Haverty Furniture Companies, Inc.

What they do

Havertys sells residential furniture and accessories through 129 company-operated stores and online, with no franchising. It targets middle to upper-middle income homeowners, offering free design services that drive higher average tickets. Revenue is generated from in-store and online retail sales, with approximately 33.5% of written sales in 2025 attributed to design consultations.

Revenue drivers

• Retail store sales — Sales from 129 stores across 17 states, primarily in the Southern and Midwest U.S., representing the majority of the $759.0 million 2025 revenue.
• Design services — Free in-home design consultations, which boosted average ticket prices to roughly double the store average; accounted for 36.5% of written business in Q2 2026.
• Comparable store sales — Comp-store sales growth of 8.0% in Q2 2026, driven by increased written business and higher average tickets, including a double-digit average ticket increase during Memorial Day weekend.

Recent performance

In Q2 2026, consolidated sales rose 7.7% to $194.9 million, with comp-store sales up 8.0%. Gross profit margin improved to 61.4%, aided by $1.5 million in IEEPA tariff refunds, while diluted EPS grew to $0.32 from $0.16 in the prior-year quarter. SG&A as a percentage of sales declined to 58.0% from 59.3%. For the six months ended June 30, 2026, sales were $384.0 million, up from $362.6 million in 2025.

Strategy

Management aims to open an average of five net new stores per year, concentrating within its current footprint, and plans to enter Pittsburgh, Pennsylvania, expanding to 18 states. It is investing in improving the in-store experience, including signage, fixtures, and design center equipment, with completion expected over the next two years. The company is also enhancing its design business and increasing capital expenditures for store growth.

Risks

• Tariff exposure — Imports from China, Vietnam, and other regions are subject to changing tariffs, which could raise costs and disrupt supply; Q2 2026 benefited from tariff refunds that may not recur.
• Cyclical consumer spending — Demand for home furnishings is sensitive to economic conditions, consumer confidence, housing market, and interest rates, which could reduce sales if consumers cut discretionary spending.
• Supply chain and vendor reliance — Dependence on third-party producers and transportation providers exposes the company to disruptions, rising raw material and freight costs, and potential inventory shortages.
• Competitive pressure — Competition from national, regional, and local furniture retailers could pressure sales and margins if Havertys fails to differentiate or respond to consumer preferences.

Outlook

Management raised 2026 variable SG&A expense guidance to 18.7%-18.9% of sales, while keeping fixed SG&A at $307-$309 million and gross margin at 60.5%-61.0%. They plan to open five additional stores and complete one relocation, ending the year with 133 stores. Capital expenditures for 2026 are now expected to be roughly $34 million, up from prior guidance due to store expansion. Tariff-related guidance excludes future IEEPA refunds.