HAVERTY FURNITURE COMPANIES INC
For the period ended Sep 30, 2026. Filed Nov 4, 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.
Sep 30, 2026 · Filed Nov 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 2026-06-30; filed 2026-08-04.
0001628280-26-052652
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001628280-26-070140
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 75 previous paragraphs and 74 current paragraphs.
53 unchanged; 18 reworded; 3 added; 4 removed; 0 previous and 0 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 (3)
Current report
Since late February 2026, the conflict in Iran has resulted in heightened volatility in fuel prices and elevated geopolitical uncertainty. Historically, such conditions have resulted in supply chain disruptions, rising operational expenses, and adverse impacts on consumer spending.
Current report
We will continue to monitor developments related to tariffs, geopolitical events, and associated uncertainties, assess their potential impact on the Company, and make appropriate sourcing and pricing decisions to minimize any impacts on our financial condition and results of operations.
Current report
IT Infrastructure Purchase Commitments - In the third quarter of 2026 we executed non-cancellable purchase agreements totaling approximately $9.9 million, exclusive of applicable taxes, to replace our enterprise storage and server infrastructure and to upgrade the network equipment of our stores, including associated software licenses and support services. Delivery is expected in October 2026 and January 2027, with payment due in the first quarter of 2027. We expect to fund these commitments with cash on hand. As of September 30, 2026, no amounts related to these commitments have been recognized in the condensed consolidated balance sheet.
Removed paragraphs (4)
Previous report
We continue to actively monitor tariff developments and assess their potential impact on our business.
Previous report
Cash and Cash Equivalents
Previous report
Long-Term Debt
Reworded paragraphs (18)
Previous wording
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 wording
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, elevated interest rates and ongoing economic uncertainty driven by tariff policy and geopolitical tensions, including rising oil and raw material prices.
Previous wording
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 wording
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 through CAPE for both direct and indirect vendor purchases. We recognized approximately $1.5 million in direct and indirect purchase refunds as a reduction of cost of goods sold during the second quarter of 2026 and approximately $3.2 million during the third quarter of 2026, for a year-to-date total of approximately $4.7 million.
Previous 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.
Current wording
In the third quarter of 2026, net sales increased $8.7 million, or 4.5%, 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 $7.8 million, or 4.1%, in the third quarter of 2026 compared to the same period in 2025. Written business for the third quarter of 2026 grew 2.8% year-over-year and comp-store written business grew 2.3% compared to the prior year quarter.
Previous wording
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 wording
For the nine month period ended September 30, 2026, net sales increased $30.1 million, or 5.4% compared to the prior year comparable period. Comp-store sales increased $29.8 million or 5.4%, in the first nine months ended September 30, 2026 compared to the same period in 2025. Written business for the first nine months of 2026 increased 7.0% and comp-store written business increased 6.9% compared to the same prior year period.
Previous 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.
Current wording
Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 34.6% of our total written business for the third quarter of 2026, compared to 34.2% of total written business for the same period in 2025, with a higher average written ticket of $8,549, compared to $7,986 for the same period in 2025.
Previous wording
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 wording
For the nine months ended September 30, 2026, design consultants contributed to 35.4% of our total written business, with an average written ticket of $8,565, compared to 33.6% and an average written ticket of $7,689 for the same prior year period.
Previous wording
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 wording
Gross profit margin for the third quarter of 2026 was 62.3%, up 200 basis points from 60.3% in the prior-year comparable period. For the nine months ended September 30, 2026, gross profit margin was 61.7% up 90 basis points compared to 60.8% 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 IEEPA tariff refunds. During the third quarter of 2026, the Company recognized approximately $3.2 million in IEEPA tariff refunds within its condensed consolidated statements of comprehensive income, bringing the year-to-date total to approximately $4.7 million.
Previous 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.
Current wording
SG&A expenses as a percentage of sales for the third quarter of 2026 were 58.6% compared to 57.8% for the same period in 2025. The 80 basis point increase was primarily driven by higher administrative expenses not fully leveraged against the corresponding level of net sales. SG&A expenses increased $6.7 million, or 6.0%, primarily due to higher selling and administrative costs. Selling expenses increased $1.8 million due to higher third-party credit costs and sales commissions, consistent with the increase in net sales. Administrative expenses increased $4.1 million due to accelerated stock-based compensation expense recognized for award recipients who became retirement-eligible during the quarter, and higher performance-based incentive compensation and group insurance costs.
Previous wording
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 wording
SG&A expenses as a percentage of sales for the first nine months of 2026 were 58.5% compared to 58.7% for the same period in 2025. The 20 basis point decrease was primarily due to improved leveraging of fixed and discretionary expenses on higher sales volume. SG&A expenses increased $16.6 million, or 5.1%, primarily due to increases in selling and administrative expenses. Selling expenses increased $7.3 million due to higher third-party credit costs and sales commissions, consistent with the increase in net sales. Administrative expenses increased $7.8 million due to higher salaries, performance-based incentive compensation, group insurance and related benefits, and stock-based compensation expense that required accelerated recognition in the third quarter of 2026.
Previous 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.
Current wording
The variable expenses in dollars were higher in the third quarter and the first nine months of 2026 compared to the same periods in 2025, primarily driven by higher commission expense and transportation costs. Commission expense grew in line with higher sales volume, and transportation costs increased as a result of elevated fuel prices. Fixed and discretionary expenses increased in the third quarter and first nine months of 2026 due to increases in administrative expenses compared to the prior year comparable periods. The increase was primarily driven by stock-based compensation expense, which required accelerated recognition during the quarter.
Previous wording
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 wording
Interest income, net of interest expense, decreased $0.2 million in the third quarter of 2026 and $1.0 million in the nine months ended September 30, 2026, compared to the prior year comparable periods, primarily due to lower rates earned on cash, cash equivalents, and restricted cash equivalents.
Previous wording
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 wording
Our effective tax rate for the nine months ended September 30, 2026 and 2025 was 27.5% and 30.2%, respectively. See Note I, “Income Taxes” of the Notes to Condensed Consolidated Financial Statements for further information about our income taxes.
Previous 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.
Current wording
Cash and Cash Equivalents-At September 30, 2026, we had $120.3 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 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.
Current wording
Credit Agreement -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 September 30, 2026 was $174.0 million and the net availability was $100.0 million.
Previous wording
We lease a portion of our real estate, including our stores, distribution centers, and store support space, pursuant to operating leases.
Current wording
Leases - We lease a portion of our real estate, including our stores, distribution centers, and store support space, pursuant to operating leases.
Previous 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.
Current wording
Net cash provided by operating activities was $52.4 million in the first nine months of 2026, compared to $45.3 million provided by operating activities during the same period in 2025. This difference was primarily attributed to higher net income, higher non-cash share-based compensation and changes in working capital. Working capital was impacted by higher customer deposits, a decrease in inventory compared to an increase in the prior year comparable period, 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 $1.4 million in the first six months of 2026 compared to the first six months of 2025, due to higher capital expenditures.
Current wording
Investing Activities. Cash used in investing activities increased by $7.7 million in the first nine months of 2026 compared to the first nine months of 2025, due to higher capital expenditures.
Previous wording
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.
Current wording
Financing Activities. Cash used in financing activities in the first nine months of 2026 increased $14.9 million compared to first nine months of 2025 primarily due to higher share repurchases, including a $13.9 million purchase resulting from a privately negotiated transaction.