Our total written business in the fourth quarter to date is down approximately 23% versus the same period last year. We cannot predict the depth or length of the current negative business cycle.
Clarence H. Smith, President and CEO, Havertys

Havertys Furniture Companies reported a loss of $1.5 million for the quarter ended September 30, 2008. Net sales for the third quarter of 2008 were $175.6 million, down 12.5% from 2007. Same store sales dropped 14.9% for the quarter.

Havertys' president and CEO Clarence H. Smith said, "We have seen more deterioration in consumer spending for big-ticket purchases and the current outlook for the near term continues to be difficult. Our strategy to maintain a strong balance sheet and contain costs has proven to be particularly prudent. Subsequent to the end of the third quarter, all of our borrowings were repaid and we are closely managing our inventories."

Havertys' gross margins for the third quarter increased from 49.6% in 2007 to 51.5% this year due primarily to the cessation of in-house free financing for terms greater than one year.

"Inventory levels are currently lower than those throughout the first half of the year," Smith said. "We no longer offer in-house free financing greater than one year and accounts receivable balances have continued to come down and serve as a source of cash. Our capital expenditure plans are being curtailed as we spend on normal store maintenance but forego any additional new store activity."

"Our total written business in the fourth quarter to date is down approximately 23% versus the same period last year. We cannot predict the depth or length of the current negative business cycle. Our attention is on tightly managing our business during this period, gaining market share from weaker and defunct competitors, and emerging from this historic down cycle as the most prominent furniture retailer in our markets."

Havertys operates 123 showrooms furniture showrooms in 17 states.