HAVERTY FURNITURE COMPANIES INC
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
HVT$25.14-3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001628280-25-021749
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001628280-25-037688
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 38 previous paragraphs and 64 current paragraphs.
21 unchanged; 14 reworded; 11 added; 2 removed; 1 previous and 18 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Forward-Looking Statements and Risk Factors
Current report
•importing merchandise from foreign sources (including the impact of tariffs);
Current report
•increased transportation costs;
Current report
•pending or unforeseen litigation;
Current report
on escalating tariffs (excluding China), was implemented in April 2025 and expired on August 1, 2025.
Current report
On July 31, 2025, the Trump administration announced significant modifications to the United States’ global tariff framework through a series of executive orders. Effective August 7, 2025, the U.S. will impose new tariff rates ranging from 10% to 41% on imports from over 67 countries. The baseline tariff of 10% remains in place for countries with which the U.S. maintains a trade surplus. Countries that have entered into recent trade agreements with the U.S.—including the European Union—will be subject to a negotiated 15% tariff rate. Other countries, including Cambodia, Indonesia and Vietnam, have agreed to rates between 19% and 20%. Tariffs for Chinese goods, currently set at 55%, are part of ongoing discussions with the U.S. administration. Countries that have not engaged in negotiations or failed to meet the administration’s expectations face significantly higher tariffs. For example, Canada will see tariffs on certain non-compliant goods rise from 25% to 35%, following a determination that it has not sufficiently adhered to the terms of the U.S.-Mexico-Canada Agreement. The Company continues to assess the impact of these tariff changes on its supply chain and cost structure. While the full implications remain uncertain, management is actively monitoring developments and evaluating mitigation strategies.
Current report
Net sales for the six months ended June 30, 2025 were comparable to the same period in 2024. Our comp-store sales decreased $12.8 million or 3.5%, in the first six months ended June 30, 2025 compared to the same period in 2024. Written business for the first six months of 2025 decreased 1.2% compared to the same prior year period. Comp-store written business was down 4.3%.
Current report
For the six months ended June 30, 2025, design consultants contributed to 33.3% of our total written sales, with an average written ticket of $7,525, compared to 34.1% and an average written ticket of $7,015 for the same prior year period.
Current report
Gross profit margin for the first six months ended June 30, 2025 was 61.0%, up 60 basis points compared 60.4% for the same period in 2024, primarily due to product selection, merchandise pricing and mix.
Current report
Our SG&A expenses as a percentage of sales for the second quarter of 2025 were 59.3% compared to 57.7% for the same period in 2024. SG&A expenses increased $4.2 million, or 4.1%, primarily due to increases in administrative, occupancy, and advertising and marketing costs, partially offset by decreases in warehouse and delivery expenses. Administrative expenses increased $3.4 million, driven by higher salaries, performance-based incentive compensation, and stock-based compensation. Occupancy costs increased $1.5 million, primarily due to costs associated with new store openings. Advertising and marketing costs increased $1.1 million, primarily due to higher television and interactive marketing spend. These increases were partially offset by a $1.1 million decrease in warehouse and delivery costs, driven by lower salaries and related benefits due to lower headcount.
Current report
Our SG&A expenses as a percentage of sales for the first six months of 2025 were 59.2% compared to 58.6% for the same period in 2024. SG&A expenses increased $2.1 million, or 1.0%, primarily due to increases in administrative and occupancy costs, partially offset by decreases in warehouse and delivery, and selling expenses. Administrative expenses increased $4.5 million due to higher salaries, performance-based incentive compensation, and stock-based compensation. Occupancy costs increased $3.1 million, largely due to costs associated with new store openings. These increases were offset by a $2.8 million decrease in warehouse and delivery costs, primarily due to lower salaries and related benefits, and a $2.7 million reduction in selling expenses due to lower third-party creditor cost.
Removed paragraphs (2)
Previous report
Forward-Looking Statements
Previous report
Our SG&A costs as a percent of sales for the first quarter of 2025 were 59.0% versus 59.4% for the same period in 2024, largely due to decreased sales. SG&A dollars decreased $2.2 million, or 2.0%, for the first quarter of 2025 compared to the same prior year period. The change is driven by lower costs in selling expense of $2.0 million due to lower-commissioned based compensation and third-party creditor costs, lower warehouse and delivery costs of $1.7 million, and lower advertising and marketing costs of $1.1 million, aligning with the reduction of sales. Occupancy costs were $1.6 million higher, primarily due to costs associated with new stores. Administrative expenses increased $1.0 million due to increased salaries and stock compensation costs.
Reworded paragraphs (14)
Previous wording
Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology including “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Forward-looking statements are by nature inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. These risks and uncertainties 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; and other risks and uncertainties as may be detailed from time to time in our public announcements and Securities an…
Excerpt shortened here; the source contains the full paragraph.
Current wording
Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology including “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements.
Previous wording
As disclosed in "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024, we are subject to political and economic risks inherent in global sourcing, including tariffs and other import measures put in place by the United States ("U.S."). Beginning in the first quarter of 2025, the U.S. government announced additional tariffs on imported goods. The U.S. government has indicated that it is willing to negotiate the tariffs with other countries, and in April 2025, implemented a 90-day pause of escalating tariffs for nearly all U.S. trading partners (excluding China). We are closely monitoring the negotiations and proactively evaluating the impact of the tariffs to minimize the effect on our business.
Current wording
As disclosed in "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024, we are subject to political and economic risks inherent in global sourcing, including tariffs and other import measures put in place by the United States ("U.S.").
Previous wording
The following table outlines the changes in our sales and comp-store sales for the periods indicated.
Current wording
The following table outlines the changes in our sales and comp-store sales for the periods indicated. (Amounts and percentages may not always add to totals due to rounding.)
Previous wording
Net sales for the first quarter of 2025 decreased $2.4 million, or 1.3%, compared to the same period in 2024. Our comp-store sales decreased $8.8 million, or 4.8%, in the first quarter of 2025 compared to the same period in 2024. A weak housing market, inflationary pressures, and cautious consumer spending due to economic uncertainty continue to suppress the demand for home furnishings. In the first quarter of 2025, our business was also impacted by atypical winter weather in the South. Written business for the first quarter of 2025, compared to the first quarter of 2024, was down 2.6%, and written comp-store sales were down 6.3%.
Current wording
Net sales for the second quarter of 2025 increased $2.4 million, or 1.3%, compared to the same period in 2024. This growth was achieved despite continued pressure from a soft housing market and cautious consumer spending due to economic uncertainty, which continues to create a challenging demand environment for the home furnishings industry. Our comp-store sales decreased $4.0 million, or 2.3%, in the second quarter of 2025 compared to the same period in 2024. Written business for the second quarter of 2025 was up 0.4% compared to the second quarter of 2024, and comp-store written business was down 2.1%.
Previous wording
Our free in-home design service has experienced an increase in customer engagement. Design consultants helped drive 33.2% of our total written sales for the first quarter of 2025, with an average written ticket of $7,422, up from 32.4% and an average written ticket of $6,782 for the same period in 2024.
Current wording
Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 33.4% of our total written sales for the second quarter of 2025, compared to 36.0% for the same period in 2024, with a higher average written ticket of $7,631, compared to $7,260 for the same period in 2024.
Previous wording
Gross profit margin for the first quarter of 2025 was 61.2%, up 90 basis points compared to the prior year period of 60.3%. The increase is primarily due to product selection and merchandising mix.
Current wording
Gross profit margin for the second quarter of 2025 was 60.8%, up 40 basis points compared to the prior year period of 60.4%. The increase is primarily due to product selection, merchandise pricing and mix.
Previous wording
The variable expenses in dollars were lower in the first quarter of 2025 compared to the same period in 2024, primarily due to decreases in third-party credit costs.
Current wording
The variable expenses in dollars were lower in the second quarter of 2025 and for the first six months of 2025 compared to the same period in 2024, primarily due to decreases in third-party credit costs.
Previous wording
Fixed and discretionary expenses increased in the first quarter of 2025 primarily due to increases in occupancy costs and administrative expenses compares to the prior year quarter.
Current wording
Fixed and discretionary expenses increased in the second quarter of 2025 and for the first six months of 2025 primarily due to increases in occupancy costs and administrative expenses compared to the prior year comparable periods.
Previous wording
At March 31, 2025, we had $111.9 million in cash and cash equivalents, and $6.3 million in restricted cash equivalents. We believe that our current cash position, cash flow generated from operations, funds available from our credit agreement, and access to the long-term debt capital markets should be sufficient for our operating requirements and enable us to fund our capital expenditures, dividend payments, and lease obligations through the next several years. In addition, we believe we have the ability to obtain alternative sources of financing, if needed.
Current wording
At June 30, 2025, we had $107.4 million in cash and cash equivalents, and $6.4 million in restricted cash equivalents. We believe that our current cash position, cash flow generated from operations, funds available from our credit agreement, and access to the long-term debt capital markets should be sufficient for our operating requirements and enable us to fund our capital expenditures, dividend payments, and lease obligations through the next several years. In addition, we believe we have the ability to obtain alternative sources of financing, if needed.
Previous wording
In October 2022, we entered into the Fourth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures October 24, 2027, provides for a $80.0 million revolving credit facility. The borrowing base at March 31, 2025 was $106.8 million and the net availability was $80.0 million.
Current wording
In October 2022, we entered into the Fourth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures October 24, 2027, provides for a $80.0 million revolving credit facility. The borrowing base at June 30, 2025 was $109.3 million and the net availability was $80.0 million.
Previous wording
Net cash provided by operating activities was $6.2 million in the first three months of 2025 compared to $3.1 million during the same period in 2024. This difference resulted primarily from an increase in net income and changes in working capital. Working capital was primarily impacted by increased inventories in 2025 compared to a reduction in 2024, changes in operating lease assets and liabilities, and the timing of other payments and cash receipts.
Current wording
Net cash provided by operating activities was $13.4 million in the first six months of 2025 compared to $17.5 million during the same period in 2024. This difference resulted primarily from changes in working capital. Working capital was primarily impacted by increased inventories in 2025 compared to a reduction in 2024, reduced customer deposits, changes in operating lease assets and liabilities, and the timing of other payments and cash receipts.
Previous wording
Investing Activities. Cash used in investing activities decreased by$0.2 million in the first three months of 2025 compared to the first three months of 2024, due to lower capital expenditures.
Current wording
Investing Activities. Cash used in investing activities decreased by $4.2 million in the first six months of 2025 compared to the first six months of 2024, due to lower capital expenditures.
Previous wording
Financing Activities. Cash used in financing activities increased $1.4 million in the first three months of 2025 compared to the first three months of 2024 due to common stock repurchases. In the first three months of 2025, common stock repurchases totaled $2.0 million. There were no repurchases in the first three months of 2024.
Current wording
Financing Activities. Cash used in financing activities increased $0.9 million in the first six months of 2025 compared to the first six months of 2024 due to common stock repurchases, offset by a decrease in taxes on vested shares. In the first six months of 2025, common stock repurchases totaled $2.0 million. There were no repurchases in the first six months of 2024. Dividends paid were comparable in 2025 and 2024.
Previous wording
To minimize the impact of increased tariffs, we are reevaluating our store plans and capital expenditures for 2025. Assuming the new stores open as planned, we will end 2025 with 129 stores.
Current wording
Assuming the new stores open as planned, we will end 2025 with 129 stores.
Rearranged current paragraphs (18)
Current report — wording carried from elsewhere
All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Forward-looking statements are by nature inherently uncertain and involve known and unknown risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. These risks and uncertainties include, but are not limited to:
Current report — wording carried from elsewhere
•competition from national, regional and local retailers of home furnishings;
Current report — wording carried from elsewhere
•our ability to anticipate changes in consumer preferences;
Current report — wording carried from elsewhere
•our ability to successfully implement our growth and other strategies;
Current report — wording carried from elsewhere
•our ability to maintain and enhance our brand;
Current report — wording carried from elsewhere
•fluctuations and volatility in the cost of raw materials and components;
Current report — wording carried from elsewhere
•our dependence on third-party producers to meet our requirements;
Current report — wording carried from elsewhere
•our vendors' ability to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety;
Current report — wording carried from elsewhere
•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;
Current report — wording carried from elsewhere
•our reliance on third-party transportation vendors for product shipments from our suppliers;
Current report — wording carried from elsewhere
•the effects of labor disruptions or labor shortages; and our ability to attract and retain key employees;
Current report — wording carried from elsewhere
•the rise of oil and gasoline prices;
Current report — wording carried from elsewhere
•damage to one of our distribution centers;
Current report — wording carried from elsewhere
•the vulnerability of our information technology infrastructure to cyber-attacks, breaches and other disruptions;
Current report — wording carried from elsewhere
•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;
Current report — wording carried from elsewhere
•and other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission filings.
Current report — wording carried from elsewhere
Further information on the risks and uncertainties that could cause our actual results to differ from these forward-looking statements are described in "Item 1A. Risk Factors" of our Form 10-K for 2024 and in the subsequent reports we file with the Securities and Exchange Commission. Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties contained therein. All forward‑looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report except as required by law. We intend for any forward-looking statements to be covered by, and we claim the protection under, the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Current report — wording carried from elsewhere
In the first quarter of 2025, the U.S. government announced new tariffs on imported goods. A 90-day pause
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
We intend for any forward-looking statements to be covered by, and we claim the protection under, the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.