Havertys Furniture Reports Operating Results for First Quarter

May 5, 2026  by Karen Parrish in Business Strategy, Industry   

First Quarter 2026 versus First Quarter 2025:

Diluted earnings per common share ("EPS") of $0.26 versus $0.23.

Consolidated sales increased 4.1% to $189.1 million.

Comparable store sales increased 4.3%.

Gross profit margin was 61.5% compared to 61.2%.

Steven G. Burdette, president and CEO said, "We are pleased with our first quarter results, delivering written business, delivered sales, and comp-store sales growth for a third consecutive quarter. Performance was led by strong Presidents' Day demand, gross profit margin expansion, and higher average tickets.”

“Our design program continues to be a key growth driver and differentiator for Havertys. Designer average tickets remain more than double our overall average ticket, and the program accounted for 35.3% of written business during the quarter, up over 200 basis points from 2025. We are excited about the program's trajectory and see significant opportunity ahead as we continue to provide a high-quality experience for our customers.”

“We also continued to execute on our store growth strategy, signing new store leases in the Dallas, TX, Atlanta, GA, and Fredericksburg, VA markets. With a strong balance, no funded debt, and sustained momentum across key operating metrics, we remain well positioned to continue growing our store base and execute on our long-term objectives."

First Quarter ended March 31, 2026 Compared to Same Period of 2025

Total sales up 4.1%, comp-store sales up 4.3% for the quarter. Total written business increased 6.4% and comp-store written business increased 7.0% for the quarter.

Design consultants accounted for 35.3% of written business in 2026 and 33.2% in 2025.

Gross profit margins increased to 61.5% in 2026 from 61.2% in 2025.

SG&A expenses were 58.9% of sales versus 59.0% and increased $4.1 million. The primary drivers of this change are:

increase in selling expense of $2.4 million primarily due to higher commissioned-based compensation and third-party credit costs

increase in administrative expenses of $0.8 million primarily from increased salaries and related benefits.

increase in occupancy costs of $0.6 million related to new stores and the timing of repairs and maintenance.

Balance Sheet and Cash Flow for the Three Months Ended March 31, 2026

Cash, cash equivalents, and restricted cash equivalents at March 31, 2026 are $114.1 million.

Invested $7.0 million in capital expenditures.

Purchased approximately 91,000 shares of common stock for $2.0 million.

Paid $5.3 million in quarterly cash dividends.

No debt outstanding at March 31, 2026, and credit availability of $80.0 million.

Expectations and Other

Our 2026 guidance includes tariffs currently in effect as of May 5, 2026. 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 18.6% to 18.8% range.

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.

Conference Call Information

The company hosted a live webcast of the conference call on May 5. A replay will be available on the day of the conference call at the website, ir.havertys.com.