Haverty Furniture Companies Reports Second Quarter 2025 Results

July 30, 2025  by Karen Parrish in Business Strategy, Industry   

Second Quarter 2025 versus Second Quarter 2024:

Diluted earnings per common share ("EPS") of $0.16 versus $0.27.

Consolidated sales increased 1.3% to $181.0 million. Comparable store sales decreased 2.3%.

Gross profit margin was 60.8% compared to 60.4%.

Steven G. Burdette, president and CEO said, "In the second quarter of 2025, we delivered year-over-year sales growth for the first time since the fourth quarter of 2022, while also achieving strong gross margins, positive traffic trends, and improved conversion rates. Although we continue to navigate a challenging environment, including a soft housing market, low consumer confidence, and tariff uncertainty, we are encouraged by the positive sales and operational trends we are seeing across our business. Our improved sales results reflect the effectiveness of our new marketing and promotional strategies, the dedication of our teams, and the value of the experience we've gained in our 140-year history."

Second Quarter ended June 30, 2025 Compared to Same Period of 2024

Total sales up 1.3%, comp-store sales down 2.3% for the quarter. Total written business increased 0.4% and comp-store written business decreased 2.1% for the quarter.

Design consultants accounted for 33.4% of written business in 2025 and 36.0% in 2024.

Gross profit margins increased to 60.8% in 2025 from 60.4% in 2024.

SG&A expenses were 59.3% of sales versus 57.7% and increased $4.2 million. The primary drivers of this change are:

increase in administrative expenses of $3.4 million primarily from increased salaries, performance-based incentive compensation and stock compensation costs.

increase in occupancy costs of $1.5 million largely due to costs related to new locations.

increase in advertising costs of $1.1 million driven by increased spending on television and interactive marketing.

decrease in warehouse and delivery costs of $1.1 million driven by lower salaries and related benefit costs.

Balance Sheet and Cash Flow for the Six Months Ended June 30, 2025

Cash, cash equivalents, and restricted cash equivalents at June 30, 2025 are $113.8 million.

Generated $13.4 million in cash from operating activities primarily from earnings and changes in working capital including a $9.9 million increase in inventories and a $1.4 million decrease in customer deposits.

Invested $11.7 million in capital expenditures.

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

Paid $10.4 million in quarterly cash dividends.

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

Expectations and Other

Our 2025 guidance includes tariffs currently in effect as of July 30, 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 and evaluating the impact to minimize the effects on our business.

Our expectations for gross profit margins for 2025 are unchanged from our prior guidance and are between 60.0% to 60.5%. 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 $291.0 to $293.0 million range, unchanged from our previous guidance. Variable SG&A expenses for the full year of 2025 are anticipated to be in the 18.5% to 18.8% range, a decrease from our previous guidance driven by lower warehouse and delivery costs.

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. We expect retail square footage at the end of 2025 to remain consistent with 2024.

Conference Call Information

The company broadcast the conference call at its website, ir.havertys.com. If you could not listen live, a replay will be available at the website.