilities
Accounts payable	35,093	31,235
Customer deposits	90,762	98,897
Accrued liabilities	48,122	46,664
Current lease liabilities	34,539	33,581
Total current liabilities	208,516	210,377
Noncurrent lease liabilities	198,338	196,771
Other liabilities	20,716	23,172
Total liabilities	427,570	430,320
Capital Stock, par value $1 per share
Preferred Stock, Authorized – 1,000 shares; Issued: None
Additional paid-in capital	105,674	102,572
Retained earnings	375,234	342,983
Accumulated other comprehensive loss	(2,212)	(2,293)
Less treasury stock at cost – Common Stock (2022 – 14,954 and 2021 – 14,069 shares) and Convertible Class A Common Stock (2022 and 2021 – 522 shares)	(243,782)	(219,008)
Total stockholders’ equity	266,726	255,970
Total liabilities and stockholders’ equity	694,296	686,290
Common Stock
Capital Stock, par value $1 per share
Common stock/Class A common stock, value, issued	30,006	29,907
Class A Common Stock
Capital Stock, par value $1 per share
Common stock/Class A common stock, value, issued	$ 1,806	$ 1,809

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Stockholders’ equity
Capital Stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Common Stock
Stockholders’ equity
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	30,006,000	29,907,000
Treasury stock, shares (in shares)	14,954,000	14,069,000
Class A Common Stock
Stockholders’ equity
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	1,806,000	1,809,000
Treasury stock, shares (in shares)	522,000	522,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net sales	$ 253,216	$ 249,989	$ 492,162	$ 486,480
Cost of goods sold	106,608	108,488	204,593	209,945
Gross profit	146,608	141,501	287,569	276,535
Expenses:
Selling, general and administrative	118,129	112,397	233,283	222,159
Other expense (income), net	(45)	(6)	115	(43)
Total expenses	118,084	112,391	233,398	222,116
Income before interest and income taxes	28,524	29,110	54,171	54,419
Interest income, net	144	59	218	114
Income before income taxes	28,668	29,169	54,389	54,533
Income tax expense	6,960	6,311	13,319	12,269
Net income	21,708	22,858	41,070	42,264
Other comprehensive income
Adjustments related to retirement plans; net of tax expense of $13 and $27 in 2022 and $16 and $32 in 2021	41	49	81	98
Comprehensive income	$ 21,749	$ 22,907	$ 41,151	$ 42,362
Common Stock
Other comprehensive income
Basic earnings per share (in dollars per share)	$ 1.31	$ 1.25	$ 2.45	$ 2.32
Diluted earnings per share (in dollars per share)	1.27	1.21	2.37	2.25
Cash dividends per share (in dollars per share)		0.25		0.47
Class A Common Stock
Other comprehensive income
Basic earnings per share (in dollars per share)	1.25	1.18	2.33	2.18
Diluted earnings per share (in dollars per share)	$ 1.22	1.16	$ 2.27	2.13
Cash dividends per share (in dollars per share)		$ 0.23		$ 0.43

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Adjustments related to retirement plans, tax expense	$ 13	$ 16	$ 27	$ 32

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities:
Net income	$ 41,070	$ 42,264
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,664	7,932
Share-based compensation expense	4,196	4,656
Other	(1,444)	157
Changes in operating assets and liabilities:
Inventories	(22,022)	(25,148)
Customer deposits	(8,135)	29,896
Other assets and liabilities	(966)	(1,841)
Accounts payable and accrued liabilities	4,942	(277)
Net cash provided by operating activities	26,305	57,639
Cash Flows from Investing Activities:
Capital expenditures	(13,548)	(10,939)
Proceeds from sale of land, property and equipment	52	33
Net cash used in investing activities	(13,496)	(10,906)
Cash Flows from Financing Activities:
Dividends paid	(8,819)	(8,550)
Common stock repurchased	(25,001)	0
Other	(1,675)	(2,894)
Net cash used in financing activities	(35,495)	(11,444)
(Decrease) increase in cash, cash equivalents and restricted cash equivalents during the period	(22,686)	35,289
Cash, cash equivalents and restricted cash equivalents at beginning of period	172,862	206,771
Cash, cash equivalents and restricted cash equivalents at end of period	$ 150,176	$ 242,060

Business and Basis of Presentat

Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Basis of Presentation	Business and Basis of Presentation Haverty Furniture Companies, Inc. (“Havertys,” “the Company,” “we,” “our,” or “us”) is a retailer of a broad line of residential furniture in the middle to upper-middle price ranges. We operate all of our stores using the Havertys brand and do not franchise our concept. We operate within a single reportable segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes required by United States of America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The Company believes that the disclosures made are adequate to make the information not misleading. The financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. We believe all adjustments, normal and recurring in nature, considered necessary for a fair presentation have been included. We suggest that these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our latest Annual Report on Form 10-K. The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from those estimates. The Company is subject to various claims and legal proceedings covering a wide range of matters, including with respect to product liability and personal injury claims, that arise in the ordinary course of its business activities. We currently have no pending claims or legal proceedings that we believe would be reasonably likely to have a material adverse effect on our financial condition, results of operations or cash flows. However, there can be no assurance that either future litigation or an unfavorable outcome in existing claims will not have a material impact on our business, reputation, financial position, cash flows or results of operations.

COVID-19

COVID-19	6 Months Ended
	Jun. 30, 2022
Unusual or Infrequent Items, or Both [Abstract]
COVID-19	COVID-19The novel coronavirus disease (“COVID-19”) pandemic and its contributory effects on the economy continue to impact our business and results of operations. During the six months ended June 30, 2022, we experienced, among other things, rising product prices, volatile transportation costs, and supply chain disruptions. Furthermore, discretionary consumer spending has been adversely impacted by rising inflation, including fuel costs, and interest rates. Many of these factors impacted our business in the second quarter of 2022. The extent and duration of any future impact resulting from the COVID-19 pandemic is not fully known, and we may experience additional significant COVID-19 related disruptions in the future as a result.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity The following outlines the changes in each caption of stockholders’ equity for the current and comparative periods and the dividends per share for each class of shares. For the three months ended June 30, 2022: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2022 $ 29,924 $ 1,809 $ 104,345 $ 358,084 $ (2,253) $ (231,509) $ 260,400 Net income 21,708 21,708 Dividends declared: Common Stock, $0.28 per share (4,225) (4,225) Class A Common Stock, $0.26 per share (333) (333) Class A conversion 3 (3) — Acquisition of treasury stock (12,500) (12,500) Restricted stock issuances 79 (1,244) (1,165) Amortization of restricted stock 1,889 1,889 Directors' Compensation Plan 684 227 911 Other comprehensive income 41 41 Balances at June 30, 2022 $ 30,006 $ 1,806 $ 105,674 $ 375,234 $ (2,212) $ (243,782) $ 266,726 For the six months ended June 30, 2022: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2021 $ 29,907 $ 1,809 $ 102,572 $ 342,983 $ (2,293) $ (219,008) $ 255,970 Net income 41,070 41,070 Dividends declared: Common Stock, $0.53 per share (8,189) (8,189) Class A Common Stock, $0.49 per share (630) (630) Class A conversion 3 (3) — Acquisition of treasury stock (25,001) (25,001) Restricted stock issuances 96 (1,778) (1,682) Amortization of restricted stock 4,196 4,196 Directors' Compensation Plan 684 227 911 Other comprehensive income 81 81 Balances at June 30, 2022 $ 30,006 $ 1,806 $ 105,674 $ 375,234 $ (2,212) $ (243,782) $ 266,726 For the three months ended June 30, 2021: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2021 $ 29,789 $ 1,842 $ 98,694 $ 320,045 $ (2,511) $ (177,545) $ 270,314 Net income 22,858 22,858 Dividends declared: Common Stock, $0.25 per share (4,261) (4,261) Class A Common Stock, $0.23 per share (301) (301) Class A conversion 29 (29) — Acquisition of treasury stock — Restricted stock issuances 85 (2,179) (2,094) Amortization of restricted stock 1,977 1,977 Directors' Compensation Plan 524 346 870 Other comprehensive income 49 49 Balances at June 30, 2021 $ 29,903 $ 1,813 $ 99,016 $ 338,341 $ (2,462) $ (177,199) $ 289,412 For the six months ended June 30, 2021: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2020 $ 29,600 $ 1,996 $ 96,850 $ 304,626 $ (2,560) $ (177,545) $ 252,967 Net income 42,264 42,264 Dividends declared: Common Stock, $0.47 per share (7,978) (7,978) Class A Common Stock, $0.43 per share (571) (571) Class A conversion 183 (183) — Restricted stock issuances 120 (3,014) (2,894) Amortization of restricted stock 4,656 4,656 Directors' Compensation Plan 524 346 870 Other comprehensive income 98 98 Balances at June 30, 2021 $ 29,903 $ 1,813 $ 99,016 $ 338,341 $ (2,462) $ (177,199) $ 289,412

Interim LIFO Calculations

Interim LIFO Calculations	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
Interim LIFO Calculations	Interim LIFO CalculationsInventories are measured using the last-in, first-out (LIFO) method of valuation using an annual LIFO index. Accordingly, interim LIFO calculations must necessarily be based on management’s estimates of inventory levels and inflation rates. Since these estimates may be affected by factors beyond management’s control, interim results are subject to change based upon the final year-end LIFO inventory valuations.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial InstrumentsThe fair values of our cash and cash equivalents, restricted cash and cash equivalents, accounts payable and customer deposits approximate their carrying values due to their short-term nature. The assets related to our self-directed, non-qualified deferred compensation plans for certain executives and employees are valued using quoted market prices multiplied by the number of shares held, a Level 1 valuation technique.

Credit Agreement

Credit Agreement	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Credit Agreement	Credit Agreement We have a $60.0 million revolving credit facility (the “Credit Agreement”) which matures on September 27, 2024 and is secured primarily by our inventory. Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit. At June 30, 2022 and December 31, 2021, there were no outstanding borrowings under the Credit Agreement. The borrowing base and net availability was $47.1 million at June 30, 2022.

Revenues

Revenues	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenues	Revenues We recognize revenue from merchandise sales and related service fees, net of expected returns and sales tax, at the time the merchandise is delivered to the customer. We record customer deposits when payments are received in advance of the delivery of merchandise. Such deposits totaled $90.8 million and $98.9 million at June 30, 2022 and December 31, 2021, respectively. Of the customer deposit liabilities at December 31, 2021, approximately $4.0 million have not been recognized through net sales in the six months ended June 30, 2022. The following table presents our revenues disaggregated by each major product category and service (dollars in thousands, amounts and percentages may not always add due to rounding): (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net Sales % of Net Sales % of Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 41,535 16.4 % $ 41,232 16.5 % $ 72,885 14.8 % $ 80,410 16.5 % Dining Room Furniture 25,156 9.9 28,320 11.3 51,178 10.4 55,919 11.5 Occasional 20,188 8.0 22,110 8.8 37,007 7.5 44,174 9.1 86,879 34.3 91,662 36.7 161,070 32.7 180,503 37.1 Upholstery 109,641 43.3 100,841 40.3 220,825 44.9 196,467 40.4 Mattresses 22,010 8.7 24,159 9.7 41,743 8.5 44,640 9.2 Accessories and Other (1) 34,686 13.7 33,327 13.3 68,525 13.9 64,870 13.3 $ 253,216 100.0 % $ 249,989 100.0 % $ 492,162 100.0 % $ 486,480 100.0 % (1) Includes delivery charges and product protection.

Leases

Leases	6 Months Ended
	Jun. 30, 2022
Lessee Disclosure [Abstract]
Leases	LeasesWe have operating leases for retail stores, offices, warehouses, and certain equipment. Our leases have remaining lease terms of 1 year to 13 years, some of which include options to extend the leases for up to 20 years. We determine if an arrangement is or contains a lease at lease inception. Our leases do not have any residual value guarantees or any restrictions or covenants imposed by lessors. We have lease agreements for real estate with lease and non-lease components, which are accounted for separately. Certain of our lease agreements for retail stores include variable lease payments, generally based on sales volume. The variable portion of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Certain of our equipment lease agreements include variable lease costs, generally based on usage of the underlying asset (mileage, fuel, etc.). The variable portion of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded in the period incurred. As of June 30, 2022, we had entered into one lease for an additional retail location which had not yet commenced. Lease expense is charged to selling, general and administrative expenses. Components of lease expense were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease cost $ 11,973 $ 11,873 $ 23,712 $ 23,700 Variable lease cost 1,783 1,609 3,478 3,117 Total lease expense $ 13,756 $ 13,482 $ 27,190 $ 26,817 Supplemental cash flow information related to leases is as follows (in thousands): Six Months Ended June 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21,533 $ 22,876 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 15,763 $ 25,063

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesOur effective tax rate for the six months ended June 30, 2022 and 2021 was 24.5% and 22.5%, respectively. The primary difference in the effective rate and the statutory rate was due to state income taxes and the impact from vested stock awards.

Stock Based Compensation Plans

Stock Based Compensation Plans	6 Months Ended
	Jun. 30, 2022
Share-based Payment Arrangement [Abstract]
Stock Based Compensation Plans	Stock Based Compensation Plans As more fully discussed in Note 12 of the notes to the consolidated financial statements in our 2021 Annual Report on Form 10-K, we have awards outstanding for Common Stock under stock-based employee compensation plans. The following table summarizes our award activity during the six months ended June 30, 2022: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units (#) Weighted-Average Outstanding at December 31, 2021 219,082 $ 27.10 328,267 $ 23.96 Granted/Issued 153,681 28.86 103,104 28.86 Awards vested or rights exercised (1) (121,518) 27.12 (34,940) 20.28 Forfeited (3,900) 31.86 — — Additional units earned due to performance — — 59,249 31.39 Outstanding at June 30, 2022 247,345 $ 28.11 455,680 $ 26.54 Restricted units expected to vest 247,345 $ 28.11 455,680 $ 26.54 (1) Includes shares repurchased from employees for employee’s tax liability. The total fair value of service-based restricted stock awards that vested during the six months ended June 30, 2022 was approximately $3.3 million. The aggregate intrinsic value of outstanding service-based restricted stock awards was approximately $5.7 million at June 30, 2022. The restrictions on the service-based awards generally lapse or vest annually, primarily over one-year and three-year periods. The total fair value of performance-based restricted stock awards that vested during the six months ended June 30, 2022 was approximately $1.0 million. The aggregate intrinsic value of outstanding performance awards at June 30, 2022 expected to vest was approximately $10.6 million. The performance awards are based on one-year performance periods but cliff vest in approximately three years from grant date. The compensation for all awards is charged to selling, general and administrative expense over the respective grants’ vesting periods, primarily on a straight-line basis. The amount charged was approximately $4.2 million and $4.7 million for the six months ended June 30, 2022 and 2021, respectively. Forfeitures are recognized as they occur. As of June 30, 2022, the total compensation cost related to unvested equity awards was approximately $9.9 million and is expected to be recognized over a weighted-average period of two years.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share We report our earnings per share using the two-class method. The income per share for each class of common stock is calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on the contractual rights of the classes. The Common Stock of the Company has a preferential dividend rate of at least 105% of the dividend paid on the Class A Common Stock. The Class A Common Stock, which has ten votes per share as opposed to one vote per share for the Common Stock (on all matters other than the election of directors), may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock. Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Common: Distributed earnings $ 4,225 $ 4,261 $ 8,189 $ 7,978 Undistributed earnings 15,884 17,042 29,893 31,295 Basic 20,109 21,303 38,082 39,273 Class A Common earnings 1,599 1,555 2,988 2,991 Diluted $ 21,708 $ 22,858 $ 41,070 $ 42,264 Class A Common: Distributed earnings $ 333 $ 301 $ 630 $ 571 Undistributed earnings 1,266 1,254 2,358 2,420 $ 1,599 $ 1,555 $ 2,988 $ 2,991 Denominator: Common: Weighted average shares outstanding - basic 15,327 16,997 15,516 16,895 Assumed conversion of Class A Common Stock 1,283 1,313 1,285 1,372 Dilutive options, awards and common stock equivalents 482 532 501 520 Total weighted-average diluted Common Stock 17,092 18,842 17,302 18,787 Class A Common: Weighted average shares outstanding 1,283 1,313 1,285 1,372 Basic earnings per share: Common Stock $ 1.31 $ 1.25 $ 2.45 $ 2.32 Class A Common Stock $ 1.25 $ 1.18 $ 2.33 $ 2.18 Diluted earnings per share: Common Stock $ 1.27 $ 1.21 $ 2.37 $ 2.25 Class A Common Stock $ 1.22 $ 1.16 $ 2.27 $ 2.13

Business and Basis of Present_2

Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting, Policy	Haverty Furniture Companies, Inc. (“Havertys,” “the Company,” “we,” “our,” or “us”) is a retailer of a broad line of residential furniture in the middle to upper-middle price ranges. We operate all of our stores using the Havertys brand and do not franchise our concept. We operate within a single reportable segment. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes required by United States of America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The Company believes that the disclosures made are adequate to make the information not misleading. The financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. We believe all adjustments, normal and recurring in nature, considered necessary for a fair presentation have been included. We suggest that these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our latest Annual Report on Form 10-K.
Use of Estimates, Policy	The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from those estimates.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	For the three months ended June 30, 2022: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2022 $ 29,924 $ 1,809 $ 104,345 $ 358,084 $ (2,253) $ (231,509) $ 260,400 Net income 21,708 21,708 Dividends declared: Common Stock, $0.28 per share (4,225) (4,225) Class A Common Stock, $0.26 per share (333) (333) Class A conversion 3 (3) — Acquisition of treasury stock (12,500) (12,500) Restricted stock issuances 79 (1,244) (1,165) Amortization of restricted stock 1,889 1,889 Directors' Compensation Plan 684 227 911 Other comprehensive income 41 41 Balances at June 30, 2022 $ 30,006 $ 1,806 $ 105,674 $ 375,234 $ (2,212) $ (243,782) $ 266,726 For the six months ended June 30, 2022: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2021 $ 29,907 $ 1,809 $ 102,572 $ 342,983 $ (2,293) $ (219,008) $ 255,970 Net income 41,070 41,070 Dividends declared: Common Stock, $0.53 per share (8,189) (8,189) Class A Common Stock, $0.49 per share (630) (630) Class A conversion 3 (3) — Acquisition of treasury stock (25,001) (25,001) Restricted stock issuances 96 (1,778) (1,682) Amortization of restricted stock 4,196 4,196 Directors' Compensation Plan 684 227 911 Other comprehensive income 81 81 Balances at June 30, 2022 $ 30,006 $ 1,806 $ 105,674 $ 375,234 $ (2,212) $ (243,782) $ 266,726 For the three months ended June 30, 2021: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2021 $ 29,789 $ 1,842 $ 98,694 $ 320,045 $ (2,511) $ (177,545) $ 270,314 Net income 22,858 22,858 Dividends declared: Common Stock, $0.25 per share (4,261) (4,261) Class A Common Stock, $0.23 per share (301) (301) Class A conversion 29 (29) — Acquisition of treasury stock — Restricted stock issuances 85 (2,179) (2,094) Amortization of restricted stock 1,977 1,977 Directors' Compensation Plan 524 346 870 Other comprehensive income 49 49 Balances at June 30, 2021 $ 29,903 $ 1,813 $ 99,016 $ 338,341 $ (2,462) $ (177,199) $ 289,412 For the six months ended June 30, 2021: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2020 $ 29,600 $ 1,996 $ 96,850 $ 304,626 $ (2,560) $ (177,545) $ 252,967 Net income 42,264 42,264 Dividends declared: Common Stock, $0.47 per share (7,978) (7,978) Class A Common Stock, $0.43 per share (571) (571) Class A conversion 183 (183) — Restricted stock issuances 120 (3,014) (2,894) Amortization of restricted stock 4,656 4,656 Directors' Compensation Plan 524 346 870 Other comprehensive income 98 98 Balances at June 30, 2021 $ 29,903 $ 1,813 $ 99,016 $ 338,341 $ (2,462) $ (177,199) $ 289,412

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenues Disaggregated by Major Product Category and Service	The following table presents our revenues disaggregated by each major product category and service (dollars in thousands, amounts and percentages may not always add due to rounding): (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net Sales % of Net Sales % of Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 41,535 16.4 % $ 41,232 16.5 % $ 72,885 14.8 % $ 80,410 16.5 % Dining Room Furniture 25,156 9.9 28,320 11.3 51,178 10.4 55,919 11.5 Occasional 20,188 8.0 22,110 8.8 37,007 7.5 44,174 9.1 86,879 34.3 91,662 36.7 161,070 32.7 180,503 37.1 Upholstery 109,641 43.3 100,841 40.3 220,825 44.9 196,467 40.4 Mattresses 22,010 8.7 24,159 9.7 41,743 8.5 44,640 9.2 Accessories and Other (1) 34,686 13.7 33,327 13.3 68,525 13.9 64,870 13.3 $ 253,216 100.0 % $ 249,989 100.0 % $ 492,162 100.0 % $ 486,480 100.0 % (1) Includes delivery charges and product protection.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2022
Lessee Disclosure [Abstract]
Lease Expense	Components of lease expense were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease cost $ 11,973 $ 11,873 $ 23,712 $ 23,700 Variable lease cost 1,783 1,609 3,478 3,117 Total lease expense $ 13,756 $ 13,482 $ 27,190 $ 26,817
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases is as follows (in thousands): Six Months Ended June 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21,533 $ 22,876 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 15,763 $ 25,063

Stock Based Compensation Plans

Stock Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2022
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Activity	The following table summarizes our award activity during the six months ended June 30, 2022: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units (#) Weighted-Average Outstanding at December 31, 2021 219,082 $ 27.10 328,267 $ 23.96 Granted/Issued 153,681 28.86 103,104 28.86 Awards vested or rights exercised (1) (121,518) 27.12 (34,940) 20.28 Forfeited (3,900) 31.86 — — Additional units earned due to performance — — 59,249 31.39 Outstanding at June 30, 2022 247,345 $ 28.11 455,680 $ 26.54 Restricted units expected to vest 247,345 $ 28.11 455,680 $ 26.54 (1) Includes shares repurchased from employees for employee’s tax liability.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	The Common Stock of the Company has a preferential dividend rate of at least 105% of the dividend paid on the Class A Common Stock. The Class A Common Stock, which has ten votes per share as opposed to one vote per share for the Common Stock (on all matters other than the election of directors), may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock. Three Months Ended Six Months Ended 2022 2021 2022 2021 Numerator: Common: Distributed earnings $ 4,225 $ 4,261 $ 8,189 $ 7,978 Undistributed earnings 15,884 17,042 29,893 31,295 Basic 20,109 21,303 38,082 39,273 Class A Common earnings 1,599 1,555 2,988 2,991 Diluted $ 21,708 $ 22,858 $ 41,070 $ 42,264 Class A Common: Distributed earnings $ 333 $ 301 $ 630 $ 571 Undistributed earnings 1,266 1,254 2,358 2,420 $ 1,599 $ 1,555 $ 2,988 $ 2,991 Denominator: Common: Weighted average shares outstanding - basic 15,327 16,997 15,516 16,895 Assumed conversion of Class A Common Stock 1,283 1,313 1,285 1,372 Dilutive options, awards and common stock equivalents 482 532 501 520 Total weighted-average diluted Common Stock 17,092 18,842 17,302 18,787 Class A Common: Weighted average shares outstanding 1,283 1,313 1,285 1,372 Basic earnings per share: Common Stock $ 1.31 $ 1.25 $ 2.45 $ 2.32 Class A Common Stock $ 1.25 $ 1.18 $ 2.33 $ 2.18 Diluted earnings per share: Common Stock $ 1.27 $ 1.21 $ 2.37 $ 2.25 Class A Common Stock $ 1.22 $ 1.16 $ 2.27 $ 2.13

Business and Basis of Present_3

Business and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2022 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 260,400	$ 270,314	$ 255,970	$ 252,967
Net income	21,708	22,858	41,070	42,264
Class A conversion	0	0	0	0
Acquisition of treasury stock	(12,500)	0	(25,001)
Restricted stock issuances	(1,165)	(2,094)	(1,682)	(2,894)
Amortization of restricted stock	1,889	1,977	4,196	4,656
Directors' Compensation Plan	911	870	911	870
Other comprehensive income	41	49	81	98
Ending balance	266,726	289,412	266,726	289,412
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (4,225)	(4,261)	$ (8,189)	(7,978)
Dividends declared (in dollars per share)	$ 0.28		$ 0.53
Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (333)	(301)	$ (630)	(571)
Dividends declared (in dollars per share)	$ 0.26		$ 0.49
Common Stock | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 29,924	29,789	$ 29,907	29,600
Class A conversion	3	29	3	183
Restricted stock issuances	79	85	96	120
Ending balance	30,006	29,903	30,006	29,903
Common Stock | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,809	1,842	1,809	1,996
Class A conversion	(3)	(29)	(3)	(183)
Ending balance	1,806	1,813	1,806	1,813
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	104,345	98,694	102,572	96,850
Restricted stock issuances	(1,244)	(2,179)	(1,778)	(3,014)
Amortization of restricted stock	1,889	1,977	4,196	4,656
Directors' Compensation Plan	684	524	684	524
Ending balance	105,674	99,016	105,674	99,016
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	358,084	320,045	342,983	304,626
Net income	21,708	22,858	41,070	42,264
Ending balance	375,234	338,341	375,234	338,341
Retained Earnings | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(4,225)	(4,261)	(8,189)	(7,978)
Retained Earnings | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(333)	(301)	(630)	(571)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(2,253)	(2,511)	(2,293)	(2,560)
Other comprehensive income	41	49	81	98
Ending balance	(2,212)	(2,462)	(2,212)	(2,462)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(231,509)	(177,545)	(219,008)	(177,545)
Acquisition of treasury stock	(12,500)		(25,001)
Directors' Compensation Plan	227	346	227	346
Ending balance	$ (243,782)	$ (177,199)	$ (243,782)	$ (177,199)

Credit Agreement (Details)

Credit Agreement (Details) - Credit Agreement - USD ($)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Credit Agreement [Abstract]
Maximum borrowing capacity	$ 60,000,000
Debt instrument, maturity date	Sep. 27, 2024
Outstanding letters of credit	$ 0	$ 0
Borrowing base	47,100,000
Net availability	$ 47,100,000

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Customer deposits	$ 90,762		$ 90,762		$ 98,897
Customer deposits not recognized through net sales			4,000
Disaggregation of Revenue [Abstract]
Net sales	$ 253,216	$ 249,989	$ 492,162	$ 486,480
% of Net Sales	100%	100%	100%	100%
Case Goods
Disaggregation of Revenue [Abstract]
Net sales	$ 86,879	$ 91,662	$ 161,070	$ 180,503
% of Net Sales	34.30%	36.70%	32.70%	37.10%
Bedroom Furniture
Disaggregation of Revenue [Abstract]
Net sales	$ 41,535	$ 41,232	$ 72,885	$ 80,410
% of Net Sales	16.40%	16.50%	14.80%	16.50%
Dining Room Furniture
Disaggregation of Revenue [Abstract]
Net sales	$ 25,156	$ 28,320	$ 51,178	$ 55,919
% of Net Sales	9.90%	11.30%	10.40%	11.50%
Occasional
Disaggregation of Revenue [Abstract]
Net sales	$ 20,188	$ 22,110	$ 37,007	$ 44,174
% of Net Sales	8%	8.80%	7.50%	9.10%
Upholstery
Disaggregation of Revenue [Abstract]
Net sales	$ 109,641	$ 100,841	$ 220,825	$ 196,467
% of Net Sales	43.30%	40.30%	44.90%	40.40%
Mattresses
Disaggregation of Revenue [Abstract]
Net sales	$ 22,010	$ 24,159	$ 41,743	$ 44,640
% of Net Sales	8.70%	9.70%	8.50%	9.20%
Accessories and Other
Disaggregation of Revenue [Abstract]
Net sales	$ 34,686	$ 33,327	$ 68,525	$ 64,870
% of Net Sales	13.70%	13.30%	13.90%	13.30%

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) Lease	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) Lease	Jun. 30, 2021 USD ($)
Lessee, Operating Lease, Description [Abstract]
Number of leases for additional retail locations not yet commenced | Lease	1		1
Lease, Cost [Abstract]
Operating lease cost	$ 11,973	$ 11,873	$ 23,712	$ 23,700
Variable lease cost	1,783	1,609	3,478	3,117
Total lease expense	$ 13,756	$ 13,482	27,190	26,817
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			21,533	22,876
Right-of-use assets obtained in exchange for lease obligations:
Operating leases			$ 15,763	$ 25,063
Minimum
Lessee, Operating Lease, Description [Abstract]
Remaining lease term	1 year		1 year
Maximum
Lessee, Operating Lease, Description [Abstract]
Remaining lease term	13 years		13 years
Option to extend, term	20 years		20 years

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate, percent	24.50%	22.50%

Stock Based Compensation Plan_2

Stock Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021
Stock Based Compensation Plan [Abstract]
Share-based payment arrangement, nonvested award, cost not yet recognized, amount	$ 9.9	$ 9.9
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition		2 years
Selling, General and Administrative Expenses
Stock Based Compensation Plan [Abstract]
Share-based payment arrangement, expense		$ 4.2	$ 4.7
Service-Based Restricted Stock Awards
Shares or Units [Roll Forward]
Outstanding, beginning balance (in shares)		219,082
Granted/Issued (in shares)	153,681
Awards vested or rights exercised (in shares)	(121,518)
Forfeited (in shares)	(3,900)
Additional units earned due to performance (in shares)	0
Outstanding, ending balance (in shares)	247,345	247,345
Expected to vest (in shares)	247,345	247,345
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)		$ 27.10
Granted/Issued (in dollars per share)	$ 28.86
Awards vested or rights exercised (in dollars per share)	27.12
Forfeited (in dollars per share)	31.86
Additional units earned due to performance (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	28.11	28.11
Expected to vest (in dollars per share)	$ 28.11	$ 28.11
Stock Based Compensation Plan [Abstract]
Fair value of vested shares		$ 3.3
Aggregate intrinsic value of outstanding awards	$ 5.7	$ 5.7
Service-Based Restricted Stock Awards | Minimum
Stock Based Compensation Plan [Abstract]
Vesting period of awards		1 year
Service-Based Restricted Stock Awards | Maximum
Stock Based Compensation Plan [Abstract]
Vesting period of awards		3 years
Performance-Based Restricted Stock Awards
Shares or Units [Roll Forward]
Outstanding, beginning balance (in shares)		328,267
Granted/Issued (in shares)	103,104
Awards vested or rights exercised (in shares)	(34,940)
Forfeited (in shares)	0
Additional units earned due to performance (in shares)	59,249
Outstanding, ending balance (in shares)	455,680	455,680
Expected to vest (in shares)	455,680	455,680
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)		$ 23.96
Granted/Issued (in dollars per share)	$ 28.86
Awards vested or rights exercised (in dollars per share)	20.28
Forfeited (in dollars per share)	0
Additional units earned due to performance (in dollars per share)	31.39
Outstanding, ending balance (in dollars per share)	26.54	26.54
Expected to vest (in dollars per share)	$ 26.54	$ 26.54
Stock Based Compensation Plan [Abstract]
Fair value of vested shares		$ 1
Aggregate intrinsic value of outstanding awards	$ 10.6	$ 10.6
Performance period		1 year
Cliff vesting period		3 years

Earnings Per Share (Details)

Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) Vote $ / shares shares	Jun. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) $ / shares shares
Common Stock
Earnings Per Share [Abstract]
Percentage of earnings assumed to be distributed as dividends in earnings per share calculation	100%
Preferential dividend rate	105%
Number of votes per share | Vote	1
Numerator:
Distributed earnings	$ 4,225,000	$ 4,261	$ 8,189,000	$ 7,978
Undistributed earnings	15,884,000	17,042	29,893,000	31,295
Basic	20,109,000	21,303	38,082,000	39,273
Diluted	$ 21,708,000	$ 22,858	$ 41,070,000	$ 42,264
Denominator:
Weighted average shares outstanding - basic (in shares) | shares	15,327,000	16,997	15,516,000	16,895
Assumed conversion of Class A Common Stock (in shares) | shares	1,283,000	1,313	1,285,000	1,372
Dilutive options, awards and common stock equivalents (in shares) | shares	482,000	532	501,000	520
Total weighted-average diluted Common Stock (in shares) | shares	17,092,000	18,842	17,302,000	18,787
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 1.31	$ 1.25	$ 2.45	$ 2.32
Diluted earnings per share (in dollars per share) | $ / shares	$ 1.27	$ 1.21	$ 2.37	$ 2.25
Class A Common Stock
Earnings Per Share [Abstract]
Number of votes per share | Vote	10
Numerator:
Distributed earnings	$ 333,000	$ 301	$ 630,000	$ 571
Undistributed earnings	1,266,000	1,254	2,358,000	2,420
Basic	$ 1,599,000	$ 1,555	$ 2,988,000	$ 2,991
Denominator:
Weighted average shares outstanding (in shares) | shares	1,283,000	1,313	1,285,000	1,372
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 1.25	$ 1.18	$ 2.33	$ 2.18
Diluted earnings per share (in dollars per share) | $ / shares	$ 1.22	$ 1.16	$ 2.27	$ 2.13