Havertys Furniture Reports Operating Results for First Quarter 2026
Rhea-AI Summary
Havertys (NYSE: HVT) reported first-quarter 2026 results for the period ended March 31, 2026. Sales rose 4.1% to $189.1M, comparable-store sales +4.3%, and diluted EPS was $0.26 vs $0.23. Gross margin improved to 61.5%. Cash and restricted cash totaled $114.1M, no funded debt, and planned 2026 capex ~$34.0M.
Management highlighted design-program growth (35.3% of written business), three signed new store leases, continued share repurchases, and unchanged full‑year guidance ranges for gross margin and SG&A.
AI-generated analysis. Not financial advice.
Positive
- Sales +4.1% to $189.1 million
- Comparable-store sales +4.3%
- Gross margin expanded to 61.5%
- No funded debt and $114.1 million cash
- Design program accounted for 35.3% of written business
Negative
- Operating cash flow negative $2.9M for the quarter
- Free cash flow negative $9.9M
- SG&A expenses increased $4.1M (higher commissions, benefits, occupancy)
- Inventories rose to $106.9M, increasing working capital
News Market Reaction – HVT
On the day this news was published, HVT declined 1.65%, reflecting a mild negative market reaction. Argus tracked a peak move of +2.7% during that session. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $6M from the company's valuation, bringing the market cap to $361.27M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HVT fell 5.29% with elevated volume. Key retail/home peers also declined (e.g., FND -4.1%, ZUMZ -5.65%, TTSH -2.76%), but momentum data flags this as stock-specific rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 24 | Quarterly earnings | Positive | +0.1% | Q4 2025 sales and EPS growth with solid margins and guidance. |
| Oct 29 | Quarterly earnings | Positive | +7.1% | Q3 2025 double‑digit sales growth and strong comp performance. |
| Jul 30 | Quarterly earnings | Negative | -1.1% | Q2 2025 lower EPS and negative comps despite margin strength. |
| Apr 30 | Quarterly earnings | Negative | +8.7% | Q1 2025 sales and comp declines but better EPS and cash flow. |
| Feb 24 | Quarterly earnings | Negative | +9.1% | Q4 2024 double‑digit sales declines and sharply lower EPS. |
Earnings have often produced sizable moves, with shares sometimes rising on weaker results and occasionally selling off despite improving fundamentals.
Over the last five reported periods, Havertys’ earnings releases show a transition from weaker results in late 2024 to improving trends through 2025 and early 2026. Q4 2024 featured double‑digit sales declines and lower EPS, yet the stock rose. Through 2025, mixed quarters with margin strength, recovering sales, and firm liquidity often prompted positive reactions. The Q4 2025 report on Feb 24, 2026 showed higher sales and EPS with stable guidance. Today’s Q1 2026 update continues the theme of solid margins and cash strength but met with a negative move.
Historical Comparison
In the past year, five earnings releases moved HVT by an average of 4.75%. Today’s -5.29% post‑earnings drop is larger than that typical earnings-day swing.
Earnings releases trace a recovery path from weak Q4 2024 results to improving sales, margins, and liquidity through 2025 and into Q4 2025, with guidance consistently emphasizing mid‑60% gross margins and controlled SG&A.
Market Pulse Summary
This announcement details Q1 2026 growth in sales, EPS and gross margin, supported by strong cash of $114.1M, no debt, and ongoing dividends and buybacks. It reiterates full‑year guidance for margins, SG&A and capex, emphasizing disciplined cost control and store expansion. In context of prior quarters, investors may focus on sustainability of low‑60% gross margins, free cash flow trends, and execution on planned 2026 capital expenditures and new store openings.
Key Terms
ebitda financial
free cash flow financial
sg&a financial
gaap financial
non-gaap financial
AI-generated analysis. Not financial advice.
ATLANTA, GA / ACCESS Newswire / May 5, 2026 / Haverty Furniture Companies, Inc. (NYSE:HVT and HVT.A), today reported operating results for the first quarter ended March 31, 2026.
First Quarter 2026 versus First Quarter 2025:
Diluted earnings per common share ("EPS") of
$0.26 versus$0.23 .Consolidated sales increased
4.1% to$189.1 million .Comparable store sales increased
4.3% .Gross profit margin was
61.5% compared to61.2% .
Steven G. Burdette, President and CEO said, "We are pleased with our first quarter results, delivering written business, delivered sales, and comp-store sales growth for a third consecutive quarter. Performance was led by strong Presidents' Day demand, gross profit margin expansion, and higher average tickets.
Our design program continues to be a key growth driver and differentiator for Havertys. Designer average tickets remain more than double our overall average ticket, and the program accounted for
We also continued to execute on our store growth strategy, signing new store leases in the Dallas, TX, Atlanta, GA, and Fredericksburg, VA markets. With a strong balance, no funded debt, and sustained momentum across key operating metrics, we remain well positioned to continue growing our store base and execute on our long-term objectives."
First Quarter ended March 31, 2026 Compared to Same Period of 2025
Total sales up
4.1% , comp-store sales up4.3% for the quarter. Total written business increased6.4% and comp-store written business increased7.0% for the quarter.Design consultants accounted for
35.3% of written business in 2026 and33.2% in 2025.Gross profit margins increased to
61.5% in 2026 from61.2% in 2025.SG&A expenses were
58.9% of sales versus59.0% and increased$4.1 million . The primary drivers of this change are:increase in selling expense of
$2.4 million primarily due to higher commissioned-based compensation and third-party credit costsincrease in administrative expenses of
$0.8 million primarily from increased salaries and related benefits.increase in occupancy costs of
$0.6 million related to new stores and the timing of repairs and maintenance.
Balance Sheet and Cash Flow for the Three Months Ended March 31, 2026
Cash, cash equivalents, and restricted cash equivalents at March 31, 2026 are
$114.1 million .Invested
$7.0 million in capital expenditures.Purchased approximately 91,000 shares of common stock for
$2.0 million .Paid
$5.3 million in quarterly cash dividends.No debt outstanding at March 31, 2026, and credit availability of
$80.0 million .
Expectations and Other
Our 2026 guidance includes tariffs currently in effect as of May 5, 2026. We are closely monitoring the tariff developments to manage our exposure and minimize the effects on our business.
Our expectations for gross profit margins for 2026 are between
60.5% to61.0% , unchanged from our previous guidance. Gross profit margins fluctuate quarter to quarter in relation to our promotional cadence.Fixed and discretionary expenses within SG&A for the full year of 2026 are expected to be in the
$307.0 t o$309.0 million range, unchanged from our previous guidance. Variable SG&A expenses for the full year of 2026 are anticipated to be in the18.6% to18.8% range.Our effective tax rate for 2026 is expected to be
26.0% , excluding the impact from discrete items and any new tax legislation.Planned capital expenditures for the full year of 2026 are approximately
$34.0 million , an increase from our previous guidance due to store growth.
Key Results
(amounts in millions, except per share amounts)
Results of Operations | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
Sales | $ | 189.1 | $ | 181.6 | ||||
Gross Profit | 116.2 | 111.1 | ||||||
Gross profit as a % of sales | 61.5 | % | 61.2 | % | ||||
SGA | ||||||||
Variable | 36.3 | 33.6 | ||||||
Fixed | 75.0 | 73.6 | ||||||
Total | 111.3 | 107.2 | ||||||
SGA as a % of sales | ||||||||
Variable | 19.2 | % | 18.5 | % | ||||
Fixed | 39.7 | % | 40.5 | % | ||||
Total | 58.9 | % | 59.0 | % | ||||
Pre-tax income | 6.0 | 5.3 | ||||||
Pre-tax income as a % of sales | 3.2 | % | 2.9 | % | ||||
Net income | 4.3 | 3.8 | ||||||
Net income as a % of sales | 2.3 | % | 2.1 | % | ||||
Diluted earnings per share ("EPS") | $ | 0.26 | $ | 0.23 | ||||
Other Financial and Operations Data | ||||||||
Three Months Ended March 31, | ||||||||
2026 | 2025 | |||||||
EBITDA (in millions)(1) | $ | 11.3 | $ | 9.9 | ||||
Sales per square foot | $ | 169 | $ | 162 | ||||
Average ticket | $ | 3,707 | $ | 3,314 | ||||
Liquidity Measures | |||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||
Free Cash Flow | 2026 | 2025 | Cash Returns to Shareholders | 2026 | 2025 | ||||||||||||
Operating cash flow | $ | (2.9 | ) | $ | 6.2 | Share repurchases | $ | 2.0 | $ | 2.0 | |||||||
Dividends | 5.3 | 5.2 | |||||||||||||||
Capital expenditures | (7.0 | ) | (6.1 | ) | Cash returns to shareholders | $ | 7.3 | $ | 7.2 | ||||||||
Free cash flow | $ | (9.9 | ) | $ | 0.1 | ||||||||||||
Cash at period end | $ | 114.1 | $ | 118.3 | |||||||||||||
(1) See the reconciliation of the non-GAAP metrics at the end of the release.
HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended | ||||||||
(In thousands, except per share data) | 2026 | 2025 | ||||||
Net sales | $ | 189,050 | $ | 181,567 | ||||
Cost of goods sold (exclusive of depreciation and amortization) | 72,833 | 70,484 | ||||||
Gross profit | 116,217 | 111,083 | ||||||
Expenses: | ||||||||
Selling, general and administrative | 111,277 | 107,202 | ||||||
Other income, net | (53 | ) | (158 | ) | ||||
Total expenses | 111,224 | 107,044 | ||||||
Income before interest and income taxes | 4,993 | 4,039 | ||||||
Interest income, net | 967 | 1,254 | ||||||
Income before income taxes | 5,960 | 5,293 | ||||||
Income tax expense | 1,699 | 1,515 | ||||||
Net income | $ | 4,261 | $ | 3,778 | ||||
Basic earnings per share: | ||||||||
Common Stock | $ | 0.27 | $ | 0.24 | ||||
Class A Common Stock | $ | 0.25 | $ | 0.21 | ||||
Diluted earnings per share: | ||||||||
Common Stock | $ | 0.26 | $ | 0.23 | ||||
Class A Common Stock | $ | 0.25 | $ | 0.21 | ||||
Cash dividends per share: | ||||||||
Common Stock | $ | 0.33 | $ | 0.32 | ||||
Class A Common Stock | $ | 0.31 | $ | 0.30 | ||||
HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands) | March 31, | December 31, | March 31, | |||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 107,456 | $ | 125,325 | $ | 111,941 | ||||||
Restricted cash and cash equivalents | 6,606 | 6,547 | 6,347 | |||||||||
Inventories | 106,861 | 96,155 | 88,704 | |||||||||
Prepaid expenses | 12,055 | 10,236 | 12,025 | |||||||||
Other current assets | 7,840 | 11,064 | 13,722 | |||||||||
Total current assets | 240,818 | 249,327 | 232,739 | |||||||||
Property and equipment, net | 178,693 | 177,207 | 182,002 | |||||||||
Right-of-use lease assets | 193,783 | 190,586 | 193,928 | |||||||||
Deferred income taxes | 20,786 | 19,301 | 18,001 | |||||||||
Other assets | 13,261 | 12,631 | 16,020 | |||||||||
Total assets | $ | 647,341 | $ | 649,052 | $ | 642,690 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 19,281 | $ | 15,447 | $ | 16,850 | ||||||
Customer deposits | 40,419 | 35,504 | 42,760 | |||||||||
Accrued liabilities | 36,178 | 46,531 | 32,361 | |||||||||
Current lease liabilities | 35,070 | 35,967 | 36,676 | |||||||||
Total current liabilities | 130,948 | 133,449 | 128,647 | |||||||||
Noncurrent lease liabilities | 184,168 | 180,450 | 181,065 | |||||||||
Other liabilities | 25,614 | 27,224 | 27,617 | |||||||||
Total liabilities | 340,730 | 341,123 | 337,329 | |||||||||
Stockholders' equity | 306,611 | 307,929 | 305,361 | |||||||||
Total liabilities and stockholders' equity | $ | 647,341 | $ | 649,052 | $ | 642,690 | ||||||
HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) | Three Months Ended | |||||||
2026 | 2025 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 4,261 | $ | 3,778 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 6,283 | 5,895 | ||||||
Share-based compensation expense | 2,376 | 2,080 | ||||||
Other | (1,454 | ) | (924 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Inventories | (10,706 | ) | (5,285 | ) | ||||
Customer deposits | 4,915 | 2,027 | ||||||
Other assets and liabilities | (1,211 | ) | 3,124 | |||||
Accounts payable and accrued liabilities | (7,365 | ) | (4,541 | ) | ||||
Net cash (used in) provided by operating activities | (2,901 | ) | 6,154 | |||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (6,954 | ) | (6,127 | ) | ||||
Proceeds from sale of land, property, and equipment | 21 | 5 | ||||||
Net cash used in investing activities | (6,933 | ) | (6,122 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Dividends paid | (5,309 | ) | (5,173 | ) | ||||
Common stock repurchased | (1,990 | ) | (2,000 | ) | ||||
Taxes on vested restricted shares | (677 | ) | (885 | ) | ||||
Net cash used in financing activities | (7,976 | ) | (8,058 | ) | ||||
Decrease in cash, cash equivalents, and restricted cash equivalents during the period | (17,810 | ) | (8,026 | ) | ||||
Cash, cash equivalents, and restricted cash equivalents at beginning of period | 131,872 | 126,314 | ||||||
Cash, cash equivalents, and restricted cash equivalents at end of period | $ | 114,062 | $ | 118,288 | ||||
GAAP to Non-GAAP Reconciliation
We report our financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that EBITDA is a meaningful measure to share with investors as useful information on our operating results and to provide additional information with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures we use in this release may be different from non-GAAP financial measures, including similarly titled measures, used by other companies.
Reconciliation of GAAP measures to EBITDA
Three Months Ended March 31, | ||||||||
(in thousands) | 2026 | 2025 | ||||||
Income before income taxes, as reported | $ | 5,960 | $ | 5,293 | ||||
Interest income, net | (967 | ) | (1,254 | ) | ||||
Depreciation and amortization | 6,283 | 5,895 | ||||||
EBITDA | $ | 11,276 | $ | 9,934 | ||||
Comparable Store Sales
Comparable-store or "comp-store" sales is a measure which indicates the performance of our existing stores and website by comparing the sales growth for stores and online for a particular month over the corresponding month in the prior year. Stores are considered non-comparable if they were not open during the corresponding month or if the selling square footage has been changed significantly.
Cost of Goods Sold and SG&A Expense
We include substantially all our occupancy and home delivery costs in SG&A expense as well as a portion of our warehousing expenses. Accordingly, our gross profit may not be comparable to those entities that include these costs in cost of goods sold.
We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses are comprised of selling and delivery costs. Selling expenses are primarily compensation and related benefits for our commission-based sales associates, the discount we pay for third party financing of customer sales and transaction fees for credit card usage. We do not outsource delivery, so these costs include personnel, fuel, and other expenses related to this function. Fixed and discretionary expenses are comprised of rent, depreciation and amortization and other occupancy costs for stores, warehouses and offices, and all advertising and administrative costs.
Conference Call Information
The company invites interested parties to listen to the live webcast of the conference call on May 5, 2026 at 10:00 a.m. ET at its website, ir.havertys.com. If you cannot listen live, a replay will be available on the day of the conference call at the website at approximately 1:00 p.m. ET.
About Havertys Furniture
Haverty Furniture Companies, Inc. (NYSE:HVT and HVT.A), established in 1885, is a full-service home furnishings retailer with 129 showrooms in 17 states in the Southern and Midwestern regions providing its customers with a wide selection of quality merchandise in middle to upper-middle price ranges. Additional information is available on the Company's website www.havertys.com.
Safe Harbor
This press release contains, and the conference call may contain forward-looking statements subject to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are subject to risks and uncertainties and change based on various important factors, many of which are beyond our control.
All statements in the future tense and all statements accompanied by words such as "expect," "likely," "outlook," "forecast," "preliminary," "would," "could," "should," "position," "will," "project," "intend," "plan," "on track," "anticipate," "to come," "may," "possible," "assume," and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expectations for retail and operating margins, selling square footage and capital expenditures for 2026, our liquidity position to continue to fund our growth plans, and our efforts and initiatives to execute our strategic plan.
We caution that our forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information you are cautioned not to place undue reliance on our forward-looking statements, and they should not be relied upon as a prediction of actual results. Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements include but are not limited to: competition from national, regional and local retailers of home furnishings; our ability to anticipate changes in consumer preferences; our ability to successfully implement our growth and other strategies; our ability to maintain and enhance our brand; importing merchandise from foreign sources; fluctuations and volatility in the cost of raw materials and components; our dependence on third-party producers to meet our requirements; our vendors' ability to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety; risks in our supply chain, including price, availability and quality of raw materials and components utilized in the products we sell and our ability to forecast our supply chain needs; our reliance on third-party transportation vendors for product shipments from our suppliers; the effects of labor disruptions or labor shortages; and our ability to attract and retain key employees; the rise of oil and gasoline prices; increased transportation costs; damage to one of our distribution centers; the vulnerability of our information technology infrastructure to cyber-attacks, breaches and other disruptions; changes in general domestic and international economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions, and changing government policies, laws and regulations; pending or unforeseen litigation; as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2025 and from time to time in the Company's subsequent filings with the SEC.
Forward-looking statements describe our expectations only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K, and other reports filed with the SEC.
Contact:
Havertys Furniture 404-443-2900
Tiffany Hinkle
AVP, Financial Reporting
investor.relations@havertys.com
SOURCE: Haverty Furniture Companies, Inc.
View the original press release on ACCESS Newswire