Havertys Furniture Reports Operating Results for Third Quarter 2025

Rhea-AI Summary

Havertys Furniture (NYSE:HVT) reported Q3 2025 results for the quarter ended September 30, 2025. Sales rose 10.6% to $194.5M and comparable store sales increased 7.1%. Diluted EPS was $0.28 versus $0.29 a year earlier. Gross profit margin was 60.3% and SG&A totaled 57.8% of sales, up due to higher advertising, selling and administrative costs. Cash and restricted cash were $137.0M, no debt outstanding, and credit availability was $80.0M. Nine-month free cash flow was $30.0M, EBITDA was $29.98M, and the company repurchased ~94,000 shares for $2.0M and paid $15.5M in dividends.

Guidance: 2025 gross margins now expected 60.4%–60.7%, fixed/discretionary SG&A $296M–$298M, variable SG&A 18.6%–18.8%, and ~ $24M capex; company targets five net new stores in 2026.

Positive

• Total sales +10.6% to $194.5M
• Comparable-store sales +7.1% for Q3
• Cash and restricted cash of $137.0M at 9/30/25
• No debt outstanding; $80.0M credit availability
• Nine-month free cash flow of $30.0M

Negative

• Diluted EPS declined to $0.28 from $0.29
• SG&A increased $11.4M, to 57.8% of sales
• Net income for Q3 down to $4.7M from $4.9M

Insights

Retail Financial Analyst

Sales and comps rose materially, margins held steady, while diluted EPS edged down; SG&A pressure offsets top-line gains.

Business mechanism: Consolidated sales increased to $194.5 million (+10.6%) with comparable store sales up 7.1%, driving higher gross profit of $117.3 million and a gross margin of 60.3. Average ticket rose to $3,459 and EBITDA improved to $30.0 million, showing operational leverage on revenue growth.

Dependencies and risks: Operating leverage was limited by higher SG&A, which rose to 57.8 of sales and increased by $11.4 million driven by advertising, commissions, occupancy and administrative costs. Net income and diluted EPS fell slightly to $4.7 million and $0.28, respectively, so profitability gains from sales were largely offset by expense growth and timing effects.

Concrete items to watch and horizon: Monitor planned store growth (targeting five net new stores in 2026), full-year SG&A guidance of $296.0 to $298.0 million, and updated gross margin range of 60.4 to 60.7 for the remainder of 2025. Also watch cash flow and liquidity: $136.98 million in cash, no debt, $80.0 million credit availability, and free cash flow of $30.0 million over nine months as near-term indicators of financial flexibility.

ATLANTA, GA / ACCESS Newswire / October 29, 2025 / Haverty Furniture Companies, Inc. (NYSE:HVT)(NYSE:HVT.A), today reported operating results for the third quarter ended September 30, 2025.

Third Quarter 2025 versus Third Quarter 2024:

• Diluted earnings per common share ("EPS") of $0.28 versus $0.29.

• Consolidated sales increased 10.6% to $194.5 million.

• Comparable store sales increased 7.1%.

• Gross profit margin was 60.3% compared to 60.2%.

Steven G. Burdette, President and CEO said, "Our third-quarter results were highlighted by a strong Labor Day weekend performance, double-digit growth in written and delivered sales, and our first quarter of positive written and delivered comp-store sales in several years. Our strategic marketing investments continue to drive increased customer traffic, resulting in higher average tickets, solid conversion rates, and strong gross margins.

Our recent opening of a third Houston location brings our total store count to 129. Looking ahead, we expect to resume store count growth in the first quarter of 2026, targeting five net new store openings for the year. Our third quarter results demonstrate that our customer first approach continues to resonate. We are encouraged by the positive momentum in our business and remain focused on delivering sustainable growth and long-term value to our customers and shareholders."

Third Quarter ended September 30, 2025 Compared to Same Period of 2024

• Total sales up 10.6%, comp-store sales up 7.1% for the quarter. Total written business increased 10.0% and comp-store written business increased 8.0% for the quarter.

• Design consultants accounted for 34.2% of written business in 2025 and 34.5% in 2024.

• Gross profit margins increased to 60.3% in 2025 from 60.2% in 2024.

• SG&A expenses were 57.8% of sales versus 57.4% and increased $11.4 million. The primary drivers of this change are:

  • increase in advertising and marketing costs of $2.8 million driven by increased spending on television and direct mail production.

  • increase in selling expense of $2.7 million primarily due to sales commissions and related benefit costs for higher sales volume

  • increase in occupancy costs of $1.4 million related to new stores and the timing of repairs and maintenance.

  • increase in administrative expenses of $3.8 million primarily from increased salaries and related benefits, performance-based incentive compensation and stock compensation costs.

Balance Sheet and Cash Flow for the Nine Months Ended September 30, 2025

• Cash, cash equivalents, and restricted cash equivalents at September 30, 2025 are $137.0 million.

• Generated $45.3 million in cash from operating activities primarily from earnings and changes in working capital including a $9.0 million increase in inventories, $8.3 million increase in accrued liabilities and vendor repayments, a $8.1 million increase in other assets and liabilities, and a $3.1 million reduction in customer deposits.

• Invested $15.3 million in capital expenditures.

• Purchased approximately 94,000 shares of common stock for $2.0 million.

• Paid $15.5 million in quarterly cash dividends.

• No debt outstanding at September 30, 2025, and credit availability of $80.0 million.

Expectations and Other

• Our 2025 guidance includes tariffs currently in effect as of October 29, 2025, but excludes the effects of additional proposed tariffs that have not been finalized by the Trump Administration. We are closely monitoring the tariff developments to manage our exposure and minimize the effects on our business.

• Our expectations for gross profit margins for 2025 are between 60.4% to 60.7%, an increase from our prior guidance. Gross profit margins fluctuate quarter to quarter in relation to our promotional cadence.

• Fixed and discretionary expenses within SG&A for the full year of 2025 are expected to be in the $296.0 to $298.0 million range, an increase from our previous guidance due to higher anticipated advertising and administrative costs. Variable SG&A expenses for the full year of 2025 are anticipated to be in the 18.6% to 18.8% range.

• Our effective tax rate for 2025 is expected to be 26.5%, excluding the impact from discrete items and any new tax legislation.

• Planned capital expenditures for the full year of 2025 are approximately $24.0 million, unchanged from our previous guidance. We expect retail square footage at the end of 2025 to remain consistent with 2024.

Key Results
(amounts in millions, except per share amounts)

Results of Operations

		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Sales		$	194.5			$	175.9			$	557.1			$	538.5
Gross Profit			117.3				105.9				338.4				324.9
Gross profit as a % of sales			60.3	%			60.2	%			60.8	%			60.3	%
SGA
Variable			36.4				33.2				103.5				104.9
Fixed			75.9				67.7				223.4				208.5
Total			112.3				100.9				326.9				313.4
SGA as a % of sales
Variable			18.7	%			18.9	%			18.6	%			19.5	%
Fixed			39.0	%			38.5	%			40.1	%			38.7	%
Total			57.7	%			57.4	%			58.7	%			58.2	%
Pre-tax income			6.4				6.9				16.0				16.5
Pre-tax income as a % of sales			3.3	%			3.9	%			2.9	%			3.1	%
Net income			4.7				4.9				11.2				11.8
Net income as a % of sales			2.4	%			2.8	%			2.0	%			2.2	%
Diluted earnings per share ("EPS")		$	0.28			$	0.29			$	0.68			$	0.70

Other Financial and Operations Data
		Nine Months Ended September 30,
		2025				2024
EBITDA (in millions)(1)		$	30.0			$	27.7
Sales per square foot		$	164			$	164
Average ticket		$	3,459			$	3,365

Liquidity Measures
		Nine Months Ended September 30,									Nine Months Ended September 30,
Free Cash Flow		2025				2024			Cash Returns to Shareholders		2025				2024
Operating cash flow		$	45.3			$	42.0		Share repurchases		$	2.0			$	-
									Dividends			15.5				15.3
Capital expenditures			(15.3	)			(24.3	)	Cash returns to shareholders		$	17.5			$	15.3
Free cash flow		$	30.0			$	17.7
Cash at period end		$	137.0			$	127.4

(1) See the reconciliation of the non-GAAP metrics at the end of the release.

HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
(In thousands, except per share data)		2025				2024				2025				2024
Net sales		$	194,484			$	175,913			$	557,076			$	538,546
Cost of goods sold (exclusive of depreciation and amortization)			77,220				69,995				218,627				213,625
Gross profit			117,264				105,918				338,449				324,921
Expenses:
Selling, general and administrative			112,329				100,940				326,864				313,395
Other income, net			(348	)			(333	)			(571	)			(412	)
Total expenses			111,981				100,607				326,293				312,983
Income before interest and income taxes			5,283				5,311				12,156				11,938
Interest income, net			1,142				1,560				3,888				4,581
Income before income taxes			6,425				6,871				16,044				16,519
Income tax expense			1,696				1,943				4,848				4,760
Net income		$	4,729			$	4,928			$	11,196			$	11,759
Basic earnings per share:
Common Stock		$	0.29			$	0.30			$	0.69			$	0.73
Class A Common Stock		$	0.27			$	0.28			$	0.64			$	0.67
Diluted earnings per share:
Common Stock		$	0.28			$	0.29			$	0.68			$	0.70
Class A Common Stock		$	0.27			$	0.28			$	0.64			$	0.67
Cash dividends per share:
Common Stock		$	0.32			$	0.32			$	0.96			$	0.94
Class A Common Stock		$	0.30			$	0.30			$	0.90			$	0.88

HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands)		September 30, 2025				December 31, 2024				September 30, 2024
Assets
Current assets
Cash and cash equivalents		$	130,495			$	120,034			$	121,160
Restricted cash and cash equivalents			6,482				6,280				6,205
Inventories			92,406				83,419				88,688
Prepaid expenses			12,469				14,576				16,553
Other current assets			8,935				14,587				17,506
Total current assets			250,787				238,896				250,112
Property and equipment, net			179,611				182,622				179,570
Right-of-use lease assets			186,811				194,411				199,724
Deferred income taxes			18,051				17,075				16,037
Other assets			16,449				15,743				13,859
Total assets		$	651,709			$	648,747			$	659,302
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable		$	19,904			$	14,914			$	18,208
Customer deposits			43,855				40,733				43,940
Accrued liabilities			42,633				39,635				39,454
Current lease liabilities			36,938				36,283				36,196
Total current liabilities			143,330				131,565				137,798
Noncurrent lease liabilities			174,906				182,096				186,005
Other liabilities			27,446				27,525				27,699
Total liabilities			345,682				341,186				351,502
Stockholders' equity			306,027				307,561				307,800
Total liabilities and stockholders' equity		$	651,709			$	648,747			$	659,302

HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

(In thousands)		Nine Months Ended September 30,
		2025				2024
Cash Flows from Operating Activities:
Net income		$	11,196			$	11,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			17,825				15,728
Share-based compensation expense			5,594				5,128
Other			107				523
Changes in operating assets and liabilities:
Inventories			(8,987	)			5,268
Customer deposits			3,122				8,103
Other assets and liabilities			8,087				2,569
Accounts payable and accrued liabilities			8,341				(7,089	)
Net cash provided by operating activities			45,285				41,989
Cash Flows from Investing Activities:
Capital expenditures			(15,277	)			(24,285	)
Proceeds from sale of land, property, and equipment			73				461
Net cash used in investing activities			(15,204	)			(23,824	)
Cash Flows from Financing Activities:
Dividends paid			(15,534	)			(15,295	)
Common stock repurchased			(2,000	)			-
Taxes on vested restricted shares			(1,884	)			(3,282	)
Net cash used in financing activities			(19,418	)			(18,577	)
Change in cash, cash equivalents, and restricted cash equivalents during the period			10,663				(412	)
Cash, cash equivalents, and restricted cash equivalents at beginning of period			126,314				127,777
Cash, cash equivalents, and restricted cash equivalents at end of period		$	136,977			$	127,365

GAAP to Non-GAAP Reconciliation

We report our financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that EBITDA is a meaningful measure to share with investors as useful information on our operating results and to provide additional information with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures we use in this release may be different from non-GAAP financial measures, including similarly titled measures, used by other companies.

Reconciliation of GAAP measures to EBITDA

		Nine Months Ended September 30,
(in thousands)		2025				2024
Income before income taxes, as reported		$	16,044			$	16,519
Interest income, net			(3,888	)			(4,581	)
Depreciation and amortization			17,825				15,728
EBITDA		$	29,981			$	27,666

Comparable Store Sales 

Comparable-store or "comp-store" sales is a measure which indicates the performance of our existing stores and website by comparing the sales growth for stores 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 or if the selling square footage has been changed significantly.

Cost of Goods Sold and SG&A Expense 

We include substantially all our occupancy and home delivery costs in SG&A expense as well as a portion of our warehousing expenses.  Accordingly, our gross profit may not be comparable to those entities that include these costs in cost of goods sold. 

We classify our SG&A expenses as either variable or fixed and discretionary.  Our variable expenses are comprised of selling and delivery costs.  Selling expenses are primarily compensation and related benefits for our commission-based sales associates, the discount we pay for third party financing of customer sales and transaction fees for credit card usage.  We do not outsource delivery, so these costs include personnel, fuel, and other expenses related to this function.  Fixed and discretionary expenses are comprised of rent, depreciation and amortization and other occupancy costs for stores, warehouses and offices, and all advertising and administrative costs. 

Conference Call Information

The company invites interested parties to listen to the live webcast of the conference call on October 30, 2025 at 10:00 a.m. ET at its website, ir.havertys.com. If you cannot listen live, a replay will be available on the day of the conference call at the website at approximately 1:00 p.m. ET.

About Havertys Furniture

Haverty Furniture Companies, Inc. (NYSE: HVT and HVT.A), established in 1885, is a full-service home furnishings retailer with 129 showrooms in 17 states in the Southern and Midwestern regions providing its customers with a wide selection of quality merchandise in middle to upper-middle price ranges. Additional information is available on the Company's website www.havertys.com. 

Safe Harbor

This press release contains, and the conference call may contain forward-looking statements subject to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are subject to risks and uncertainties and change based on various important factors, many of which are beyond our control.

All statements in the future tense and all statements accompanied by words such as "expect," "likely," "outlook," "forecast," "preliminary," "would," "could," "should," "position," "will," "project," "intend," "plan," "on track," "anticipate," "to come," "may," "possible," "assume," and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expectations for retail and operating margins, selling square footage and capital expenditures for 2025, our liquidity position to continue to fund our growth plans, and our efforts and initiatives to execute our strategic plan.

We caution that our forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information you are cautioned not to place undue reliance on our forward-looking statements, and they should not be relied upon as a prediction of actual results. Factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements 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; as well as other risks and uncertainties discussed in the Company's Annual Report on Form 10-K for 2024 and from time to time in the Company's subsequent filings with the SEC.

Forward-looking statements describe our expectations only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K, and other reports filed with the SEC. 

Contact:
Havertys Furniture 404-443-2900
Tiffany Hinkle
AVP, Financial Reporting
investor.relations@havertys.com

SOURCE: Haverty Furniture Companies, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Havertys (HVT) Q3 2025 sales and EPS?

Q3 2025 sales were $194.5M and diluted EPS was $0.28.

How much did Havertys comparable store sales (HVT) change in Q3 2025?

Comparable-store sales increased 7.1% for the quarter ended September 30, 2025.

What is Havertys' (HVT) cash position and debt status at September 30, 2025?

Cash and restricted cash totaled $137.0M and the company reported no outstanding debt with $80.0M available on its credit facility.

What guidance did Havertys (HVT) update for 2025 gross margins and SG&A?

Havertys expects 2025 gross margins of 60.4%–60.7%, fixed/discretionary SG&A of $296M–$298M, and variable SG&A of 18.6%–18.8%.

How much free cash flow and EBITDA did Havertys (HVT) report for the nine months ended 9/30/25?

Nine-month free cash flow was $30.0M and EBITDA was $29.98M.

Did Havertys (HVT) return capital to shareholders in 2025 through buybacks or dividends?

Yes; the company repurchased ~94,000 shares for $2.0M and paid $15.5M in dividends through September 30, 2025.