Haverty Furniture Companies (HVT) 10-Q 7 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 03, 2024
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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	2024
Document Fiscal Period Focus	Q1
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		14,960,842
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		1,275,395

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 111,818	$ 120,635
Restricted cash and cash equivalents	6,045	7,142
Inventories	92,078	93,956
Prepaid expenses	17,361	17,067
Other current assets	13,697	12,793
Total current assets	240,999	251,593
Property and equipment, net	173,128	171,588
Right-of-use lease assets	196,976	202,306
Deferred income taxes	15,594	15,641
Other assets	13,832	13,005
Total assets	640,529	654,133
Current liabilities
Accounts payable	16,980	18,781
Customer deposits	40,912	35,837
Accrued liabilities	35,681	46,289
Current lease liabilities	37,572	37,357
Total current liabilities	131,145	138,264
Noncurrent lease liabilities	174,680	180,397
Other liabilities	28,014	27,106
Total liabilities	333,839	345,767
Capital Stock, par value $1 per share
Preferred Stock, Authorized – 1,000 shares; Issued: None
Additional paid-in capital	113,993	113,307
Retained earnings	417,020	419,472
Accumulated other comprehensive loss	(983)	(983)
Less treasury stock at cost – Common Stock (2024 – 15,355 and 2023 – 15,355 shares) and Convertible Class A Common Stock (2024 and 2023 – 522 shares)	(255,454)	(255,454)
Total stockholders’ equity	306,690	308,366
Total liabilities and stockholders’ equity	640,529	654,133
Common Stock
Capital Stock, par value $1 per share
Common stock/Class A common stock, value, issued	30,316	30,220
Class A Common Stock
Capital Stock, par value $1 per share
Common stock/Class A common stock, value, issued	$ 1,798	$ 1,804

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
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)	30,316,000	30,220,000
Treasury stock, shares (in shares)	15,355,000	15,355,000
Class A Common Stock
Stockholders’ equity
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	1,798,000	1,804,000
Treasury stock, shares (in shares)	522,000	522,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net sales	$ 183,997	$ 224,754
Cost of goods sold	72,978	91,969
Gross profit	111,019	132,785
Expenses:
Selling, general and administrative	109,356	118,361
Other expense (income), net	23	(4)
Total expenses	109,379	118,357
Income before interest and income taxes	1,640	14,428
Interest income, net	1,555	1,010
Income before income taxes	3,195	15,438
Income tax expense	802	3,066
Net income	2,393	12,372
Other comprehensive income	0	0
Comprehensive income	$ 2,393	$ 12,372
Common Stock
Expenses:
Basic earnings per share (in dollars per share)	$ 0.15	$ 0.77
Diluted earnings per share (in dollars per share)	0.14	0.74
Cash dividends per share (in dollars per share)	0.30	0.28
Class A Common Stock
Expenses:
Basic earnings per share (in dollars per share)	0.13	0.72
Diluted earnings per share (in dollars per share)	0.13	0.71
Cash dividends per share (in dollars per share)	$ 0.28	$ 0.26

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows from Operating Activities:
Net income	$ 2,393	$ 12,372
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,946	4,362
Share-based compensation expense	2,643	1,957
Other	58	(840)
Changes in operating assets and liabilities:
Inventories	1,878	4,079
Customer deposits	5,075	(1,587)
Other assets and liabilities	(1,104)	5,721
Accounts payable and accrued liabilities	(12,754)	(14,990)
Net cash provided by operating activities	3,135	11,074
Cash Flows from Investing Activities:
Capital expenditures	(6,399)	(6,655)
Proceeds from sale of land, property and equipment	48	13
Net cash used in investing activities	(6,351)	(6,642)
Cash Flows from Financing Activities:
Dividends paid	(4,845)	(4,528)
Taxes on vested restricted shares	(1,853)	(2,788)
Net cash used in financing activities	(6,698)	(7,316)
Decrease in cash, cash equivalents and restricted cash equivalents during the period	(9,914)	(2,884)
Cash, cash equivalents and restricted cash equivalents at beginning of period	127,777	129,930
Cash, cash equivalents and restricted cash equivalents at end of period	$ 117,863	$ 127,046

Business and Basis of Presentat

Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2024
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	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity The following outlines the changes in each caption of stockholders’ equity for the current and comparative period and the dividends per share for each class of shares. For the three months ended March 31, 2024: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2023 $ 30,220 $ 1,804 $ 113,307 $ 419,472 $ (983) $ (255,454) $ 308,366 Net income 2,393 2,393 Dividends declared: Common Stock, $0.30 per share (4,488) (4,488) Class A Common Stock, $0.28 per share (357) (357) Class A conversion 6 (6) — Restricted stock issuances 90 (1,957) (1,867) Amortization of restricted stock 2,643 2,643 Balances at March 31, 2024 $ 30,316 $ 1,798 $ 113,993 $ 417,020 $ (983) $ (255,454) $ 306,690 For the three months ended March 31, 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 12,372 12,372 Dividends declared: Common Stock, $0.28 per share (4,194) (4,194) Class A Common Stock, $0.26 per share (334) (334) Restricted stock issuances 116 (2,904) (2,788) Amortization of restricted stock 1,957 1,957 Balances at March 31, 2023 $ 30,122 $ 1,806 $ 107,759 $ 406,237 $ (756) $ (248,756) $ 296,412

Interim LIFO Calculations

Interim LIFO Calculations	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Interim LIFO Calculations	Interim LIFO Calculations Inventories 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	3 Months Ended
	Mar. 31, 2024
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	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and December 31, 2023, there were no outstanding borrowings under the Credit Agreement. The borrowing base was $121.1 million at March 31, 2024 and there were no outstanding letters of credit and, accordingly, net availability was $80.0 million.

Revenues

Revenues	3 Months Ended
	Mar. 31, 2024
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 $40.9 million and $35.8 million at March 31, 2024 and December 31, 2023, respectively. Of the customer deposit liabilities at December 31, 2023, approximately $2.3 million have not been recognized through net sales in the three months ended March 31, 2024. The following table presents our revenues disaggregated by each major product category and service: (In thousands) Three Months Ended March 31, 2024 2023 Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 25,862 14.1 % $ 34,546 15.4 % Dining Room Furniture 19,016 10.3 25,586 11.4 Occasional 14,207 7.7 19,210 8.5 59,085 32.1 79,342 35.3 Upholstery 82,935 45.1 95,846 42.6 Mattresses 16,600 9.0 18,411 8.2 Accessories and Other (1) 25,377 13.8 31,155 13.9 $ 183,997 100.0 % $ 224,754 100.0 % (1) Includes delivery charges and product protection.

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Lessee Disclosure [Abstract]
Leases	Leases We have operating leases for retail stores, offices, warehouses, and certain equipment. Our leases have remaining lease terms of 1 year to 11 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. At March 31, 2024, we had entered into two leases for additional retail locations 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 March 31, 2024 2023 Operating lease cost $ 12,244 $ 11,787 Variable lease cost 1,374 1,696 Total lease expense $ 13,618 $ 13,483 Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,401 $ 11,311 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,709 $ 9,048

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the three months ended March 31, 2024 and 2023 was 25.1% and 19.9%, 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	3 Months Ended
	Mar. 31, 2024
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 2023 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 three months ended March 31, 2024: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units (#) Weighted-Average Outstanding at December 31, 2023 249,935 $ 32.05 353,187 $ 31.77 Granted/Issued 160,155 34.73 121,824 34.73 Awards vested or rights exercised (1) — — (145,104) 32.84 Forfeited (450) 33.02 — — Additional units earned due to performance — — (25,550) 33.08 Outstanding at March 31, 2024 409,640 $ 33.10 304,357 $ 32.33 Restricted units expected to vest 409,640 $ 33.10 275,680 $ 32.08 (1) Includes shares repurchased from employees for employee’s tax liability. The aggregate intrinsic value of outstanding service-based restricted stock awards was approximately $14.0 million at March 31, 2024. 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 three months ended March 31, 2024 was approximately $4.9 million. The aggregate intrinsic value of outstanding performance awards at March 31, 2024 expected to vest was approximately $9.4 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 $2.6 and $2.0 million for the three months ended March 31, 2024 and 2023, respectively. Forfeitures are recognized as they occur. As of March 31, 2024, the total compensation cost related to unvested equity awards was approximately $12.7 million and is expected to be recognized over a weighted-average period of two years.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2024
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 2024 2023 Numerator: Common: Distributed earnings $ 4,488 $ 4,195 Undistributed earnings (2,267) 7,250 Basic 2,221 11,445 Class A Common earnings 172 927 Diluted $ 2,393 $ 12,372 Class A Common: Distributed earnings $ 357 $ 333 Undistributed earnings (185) 594 $ 172 $ 927 Denominator: Common: Weighted average shares outstanding - basic 14,899 14,907 Assumed conversion of Class A Common Stock 1,280 1,283 Dilutive options, awards and common stock equivalents 542 594 Total weighted-average diluted Common Stock 16,721 16,784 Class A Common: Weighted average shares outstanding 1,280 1,283 Basic earnings per share: Common Stock $ 0.15 $ 0.77 Class A Common Stock $ 0.13 $ 0.72 Diluted earnings per share: Common Stock $ 0.14 $ 0.74 Class A Common Stock $ 0.13 $ 0.71

Subsequent Dividend Declaration

Subsequent Dividend Declaration	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Dividend Declaration	Subsequent Dividend Declaration On May 1, 2024, our board of directors declared a quarterly cash dividend of $0.32 on our common stock and $0.30 on our Class A common stock (aggregating approximately $5.2 million), payable on June 14, 2024 to stockholders of record on May 24, 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 2,393	$ 12,372

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
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)	3 Months Ended
	Mar. 31, 2024
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)	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of Stockholders' Equity	For the three months ended March 31, 2024: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at December 31, 2023 $ 30,220 $ 1,804 $ 113,307 $ 419,472 $ (983) $ (255,454) $ 308,366 Net income 2,393 2,393 Dividends declared: Common Stock, $0.30 per share (4,488) (4,488) Class A Common Stock, $0.28 per share (357) (357) Class A conversion 6 (6) — Restricted stock issuances 90 (1,957) (1,867) Amortization of restricted stock 2,643 2,643 Balances at March 31, 2024 $ 30,316 $ 1,798 $ 113,993 $ 417,020 $ (983) $ (255,454) $ 306,690 For the three months ended March 31, 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 12,372 12,372 Dividends declared: Common Stock, $0.28 per share (4,194) (4,194) Class A Common Stock, $0.26 per share (334) (334) Restricted stock issuances 116 (2,904) (2,788) Amortization of restricted stock 1,957 1,957 Balances at March 31, 2023 $ 30,122 $ 1,806 $ 107,759 $ 406,237 $ (756) $ (248,756) $ 296,412

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 2023 Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 25,862 14.1 % $ 34,546 15.4 % Dining Room Furniture 19,016 10.3 25,586 11.4 Occasional 14,207 7.7 19,210 8.5 59,085 32.1 79,342 35.3 Upholstery 82,935 45.1 95,846 42.6 Mattresses 16,600 9.0 18,411 8.2 Accessories and Other (1) 25,377 13.8 31,155 13.9 $ 183,997 100.0 % $ 224,754 100.0 % (1) Includes delivery charges and product protection.

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Lessee Disclosure [Abstract]
Schedule of Lease Expense	Components of lease expense were as follows (in thousands): Three Months Ended March 31, 2024 2023 Operating lease cost $ 12,244 $ 11,787 Variable lease cost 1,374 1,696 Total lease expense $ 13,618 $ 13,483
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,401 $ 11,311 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,709 $ 9,048

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Payment Arrangement, Activity	The following table summarizes our award activity during the three months ended March 31, 2024: Service-Based Performance-Based Shares or Units (#) Weighted-Average Shares or Units (#) Weighted-Average Outstanding at December 31, 2023 249,935 $ 32.05 353,187 $ 31.77 Granted/Issued 160,155 34.73 121,824 34.73 Awards vested or rights exercised (1) — — (145,104) 32.84 Forfeited (450) 33.02 — — Additional units earned due to performance — — (25,550) 33.08 Outstanding at March 31, 2024 409,640 $ 33.10 304,357 $ 32.33 Restricted units expected to vest 409,640 $ 33.10 275,680 $ 32.08 (1) Includes shares repurchased from employees for employee’s tax liability.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
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 2024 2023 Numerator: Common: Distributed earnings $ 4,488 $ 4,195 Undistributed earnings (2,267) 7,250 Basic 2,221 11,445 Class A Common earnings 172 927 Diluted $ 2,393 $ 12,372 Class A Common: Distributed earnings $ 357 $ 333 Undistributed earnings (185) 594 $ 172 $ 927 Denominator: Common: Weighted average shares outstanding - basic 14,899 14,907 Assumed conversion of Class A Common Stock 1,280 1,283 Dilutive options, awards and common stock equivalents 542 594 Total weighted-average diluted Common Stock 16,721 16,784 Class A Common: Weighted average shares outstanding 1,280 1,283 Basic earnings per share: Common Stock $ 0.15 $ 0.77 Class A Common Stock $ 0.13 $ 0.72 Diluted earnings per share: Common Stock $ 0.14 $ 0.74 Class A Common Stock $ 0.13 $ 0.71

Business and Basis of Present_3

Business and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2024 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
	Mar. 31, 2024	Mar. 31, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 308,366	$ 289,399
Net income	2,393	12,372
Class A conversion	0
Restricted stock issuances	(1,867)	(2,788)
Amortization of restricted stock	2,643	1,957
Ending balance	306,690	296,412
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (4,488)	$ (4,194)
Cash dividends per share (in dollars per share)	$ 0.30	$ 0.28
Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (357)	$ (334)
Cash dividends per share (in dollars per share)	$ 0.28	$ 0.26
Common Stock | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 30,220	$ 30,006
Class A conversion	6
Restricted stock issuances	90	116
Ending balance	30,316	30,122
Common Stock | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,804	1,806
Class A conversion	(6)
Ending balance	1,798	1,806
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	113,307	108,706
Restricted stock issuances	(1,957)	(2,904)
Amortization of restricted stock	2,643	1,957
Ending balance	113,993	107,759
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	419,472	398,393
Net income	2,393	12,372
Ending balance	417,020	406,237
Retained Earnings | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(4,488)	(4,194)
Retained Earnings | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(357)	(334)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(983)	(756)
Ending balance	(983)	(756)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(255,454)	(248,756)
Ending balance	$ (255,454)	$ (248,756)

Credit Agreement (Details)

Credit Agreement (Details) - Credit Agreement - USD ($)	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Credit Agreement [Abstract]
Maximum borrowing capacity	$ 80,000,000
Debt instrument, maturity date	Oct. 24, 2027
Outstanding letters of credit	$ 0	$ 0
Borrowing base	121,100,000
Net availability	$ 80,000,000

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Customer deposits	$ 40,912		$ 35,837
Customer deposits not recognized through net sales	2,300
Disaggregation of Revenue [Abstract]
Net sales	$ 183,997	$ 224,754
% of Net Sales	100%	100%
Case Goods
Disaggregation of Revenue [Abstract]
Net sales	$ 59,085	$ 79,342
% of Net Sales	32.10%	35.30%
Bedroom Furniture
Disaggregation of Revenue [Abstract]
Net sales	$ 25,862	$ 34,546
% of Net Sales	14.10%	15.40%
Dining Room Furniture
Disaggregation of Revenue [Abstract]
Net sales	$ 19,016	$ 25,586
% of Net Sales	10.30%	11.40%
Occasional
Disaggregation of Revenue [Abstract]
Net sales	$ 14,207	$ 19,210
% of Net Sales	7.70%	8.50%
Upholstery
Disaggregation of Revenue [Abstract]
Net sales	$ 82,935	$ 95,846
% of Net Sales	45.10%	42.60%
Mattresses
Disaggregation of Revenue [Abstract]
Net sales	$ 16,600	$ 18,411
% of Net Sales	9%	8.20%
Accessories and Other
Disaggregation of Revenue [Abstract]
Net sales	$ 25,377	$ 31,155
% of Net Sales	13.80%	13.90%

Leases - Narrative (Details)

Leases - Narrative (Details)	Mar. 31, 2024
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)	11 years
Renewal 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
	Mar. 31, 2024	Mar. 31, 2023
Lease, Cost [Abstract]
Operating lease cost	$ 12,244	$ 11,787
Variable lease cost	1,374	1,696
Total lease expense	13,618	13,483
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	12,401	11,311
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 3,709	$ 9,048

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate, percent	25.10%	19.90%

Stock-Based Compensation Plan_2

Stock-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock Based Compensation Plan [Abstract]
Share-based payment arrangement, nonvested award, cost not yet recognized, amount	$ 12.7
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	$ 2.6	$ 2
Service-Based Restricted Stock Awards
Shares or Units [Roll Forward]
Outstanding, beginning balance (in shares)	249,935
Granted/Issued (in shares)	160,155
Awards vested or rights exercised (in shares)	0
Forfeited (in shares)	(450)
Additional units earned due to performance (in shares)	0
Outstanding, ending balance (in shares)	409,640
Restricted units expected to vest (in shares)	409,640
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 32.05
Granted/Issued (in dollars per share)	34.73
Awards vested or rights exercised (in dollars per share)	0
Forfeited (in dollars per share)	33.02
Additional units earned due to performance (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	33.10
Restricted units expected to vest (in dollars per share)	$ 33.10
Stock Based Compensation Plan [Abstract]
Aggregate intrinsic value of outstanding awards	$ 14
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)	353,187
Granted/Issued (in shares)	121,824
Awards vested or rights exercised (in shares)	(145,104)
Forfeited (in shares)	0
Additional units earned due to performance (in shares)	(25,550)
Outstanding, ending balance (in shares)	304,357
Restricted units expected to vest (in shares)	275,680
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 31.77
Granted/Issued (in dollars per share)	34.73
Awards vested or rights exercised (in dollars per share)	32.84
Forfeited (in dollars per share)	0
Additional units earned due to performance (in dollars per share)	33.08
Outstanding, ending balance (in dollars per share)	32.33
Restricted units expected to vest (in dollars per share)	$ 32.08
Stock Based Compensation Plan [Abstract]
Aggregate intrinsic value of outstanding awards	$ 9.4
Fair value of vested shares	$ 4.9
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
	Mar. 31, 2024 USD ($) Vote $ / shares shares	Mar. 31, 2023 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	$ 4,488	$ 4,195
Undistributed earnings	(2,267)	7,250
Basic	2,221	11,445
Diluted	$ 2,393	$ 12,372
Denominator:
Weighted average shares outstanding - basic (in shares) | shares	14,899	14,907
Assumed conversion of Class A Common Stock (in shares) | shares	1,280	1,283
Dilutive options, awards and common stock equivalents (in shares) | shares	542	594
Total weighted-average diluted Common Stock (in shares) | shares	16,721	16,784
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 0.15	$ 0.77
Diluted earnings per share (in dollars per share) | $ / shares	$ 0.14	$ 0.74
Class A Common Stock
Earnings Per Share [Abstract]
Number of votes per share | Vote	10
Numerator:
Distributed earnings	$ 357	$ 333
Undistributed earnings	(185)	594
Basic	$ 172	$ 927
Denominator:
Weighted average shares outstanding (in shares) | shares	1,280	1,283
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 0.13	$ 0.72
Diluted earnings per share (in dollars per share) | $ / shares	$ 0.13	$ 0.71

Subsequent Dividend Declarati_2

Subsequent Dividend Declaration (Details) - Subsequent Event $ / shares in Units, $ in Millions	May 01, 2024 USD ($) $ / shares
Subsequent Event [Line Items]
Cash dividends declared (in dollars per share)	$ 0.32
Dividend, cash | $	$ 5.2
Class A Common Stock
Subsequent Event [Line Items]
Cash dividends declared (in dollars per share)	$ 0.30