Haverty Furniture Companies Reported Operating Results for Second Quarter

August 4, 2026  by Karen Parrish in Business Strategy, Industry   

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.

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.