HAVERTY FURNITURE COMPANIES INC
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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.
Jun 30, 2026 · Filed Aug 4, 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 2026-03-31; filed 2026-05-06.
0001628280-26-031027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001628280-26-052652
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 66 previous paragraphs and 75 current paragraphs.
53 unchanged; 10 reworded; 11 added; 3 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 (11)
Current report
On February 24, 2026, the administration imposed a 10% tariff under Section 122 of the Trade Act of 1974 impacting nearly all goods imported into the United States. By law, the Section 122 tariffs may only be in place for 150 days, resulting in their expiration on July 24, 2026. On July 24, 2026, new tariffs ranging from 10% to 12.5% on imports from approximately 60 countries took effect under Section 301 of the Trade Act of 1974. These tariffs apply to goods from countries from which the Company sources its merchandise, including Vietnam.
Current report
To address refunds related to the invalidated IEEPA tariffs, on April 20, 2026, U.S. Customs and Border Protection ("CBP") launched the Consolidated Administration and Processing of Entries ("CAPE") system to process refund claims. The Company submitted refund claims for direct vendor purchases through CAPE that were received in June 2026.
Current report
For the six month period ended June 30, 2026, net sales increased $21.4 million, or 5.9% compared to the prior year comparable period. Comp-store sales increased $22.0 million or 6.2%, in the first six months ended June 30, 2026 compared to the same period in 2025. Written business for the first six months of 2026 increased 9.5% and comp-store written business increased 9.6% compared to the same prior year period.
Current report
For the six months ended June 30, 2026, design consultants contributed to 35.9% of our total written business, with an average written ticket of $8,573, compared to 33.3% and an average written ticket of $7,525 for the same prior year period.
Current report
Gross profit margin for the second quarter of 2026 was 61.4%, up 60 basis points from 60.8% in the prior-year comparable period. For the six months ended June 30, 2026, gross profit margin was 61.4% up 40 basis points compared to 61.0% for the same period in 2025. The gross margin improvement in both periods was driven by product selection, merchandise pricing and mix, and the receipt of $1.5 million in IEEPA tariff refunds in June 2026.
Current report
SG&A expenses as a percentage of sales for the first six months of 2026 were 58.4% compared to 59.2% for the same period in 2025, primarily due to improved leveraging of fixed and discretionary expenses on higher sales volume. SG&A expenses increased $9.9 million, or 4.6%, primarily due to increases in selling and administrative expenses. Selling expenses increased $5.5 million due to higher third-party credit costs and sales commissions, consistent with the increase in net sales. Administrative expenses increased $3.6 million due to higher salaries, performance-based incentive compensation and related benefits.
Current report
Interest Income, Net
Current report
Interest income, net of interest expense, decreased $0.6 million in the second quarter of 2026 and $0.9 million in the six months ended June 30, 2026, compared to the prior year comparable periods, primarily due to lower rates paid on cash, cash equivalents, and restricted cash equivalents.
Current report
Provision for Income Taxes
Current report
Our effective tax rate for the six months ended June 30, 2026 and 2025 was 28.5% and 32.8%, respectively. See Note I, “Income Taxes” of the Notes to Condensed Consolidated Financial Statements for further information about our income taxes.
Current report
Financing Activities. Cash used in financing activities in the first six months of 2026 increased $14.9 million compared to first six months of 2025 primarily due to higher share repurchases, including a $13.9 million purchase resulting from a privately negotiated transaction.
Removed paragraphs (3)
Previous report
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 report
Financing Activities. Cash used in financing activities in the first three months of 2026 were comparable to the first three months of 2025.
Previous report
In April 2026, we opened our 129th store in the St. Louis, MO market.
Reworded paragraphs (10)
Previous wording
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 wording
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, tariffs that had been imposed under the International Emergency Economic Powers Act ("IEEPA tariffs") were invalidated following a ruling by the U.S. Supreme Court, adding further uncertainty to the trade environment.
Previous 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.
Current wording
Havertys is a leading specialty retailer of residential furniture and accessories, founded in 1885 in Atlanta, Georgia. As of June 30, 2026, we operated 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, 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 exceptional customer service.
Previous 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%.
Current wording
In the second quarter of 2026, net sales increased $13.9 million, or 7.7%, 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. Comp-store sales increased $14.2 million, or 8.0%, in the second quarter of 2026 compared to the same period in 2025. Written business for the second quarter of 2026 was up 12.6% and comp-store written business was up 12.3% compared to the second quarter of 2025.
Previous 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.
Current wording
Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 36.5% of our total written business for the second quarter of 2026, compared to 33.4% of total written business for the same period in 2025, with a higher average written ticket of $8,835, compared to $7,631 for the same period in 2025.
Previous 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.
Current wording
SG&A expenses as a percentage of sales for the second quarter of 2026 were 58.0% compared to 59.3% for the same period in 2025. The decrease as a percentage of sales was primarily due to improved leveraging of fixed and discretionary expenses on higher sales volume. SG&A expenses increased $5.8 million, or 5.4%, primarily due to higher selling and administrative costs. Selling expenses increased $3.1 million due to higher third-party credit costs and sales commissions, consistent with the increase in net sales. Administrative expenses increased $2.8 million, due to higher salaries, performance-based incentive compensation and related benefits.
Previous 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.
Current wording
The variable expenses in dollars were higher in the second quarter and first half of 2026 compared to the same periods in 2025, primarily driven by higher commission expense resulting from increased sales. Fixed and discretionary expenses increased in the second quarter and first half of 2026 due to increases in administrative expenses compared to the prior year comparable periods.
Previous 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.
Current wording
At June 30, 2026, we had $104.3 million in cash and cash equivalents, and $6.7 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, 2026 was $126.7 million and the net availability was $80.0 million.
Current wording
In June 2026, we entered into the Sixth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures June 29, 2031, provides for a $100.0 million revolving credit facility. The borrowing base at June 30, 2026 was $137.4 million and the net availability was $100.0 million.
Previous 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.
Current wording
Net cash provided by operating activities was $21.4 million in the first six months of 2026, compared to $13.4 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 higher customer deposits in 2026 compared to 2025, offset by a lower inventory increase and higher prepaid expenses 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 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.
Current wording
Investing Activities. Cash used in investing activities increased by $1.4 million in the first six months of 2026 compared to the first six months of 2025, due to higher capital expenditures.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We continue to actively monitor tariff developments and assess their potential impact on our business.