HAVERTY FURNITURE COMPANIES INC
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
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.
Sep 30, 2025 · Filed Oct 31, 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 2025-06-30; filed 2025-08-05.
0001628280-25-037688
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001628280-25-047712
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 64 previous paragraphs and 70 current paragraphs.
47 unchanged; 16 reworded; 6 added; 1 removed; 0 previous and 1 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 (6)
Current report
On September 9, 2025, the U.S. Supreme Court agreed to hear a case challenging the legality of tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”), which formed the basis for certain reciprocal and global tariffs announced earlier this year, including those referenced above. Oral arguments are scheduled for the week of November 3, 2025. The Supreme Court’s decision could have significant implications for the scope of presidential authority to impose tariffs under IEEPA. Tariffs imposed under other statutory authorities, such as Section 232 and Section 301, are not directly at issue in this case.
Current report
On September 26, 2025, the U.S. announced new tariffs under Section 232 of the Trade Expansion Act of 1962 on a range of wood-based products, citing national security concerns (referred to here as the IEEPA Tariffs). These tariffs include a 25% tariff on upholstered furniture with wooden components effective October 14, 2025, which increases to 30% on January 1, 2026. Certain countries, including the United Kingdom, the European Union, and Japan, have negotiated capped rates of 10%–15%, but most other countries, including Vietnam and Mexico, are subject to the full tariff rates. Effective October 14, 2025, tariffs on upholstered goods from China increased to 70%, and will increase to 75% on January 1, 2026. To the extent a product is subject to both the IEEPA Tariffs and the Upholstered Wood Tariffs, only the Upholstered Wood Tariffs apply.
Current report
Overview
Current report
Havertys is a leading specialty retailer of residential furniture and accessories, founded in 1885 in Atlanta, Georgia. We operate 129 stores in 17 states throughout the Southern and Midwestern regions of the U.S. Our products are selected to appeal to a middle to upper-middle income consumer across a variety of styles. We have a seasoned, commission-based sales team, and offer free design services to customers seeking a more in-depth personalized experience. Unlike many competitors, we do not outsource delivery; instead, our Havertys delivery team ensures a seamless and professional delivery experience. We are recognized as a provider of high-quality fashionable products and exceptional customer service in the markets we serve.
Current report
The variable expenses in dollars were higher in the third quarter of 2025 compared to the same period in 2024, primarily driven by higher commission expenses resulting from increased sales.
Current report
We opened our Houston, TX location in October and anticipate ending 2025 with 129 stores.
Removed paragraphs (1)
Previous report
Assuming the new stores open as planned, we will end 2025 with 129 stores.
Reworded paragraphs (16)
Previous wording
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 wording
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. imposed 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 are 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.
Previous 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%.
Current wording
Net sales for the third quarter of 2025 increased $18.6 million, or 10.6%, compared to the same period in 2024. This growth was achieved despite continued pressure from a soft housing market which creates a challenging demand environment for the home furnishings industry. Our comp-store sales increased $12.5 million, or 7.1%, in the third quarter of 2025 compared to the same period in 2024. Written business for the third quarter of 2025 was up 10.0% compared to the third quarter of 2024, and comp-store written business was up 8.0%.
Previous wording
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 wording
Net sales for the nine months ended September 30, 2025 increased $18.5 million, or 3.4% compared to the same period in 2024. Our comp-store sales decreased $0.2 million or 0.1%, in the first nine months ended September 30, 2025 compared to the same period in 2024. Written business for the first nine months of 2025 increased 2.6% compared to the same prior year period. Comp-store written business was down 0.2%.
Previous 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.
Current wording
Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 34.2% of our total written sales for the third quarter of 2025, compared to 34.5% of total written sales for the same period in 2024, with a higher average written ticket of $7,986, compared to $7,312 for the same period in 2024.
Previous wording
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 wording
For the nine months ended September 30, 2025, design consultants contributed to 33.6% of our total written sales, with an average written ticket of $7,689, compared to 34.2% of our total written sales and an average written ticket of $7,194 for the same prior year period.
Previous 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.
Current wording
Gross profit margin for the third quarter of 2025 was 60.3%, up 10 basis points compared to the prior year period of 60.2%. The increase is primarily due to product selection, merchandise pricing and mix.
Previous wording
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 wording
Gross profit margin for the first nine months ended September 30, 2025 was 60.8%, up 50 basis points compared 60.3% for the same period in 2024, primarily due to product selection, merchandise pricing and mix.
Previous wording
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 wording
Our SG&A expenses as a percentage of sales for the third quarter of 2025 were 57.8% compared to 57.4% for the same period in 2024. SG&A expenses increased $11.4 million, or 11.3%, primarily due to higher administrative, advertising and marketing, selling, and occupancy costs. Administrative expenses increased $3.8 million, driven by higher salaries, performance-based incentive compensation, and stock-based compensation. Advertising and marketing costs increased $2.8 million, due to increased costs for television and direct mail production. Selling expenses increased $2.7 million primarily due to sales commission and related benefit costs, consistent with the increase in net sales. Occupancy costs increased $1.4 million, largely due to costs associated with new store openings and the timing of repairs and maintenance.
Previous wording
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.
Current wording
Our SG&A expenses as a percentage of sales for the first nine months of 2025 were 58.7% compared to 58.2% for the same period in 2024. SG&A expenses increased $13.5 million, or 4.3%, primarily due to higher administrative, advertising and marketing, and occupancy costs. Administrative expenses increased $8.3 million due to higher salaries, performance-based incentive compensation, and stock-based compensation. Advertising and marketing costs increased $2.8 million, due to increased costs for television and direct mail production. Occupancy costs increased $4.5 million, largely due to costs associated with new store openings.
Previous 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.
Current wording
The variable expenses in dollars were lower in the first nine months of 2025 compared to the same period in 2024 primarily due to lower third-party credit costs offset by higher commission expense.
Previous 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.
Current wording
Fixed and discretionary expenses increased in the third quarter of 2025 and for the first nine months of 2025 primarily due to increases in occupancy costs, advertising, and administrative expenses compared to the prior year comparable periods.
Previous 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.
Current wording
At September 30, 2025, we had $130.5 million in cash and cash equivalents, and $6.5 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 June 30, 2025 was $109.3 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 September 30, 2025 was $133.9 million and the net availability was $80.0 million.
Previous 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.
Current wording
Net cash provided by operating activities was $45.3 million in the first nine months of 2025 compared to $42.0 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, 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 $4.2 million in the first six months of 2025 compared to the first six months of 2024, due to lower capital expenditures.
Current wording
Investing Activities. Cash used in investing activities decreased by $8.6 million in the first nine months of 2025 compared to the first nine months of 2024, due to lower capital expenditures.
Previous 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.
Current wording
Financing Activities. Cash used in financing activities increased $0.8 million in the first nine months of 2025 compared to the first nine months of 2024 due to common stock repurchases, offset by a decrease in taxes on vested shares. In the first nine months of 2025, common stock repurchases totaled $2.0 million. There were no repurchases in the first nine months of 2024. Dividends paid in 2025 were comparable to those distributed in 2024.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
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.