Haverty Furniture Companies (HVT) 10-Q 3 Nov 23 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Nov. 01, 2023
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
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		14,987,128
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		1,281,395

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 134,303	$ 123,126
Restricted cash and cash equivalents	7,049	6,804
Inventories	102,334	118,333
Prepaid expenses	12,782	9,707
Other current assets	14,463	18,283
Total current assets	270,931	276,253
Property and equipment, net	170,263	137,475
Right-of-use lease assets	205,257	207,390
Deferred income taxes	17,886	15,501
Other assets	12,344	12,430
Total assets	676,681	649,049
Current liabilities
Accounts payable	21,121	23,345
Customer deposits	46,308	47,969
Accrued liabilities	45,596	48,676
Current lease liabilities	38,381	34,442
Total current liabilities	151,406	154,432
Noncurrent lease liabilities	182,298	186,845
Other liabilities	26,561	18,373
Total liabilities	360,265	359,650
Capital Stock, par value $1 per share
Preferred Stock, Authorized – 1,000 shares; Issued: None
Additional paid-in capital	111,491	108,706
Retained earnings	425,410	398,393
Accumulated other comprehensive loss	(756)	(756)
Less treasury stock at cost – Common Stock (2023 – 15,233 and 2022 – 15,140 shares) and Convertible Class A Common Stock (2023 and 2022 – 522 shares)	(251,753)	(248,756)
Total stockholders’ equity	316,416	289,399
Total liabilities and stockholders’ equity	676,681	649,049
Common Stock
Capital Stock, par value $1 per share
Common stock/Class A common stock, value, issued	30,220	30,006
Class A Common Stock
Capital Stock, par value $1 per share
Common stock/Class A common stock, value, issued	$ 1,804	$ 1,806

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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)	30,220,000	30,006,000
Treasury stock, shares (in shares)	15,233,000	15,140,000
Class A Common Stock
Stockholders’ equity
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	1,804,000	1,806,000
Treasury stock, shares (in shares)	522,000	522,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net sales	$ 220,347	$ 274,495	$ 651,389	$ 766,658
Cost of goods sold	86,349	117,775	259,712	322,368
Gross profit	133,998	156,720	391,677	444,290
Expenses:
Selling, general and administrative	112,729	124,534	341,106	357,816
Other expense, net	55	58	64	176
Total expenses	112,784	124,592	341,170	357,992
Income before interest and income taxes	21,214	32,128	50,507	86,298
Interest income, net	1,719	481	3,701	699
Income before income taxes	22,933	32,609	54,208	86,997
Income tax expense	5,779	8,058	12,891	21,377
Net income	17,154	24,551	41,317	65,620
Other comprehensive income
Adjustments related to retirement plans; net of tax expense of $14 and $41 in 2022	0	41	0	122
Comprehensive income	$ 17,154	$ 24,592	$ 41,317	$ 65,742
Common Stock
Other comprehensive income
Basic earnings per share (in dollars per share)	$ 1.05	$ 1.51	$ 2.55	$ 3.96
Diluted earnings per share (in dollars per share)	1.02	1.46	2.46	3.83
Cash dividends per share (in dollars per share)	0.30	0.28	0.88	0.81
Class A Common Stock
Other comprehensive income
Basic earnings per share (in dollars per share)	1	1.43	2.41	3.75
Diluted earnings per share (in dollars per share)	0.98	1.40	2.36	3.66
Cash dividends per share (in dollars per share)	$ 0.28	$ 0.26	$ 0.82	$ 0.75

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Income Statement [Abstract]
Adjustments related to retirement plans, tax expense	$ 14	$ 41

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net income	$ 41,317	$ 65,620
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,827	12,744
Share-based compensation expense	6,199	6,032
Other	(1,337)	(450)
Changes in operating assets and liabilities:
Inventories	15,999	(25,284)
Customer deposits	(1,661)	(19,151)
Other assets and liabilities	10,546	(7,318)
Accounts payable and accrued liabilities	(5,516)	6,007
Net cash provided by operating activities	79,374	38,200
Cash Flows from Investing Activities:
Capital expenditures	(46,428)	(22,109)
Proceeds from sale of land, property and equipment	53	66
Net cash used in investing activities	(46,375)	(22,043)
Cash Flows from Financing Activities:
Dividends paid	(14,301)	(13,366)
Common stock repurchased	(3,194)	(29,998)
Taxes on vested restricted shares	(4,082)	(1,676)
Net cash used in financing activities	(21,577)	(45,040)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents during the period	11,422	(28,883)
Cash, cash equivalents and restricted cash equivalents at beginning of period	129,930	172,862
Cash, cash equivalents and restricted cash equivalents at end of period	$ 141,352	$ 143,979

Business and Basis of Presentat

Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2023
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.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2023
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 September 30, 2023: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at June 30, 2023 $ 30,218 $ 1,806 $ 109,731 $ 413,143 $ (756) $ (248,559) $ 305,583 Net income 17,154 17,154 Dividends declared: Common Stock, $0.30 per share (4,527) (4,527) Class A Common Stock, $0.28 per share (360) (360) Class A conversion 2 (2) — Acquisition of treasury stock (3,194) (3,194) Amortization of restricted stock 1,760 1,760 Balances at September 30, 2023 $ 30,220 $ 1,804 $ 111,491 $ 425,410 $ (756) $ (251,753) $ 316,416 For the nine months ended September 30, 2023: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2022 $ 30,006 $ 1,806 $ 108,706 $ 398,393 $ (756) $ (248,756) $ 289,399 Net income 41,317 41,317 Dividends declared: Common Stock, $0.88 per share (13,249) (13,249) Class A Common Stock, $0.82 per share (1,051) (1,051) Class A conversion 2 (2) — Acquisition of treasury stock (3,194) (3,194) Restricted stock issuances 212 (4,294) (4,082) Amortization of restricted stock 6,199 6,199 Directors' Compensation Plan 880 197 1,077 Balances at September 30, 2023 $ 30,220 $ 1,804 $ 111,491 $ 425,410 $ (756) $ (251,753) $ 316,416 For the three months ended September 30, 2022: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at June 30, 2022 $ 30,006 $ 1,806 $ 105,674 $ 375,234 $ (2,212) $ (243,782) $ 266,726 Net income 24,551 24,551 Dividends declared: Common Stock, $0.28 per share (4,214) (4,214) Class A Common Stock, $0.26 per share (334) (334) Acquisition of treasury stock (4,997) (4,997) Amortization of restricted stock 1,836 1,836 Other comprehensive income 41 41 Balances at September 30, 2022 $ 30,006 $ 1,806 $ 107,510 $ 395,237 $ (2,171) $ (248,779) $ 283,609 For the nine months ended September 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 65,620 65,620 Dividends declared: Common Stock, $0.81 per share (12,403) (12,403) Class A Common Stock, $0.75 per share (963) (963) Class A conversion 3 (3) — Acquisition of treasury stock (29,998) (29,998) Restricted stock issuances 96 (1,778) (1,682) Amortization of restricted stock 6,032 6,032 Directors' Compensation Plan 684 227 911 Other comprehensive income 122 122 Balances at September 30, 2022 $ 30,006 $ 1,806 $ 107,510 $ 395,237 $ (2,171) $ (248,779) $ 283,609

Interim LIFO Calculations

Interim LIFO Calculations	9 Months Ended
	Sep. 30, 2023
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 the components of the calculation including year-end inventory levels and the expected rate of inflation or deflation for the year. 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 valuation.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2023
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	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Credit Agreement	Credit Agreement We have an $80.0 million revolving credit facility (the “Credit Agreement”) secured primarily by our inventory and maturing on October 24, 2027. Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit. At September 30, 2023 and December 31, 2022, there were no outstanding borrowings under the Credit Agreement. The borrowing base was $150.6 million at September 30, 2023 and there were no outstanding letters of credit and, accordingly, net availability was $80.0 million.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2023
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 $46.3 million and $48.0 million at September 30, 2023 and December 31, 2022, respectively. Of the customer deposit liabilities at December 31, 2022, approximately $0.5 million have not been recognized through net sales in the nine months ended September 30, 2023. The following table presents our revenues disaggregated by each major product category and service: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Sales % of Net Sales % of Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 33,702 15.3 % $ 46,068 16.8 % $ 102,184 15.7 % $ 118,953 15.5 % Dining Room Furniture 25,272 11.5 31,793 11.6 73,809 11.3 82,971 10.8 Occasional 17,227 7.8 23,874 8.7 52,736 8.1 60,881 7.9 76,201 34.6 101,735 37.1 228,729 35.1 262,805 34.3 Upholstery 93,559 42.5 112,682 41.1 275,978 42.4 333,507 43.5 Mattresses 20,407 9.3 22,646 8.3 57,805 8.9 64,389 8.4 Accessories and Other (1) 30,180 13.7 37,432 13.6 88,877 13.6 105,957 13.8 $ 220,347 100.0 % $ 274,495 100.0 % $ 651,389 100.0 % $ 766,658 100.0 % (1) Includes delivery charges and product protection.

Leases

Leases	9 Months Ended
	Sep. 30, 2023
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 12 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 portions 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 portions 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. Lease expense is charged to selling, general and administrative expenses. Components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 12,404 $ 11,517 $ 36,506 $ 35,230 Variable lease cost 1,443 1,706 4,562 5,183 Total lease expense $ 13,847 $ 13,223 $ 41,068 $ 40,413 In May 2023, we purchased our Florida distribution center for approximately $28.0 million and entered into an early termination agreement of a retail location lease in exchange for approximately $3.0 million. This purchase and lease modification decreased our right of use assets and lease liabilities by approximately $16.0 million. Supplemental cash flow information related to leases is as follows (in thousands): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33,945 $ 29,601 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 43,934 $ 22,231

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesOur effective tax rate for the nine months ended September 30, 2023 and 2022 was 23.8% and 24.6%, 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	9 Months Ended
	Sep. 30, 2023
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 2022 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 nine months ended September 30, 2023: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units (#) Weighted-Average Outstanding at December 31, 2022 237,302 $ 28.16 436,647 $ 26.56 Granted/Issued 175,498 33.06 106,557 33.08 Awards vested or rights exercised (1) (146,610) 27.07 (188,980) 20.42 Forfeited (16,535) 30.84 (3,069) 32.75 Additional units earned due to performance — — 3,752 28.86 Outstanding at September 30, 2023 249,655 $ 32.08 354,907 $ 31.76 Restricted units expected to vest 249,655 $ 32.08 330,826 $ 31.66 (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 nine months ended September 30, 2023 was approximately $3.7 million. The aggregate intrinsic value of outstanding service-based restricted stock awards was approximately $7.2 million at September 30, 2023. 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 nine months ended September 30, 2023 was approximately $7.1 million. The aggregate intrinsic value of outstanding performance awards at September 30, 2023 expected to vest was approximately $9.5 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 expenses over the respective grants’ vesting periods, primarily on a straight-line basis. The amount charged was approximately $6.2 million and $6.0 million for the nine months ended September 30, 2023 and 2022, respectively. Forfeitures are recognized as they occur. As of September 30, 2023, the total compensation cost related to unvested equity awards was approximately $7.9 million and is expected to be recognized over a weighted-average period of two years.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2023
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. Holders of the Class A Common Stock have greater voting rights which include voting as a separate class for the election of up to 75% of the total number of directors whereas holders of the Common Stock vote as a separate class for the election of at least 25% of the total number of directors. On all other matters subject to shareholder vote, holders of the Class A Common Stock have ten votes per share as opposed to holders of the Common Stock receiving one vote per share. Class A Common Stock 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 Nine Months Ended 2023 2022 2023 2022 Numerator: Common: Distributed earnings $ 4,527 $ 4,214 $ 13,249 $ 12,403 Undistributed earnings 11,349 18,498 24,982 48,398 Basic 15,876 22,712 38,231 60,801 Class A Common earnings 1,278 1,839 3,086 4,819 Diluted $ 17,154 $ 24,551 $ 41,317 $ 65,620 Class A Common: Distributed earnings $ 360 $ 334 $ 1,051 $ 963 Undistributed earnings 918 1,505 2,035 3,856 $ 1,278 $ 1,839 $ 3,086 $ 4,819 Denominator: Common: Weighted average shares outstanding - basic 15,071 15,015 15,008 15,347 Assumed conversion of Class A Common Stock 1,282 1,283 1,283 1,284 Dilutive options, awards and common stock equivalents 483 518 498 507 Total weighted-average diluted Common Stock 16,836 16,816 16,789 17,138 Class A Common: Weighted average shares outstanding 1,282 1,283 1,283 1,284 Basic earnings per share: Common Stock $ 1.05 $ 1.51 $ 2.55 $ 3.96 Class A Common Stock $ 1.00 $ 1.43 $ 2.41 $ 3.75 Diluted earnings per share: Common Stock $ 1.02 $ 1.46 $ 2.46 $ 3.83 Class A Common Stock $ 0.98 $ 1.40 $ 2.36 $ 3.66

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 17,154	$ 24,551	$ 41,317	$ 65,620

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Business and Basis of Present_2

Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	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	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)	9 Months Ended
	Sep. 30, 2023
Stockholders' Equity Note [Abstract]
Schedule of Stockholders' Equity	For the three months ended September 30, 2023: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at June 30, 2023 $ 30,218 $ 1,806 $ 109,731 $ 413,143 $ (756) $ (248,559) $ 305,583 Net income 17,154 17,154 Dividends declared: Common Stock, $0.30 per share (4,527) (4,527) Class A Common Stock, $0.28 per share (360) (360) Class A conversion 2 (2) — Acquisition of treasury stock (3,194) (3,194) Amortization of restricted stock 1,760 1,760 Balances at September 30, 2023 $ 30,220 $ 1,804 $ 111,491 $ 425,410 $ (756) $ (251,753) $ 316,416 For the nine months ended September 30, 2023: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2022 $ 30,006 $ 1,806 $ 108,706 $ 398,393 $ (756) $ (248,756) $ 289,399 Net income 41,317 41,317 Dividends declared: Common Stock, $0.88 per share (13,249) (13,249) Class A Common Stock, $0.82 per share (1,051) (1,051) Class A conversion 2 (2) — Acquisition of treasury stock (3,194) (3,194) Restricted stock issuances 212 (4,294) (4,082) Amortization of restricted stock 6,199 6,199 Directors' Compensation Plan 880 197 1,077 Balances at September 30, 2023 $ 30,220 $ 1,804 $ 111,491 $ 425,410 $ (756) $ (251,753) $ 316,416 For the three months ended September 30, 2022: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at June 30, 2022 $ 30,006 $ 1,806 $ 105,674 $ 375,234 $ (2,212) $ (243,782) $ 266,726 Net income 24,551 24,551 Dividends declared: Common Stock, $0.28 per share (4,214) (4,214) Class A Common Stock, $0.26 per share (334) (334) Acquisition of treasury stock (4,997) (4,997) Amortization of restricted stock 1,836 1,836 Other comprehensive income 41 41 Balances at September 30, 2022 $ 30,006 $ 1,806 $ 107,510 $ 395,237 $ (2,171) $ (248,779) $ 283,609 For the nine months ended September 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 65,620 65,620 Dividends declared: Common Stock, $0.81 per share (12,403) (12,403) Class A Common Stock, $0.75 per share (963) (963) Class A conversion 3 (3) — Acquisition of treasury stock (29,998) (29,998) Restricted stock issuances 96 (1,778) (1,682) Amortization of restricted stock 6,032 6,032 Directors' Compensation Plan 684 227 911 Other comprehensive income 122 122 Balances at September 30, 2022 $ 30,006 $ 1,806 $ 107,510 $ 395,237 $ (2,171) $ (248,779) $ 283,609

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenues Disaggregated by Major Product Category and Service	The following table presents our revenues disaggregated by each major product category and service: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Sales % of Net Sales % of Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 33,702 15.3 % $ 46,068 16.8 % $ 102,184 15.7 % $ 118,953 15.5 % Dining Room Furniture 25,272 11.5 31,793 11.6 73,809 11.3 82,971 10.8 Occasional 17,227 7.8 23,874 8.7 52,736 8.1 60,881 7.9 76,201 34.6 101,735 37.1 228,729 35.1 262,805 34.3 Upholstery 93,559 42.5 112,682 41.1 275,978 42.4 333,507 43.5 Mattresses 20,407 9.3 22,646 8.3 57,805 8.9 64,389 8.4 Accessories and Other (1) 30,180 13.7 37,432 13.6 88,877 13.6 105,957 13.8 $ 220,347 100.0 % $ 274,495 100.0 % $ 651,389 100.0 % $ 766,658 100.0 % (1) Includes delivery charges and product protection.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Lessee Disclosure [Abstract]
Schedule of Lease Expense	Components of lease expense were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 12,404 $ 11,517 $ 36,506 $ 35,230 Variable lease cost 1,443 1,706 4,562 5,183 Total lease expense $ 13,847 $ 13,223 $ 41,068 $ 40,413
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases is as follows (in thousands): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 33,945 $ 29,601 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 43,934 $ 22,231

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Payment Arrangement, Activity	The following table summarizes our award activity during the nine months ended September 30, 2023: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units (#) Weighted-Average Outstanding at December 31, 2022 237,302 $ 28.16 436,647 $ 26.56 Granted/Issued 175,498 33.06 106,557 33.08 Awards vested or rights exercised (1) (146,610) 27.07 (188,980) 20.42 Forfeited (16,535) 30.84 (3,069) 32.75 Additional units earned due to performance — — 3,752 28.86 Outstanding at September 30, 2023 249,655 $ 32.08 354,907 $ 31.76 Restricted units expected to vest 249,655 $ 32.08 330,826 $ 31.66 (1) Includes shares repurchased from employees for employee’s tax liability.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of 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. Holders of the Class A Common Stock have greater voting rights which include voting as a separate class for the election of up to 75% of the total number of directors whereas holders of the Common Stock vote as a separate class for the election of at least 25% of the total number of directors. On all other matters subject to shareholder vote, holders of the Class A Common Stock have ten votes per share as opposed to holders of the Common Stock receiving one vote per share. Class A Common Stock 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 Nine Months Ended 2023 2022 2023 2022 Numerator: Common: Distributed earnings $ 4,527 $ 4,214 $ 13,249 $ 12,403 Undistributed earnings 11,349 18,498 24,982 48,398 Basic 15,876 22,712 38,231 60,801 Class A Common earnings 1,278 1,839 3,086 4,819 Diluted $ 17,154 $ 24,551 $ 41,317 $ 65,620 Class A Common: Distributed earnings $ 360 $ 334 $ 1,051 $ 963 Undistributed earnings 918 1,505 2,035 3,856 $ 1,278 $ 1,839 $ 3,086 $ 4,819 Denominator: Common: Weighted average shares outstanding - basic 15,071 15,015 15,008 15,347 Assumed conversion of Class A Common Stock 1,282 1,283 1,283 1,284 Dilutive options, awards and common stock equivalents 483 518 498 507 Total weighted-average diluted Common Stock 16,836 16,816 16,789 17,138 Class A Common: Weighted average shares outstanding 1,282 1,283 1,283 1,284 Basic earnings per share: Common Stock $ 1.05 $ 1.51 $ 2.55 $ 3.96 Class A Common Stock $ 1.00 $ 1.43 $ 2.41 $ 3.75 Diluted earnings per share: Common Stock $ 1.02 $ 1.46 $ 2.46 $ 3.83 Class A Common Stock $ 0.98 $ 1.40 $ 2.36 $ 3.66

Business and Basis of Present_3

Business and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2023 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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 305,583	$ 266,726	$ 289,399	$ 255,970
Net income	17,154	24,551	41,317	65,620
Class A conversion	0		0	0
Acquisition of treasury stock	(3,194)	(4,997)	(3,194)	(29,998)
Restricted stock issuances			(4,082)	(1,682)
Amortization of restricted stock	1,760	1,836	6,199	6,032
Directors' Compensation Plan			1,077	911
Other comprehensive income		41		122
Ending balance	316,416	283,609	316,416	283,609
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (4,527)	$ (4,214)	$ (13,249)	$ (12,403)
Cash dividends per share (in dollars per share)	$ 0.30	$ 0.28	$ 0.88	$ 0.81
Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (360)	$ (334)	$ (1,051)	$ (963)
Cash dividends per share (in dollars per share)	$ 0.28	$ 0.26	$ 0.82	$ 0.75
Common Stock | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 30,218	$ 30,006	$ 30,006	$ 29,907
Class A conversion	2		2	3
Restricted stock issuances			212	96
Ending balance	30,220	30,006	30,220	30,006
Common Stock | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,806	1,806	1,806	1,809
Class A conversion	(2)		(2)	(3)
Ending balance	1,804	1,806	1,804	1,806
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	109,731	105,674	108,706	102,572
Restricted stock issuances			(4,294)	(1,778)
Amortization of restricted stock	1,760	1,836	6,199	6,032
Directors' Compensation Plan			880	684
Ending balance	111,491	107,510	111,491	107,510
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	413,143	375,234	398,393	342,983
Net income	17,154	24,551	41,317	65,620
Ending balance	425,410	395,237	425,410	395,237
Retained Earnings | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(4,527)	(4,214)	(13,249)	(12,403)
Retained Earnings | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(360)	(334)	(1,051)	(963)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(756)	(2,212)	(756)	(2,293)
Other comprehensive income		41		122
Ending balance	(756)	(2,171)	(756)	(2,171)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(248,559)	(243,782)	(248,756)	(219,008)
Acquisition of treasury stock	(3,194)	(4,997)	(3,194)	(29,998)
Directors' Compensation Plan			197	227
Ending balance	$ (251,753)	$ (248,779)	$ (251,753)	$ (248,779)

Credit Agreement (Details)

Credit Agreement (Details) - Credit Agreement - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Credit Agreement [Abstract]
Maximum borrowing capacity	$ 80,000,000
Debt instrument, maturity date	Oct. 24, 2027
Outstanding letters of credit	$ 0	$ 0
Borrowing base	150,600,000
Net availability	$ 80,000,000

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Customer deposits	$ 46,308		$ 46,308		$ 47,969
Customer deposits not recognized through net sales			500
Disaggregation of Revenue [Abstract]
Net sales	$ 220,347	$ 274,495	$ 651,389	$ 766,658
% of Net Sales	100%	100%	100%	100%
Case Goods
Disaggregation of Revenue [Abstract]
Net sales	$ 76,201	$ 101,735	$ 228,729	$ 262,805
% of Net Sales	34.60%	37.10%	35.10%	34.30%
Bedroom Furniture
Disaggregation of Revenue [Abstract]
Net sales	$ 33,702	$ 46,068	$ 102,184	$ 118,953
% of Net Sales	15.30%	16.80%	15.70%	15.50%
Dining Room Furniture
Disaggregation of Revenue [Abstract]
Net sales	$ 25,272	$ 31,793	$ 73,809	$ 82,971
% of Net Sales	11.50%	11.60%	11.30%	10.80%
Occasional
Disaggregation of Revenue [Abstract]
Net sales	$ 17,227	$ 23,874	$ 52,736	$ 60,881
% of Net Sales	7.80%	8.70%	8.10%	7.90%
Upholstery
Disaggregation of Revenue [Abstract]
Net sales	$ 93,559	$ 112,682	$ 275,978	$ 333,507
% of Net Sales	42.50%	41.10%	42.40%	43.50%
Mattresses
Disaggregation of Revenue [Abstract]
Net sales	$ 20,407	$ 22,646	$ 57,805	$ 64,389
% of Net Sales	9.30%	8.30%	8.90%	8.40%
Accessories and Other
Disaggregation of Revenue [Abstract]
Net sales	$ 30,180	$ 37,432	$ 88,877	$ 105,957
% of Net Sales	13.70%	13.60%	13.60%	13.80%

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended
	May 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Right-of-use lease assets		$ 205,257	$ 207,390
FLORIDA
Lessee, Lease, Description [Line Items]
Purchase of distribution center	$ 28,000
Termination of lease amount	3,000
Right-of-use lease assets	16,000
Operating lease, liability	$ 16,000
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)		1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)		12 years
Option to extend, term (in years)		20 years

Leases - Lease Expenses and Sup

Leases - Lease Expenses and Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Lease, Cost [Abstract]
Operating lease cost	$ 12,404	$ 11,517	$ 36,506	$ 35,230
Variable lease cost	1,443	1,706	4,562	5,183
Total lease expense	$ 13,847	$ 13,223	41,068	40,413
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			33,945	29,601
Right-of-use assets obtained in exchange for lease obligations:
Operating leases			$ 43,934	$ 22,231

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate, percent	23.80%	24.60%

Stock-Based Compensation Plan_2

Stock-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Stock Based Compensation Plan [Abstract]
Share-based payment arrangement, nonvested award, cost not yet recognized, amount	$ 7.9
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition (in years)	2 years
Selling, General and Administrative Expenses
Stock Based Compensation Plan [Abstract]
Share-based payment arrangement, expense	$ 6.2	$ 6
Service-Based Restricted Stock Awards
Shares or Units [Roll Forward]
Outstanding, beginning balance (in shares)	237,302
Granted/Issued (in shares)	175,498
Awards vested or rights exercised (in shares)	(146,610)
Forfeited (in shares)	(16,535)
Additional units earned due to performance (in shares)	0
Outstanding, ending balance (in shares)	249,655
Restricted units expected to vest (in shares)	249,655
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 28.16
Granted/Issued (in dollars per share)	33.06
Awards vested or rights exercised (in dollars per share)	27.07
Forfeited (in dollars per share)	30.84
Additional units earned due to performance (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	32.08
Restricted units expected to vest (in dollars per share)	$ 32.08
Stock Based Compensation Plan [Abstract]
Fair value of vested shares	$ 3.7
Aggregate intrinsic value of outstanding awards	$ 7.2
Service-Based Restricted Stock Awards | Minimum
Stock Based Compensation Plan [Abstract]
Vesting period of awards (in years)	1 year
Service-Based Restricted Stock Awards | Maximum
Stock Based Compensation Plan [Abstract]
Vesting period of awards (in years)	3 years
Performance-Based Restricted Stock Awards
Shares or Units [Roll Forward]
Outstanding, beginning balance (in shares)	436,647
Granted/Issued (in shares)	106,557
Awards vested or rights exercised (in shares)	(188,980)
Forfeited (in shares)	(3,069)
Additional units earned due to performance (in shares)	3,752
Outstanding, ending balance (in shares)	354,907
Restricted units expected to vest (in shares)	330,826
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 26.56
Granted/Issued (in dollars per share)	33.08
Awards vested or rights exercised (in dollars per share)	20.42
Forfeited (in dollars per share)	32.75
Additional units earned due to performance (in dollars per share)	28.86
Outstanding, ending balance (in dollars per share)	31.76
Restricted units expected to vest (in dollars per share)	$ 31.66
Stock Based Compensation Plan [Abstract]
Fair value of vested shares	$ 7.1
Aggregate intrinsic value of outstanding awards	$ 9.5
Performance period (in years)	1 year
Cliff vesting period (in years)	3 years

Earnings Per Share (Details)

Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) Vote $ / shares shares	Sep. 30, 2022 USD ($) $ / shares shares
Earnings Per Share [Abstract]
Voting rights conversion basis | Vote			1
Maximum
Earnings Per Share [Abstract]
Percentage of total number of directors			75%
Minimum
Earnings Per Share [Abstract]
Percentage of total number of directors			25%
Common Stock
Earnings Per Share [Abstract]
Percentage of earnings assumed to be distributed as dividends in earnings per share calculation			100%
Preferential dividend rate (as percent)			105%
Number of votes per share | Vote			1
Numerator:
Distributed earnings	$ 4,527	$ 4,214	$ 13,249	$ 12,403
Undistributed earnings	11,349	18,498	24,982	48,398
Basic	15,876	22,712	38,231	60,801
Diluted	$ 17,154	$ 24,551	$ 41,317	$ 65,620
Denominator:
Weighted average shares outstanding - basic (in shares) | shares	15,071	15,015	15,008	15,347
Assumed conversion of Class A Common Stock (in shares) | shares	1,282	1,283	1,283	1,284
Dilutive options, awards and common stock equivalents (in shares) | shares	483	518	498	507
Total weighted-average diluted Common Stock (in shares) | shares	16,836	16,816	16,789	17,138
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 1.05	$ 1.51	$ 2.55	$ 3.96
Diluted earnings per share (in dollars per share) | $ / shares	$ 1.02	$ 1.46	$ 2.46	$ 3.83
Class A Common Stock
Earnings Per Share [Abstract]
Number of votes per share | Vote			10
Numerator:
Distributed earnings	$ 360	$ 334	$ 1,051	$ 963
Undistributed earnings	918	1,505	2,035	3,856
Basic	$ 1,278	$ 1,839	$ 3,086	$ 4,819
Denominator:
Weighted average shares outstanding (in shares) | shares	1,282	1,283	1,283	1,284
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 1	$ 1.43	$ 2.41	$ 3.75
Diluted earnings per share (in dollars per share) | $ / shares	$ 0.98	$ 1.40	$ 2.36	$ 3.66