Haverty Furniture Companies (HVT) 10-Q 6 Aug 24 2024 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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	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		15,132,639
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	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 109,942	$ 120,635
Restricted cash and cash equivalents	6,125	7,142
Inventories	92,401	93,956
Prepaid expenses	16,445	17,067
Other current assets	15,497	12,793
Total current assets	240,410	251,593
Property and equipment, net	177,449	171,588
Right-of-use lease assets	195,000	202,306
Deferred income taxes	15,478	15,641
Other assets	13,768	13,005
Total assets	642,105	654,133
Current liabilities
Accounts payable	18,058	18,781
Customer deposits	38,731	35,837
Accrued liabilities	37,090	46,289
Current lease liabilities	36,561	37,357
Total current liabilities	130,440	138,264
Noncurrent lease liabilities	176,940	180,397
Other liabilities	27,627	27,106
Total liabilities	335,007	345,767
Capital Stock, par value $1 per share
Preferred Stock, Authorized – 1,000 shares; Issued: None
Additional paid-in capital	114,644	113,307
Retained earnings	416,233	419,472
Accumulated other comprehensive loss	(983)	(983)
Less treasury stock at cost – Common Stock (2024 – 15,281 and 2023 – 15,355 shares) and Convertible Class A Common Stock (2024 and 2023 – 522 shares)	(255,008)	(255,454)
Total stockholders’ equity	307,098	308,366
Total liabilities and stockholders’ equity	642,105	654,133
Common Stock
Capital Stock, par value $1 per share
Common stock/Class A common stock, value, issued	30,414	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	Jun. 30, 2024	Dec. 31, 2023
Stockholders’ equity
Capital Stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	0	0
Common Stock
Stockholders’ equity
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	30,414,000	30,220,000
Treasury stock (in shares)	15,281,000	15,355,000
Class A Common Stock
Stockholders’ equity
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	1,798,000	1,804,000
Treasury stock (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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net sales	$ 178,636	$ 206,289	$ 362,633	$ 431,042
Cost of goods sold	70,652	81,394	143,630	173,363
Gross profit	107,984	124,895	219,003	257,679
Expenses:
Selling, general and administrative	103,099	110,016	212,455	228,377
Other expense (income), net	(101)	14	(78)	9
Total expenses	102,998	110,030	212,377	228,386
Income before interest and income taxes	4,986	14,865	6,626	29,293
Interest income, net	1,467	973	3,022	1,983
Income before income taxes	6,453	15,838	9,648	31,276
Income tax expense	2,015	4,046	2,817	7,112
Net income	4,438	11,792	6,831	24,164
Other comprehensive income	0	0	0	0
Comprehensive income	$ 4,438	$ 11,792	$ 6,831	$ 24,164
Common Stock
Expenses:
Basic earnings per share (in dollars per share)	$ 0.27	$ 0.73	$ 0.42	$ 1.49
Diluted earnings per share (in dollars per share)	0.27	0.70	0.41	1.44
Cash dividends per share (in dollars per share)	0.32	0.30	0.62	0.58
Class A Common Stock
Expenses:
Basic earnings per share (in dollars per share)	0.25	0.68	0.39	1.41
Diluted earnings per share (in dollars per share)	0.25	0.67	0.39	1.38
Cash dividends per share (in dollars per share)	$ 0.30	$ 0.28	$ 0.58	$ 0.54

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows from Operating Activities:
Net income	$ 6,831	$ 24,164
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,147	9,017
Share-based compensation expense	4,130	4,439
Other	1,314	(256)
Changes in operating assets and liabilities:
Inventories	1,555	3,611
Customer deposits	2,894	(2,380)
Other assets and liabilities	916	11,637
Accounts payable and accrued liabilities	(10,245)	(10,104)
Net cash provided by operating activities	17,542	40,128
Cash Flows from Investing Activities:
Capital expenditures	(15,952)	(40,482)
Proceeds from sale of land, property and equipment	52	23
Net cash used in investing activities	(15,900)	(40,459)
Cash Flows from Financing Activities:
Dividends paid	(10,070)	(9,414)
Taxes on vested restricted shares	(3,282)	(4,083)
Net cash used in financing activities	(13,352)	(13,497)
Decrease in cash, cash equivalents and restricted cash equivalents during the period	(11,710)	(13,828)
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	$ 116,067	$ 116,102

Business and Basis of Presentat

Business and Basis of Presentation	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2024: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2024 $ 30,316 $ 1,798 $ 113,993 $ 417,020 $ (983) $ (255,454) $ 306,690 Net income 4,438 4,438 Dividends declared: Common Stock, $0.32 per share (4,842) (4,842) Class A Common Stock, $0.30 per share (383) (383) Restricted stock issuances 98 (1,527) (1,429) Amortization of restricted stock 1,487 1,487 Directors' Compensation Plan 691 446 1,137 Balances at June 30, 2024 $ 30,414 $ 1,798 $ 114,644 $ 416,233 $ (983) $ (255,008) $ 307,098 For the six months ended June 30, 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 6,831 6,831 Dividends declared: Common Stock, $0.62 per share (9,330) (9,330) Class A Common Stock, $0.58 per share (740) (740) Class A conversion 6 (6) — Restricted stock issuances 188 (3,484) (3,296) Amortization of restricted stock 4,130 4,130 Directors' Compensation Plan 691 446 1,137 Balances at June 30, 2024 $ 30,414 $ 1,798 $ 114,644 $ 416,233 $ (983) $ (255,008) $ 307,098 For the three months ended June 30, 2023: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2023 $ 30,122 $ 1,806 $ 107,759 $ 406,237 $ (756) $ (248,756) $ 296,412 Net income 11,792 11,792 Dividends declared: Common Stock, $0.30 per share (4,527) (4,527) Class A Common Stock, $0.28 per share (359) (359) Restricted stock issuances 96 (1,390) (1,294) Amortization of restricted stock 2,482 2,482 Directors' Compensation Plan 880 197 1,077 Balances at June 30, 2023 $ 30,218 $ 1,806 $ 109,731 $ 413,143 $ (756) $ (248,559) $ 305,583 For the six months ended June 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 24,164 24,164 Dividends declared: Common Stock, $0.58 per share (8,721) (8,721) Class A Common Stock, $0.54 per share (693) (693) Restricted stock issuances 212 (4,294) (4,082) Amortization of restricted stock 4,439 4,439 Directors' Compensation Plan 880 197 1,077 Balances at June 30, 2023 $ 30,218 $ 1,806 $ 109,731 $ 413,143 $ (756) $ (248,559) $ 305,583

Interim LIFO Calculations

Interim LIFO Calculations	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2024 and December 31, 2023, there were no outstanding borrowings under the Credit Agreement. The borrowing base was $117.5 million at June 30, 2024 and there were no outstanding letters of credit and, accordingly, net availability was $80.0 million.

Revenues

Revenues	6 Months Ended
	Jun. 30, 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 $38.7 million and $35.8 million at June 30, 2024 and December 31, 2023, respectively. Of the customer deposit liabilities at December 31, 2023, approximately $0.8 million have not been recognized through net sales in the six months ended June 30, 2024. The following table presents our revenues disaggregated by each major product category and service: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net Sales % of Net Sales % of Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 25,772 14.4 % $ 33,935 16.5 % $ 51,634 14.2 % $ 68,483 15.9 % Dining Room Furniture 19,453 10.9 22,952 11.1 38,469 10.6 48,537 11.3 Occasional 13,183 7.4 16,301 7.9 27,390 7.6 35,510 8.2 58,408 32.7 73,188 35.5 117,493 32.4 152,530 35.4 Upholstery 78,273 43.8 86,574 42.0 161,208 44.5 182,420 42.3 Mattresses 16,640 9.3 18,985 9.2 33,240 9.2 37,397 8.7 Accessories and Other (1) 25,315 14.2 27,542 13.4 50,692 14.0 58,695 13.6 $ 178,636 100.0 % $ 206,289 100.0 % $ 362,633 100.0 % $ 431,042 100.0 % (1) Includes delivery charges and product protection.

Leases

Leases	6 Months Ended
	Jun. 30, 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 June 30, 2024, we had entered into four 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 12,092 $ 12,310 $ 24,338 $ 24,098 Variable lease cost 1,388 978 2,762 2,674 Total lease expense $ 13,480 $ 13,288 $ 27,100 $ 26,772 Supplemental cash flow information related to leases is as follows (in thousands): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21,273 $ 21,519 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 13,636 $ 29,334

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate for the six months ended June 30, 2024 and 2023 was 29.2% and 22.7%, respectively. The primary difference in the effective rate and the statutory rate was due to nondeductible items and state income taxes.

Stock-Based Compensation Plans

Stock-Based Compensation Plans	6 Months Ended
	Jun. 30, 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 six months ended June 30, 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 160,955 34.71 121,824 34.73 Awards vested or rights exercised (1) (147,836) 32.24 (145,104) 32.84 Forfeited (3,900) 34.29 — — Additional units earned due to performance — — (25,550) 33.08 Outstanding at June 30, 2024 259,154 $ 33.56 304,357 $ 32.33 Restricted units expected to vest 259,154 $ 33.56 221,517 $ 31.44 (1) Includes shares repurchased from employees for employee’s tax liability. The aggregate intrinsic value of outstanding service-based restricted stock awards was approximately $6.6 million at June 30, 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 six months ended June 30, 2024 was approximately $4.9 million. The aggregate intrinsic value of outstanding performance awards at June 30, 2024 expected to vest was approximately $5.6 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 expenses over the respective grants’ vesting periods, primarily on a straight-line basis. The amount charged was approximately $4.1 and $4.4 million for the six months ended June 30, 2024 and 2023, respectively. Forfeitures are recognized as they occur. As of June 30, 2024, the total compensation cost related to unvested equity awards was approximately $8.8 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, 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 Six Months Ended 2024 2023 2024 2023 Numerator: Common: Distributed earnings $ 4,842 $ 4,527 $ 9,330 $ 8,721 Undistributed earnings (728) 6,387 (2,996) 13,637 Basic 4,114 10,914 6,334 22,358 Class A Common earnings 324 878 497 1,806 Diluted $ 4,438 $ 11,792 $ 6,831 $ 24,164 Class A Common: Distributed earnings $ 383 $ 359 $ 740 $ 693 Undistributed earnings (59) 519 (243) 1,113 $ 324 $ 878 $ 497 $ 1,806 Denominator: Common: Weighted average shares outstanding - basic 15,065 15,046 14,982 14,977 Assumed conversion of Class A Common Stock 1,275 1,283 1,277 1,283 Dilutive options, awards and common stock equivalents 363 417 453 506 Total weighted-average diluted Common Stock 16,703 16,746 16,712 16,766 Class A Common: Weighted average shares outstanding 1,275 1,283 1,277 1,283 Basic earnings per share: Common Stock $ 0.27 $ 0.73 $ 0.42 $ 1.49 Class A Common Stock $ 0.25 $ 0.68 $ 0.39 $ 1.41 Diluted earnings per share: Common Stock $ 0.27 $ 0.70 $ 0.41 $ 1.44 Class A Common Stock $ 0.25 $ 0.67 $ 0.39 $ 1.38

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 4,438	$ 11,792	$ 6,831	$ 24,164

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 2024
Stockholders' Equity Note [Abstract]
Schedule of Stockholders' Equity	For the three months ended June 30, 2024: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2024 $ 30,316 $ 1,798 $ 113,993 $ 417,020 $ (983) $ (255,454) $ 306,690 Net income 4,438 4,438 Dividends declared: Common Stock, $0.32 per share (4,842) (4,842) Class A Common Stock, $0.30 per share (383) (383) Restricted stock issuances 98 (1,527) (1,429) Amortization of restricted stock 1,487 1,487 Directors' Compensation Plan 691 446 1,137 Balances at June 30, 2024 $ 30,414 $ 1,798 $ 114,644 $ 416,233 $ (983) $ (255,008) $ 307,098 For the six months ended June 30, 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 6,831 6,831 Dividends declared: Common Stock, $0.62 per share (9,330) (9,330) Class A Common Stock, $0.58 per share (740) (740) Class A conversion 6 (6) — Restricted stock issuances 188 (3,484) (3,296) Amortization of restricted stock 4,130 4,130 Directors' Compensation Plan 691 446 1,137 Balances at June 30, 2024 $ 30,414 $ 1,798 $ 114,644 $ 416,233 $ (983) $ (255,008) $ 307,098 For the three months ended June 30, 2023: (in thousands) Common Stock Class A Additional Retained Accumulated Other Treasury Total Balances at March 31, 2023 $ 30,122 $ 1,806 $ 107,759 $ 406,237 $ (756) $ (248,756) $ 296,412 Net income 11,792 11,792 Dividends declared: Common Stock, $0.30 per share (4,527) (4,527) Class A Common Stock, $0.28 per share (359) (359) Restricted stock issuances 96 (1,390) (1,294) Amortization of restricted stock 2,482 2,482 Directors' Compensation Plan 880 197 1,077 Balances at June 30, 2023 $ 30,218 $ 1,806 $ 109,731 $ 413,143 $ (756) $ (248,559) $ 305,583 For the six months ended June 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 24,164 24,164 Dividends declared: Common Stock, $0.58 per share (8,721) (8,721) Class A Common Stock, $0.54 per share (693) (693) Restricted stock issuances 212 (4,294) (4,082) Amortization of restricted stock 4,439 4,439 Directors' Compensation Plan 880 197 1,077 Balances at June 30, 2023 $ 30,218 $ 1,806 $ 109,731 $ 413,143 $ (756) $ (248,559) $ 305,583

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net Sales % of Net Sales % of Net Sales % of Net Sales % of Merchandise: Case Goods Bedroom Furniture $ 25,772 14.4 % $ 33,935 16.5 % $ 51,634 14.2 % $ 68,483 15.9 % Dining Room Furniture 19,453 10.9 22,952 11.1 38,469 10.6 48,537 11.3 Occasional 13,183 7.4 16,301 7.9 27,390 7.6 35,510 8.2 58,408 32.7 73,188 35.5 117,493 32.4 152,530 35.4 Upholstery 78,273 43.8 86,574 42.0 161,208 44.5 182,420 42.3 Mattresses 16,640 9.3 18,985 9.2 33,240 9.2 37,397 8.7 Accessories and Other (1) 25,315 14.2 27,542 13.4 50,692 14.0 58,695 13.6 $ 178,636 100.0 % $ 206,289 100.0 % $ 362,633 100.0 % $ 431,042 100.0 % (1) Includes delivery charges and product protection.

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Lessee Disclosure [Abstract]
Schedule of Lease Expense	Components of lease expense were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 12,092 $ 12,310 $ 24,338 $ 24,098 Variable lease cost 1,388 978 2,762 2,674 Total lease expense $ 13,480 $ 13,288 $ 27,100 $ 26,772
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases is as follows (in thousands): Six Months Ended June 30, 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 21,273 $ 21,519 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 13,636 $ 29,334

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Payment Arrangement, Activity	The following table summarizes our award activity during the six months ended June 30, 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 160,955 34.71 121,824 34.73 Awards vested or rights exercised (1) (147,836) 32.24 (145,104) 32.84 Forfeited (3,900) 34.29 — — Additional units earned due to performance — — (25,550) 33.08 Outstanding at June 30, 2024 259,154 $ 33.56 304,357 $ 32.33 Restricted units expected to vest 259,154 $ 33.56 221,517 $ 31.44 (1) Includes shares repurchased from employees for employee’s tax liability.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Numerator: Common: Distributed earnings $ 4,842 $ 4,527 $ 9,330 $ 8,721 Undistributed earnings (728) 6,387 (2,996) 13,637 Basic 4,114 10,914 6,334 22,358 Class A Common earnings 324 878 497 1,806 Diluted $ 4,438 $ 11,792 $ 6,831 $ 24,164 Class A Common: Distributed earnings $ 383 $ 359 $ 740 $ 693 Undistributed earnings (59) 519 (243) 1,113 $ 324 $ 878 $ 497 $ 1,806 Denominator: Common: Weighted average shares outstanding - basic 15,065 15,046 14,982 14,977 Assumed conversion of Class A Common Stock 1,275 1,283 1,277 1,283 Dilutive options, awards and common stock equivalents 363 417 453 506 Total weighted-average diluted Common Stock 16,703 16,746 16,712 16,766 Class A Common: Weighted average shares outstanding 1,275 1,283 1,277 1,283 Basic earnings per share: Common Stock $ 0.27 $ 0.73 $ 0.42 $ 1.49 Class A Common Stock $ 0.25 $ 0.68 $ 0.39 $ 1.41 Diluted earnings per share: Common Stock $ 0.27 $ 0.70 $ 0.41 $ 1.44 Class A Common Stock $ 0.25 $ 0.67 $ 0.39 $ 1.38

Business and Basis of Present_3

Business and Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 306,690	$ 296,412	$ 308,366	$ 289,399
Net income	4,438	11,792	6,831	24,164
Class A conversion			0
Restricted stock issuances	(1,429)	(1,294)	(3,296)	(4,082)
Amortization of restricted stock	1,487	2,482	4,130	4,439
Directors' Compensation Plan	1,137	1,077	1,137	1,077
Ending balance	307,098	305,583	307,098	305,583
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (4,842)	$ (4,527)	$ (9,330)	$ (8,721)
Cash dividends per share (in dollars per share)	$ 0.32	$ 0.30	$ 0.62	$ 0.58
Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	$ (383)	$ (359)	$ (740)	$ (693)
Cash dividends per share (in dollars per share)	$ 0.30	$ 0.28	$ 0.58	$ 0.54
Common Stock | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 30,316	$ 30,122	$ 30,220	$ 30,006
Class A conversion			6
Restricted stock issuances	98	96	188	212
Ending balance	30,414	30,218	30,414	30,218
Common Stock | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,798	1,806	1,804	1,806
Class A conversion			(6)
Ending balance	1,798	1,806	1,798	1,806
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	113,993	107,759	113,307	108,706
Restricted stock issuances	(1,527)	(1,390)	(3,484)	(4,294)
Amortization of restricted stock	1,487	2,482	4,130	4,439
Directors' Compensation Plan	691	880	691	880
Ending balance	114,644	109,731	114,644	109,731
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	417,020	406,237	419,472	398,393
Net income	4,438	11,792	6,831	24,164
Ending balance	416,233	413,143	416,233	413,143
Retained Earnings | Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(4,842)	(4,527)	(9,330)	(8,721)
Retained Earnings | Class A Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock/Class A Common Stock, Dividends declared	(383)	(359)	(740)	(693)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(983)	(756)	(983)	(756)
Ending balance	(983)	(756)	(983)	(756)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(255,454)	(248,756)	(255,454)	(248,756)
Directors' Compensation Plan	446	197	446	197
Ending balance	$ (255,008)	$ (248,559)	$ (255,008)	$ (248,559)

Credit Agreement (Details)

Credit Agreement (Details) - Credit Agreement - USD ($)	6 Months Ended
	Jun. 30, 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	117,500,000
Net availability	$ 80,000,000

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Customer deposits	$ 38,731		$ 38,731		$ 35,837
Customer deposits not recognized through net sales			800
Disaggregation of Revenue [Abstract]
Net Sales	$ 178,636	$ 206,289	$ 362,633	$ 431,042
% of Net Sales	100%	100%	100%	100%
Case Goods
Disaggregation of Revenue [Abstract]
Net Sales	$ 58,408	$ 73,188	$ 117,493	$ 152,530
% of Net Sales	32.70%	35.50%	32.40%	35.40%
Bedroom Furniture
Disaggregation of Revenue [Abstract]
Net Sales	$ 25,772	$ 33,935	$ 51,634	$ 68,483
% of Net Sales	14.40%	16.50%	14.20%	15.90%
Dining Room Furniture
Disaggregation of Revenue [Abstract]
Net Sales	$ 19,453	$ 22,952	$ 38,469	$ 48,537
% of Net Sales	10.90%	11.10%	10.60%	11.30%
Occasional
Disaggregation of Revenue [Abstract]
Net Sales	$ 13,183	$ 16,301	$ 27,390	$ 35,510
% of Net Sales	7.40%	7.90%	7.60%	8.20%
Upholstery
Disaggregation of Revenue [Abstract]
Net Sales	$ 78,273	$ 86,574	$ 161,208	$ 182,420
% of Net Sales	43.80%	42%	44.50%	42.30%
Mattresses
Disaggregation of Revenue [Abstract]
Net Sales	$ 16,640	$ 18,985	$ 33,240	$ 37,397
% of Net Sales	9.30%	9.20%	9.20%	8.70%
Accessories and Other
Disaggregation of Revenue [Abstract]
Net Sales	$ 25,315	$ 27,542	$ 50,692	$ 58,695
% of Net Sales	14.20%	13.40%	14%	13.60%

Leases - Narrative (Details)

Leases - Narrative (Details)	Jun. 30, 2024 lease
Lessee, Lease, Description [Line Items]
Number of leases	4
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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lease, Cost [Abstract]
Operating lease cost	$ 12,092	$ 12,310	$ 24,338	$ 24,098
Variable lease cost	1,388	978	2,762	2,674
Total lease expense	$ 13,480	$ 13,288	27,100	26,772
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			21,273	21,519
Right-of-use assets obtained in exchange for lease obligations:
Operating leases			$ 13,636	$ 29,334

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate, percent	29.20%	22.70%

Stock-Based Compensation Plan_2

Stock-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Stock Based Compensation Plan [Abstract]
Share-based payment arrangement, nonvested award, cost not yet recognized, amount	$ 8.8
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	$ 4.1	$ 4.4
Service-Based Restricted Stock Awards
Shares or Units [Roll Forward]
Outstanding, beginning balance (in shares)	249,935
Granted/Issued (in shares)	160,955
Awards vested or rights exercised (in shares)	(147,836)
Forfeited (in shares)	(3,900)
Additional units earned due to performance (in shares)	0
Outstanding, ending balance (in shares)	259,154
Restricted units expected to vest (in shares)	259,154
Weighted-Average Award Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 32.05
Granted/Issued (in dollars per share)	34.71
Awards vested or rights exercised (in dollars per share)	32.24
Forfeited (in dollars per share)	34.29
Additional units earned due to performance (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	33.56
Restricted units expected to vest (in dollars per share)	$ 33.56
Stock Based Compensation Plan [Abstract]
Aggregate intrinsic value of outstanding awards	$ 6.6
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)	221,517
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)	$ 31.44
Stock Based Compensation Plan [Abstract]
Aggregate intrinsic value of outstanding awards	$ 5.6
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		6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) Vote $ / shares shares	Jun. 30, 2023 USD ($) $ / shares shares
Earnings Per Share [Abstract]
Voting rights conversion basis | Vote			1
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	$ 4,842	$ 4,527	$ 9,330	$ 8,721
Undistributed earnings	(728)	6,387	(2,996)	13,637
Basic	4,114	10,914	6,334	22,358
Diluted	$ 4,438	$ 11,792	$ 6,831	$ 24,164
Denominator:
Weighted average shares outstanding - basic (in shares) | shares	15,065	15,046	14,982	14,977
Assumed conversion of Class A Common Stock (in shares) | shares	1,275	1,283	1,277	1,283
Dilutive options, awards and common stock equivalents (in shares) | shares	363	417	453	506
Total weighted-average diluted Common Stock (in shares) | shares	16,703	16,746	16,712	16,766
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 0.27	$ 0.73	$ 0.42	$ 1.49
Diluted earnings per share (in dollars per share) | $ / shares	$ 0.27	$ 0.70	$ 0.41	$ 1.44
Class A Common Stock
Earnings Per Share [Abstract]
Number of votes per share | Vote			10
Numerator:
Distributed earnings	$ 383	$ 359	$ 740	$ 693
Undistributed earnings	(59)	519	(243)	1,113
Basic	$ 324	$ 878	$ 497	$ 1,806
Denominator:
Weighted average shares outstanding (in shares) | shares	1,275	1,283	1,277	1,283
Earnings Per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 0.25	$ 0.68	$ 0.39	$ 1.41
Diluted earnings per share (in dollars per share) | $ / shares	$ 0.25	$ 0.67	$ 0.39	$ 1.38
Maximum
Earnings Per Share [Abstract]
Percentage of total number of directors			75%
Minimum
Earnings Per Share [Abstract]
Percentage of total number of directors			25%