[10-Q] Haverty Furniture Companies, Inc. Quarterly Earnings Report

Rhea-AI Filing Summary

Q2 2025 headline: Net sales rose 1.3% to $181.0 m, but comp-store sales slipped 2.3%. A 40 bp gross-margin lift to 60.8% was offset by a 160 bp jump in SG&A (59.3% of sales), driving operating income down 43% to $2.8 m and net income down 39% to $2.7 m (diluted EPS $0.16).

H1 2025: Revenue was flat at $362.6 m; gross margin improved 60 bp to 61.0%. SG&A rose 1.0%, leaving net income 5% lower at $6.5 m (EPS $0.39).

Cash & balance sheet: Cash fell $12.7 m YTD to $107 m after $11.7 m capex, $10.4 m dividends and $2.0 m buybacks; inventory up 12% to $93 m. No borrowings on the $80 m revolver; total liquidity $187 m.

Capital returns: Common dividend up to $0.64/share YTD; $6.1 m buyback capacity remains.

Operating trends: Design-service tickets (33% of written sales) averaged $7,631 (+5%). Variable costs fell, but higher admin, occupancy and marketing expenses pressured margins. Free cash flow from ops declined to $13.4 m (vs $17.5 m).

Risk watch: New U.S. tariffs (10-41% on 67 countries effective 7 Aug 25) could raise input costs; management is evaluating mitigations. Comp-store softness and inventory build require monitoring as 129-store expansion proceeds.

Positive

• Gross margin expanded 40 bps YoY in Q2 and 60 bps YTD, indicating effective pricing and mix management.
• Debt-free balance sheet with $107 m cash and full $80 m revolver availability enhances financial flexibility.
• Dividend increased to $0.64/share YTD and ongoing buybacks ($2 m) reflect strong shareholder-return commitment.

Negative

• Diluted EPS fell 41% YoY to $0.16 as SG&A outpaced sales growth.
• Comp-store sales declined 2.3% in Q2, pointing to demand weakness.
• Inventory up 12% ahead of tariff changes, heightening working-capital and markdown risk.
• Operating cash flow dropped to $13.4 m from $17.5 m, pressuring free-cash generation.

Insights

Equity Research Analyst

TL;DR: Margin gains lost to higher SG&A, leaving earnings down; balance sheet still cash-rich with no debt.

Revenue growth was modest and entirely price-mix driven. The 60 bps gross-margin expansion is encouraging, but fixed-cost creep pushed SG&A to 59% of sales, erasing the benefit. As a result, EPS contracted 41% YoY. Cash of $107 m and an untapped $80 m revolver provide insulation, yet inventory build ahead of tariff uncertainty raises working-capital risk. Capital returns remain generous (4.8% dividend yield plus opportunistic buybacks). Overall, fundamentals look neutral: solid liquidity but subdued earnings momentum and impending tariff headwinds keep the near-term risk/reward balanced.

Retail Industry Specialist

TL;DR: Store growth and design-service model intact, but comp-store declines signal weak furniture demand.

Havertys continues to differentiate via free in-home design, generating one-third of written sales and higher ticket values. However, comp-store sales slid 2.3% and written comps 2.1%, reflecting persistent housing-market softness. Tariffs on Asian sourcing threaten cost structure just as fixed rents rise with new locations. Execution levers include pricing, product mix and further cost control, yet the company may face a volatile second half. Liquidity is ample for planned 129-store footprint, but investors should expect margin variability until demand recovers and tariff impacts are digested.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___

Commission file number: 1-14445

HAVERTY FURNITURE COMPANIES, INC.

(Exact name of registrant as specified in its charter)

Maryland			58-0281900
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
780 Johnson Ferry Road, Suite 800 Atlanta, Georgia			30342
(Address of principal executive offices)			(Zip Code)
(404) 443-2900
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock			HVT			NYSE
Class A Common Stock			HVTA			NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

o

Accelerated filer

x

Non-accelerated filer

o

Smaller reporting company

o

Emerging growth company

o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The numbers of shares outstanding of the registrant’s two classes of $1 par value common stock as of August 4, 2025, were: Common Stock – 15,046,851; Class A Common Stock – 1,219,976.

HAVERTY FURNITURE COMPANIES, INC.

INDEX

						Page No.
PART I.			FINANCIAL INFORMATION
			Item 1. Financial Statements
			Condensed Consolidated Balance Sheets – June 30, 2025 (unaudited) and December 31, 2024			1
			Condensed Consolidated Statements of Comprehensive Income – Six Months Ended June 30, 2025 and 2024 (unaudited)			2
			Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2025 and 2024 (unaudited)			3
			Notes to Condensed Consolidated Financial Statements (unaudited)			4
			Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			13
			Item 3. Quantitative and Qualitative Disclosures about Market Risk			17
			Item 4. Controls and Procedures			17
PART II.			OTHER INFORMATION
			Item 1. Legal Proceedings			18
			Item 1A. Risk Factors			18
			Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities			18
			Item 5. Other Information			18
			Item 6. Exhibits			19

INDEX

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)			June 30, 2025						December 31, 2024
Assets
Current assets
Cash and cash equivalents			$	107,357					$	120,034
Restricted cash and cash equivalents			6,414						6,280
Inventories			93,270						83,419
Prepaid expenses			15,775						14,576
Other current assets			13,332						14,587
Total current assets			236,148						238,896
Property and equipment, net			181,227						182,622
Right-of-use lease assets			192,265						194,411
Deferred income taxes			17,048						17,075
Other assets			15,984						15,743
Total assets			$	642,672					$	648,747
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable			$	16,464					$	14,914
Customer deposits			39,351						40,733
Accrued liabilities			37,436						39,635
Current lease liabilities			37,263						36,283
Total current liabilities			130,514						131,565
Noncurrent lease liabilities			180,045						182,096
Other liabilities			27,242						27,525
Total liabilities			337,801						341,186
Stockholders’ equity
Capital Stock, par value $1 per share
Preferred Stock, Authorized – 1,000 shares; Issued: None
Common Stock, Authorized – 50,000 shares; Issued: 2025 – 30,633; 2024 – 30,419			30,633						30,419
Convertible Class A Common Stock, Authorized – 15,000 shares; Issued: 2025 – 1,732; 2024 – 1,793			1,732						1,793
Additional paid-in capital			120,074						117,257
Retained earnings			415,074						418,960
Accumulated other comprehensive loss			(869)						(869)
Less treasury stock at cost – Common Stock (2025 – 15,576 and 2024 – 15,496 shares) and Convertible Class A Common Stock (2025 and 2024 – 522 shares)			(261,773)						(259,999)
Total stockholders’ equity			304,871						307,561
Total liabilities and stockholders’ equity			$	642,672					$	648,747

See notes to these condensed consolidated financial statements.

1

INDEX

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands, except per share data)			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Net sales			$	181,025					$	178,636					$	362,592					$	362,633
Cost of goods sold (exclusive of depreciation and amortization)			70,923						70,652						141,407						143,630
Gross profit			110,102						107,984						221,185						219,003
Expenses:
Selling, general and administrative			107,333						103,099						214,535						212,455
Other income, net			(65)						(101)						(223)						(78)
Total expenses			107,268						102,998						214,312						212,377
Income before interest and income taxes			2,834						4,986						6,873						6,626
Interest income, net			1,492						1,467						2,746						3,022
Income before income taxes			4,326						6,453						9,619						9,648
Income tax expense			1,637						2,015						3,152						2,817
Net income			$	2,689					$	4,438					$	6,467					$	6,831
Other comprehensive income			—						—						—						—
Comprehensive income			$	2,689					$	4,438					$	6,467					$	6,831
Basic earnings per share:
Common Stock			$	0.17					$	0.27					$	0.40					$	0.42
Class A Common Stock			$	0.15					$	0.25					$	0.37					$	0.39
Diluted earnings per share:
Common Stock			$	0.16					$	0.27					$	0.39					$	0.41
Class A Common Stock			$	0.15					$	0.25					$	0.37					$	0.39
Cash dividends per share:
Common Stock			$	0.32					$	0.32					$	0.64					$	0.62
Class A Common Stock			$	0.30					$	0.30					$	0.60					$	0.58

See notes to these condensed consolidated financial statements.

2

INDEX

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)			Six Months Ended June 30,
			2025						2024
Cash Flows from Operating Activities:
Net income			$	6,467					$	6,831
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			11,831						10,147
Share-based compensation expense			3,986						4,130
Other			1,156						1,314
Changes in operating assets and liabilities:
Inventories			(9,851)						1,555
Customer deposits			(1,382)						2,894
Other assets and liabilities			658						916
Accounts payable and accrued liabilities			512						(10,245)
Net cash provided by operating activities			13,377						17,542
Cash Flows from Investing Activities:
Capital expenditures			(11,702)						(15,952)
Proceeds from sale of land, property and equipment			19						52
Net cash used in investing activities			(11,683)						(15,900)
Cash Flows from Financing Activities:
Dividends paid			(10,353)						(10,070)
Common stock repurchased			(2,000)						—
Taxes on vested restricted shares			(1,884)						(3,282)
Net cash used in financing activities			(14,237)						(13,352)
Decrease in cash, cash equivalents, and restricted cash equivalents during the period			(12,543)						(11,710)
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			$	113,771					$	116,067

See notes to these condensed consolidated financial statements.

3

INDEX

HAVERTY FURNITURE COMPANIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note A - Business and Basis of Presentation

Haverty Furniture Companies, Inc. (“Havertys,” “the Company,” “we,” “our,” or “us”) is a retailer of a broad line of residential furniture in the middle to upper-middle price ranges. We operate all of our stores using the Havertys brand and do not franchise our concept. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes required by United States of America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. We believe all adjustments, normal and recurring in nature, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our latest Annual Report on Form 10-K.

The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from those estimates.

4

INDEX

Note B – Stockholders’ Equity

The following outlines the changes in each caption of stockholders’ equity for the current and comparative period and the dividends per share for each class of shares.

For the three months ended June 30, 2025:

(in thousands)			Common Stock						Class A Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total
Balances at March 31, 2025			$	30,498					$	1,767					$	118,399					$	417,565					$	(869)					$	(261,999)					$	305,361
Net income																					2,689																		2,689
Dividends declared:
Common Stock, $0.32 per share																					(4,807)																		(4,807)
Class A Common Stock, $0.30 per share																					(373)																		(373)
Class A conversion			35						(35)																														—
Restricted stock issuances			100												(1,099)																								(999)
Amortization of restricted stock															1,906																								1,906
Directors' Compensation Plan															868																		226						1,094
Balances at June 30, 2025			$	30,633					$	1,732					$	120,074					$	415,074					$	(869)					$	(261,773)					$	304,871

For the six months ended June 30, 2025:

(in thousands)			Common Stock						Class A Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total
Balances at December 31, 2024			$	30,419					$	1,793					$	117,257					$	418,960					$	(869)					$	(259,999)					$	307,561
Net income																					6,467																		6,467
Dividends declared:
Common Stock, $0.64 per share																					(9,606)																		(9,606)
Class A Common Stock, $0.60 per share																					(747)																		(747)
Class A conversion			61						(61)																														—
Acquisition of treasury stock																																	(2,000)						(2,000)
Restricted stock issuances			153												(2,037)																								(1,884)
Amortization of restricted stock															3,986																								3,986
Directors' Compensation Plan															868																		226						1,094
Balances at June 30, 2025			$	30,633					$	1,732					$	120,074					$	415,074					$	(869)					$	(261,773)					$	304,871

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INDEX

For the three months ended June 30, 2024:

(in thousands)			Common Stock						Class A Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total
Balances at March 31, 2024			$	30,316					$	1,798					$	113,993					$	417,020					$	(983)					$	(255,454)					$	306,690
Net income																					4,438																		4,438
Dividends declared:
Common Stock, $0.32 per share																					(4,842)																		(4,842)
Class A Common Stock, $0.30 per share																					(383)																		(383)
Restricted stock issuances			98												(1,527)																								(1,429)
Amortization of restricted stock															1,487																								1,487
Directors' Compensation Plan															691																		446						1,137
Balances at June 30, 2024			$	30,414					$	1,798					$	114,644					$	416,233					$	(983)					$	(255,008)					$	307,098

For the six months ended June 30, 2024:

(in thousands)			Common Stock						Class A Common Stock						Additional Paid-In Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock						Total
Balances at December 31, 2023			$	30,220					$	1,804					$	113,307					$	419,472					$	(983)					$	(255,454)					$	308,366
Net income																					6,831																		6,831
Dividends declared:
Common Stock, $0.62 per share																					(9,330)																		(9,330)
Class A Common Stock, $0.58 per share																					(740)																		(740)
Class A conversion			6						(6)																														—
Restricted stock issuances			188												(3,484)																								(3,296)
Amortization of restricted stock															4,130																								4,130
Directors' Compensation Plan															691																		446						1,137
Balances at June 30, 2024			$	30,414					$	1,798					$	114,644					$	416,233					$	(983)					$	(255,008)					$	307,098

Note C – Interim LIFO Calculations

Inventories are measured using the last-in, first-out (LIFO) method of valuation using an annual LIFO index. Accordingly, interim LIFO calculations must necessarily be based on management’s estimates of the components of the calculation including year-end inventory levels and the expected rate of inflation or deflation for the year. Since these estimates may be affected by factors beyond management’s control, interim results are subject to change based upon the final year-end LIFO inventory valuation.

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INDEX

Note D – Fair Value of Financial Instruments

The fair values of our cash and cash equivalents, restricted cash and cash equivalents, accounts payable and customer deposits approximate their carrying values due to their short-term nature. The assets related to our self-directed, non-qualified deferred compensation plans for certain executives and employees are valued using quoted market prices multiplied by the number of shares held, a Level 1 valuation technique.

Note E – Credit Agreement

We have an $80.0 million revolving credit facility (the “Credit Agreement”) secured primarily by our inventory and maturing on October 24, 2027. Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit.

At June 30, 2025 and December 31, 2024, there were no outstanding borrowings under the Credit Agreement. The borrowing base was $109.3 million at June 30, 2025, and there were no outstanding letters of credit. Accordingly, the net availability was $80.0 million.

Note F – Revenues and Segment Reporting

We recognize revenue from merchandise sales and related service fees, net of expected returns and sales tax, at the time the merchandise is delivered to the customer. We record customer deposits when payments are received in advance of the delivery of merchandise. Such deposits totaled $39.4 million and $40.7 million at June 30, 2025 and December 31, 2024, respectively. Of the customer deposit liabilities at December 31, 2024, approximately $0.6 million have not been recognized through net sales in the six months ended June 30, 2025.

The following table presents our revenues disaggregated by each major product category and service:

(In thousands)			Three Months Ended June 30,																								Six Months Ended June 30,
			2025												2024												2025												2024
			Net Sales						% of Net Sales						Net Sales						% of Net Sales						Net Sales						% of Net Sales						Net Sales						% of Net Sales
Merchandise:
Case Goods
Bedroom Furniture			$	26,885					14.9		%				$	25,772					14.4		%				$	54,061					14.9		%				$	51,634					14.2		%
Dining Room Furniture			17,686						9.8						19,453						10.9						35,643						9.8						38,469						10.6
Occasional			12,990						7.2						13,183						7.4						25,909						7.1						27,390						7.6
			57,561						31.9						58,408						32.7						115,613						31.8						117,493						32.4
Upholstery			80,884						44.7						78,273						43.8						162,300						44.8						161,208						44.5
Mattresses			16,525						9.1						16,640						9.3						32,329						8.9						33,240						9.2
Accessories and Other (1)			26,055						14.3						25,315						14.2						52,350						14.5						50,692						14.0
			$	181,025					100.0		%				$	178,636					100.0		%				$	362,592					100.0		%				$	362,633					100.0		%

(1) Includes delivery charges and product protection.

We operate within a single reportable segment. We use a market area approach for both financial and

operational decision making. Each of these market areas are considered individual operating segments. The

individual operating segments all have similar economic characteristics. The retail stores within the market

areas are similar in size and carry substantially identical products selected for the same target customer. We

also use the same distribution methods chain-wide.

Our chief operating decision maker (CODM) is an executive committee that includes the Chief Executive Officer, Executive Chairman, and Chief Financial Officer. Segment information is prepared on the same basis as our CODM manages our operating segments and evaluates results. The measure used by our CODM to assess performance and make operating decisions is income before income taxes as reported on our condensed consolidated statements of comprehensive income. Asset information is provided to the CODM on a consolidated basis.

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INDEX

The following table present significant segment expenses and other segment items regularly reviewed by our CODM:

			Three Months Ended June 30,												Six Months Ended June 30,
(in 000's)			2025						2024						2025						2024
Net Sales			$	181,025					$	178,636					$	362,592					$	362,633
Less:
Cost of goods sold (exclusive of depreciation and amortization)			70,923						70,652						141,407						143,630
Selling, general, and administrative
Advertising and marketing			12,108						11,028						23,184						23,202
Selling			25,953						26,585						51,666						54,323
Occupancy			25,868						24,412						51,340						48,255
Warehouse, delivery, and transportation			14,079						15,199						28,993						31,822
General and administrative			29,325						25,875						59,352						54,853
Total selling, general and administrative(a)			107,333						103,099						214,535						212,455
Other segment items(b)			65						101						223						78
Interest income			1,532						1,507						2,826						3,103
Interest expense			(40)						(40)						(80)						(81)
Income before income taxes			4,326						6,453						9,619						9,648
Income tax expense			1,637						2,015						3,152						2,817
Consolidated net income			$	2,689					$	4,438					$	6,467					$	6,831

(a) Depreciation and amortization expense included in selling, general and administrative expense totaled $5.9 million and $5.2 million for the three months ended June 30, 2025 and 2024, respectively, and $11.8 million and $10.1 million for the six months ended June 30, 2025 and 2024, respectively.

(b) Other segment items include gains (losses) on asset disposals and miscellaneous income (expense).

Note G – Leases

We have operating leases for retail stores, offices, warehouses, and certain equipment. Our leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 20 years. We determine if an arrangement is or contains a lease at lease inception. Our leases do not have any residual value guarantees or any restrictions or covenants imposed by lessors. We have lease agreements for real estate with lease and non-lease components, which are accounted for separately.

Certain of our lease agreements for retail stores include variable lease payments, generally based on sales volume. The variable portions of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Certain of our equipment lease agreements include variable lease costs, generally based on usage of the underlying asset (mileage, fuel, etc.).

The variable portions of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded in the period incurred.

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INDEX

At June 30, 2025, we had entered into three leases for additional retail locations, which had not yet commenced.

Lease expense is charged to selling, general and administrative expenses. Components of lease expense were as follows (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Operating lease cost			$	12,550					$	12,092					$	24,884					$	24,338
Variable lease cost			1,311						1,388						2,613						2,762
Total lease expense			$	13,861					$	13,480					$	27,497					$	27,100

Supplemental cash flow information related to leases is as follows (in thousands):

			Six Months Ended June 30,
			2025						2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	23,809					$	21,273
Right-of-use assets obtained in exchange for lease obligations:
Operating leases			$	19,051					$	13,636

Note H – Income Taxes

Our effective tax rate for the six months ended June 30, 2025 and 2024 was 32.8% and 29.2%, respectively. The primary difference in the effective rate and the statutory rate was due to nondeductible items and additional tax expense from vested stock awards.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. We are evaluating the impacts of this tax law change; however, it is not expected to result in a material impact to our consolidated financial statements.

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INDEX

Note I – Stock-Based Compensation Plans

As more fully discussed in Note 12 of the notes to the consolidated financial statements in our 2024 Annual Report on Form 10-K, we have awards outstanding for Common Stock under stock-based employee compensation plans.

The following table summarizes our award activity during the six months ended June 30, 2025:

			Service-Based Restricted Stock Awards												Performance-Based Restricted Stock Awards
			Shares or Units (#)						Weighted-Average Award Price ($)						Shares or Units (#)						Weighted-Average Award Price ($)
Outstanding at December 31, 2024			250,575						$	33.29					276,098						$	32.34
Granted/Issued			213,750						22.87						153,948						22.91
Awards vested or rights exercised(1)			(151,938)						32.82						(91,804)						28.86
Forfeited			(10,102)						29.31						(4,577)						33.71
Adjustment of units based on performance			—						—						(65,364)						34.73
Outstanding at June 30, 2025			302,285						$	26.29					268,301						$	27.52
Restricted units expected to vest			302,285						$	26.29					279,694						$	27.33

(1) Includes shares repurchased from employees for employee’s tax liability.

The total fair value of service-based restricted stock awards that vested during the six months ended June 30, 2025 was approximately $2.9 million. The aggregate intrinsic value of outstanding service-based restricted stock awards was approximately $6.2 million at June 30, 2025. The restrictions on the service-based awards generally lapse or vest annually, primarily over one-year and three-year periods.

The total fair value of performance-based restricted stock awards that vested during the six months ended June 30, 2025 was approximately $2.1 million. The aggregate intrinsic value of outstanding performance awards at June 30, 2025 expected to vest was approximately $5.7 million. The performance awards are based on one-year performance periods but cliff vest in approximately three years from grant date.

The compensation for all awards is charged to selling, general and administrative expenses over the respective grants’ vesting periods, primarily on a straight-line basis. The amount charged was approximately $4.0 and $4.1 million for the six months ended June 30, 2025 and 2024, respectively. Forfeitures are recognized as they occur. As of June 30, 2025, the total compensation cost related to unvested equity awards was approximately $9.8 million and is expected to be recognized over a weighted-average period of two years.

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INDEX

Note J – Earnings Per Share

We report our earnings per share using the two-class method. The income per share for each class of common stock is calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on the contractual rights of the classes.

The Common Stock of the Company has a preferential dividend rate of at least 105% of the dividend paid on the Class A Common Stock. Holders of the Class A Common Stock have greater voting rights which include voting as a separate class for the election of up to 75% of the total number of directors whereas holders of the Common Stock vote as a separate class for the election of at least 25% of the total number of directors. On all other matters subject to shareholder vote, holders of the Class A Common Stock have ten votes per share as opposed to holders of the Common Stock receiving one vote per share. Class A Common Stock may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock.

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Numerator:
Common:
Distributed earnings			$	4,807					$	4,842					$	9,606					$	9,330
Excess distributions			(2,309)						(728)						(3,600)						(2,996)
Basic			2,498						4,114						6,006						6,334
Class A Common earnings			191						324						461						497
Diluted			$	2,689					$	4,438					$	6,467					$	6,831
Class A Common:
Distributed earnings			$	373					$	383					$	747					$	740
Excess distributions			(182)						(59)						(286)						(243)
			$	191					$	324					$	461					$	497
Denominator:
Common:
Weighted average shares outstanding - basic			14,983						15,065						14,957						14,982
Assumed conversion of Class A Common Stock			1,237						1,275						1,250						1,277
Dilutive options, awards and common stock equivalents			306						363						337						453
Total weighted-average diluted Common Stock			16,526						16,703						16,544						16,712
Class A Common:
Weighted average shares outstanding			1,237						1,275						1,250						1,277
Basic earnings per share:
Common Stock			$	0.17					$	0.27					$	0.40					$	0.42
Class A Common Stock			$	0.15					$	0.25					$	0.37					$	0.39
Diluted earnings per share:
Common Stock			$	0.16					$	0.27					$	0.39					$	0.41
Class A Common Stock			$	0.15					$	0.25					$	0.37					$	0.39

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INDEX

Note K – Contingencies

The Company is subject to various claims and legal proceedings covering a wide range of matters, including with respect to product liability and personal injury claims that arise in the ordinary course of its business activities. We currently have no pending claims or legal proceedings that we believe would be reasonably likely to have a material adverse effect on our financial condition, results of operations or cash flows. However, there can be no assurance that either future litigation or an unfavorable outcome in existing claims will not have a material impact on our business, reputation, financial position, cash flows or results of operations.

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INDEX

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes contained herein and with the audited consolidated financial statements, accompanying notes, related information and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024 (“Form 10-K”).

Forward-Looking Statements and Risk Factors

Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology including “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements.

All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Forward-looking statements are by nature inherently uncertain and involve known and unknown risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. These risks and uncertainties 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 (including the impact of tariffs);

•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;

•and other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission filings.

Further information on the risks and uncertainties that could cause our actual results to differ from these forward-looking statements are described in "Item 1A. Risk Factors" of our Form 10-K for 2024 and in the subsequent reports we file with the Securities and Exchange Commission. Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties contained therein. All forward‑looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report except as required by law. We intend for any forward-looking statements to be covered by, and we claim the protection under, the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

13

Impact of tariffs imposed by the U.S government

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.").

In the first quarter of 2025, the U.S. government announced new tariffs on imported goods. A 90-day pause

on escalating tariffs (excluding China), was implemented in April 2025 and expired on August 1, 2025.

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.

Net Sales

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.

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.)

						2025																														2024
						Net Sales																		Comp-Store Sales												Net Sales																		Comp-Store Sales
Period						Total  Dollars						%  Change						$ Change						%  Change						$ Change						Total  Dollars						%  Change						$ Change						%  Change						$ Change
Q1						$	181.6					(1.3)		%				$	(2.4)					(4.8)		%				$	(8.8)					$	184.0					(18.1)		%				$	(40.8)					(18.5)		%				$	(41.4)
Q2						$	181.0					1.3		%				$	2.4					(2.3)		%				$	(4.0)					$	178.6					(13.4)		%				$	(27.7)					(13.6)		%				$	(27.7)
YTD Q2						$	362.6					—		%				$	—					(3.5)		%				$	(12.8)					$	362.6					(15.9)		%				$	(68.4)					(16.2)		%				$	(69.1)

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%.

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%.

14

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.

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.

Gross Profit

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.

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.

Substantially all of our occupancy and home delivery costs are included in selling, general and administrative expenses (“SG&A”), as are 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.

Selling, General and Administrative Expenses

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.

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.

We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses include the costs in the selling and delivery categories and certain warehouse and distribution expenses, as these amounts will generally move in tandem with our level of sales. The remaining categories and expenses for occupancy, advertising, and administrative costs are classified as fixed and discretionary because these costs do not fluctuate with sales.

The following table outlines our SG&A expenses by classification:

(In thousands)						Three Months Ended June 30,																								Six Months Ended June 30,
						2025												2024												2025												2024
						$						% of Net Sales						$						% of Net Sales						$						% of Net Sales						$						% of Net Sales
Variable						$	33,353					18.4		%				$	34,746					19.4		%				$	67,000					18.5		%				$	71,732					19.8		%
Fixed and discretionary						73,980						40.9		%				68,353						38.3		%				147,535						40.7		%				140,723						38.8		%
						$	107,333					59.3		%				$	103,099					57.7		%				$	214,535					59.2		%				$	212,455					58.6		%

15

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.

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.

Liquidity and Capital Resources

Cash and Cash Equivalents

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.

Long-Term Debt

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.

Leases

We lease a portion of our real estate, including our stores, distribution centers, and store support space, pursuant to operating leases.

Cash Flows Summary

Operating Activities. Cash flow generated from operations provides us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for products and services, employee compensation, operations, and occupancy costs.

Cash provided by or used in operating activities is also subject to changes in working capital. Working capital at any specific point in time is subject to many variables, including seasonality, inventory selection, the timing of cash receipts and payments, and vendor payment terms.

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.

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.

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.

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Store Plans and Capital Expenditures

Location or Market			Opening Quarter Actual or Planned			Category
Houston, TX			Q-1-25			Open
Daytona, FL			Q-2-25			Relocation
Atlanta, GA			Q-2-25			Closure
Waco, TX			Q-3-25			Closure
Houston, TX			Q-4-25			Open
St. Louis, MO			Q-1-26			Open
Nashville, TN			Q-2-26			Open
Houston, TX			Q-3-26			Open
Houston, TX			Q-4-26			Open

Assuming the new stores open as planned, we will end 2025 with 129 stores.

Critical Accounting Estimates

Critical accounting estimates are those that we believe are both significant and that require us to make difficult, subjective or complex judgments, often because we need to estimate the effect of inherently uncertain matters. We base our estimates and judgments on historical experiences and various other factors that we believe to be appropriate under the circumstances. Actual results may differ from these estimates, and we might obtain different estimates if we used different assumptions or conditions. We reviewed our accounting estimates, and none were deemed to be considered critical for the accounting periods presented in our Form 10-K. We had no significant changes in those accounting estimates since our last annual report.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

For quantitative and qualitative disclosures about market risk, see "Item 7A. Quantitative and Qualitative Disclosures About Market Risk,” of our Form 10-K. Our exposure to market risk has not changed materially since December 31, 2024.

Item 4.    Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, our management, including the CEO and CFO, concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report and provide reasonable assurance that information required to be disclosed in the reports the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including the CEO and CFO, as appropriate, to allow timely decisions regarding disclosure.

There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13a-15 that occurred during the Company’s fiscal quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. We have reviewed our financial reporting process to provide reasonable assurance that we could report our financial results accurately and timely, and we will continue to evaluate the impact of any related changes to our internal control over financial reporting.

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INDEX

PART II. OTHER INFORMATION

Item 1.    Legal Proceedings

Information regarding legal proceedings is provided in Note K - Contingencies of the Notes to the Condensed Consolidated Financial Statements set forth in this Form 10-Q.

Item 1A.    Risk Factors

"Item 1A. Risk Factors” in our Form 10-K includes a discussion of our known material risk factors. There have been no material changes from the risk factors described in our Form 10-K.

Item 2.    Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

The Board of Directors has authorized management, at its discretion, to purchase and retire limited amounts of our Common Stock and Class A Common Stock. A program was initially approved by the Board on November 3, 1986. On August 5, 2022, the board authorized additional amounts under such stock repurchase program. The stock repurchase program has no expiration date but may be terminated by our Board at any time.

There were no repurchases of common stock during the second quarter of 2025. As of June 30, 2025, the approximate dollar value of shares that may yet be purchased under the program was $6.1 million.

Item 5.    Other Information

During the three months ended June 30, 2025, none of our directors or officers adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

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INDEX

Item 6.    Exhibits

(a)Exhibits

The exhibits listed below are filed with or incorporated by reference into this report (those filed with this report are denoted by an asterisk). Unless otherwise indicated, the exhibit number of documents incorporated by reference corresponds to the exhibit number in the referenced documents.

Exhibit Number						Description of Exhibit (Commission File No. 1-14445)
3.1						Articles of Amendment and Restatement of the Charter of Haverty Furniture Companies, Inc. effective May 26, 2006 (Exhibit 3.1 to our Second Quarter 2006 Form 10-Q).
3.2						By-laws of Haverty Furniture Companies, Inc. as amended and restated effective February 24, 2023 (Exhibit 3.2 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2022).
*10.1						Amendment and Waiver to the Amended and Restated Credit Agreement by and among Haverty Furniture Companies, Inc. and Havertys Credit Services, Inc., as the Borrowers, SunTrust Bank, as the Issuing Bank and Administrative Agent and SunTrust Robinson Humphrey, Inc. as Lead Arranger, dated September 1, 2011, as amended.
*31.1						Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as amended.
*31.2						Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as amended.
**32.1						Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
101						The following financial statements from Haverty Furniture Companies, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in inline XBRL, include: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows and (iv) the Notes to Condensed Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

*    Filed herewith.

**    Furnished herewith.

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INDEX

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

			HAVERTY FURNITURE COMPANIES, INC. (Registrant)
Date: August 5, 2025			By:			/s/ Steven G. Burdette
						Steven G. Burdette President, Chief Executive Officer, and Director (principal executive officer)
			By:			/s/ Richard B. Hare
						Richard B. Hare Executive Vice President and Chief Financial Officer (principal financial and accounting officer)

FAQ

How did Haverty Furniture (HVT) perform financially in Q2 2025?

Net sales grew 1.3% to $181 m, but net income fell 39% to $2.7 m; diluted EPS was $0.16.

What caused the decline in HVT’s earnings?

SG&A expenses rose 4.1%—mainly admin, occupancy and marketing—offsetting the 40 bp gross-margin gain.

What is Havertys’ liquidity position?

The company holds $107 m cash with no revolver borrowings and has $80 m of unused credit capacity.

How might new U.S. tariffs affect HVT?

Tariffs of 10-41% on imports effective 7 Aug 25 could lift product costs; management is assessing mitigation options.

Did Havertys repurchase shares or raise dividends in 2025?

Yes. It repurchased $2 m of stock YTD and raised the common dividend to $0.64 per share.

What are the company’s expansion plans?

Management plans to end 2025 with 129 stores, including new locations in Houston, Daytona and others.