ATLANTA, Aug. 4, 2026 /PRNewswire/ -- Haverty Furniture Companies, Inc. (NYSE: HVT and HVT.A), today reported operating results for the second quarter ended June 30, 2026.
Second Quarter 2026 versus Second Quarter 2025:
-- Diluted earnings per common share ("EPS") of $0.32 versus $0.16.
-- Consolidated sales increased 7.7% to $194.9 million.
-- Comparable store sales increased 8.0%.
-- Gross profit margin was 61.4% compared to 60.8%.
-- Excluding the impact of approximately $1.5 million in IEEPA tariff
refunds, gross margin was 60.7% in 2026 compared to 60.8% in 2025.
Steven G. Burdette, President and CEO said, "Our second quarter results reflect the sustained momentum in our business, marked by a fourth consecutive quarter of written, delivered and comp-store sales growth. We posted a strong Memorial Day weekend performance, with average tickets up double-digits. Gross margins expanded to 61.4%, which included the benefit of approximately $1.5 million in IEEPA tariff refunds.
We also advanced our strategic growth initiatives with the openings of two stores, Fenton, Missouri and Mt. Juliet, Tennessee. We are on track to open five additional stores and complete one relocation, increasing our store count to 133 at year-end. Our upcoming entry into Pittsburgh, Pennsylvania will extend our footprint to 18 states, consistent with our long-term growth strategy.
This quarter's results underscore our commitment to an exceptional customer experience and disciplined execution across the business. Our strong balance sheet and gross margins, strengthening design business, average-ticket growth, and investments in new markets give us confidence entering the second half of the year."
Second Quarter ended June 30, 2026 Compared to Same Period of 2025
-- Total sales up 7.7%, comp-store sales up 8.0% for the quarter. Total
written business increased 12.6% and comp-store written business
increased 12.3% for the quarter.
-- Design consultants accounted for 36.5% of written business in 2026 and
33.4% in 2025.
-- Gross profit margins increased to 61.4% in 2026 from 60.8% in 2025.
-- SG&A expenses were 58.0% of sales versus 59.3% and increased $5.8
million. The primary drivers of this change are:
-- increase in selling expense of $3.1 million primarily due to
higher commissioned-based compensation and third-party credit
costs
-- increase in administrative expenses of $2.8 million primarily from
increased salaries, performance-based incentive compensation and
related benefits.
Balance Sheet and Cash Flow for the Six Months Ended June 30, 2026
-- Cash, cash equivalents, and restricted cash equivalents at June 30, 2026
are $111.0 million.
-- Invested $13.1 million in capital expenditures.
-- Purchased approximately 723,000 shares of common stock for $16.6 million.
-- In June 2026, the Company repurchased 600,000 shares of its common
stock for approximately $13.9 million in a privately negotiated
transaction.
-- Paid $10.6 million in quarterly cash dividends.
-- No debt outstanding at June 30, 2026, and credit availability of $100
million.
-- Effective June 29, 2026, the Company's revolving credit facility
was amended to increase the borrowing capacity from $80 million to
$100 million.
Expectations and Other
-- Our 2026 guidance includes tariffs currently in effect as of August 4,
2026 but excludes future IEEPA tariff refunds that may be received for
indirectly sourced products. 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 2026 are between 60.5% to
61.0%, unchanged from our previous 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 2026
are expected to be in the $307.0 to $309.0 million range, unchanged from
our previous guidance. Variable SG&A expenses for the full year of 2026
are anticipated to be in the 18.7% to 18.9% range, an increase from our
previous guidance due to higher selling expenses.
-- Our effective tax rate for 2026 is expected to be 26.0%, excluding the
impact from discrete items and any new tax legislation.
-- Planned capital expenditures for the full year of 2026 are approximately
$34.0 million, an increase from our previous guidance due to store
growth.
Key Results
(amounts in millions, except per share amounts)
Results of
Operations
Three Months Ended June
30, Six Months Ended June 30,
-------------------------- --------------------------
2026 2025 2026 2025
------------ --------- --------- --------- ---------
Sales $ 194.9 $ 181.0 $ 384.0 $ 362.6
Gross Profit 119.7 110.1 235.9 221.2
Gross profit
as a % of
sales 61.4% 60.8% 61.4% 61.0%
SGA
Variable 37.6 33.3 73.9 67.0
Fixed 75.6 74.0 150.6 147.5
--------- --------- --------- ---------
Total 113.2 107.3 224.4 214.5
--------- --------- --------- ---------
SGA as a %
of sales
Variable 19.3% 18.4% 19.2% 18.5%
Fixed 38.7% 40.9% 39.2% 40.7%
--------- --------- --------- ---------
Total 58.0% 59.3% 58.4% 59.2%
--------- --------- --------- ---------
Pre-tax
income 7.4 4.3 13.4 9.6
Pre-tax
income as a
% of sales 3.8% 2.4% 3.5% 2.7%
Net income 5.3 2.7 9.6 6.5
Net income
as a % of
sales 2.7% 1.5% 2.5% 1.8%
Diluted
earnings
per share
("EPS") $ 0.32 $ 0.16 $ 0.58 $ 0.39
Other Financial and Operations Data
Six Months Ended June 30,
---------------------------
2026 2025
------------------------ ------------- ------------
EBITDA (in millions)(1) $ 23.8 $ 18.7
Sales per square foot $ 170 $ 161
Average ticket $ 3,786 $ 3,350
Liquidity
Measures
Six Months Ended Six Months Ended
June 30, June 30,
------------------
Free Cash Cash Returns
Flow 2026 2025 to 2026 2025
------------- -------- -------- ------------ -------- --------
Operating cash Share
flow $ 21.4 $ 13.4 repurchases $ 16.6 $ 2.0
Dividends 10.6 10.4
-------- --------
Cash returns
Capital to
expenditures (13.1) (11.7) shareholders $ 27.2 $ 12.4
-------- -------- ======== ========
Free cash flow $ 8.3 $ 1.7
======== ========
Cash at period
end $ 111.0 $ 113.8
======== ========
(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 Six Months Ended
June 30, June 30,
-------------------- --------------------
(In thousands, except per
share data) 2026 2025 2026 2025
--------- --------- --------- ---------
Net sales $ 194,941 $ 181,025 $ 383,991 $ 362,592
Cost of goods sold
(exclusive of depreciation
and amortization) 75,210 70,923 148,043 141,407
--------- --------- --------- ---------
Gross profit 119,731 110,102 235,948 221,185
Expenses:
Selling, general and
administrative 113,163 107,333 224,439 214,535
Other (income) expense,
net 74 (65) 21 (223)
--------- --------- --------- ---------
Total expenses 113,237 107,268 224,460 214,312
--------- --------- --------- ---------
Income before interest and
income taxes 6,494 2,834 11,488 6,873
Interest income, net 923 1,492 1,889 2,746
--------- --------- --------- ---------
Income before income taxes 7,417 4,326 13,377 9,619
Income tax expense 2,111 1,637 3,810 3,152
--------- --------- --------- ---------
Net income $ 5,306 $ 2,689 $ 9,567 $ 6,467
========= ========= ========= =========
Basic earnings per share:
Common Stock $ 0.33 $ 0.17 $ 0.60 $ 0.40
Class A Common Stock $ 0.31 $ 0.15 $ 0.56 $ 0.37
Diluted earnings per share:
Common Stock $ 0.32 $ 0.16 $ 0.58 $ 0.39
Class A Common Stock $ 0.31 $ 0.15 $ 0.56 $ 0.37
Cash dividends per share:
Common Stock $ 0.33 $ 0.32 $ 0.66 $ 0.64
Class A Common Stock $ 0.31 $ 0.30 $ 0.62 $ 0.60
HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, December 31, June 30,
(In thousands) 2026 2025 2025
--------- ------------ ---------
Assets
Current assets
Cash and cash equivalents $ 104,295 $ 125,325 $ 107,357
Restricted cash and cash
equivalents 6,665 6,547 6,414
Inventories 100,502 96,155 93,270
Prepaid expenses 17,393 10,236 15,775
Other current assets 8,448 11,064 13,332
--------- ------------ ---------
Total current assets 237,303 249,327 236,148
Property and equipment, net 178,806 177,207 181,227
Right-of-use lease assets 205,422 190,586 192,265
Deferred income taxes 20,011 19,301 17,048
Other assets 14,514 12,631 15,984
--------- ------------ ---------
Total assets $ 656,056 $ 649,052 $ 642,672
========= ============ =========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 20,627 $ 15,447 $ 16,464
Customer deposits 43,337 35,504 39,351
Accrued liabilities 41,168 46,531 37,436
Current lease liabilities 35,220 35,967 37,263
--------- ------------ ---------
Total current liabilities 140,352 133,449 130,514
Noncurrent lease liabilities 195,493 180,450 180,045
Other liabilities 26,139 27,224 27,242
--------- ------------ ---------
Total liabilities 361,984 341,123 337,801
--------- ------------ ---------
Stockholders' equity 294,072 307,929 304,871
--------- ------------ ---------
Total liabilities and
stockholders'
equity $ 656,056 $ 649,052 $ 642,672
========= ============ =========
HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
(In thousands) June 30,
--------------------
2026 2025
--------- ---------
Cash Flows from Operating Activities:
Net income $ 9,567 $ 6,467
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 12,340 11,831
Share-based compensation expense 4,493 3,986
Other 585 1,156
Changes in operating assets and liabilities:
Inventories (4,347) (9,851)
Customer deposits 7,833 (1,382)
Other assets and liabilities (8,050) 658
Accounts payable and accrued liabilities (1,058) 512
--------- ---------
Net cash provided by operating activities 21,363 13,377
--------- ---------
Cash Flows from Investing Activities:
Capital expenditures (13,148) (11,702)
Proceeds from sale of land, property, and equipment 54 19
--------- ---------
Net cash used in investing activities (13,094) (11,683)
--------- ---------
Cash Flows from Financing Activities:
Dividends paid (10,629) (10,353)
Common stock repurchased (16,568) (2,000)
Taxes on vested restricted shares (1,984) (1,884)
--------- ---------
Net cash used in financing activities (29,181) (14,237)
--------- ---------
Decrease in cash, cash equivalents, and restricted
cash equivalents during the period (20,912) (12,543)
Cash, cash equivalents, and restricted cash
equivalents at beginning of period 131,872 126,314
--------- ---------
Cash, cash equivalents, and restricted cash
equivalents at end of period $ 110,960 $ 113,771
========= =========
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.
Additionally, the company presents gross profit margin, excluding the impact of IEEPA tariff refunds and LIFO, consolidated adjusted net income, and adjusted diluted EPS. We believe these non-GAAP measures provide investors with useful supplemental information because they enhance the comparability of the Company's results across periods and more closely align with the metrics management uses to evaluate the performance of its core operations, to conduct internal planning and budgeting, and to make operating decisions. These measures are not intended to be considered in isolation or as a substitute for, or superior to, the most directly comparable GAAP measures, and the Company's presentation may differ from similarly titled measures used by other companies.
Reconciliation of GAAP measures to EBITDA
Six Months Ended June 30,
---------------------------
(in thousands) 2026 2025
----------------------------------------- ------------- ------------
Income before income taxes, as reported $ 13,377 $ 9,619
Interest income, net (1,889) (2,746)
Depreciation and amortization 12,340 11,831
------------- ------------
EBITDA $ 23,828 $ 18,704
============= ============
Gross profit margin, excluding the impact of IEEPA tariff refunds
Three Months Ended June
30, Six Months Ended June 30,
------------------------ --------------------------
(in thousands) 2026 2025 2026 2025
----------- ----------- ------------ ------------
Net sales $ 194,941 $ 181,025 $ 383,991 $ 362,592
Cost of goods
sold 75,210 70,923 148,043 141,407
----------- ----------- ------------ ------------
Gross profit $ 119,731 $ 110,102 $ 235,948 $ 221,185
IEEPA Tariff
Refund
Adjustment (1,497) -- (1,497) --
----------- ----------- ------------ ------------
Gross Profit,
excluding
the impact
of tariff
refunds $ 118,234 $ 110,102 $ 234,451 $ 221,185
=========== =========== ============ ============
Gross Profit
Margin,
excluding
the impact of
tariff
refunds 60.7 % 60.8 % 61.1 % 61.0 %
----------- ----------- ------------ ------------
Gross profit margin, excluding the impact of IEEPA tariff refunds and LIFO
Three Months Ended June
30, Six Months Ended June 30,
------------------------ --------------------------
(in thousands) 2026 2025 2026 2025
----------- ----------- ------------ ------------
Net sales $ 194,941 $ 181,025 $ 383,991 $ 362,592
Cost of goods
sold 75,210 70,923 148,043 141,407
----------- ----------- ------------ ------------
Gross profit $ 119,731 $ 110,102 $ 235,948 $ 221,185
IEEPA Tariff
Refund
Adjustment (1,497) -- (1,497) --
LIFO Adjustment 496 106 1,020 130
----------- ----------- ------------ ------------
Gross Profit,
excluding
the impact
of tariff
refunds and
LIFO $ 118,730 $ 110,208 $ 235,471 $ 221,315
=========== =========== ============ ============
Gross Profit
Margin,
excluding the
impact of
tariff
refunds and
LIFO 60.9 % 60.9 % 61.3 % 61.0 %
----------- ----------- ------------ ------------
Consolidated Adjusted Net Income / Adjusted Diluted EPS
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
(in thousands, except per share
data) 2026 2026
----------------------------------- ------------------ ----------------
Net income $ 5,306 $ 9,567
IEEPA Tariff Refund Adjustment (1,497) (1,497)
Interest income (67) (67)
Related income tax effects 446 446
------------------ ----------------
Adjusted net income $ 4,188 $ 8,449
================== ================
Adjusted diluted EPS $ 0.25 $ 0.51
------------------ ----------------
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 August 4, 2026 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 2026, 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 maintain and enhance our brand;
-- our ability to successfully implement our growth and other strategies;
-- our ability to locate our stores in suitable locations to attract
customers;
-- importing a substantial portion of our merchandise from foreign sources
(including the impact of tariffs);
-- our dependence on third-party producers to meet our requirements;
-- significant fluctuations and volatility in the cost of raw materials and
components;
-- 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;
-- a failure by our vendors to meet our quality control standards or comply
with changes to the legislative or regulatory framework regarding product
safety;
-- our reliance on third-party transportation vendors for product shipments
from our suppliers;
-- damage to one of our distribution centers;
-- our reliance on information technology and any disruptions in our IT
systems;
-- the vulnerability of our information technology infrastructure to
cyber-attacks, breaches and other disruptions;
-- 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;
-- changes in economic conditions such as consumer disposable income, fuel
prices, inflation rates, recession and fears of recession, unemployment
rates, interest rates, tax rates, consumer confidence, and changing
government policies, laws and regulations;
-- certain risks may not be fully covered by insurance;
-- failure to protect our intellectual property;
-- our ability to comply with all applicable laws and regulations;
-- pending or unforeseen litigation;
-- natural disasters, public health events, geopolitical instability or
other disruptive events; and
-- other risks and uncertainties as may be detailed from time to time in our
public announcements and Securities and Exchange Commission filings.
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.
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SOURCE Haverty Furniture Companies, Inc.