HAVERTY FURNITURE COMPANIES INC
For the period ended Mar 31, 2026. Filed May 6, 2026.
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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.
Mar 31, 2026 · Filed May 6, 2026
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 2025-09-30; filed 2025-10-31.
0001628280-25-047712
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001628280-26-031027
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 70 previous paragraphs and 66 current paragraphs.
35 unchanged; 17 reworded; 13 added; 16 removed; 2 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 (13)
Current report
•our ability to locate our stores in suitable locations to attract customers;
Current report
•our reliance on information technology and any disruptions in our IT systems;
Current report
•certain risks may not be fully covered by insurance;
Current report
•failure to protect our intellectual property;
Current report
•our ability to comply with all applicable laws and regulations;
Current report
•natural disasters, public health events, geopolitical instability or other disruptive events; and
Current report
Industry Overview
Current report
The retail residential furniture industry is influenced by the overall strength of the economy, new and existing home sales, consumer confidence, spending on large ticket items, interest rates, and the availability of credit. The industry continues to face headwinds from rising consumer debt, constrained housing inventory, tight access to home mortgage credit, and ongoing economic uncertainty driven by changes in tariff policy and geopolitical tensions, including rising oil and raw material prices.
Current report
Throughout 2025, the U.S. presidential administration announced new and modified tariffs on imported goods, including those sourced from China, Vietnam, and other key manufacturing regions. In response, several affected countries implemented retaliatory tariffs, adding economic uncertainty and increased cost pressures across the industry. On February 20, 2026, certain tariffs were invalidated following a ruling by the U.S. Supreme Court, adding further uncertainty to the trade environment. On April 20, 2026, U.S. Customs and Border Protection ("CBP") launched the Centralized Automated Processing of Entries ("CAPE") system, a new system CBP is using to process refund claims for IEEPA tariffs on imported goods. The Company has submitted refund claims through CAPE with respect to products on which it paid IEEPA tariffs. We continue to actively monitor tariff developments and assess their potential impact on our business.
Current report
Business Overview
Current report
Financing Activities. Cash used in financing activities in the first three months of 2026 were comparable to the first three months of 2025.
Current report
Store Plans
Current report
In April 2026, we opened our 129th store in the St. Louis, MO market.
Removed paragraphs (16)
Previous report
Impact of tariffs imposed by the U.S government
Previous report
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 report
In the first quarter of 2025, the U.S. government announced new tariffs on imported goods. A 90-day pause
Previous report
on escalating tariffs (excluding China), was implemented in April 2025 and expired on August 1, 2025.
Previous 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. 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 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.
Previous 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.
Previous report
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.
Previous report
Overview
Previous report
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 report
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 report
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 report
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 report
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.
Previous report
Store Plans and Capital Expenditures
Previous report
We opened our Houston, TX location in October and anticipate ending 2025 with 129 stores.
Reworded paragraphs (17)
Previous wording
•importing merchandise from foreign sources (including the impact of tariffs);
Current wording
•importing a substantial portion of our merchandise from foreign sources (including the impact of tariffs);
Previous wording
•fluctuations and volatility in the cost of raw materials and components;
Current wording
•significant fluctuations and volatility in the cost of raw materials and components;
Previous wording
•our vendors' ability to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety;
Current wording
•a failure by our vendors to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety;
Previous wording
•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 wording
•changes in economic conditions such as consumer disposable income, fuel prices, inflation rates, recession and fears of recession, unemployment rates, interest rates, tax rates, consumer confidence, and changing government policies, laws and regulations;
Previous wording
•and other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission filings.
Current wording
•other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission filings.
Previous wording
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 wording
Havertys is a leading specialty retailer of residential furniture and accessories, founded in 1885 in Atlanta, Georgia. As of March 31, 2026, we operated 128 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, which includes a detailed inspection of the product prior to delivery, as well as placement and assembly of the furniture in the customer's home. We are recognized in our markets for offering high-quality, fashionable products and delivering exception customer service.
Previous wording
Our sales are generated by customer purchases of home furnishings. Revenue is recognized upon delivery to the customer. Comparable-store or “comp-store” sales is a measure which indicates the performance of our existing stores and website by comparing the growth in sales in store 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 in the prior year or if the selling square footage has been changed significantly. The method we use to compute comp-store sales may not be the same method used by other retailers. We record our sales when the merchandise is delivered to the customer. We also track “written sales” and “written comp-store sales,” which represent customer orders prior to delivery. As a retailer, comp-store sales and written comp-store sales are an indicator of relative customer spending and store performance. Comp-store sales, total written sales and written comp-store sales are intended only as supplemental information and none are substitutes for net sales presented in accordance with U.S. GAAP.
Current wording
Our sales are generated by customer purchases of merchandise and related fees, net of expected returns and sales tax. We record our sales when merchandise is delivered to the customer. Comparable-store or “comp-store” sales is a measure which indicates the performance of our existing stores and website by comparing the growth in sales in store 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 in the prior year or if the selling square footage has been changed significantly. The method we use to compute comp-store sales may not be the same method used by other retailers.
Previous 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.)
Current wording
The following table outlines the changes in our sales and comp-store sales for the periods indicated.
Previous 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%.
Current wording
Net sales for the first quarter of 2026 increased $7.7 million, or 4.1%, compared to the same period in 2025. 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 $7.7 million, or 4.3%, in the first quarter of 2026 compared to the same period in 2025. Written business for the first quarter of 2026 was up 6.4% compared to the first quarter of 2025, and comp-store written business was up 7.0%.
Previous 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.
Current wording
Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 35.3% of our total written sales for the first quarter of 2026, compared to 33.2% of total written sales for the same period in 2025, with a higher average written ticket of $8,312, compared to $7,439 for the same period in 2025.
Previous 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.
Current wording
Gross profit margin for the first quarter of 2026 was 61.5%, up 30 basis points compared to the prior year period of 61.2%. The increase is primarily due to product selection, merchandise pricing and mix.
Previous 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.
Current wording
Our SG&A expenses as a percentage of sales for the first quarter of 2026 were 58.9% compared to 59.0% for the same period in 2025. SG&A expenses increased $4.1 million, or 3.8%, primarily due to higher selling, administrative, and occupancy costs. Selling expenses increased $2.4 million primarily due to third-party credit costs, sales commission and related benefit costs, consistent with the increase in net sales. Administrative expenses increased $0.8 million, driven by higher salaries and related benefits. Occupancy costs increased $0.6 million, largely due to costs associated with new store openings and the timing of repairs and maintenance.
Previous wording
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 wording
The variable expenses in dollars were higher in the first quarter of 2026 compared to the same period in 2025, primarily driven by higher commission expense resulting from increased sales. Fixed and discretionary expenses increased in the first quarter of 2026 due to increases in occupancy costs, advertising, and administrative expenses compared to the prior year comparable period.
Previous 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.
Current wording
At March 31, 2026, we had $107.5 million in cash and cash equivalents, and $6.6 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 September 30, 2025 was $133.9 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 March 31, 2026 was $126.7 million and the net availability was $80.0 million.
Previous 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.
Current wording
Net cash used in operating activities was $2.9 million in the first three months of 2026, compared to $6.2 million provided by operating activities during the same period in 2025. This difference resulted primarily from changes in working capital. Working capital was primarily impacted by a higher inventory increase in 2026 compared to 2025, changes in other assets and liabilities, and the timing of vendor payments and cash receipts.
Previous 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.
Current wording
Investing Activities. Cash used in investing activities increased by $0.8 million in the first three months of 2026 compared to the first three months of 2025, due to higher capital expenditures.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We also track “written sales” and “written comp-store sales,” which represent customer orders prior to delivery. As a retailer, comp-store sales and written comp-store sales are an indicator of relative customer spending and store performance. Comp-store sales, total written sales and written comp-store sales are intended only as supplemental information and none are substitutes for net sales presented in accordance with U.S. GAAP.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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.