Haverty Furniture Companies, Inc. Reports Operating Results for Third Quarter

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

Third Quarter 2026 versus Third Quarter 2025:

- Diluted earnings per common share ("EPS") of $0.39 versus $0.28.

- Consolidated sales increased 4.5% to $203.2 million. 

- Comparable store sales increased 4.1%.

- Gross profit margin was 62.3% compared to 60.3%.

- Excluding the impact of approximately $3.2 million in IEEPA tariff refunds, gross margin was 60.7% in 2026 compared to 60.3% in 2025.

Steven G. Burdette, President and CEO said, "Our team delivered another quarter of growth, extending our positive momentum in written and delivered comp-store sales against tougher year-over-year comparisons. We did so while navigating a soft housing market, higher fuel prices, higher interest rates, continued geopolitical issues, and rising input costs. Gross profit margin was 62.3%, including approximately $3.2 million of IEEPA tariff refunds, and remained strong at 60.7%, excluding those refunds.

We are energized by our five store openings in the fourth quarter, highlighted by our entry into Pittsburgh, Pennsylvania, our 18th state. Growing to 133 stores by year end, while continuing to invest in our people, our products, our design service, and our customers' experience, reflects both our financial strength and our team's consistent execution of our long-term growth strategy.

As we close out the year, we remain focused on what matters most: executing with discipline and creating long-term value for our team members and shareholders."

Third Quarter ended September 30, 2026 Compared to Same Period of 2025

- Total sales up 4.5%, comp-store sales up 4.1% for the quarter. Total written business increased 2.8% and comp-store written business increased 2.3% for the quarter.

- Design consultants accounted for 34.6% of written business in 2026 and 34.2% in 2025.

- Gross profit margins increased to 62.3% in 2026 from 60.3% in 2025.

- SG&A expenses were 58.6% of sales versus 57.8% and increased $6.7 million. The primary drivers of this change are:

- increase in selling expense of $1.8 million primarily due to higher sales commissions and third-party credit costs

- increase in administrative expenses of $4.1 million, driven primarily by stock-based compensation expense subject to accelerated recognition during the quarter, and higher performance-based incentive compensation and group insurance costs.

Balance Sheet and Cash Flow for the Nine Months Ended September 30, 2026

- Cash, cash equivalents, and restricted cash equivalents at September 30, 2026 were $127.0 million.

- Invested $23.0 million in capital expenditures.

- Purchased approximately 723,000 shares of common stock for $16.6 million.

- Paid $15.8 million in quarterly cash dividends.

- No debt outstanding at September 30, 2026, and credit availability of $100 million.

Expectations and Other

- Our 2026 guidance includes tariffs currently in effect as of November 4, 2026 but excludes future IEEPA tariff refunds that may be received for indirectly sourced products. We are actively monitoring tariff developments to manage our exposure and minimize the effects on our business.

- Our expectations for gross profit margins for 2026 are between 61.3% to 61.5%, an increase from our previous guidance due to the receipt of IEEPA tariff refunds. 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 19.2% to 19.4% range, an increase from our previous guidance due to higher delivery, transportation, and third-party credit costs.

- 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, unchanged from our previous guidance.

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 Nov. 4 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.