Haverty Furniture Companies, Inc. (NYSE:HVT)(NYSE:HVT.A), today reported operating results for the third quarter ended September 30, 2025.

Third Quarter 2025 versus Third Quarter 2024:

• Diluted earnings per common share ("EPS") of $0.28 versus $0.29.

• Consolidated sales increased 10.6% to $194.5 million.

• Comparable store sales increased 7.1%.

• Gross profit margin was 60.3% compared to 60.2%.

Steven G. Burdette, President and CEO said, "Our third-quarter results were highlighted by a strong Labor Day weekend performance, double-digit growth in written and delivered sales, and our first quarter of positive written and delivered comp-store sales in several years. Our strategic marketing investments continue to drive increased customer traffic, resulting in higher average tickets, solid conversion rates, and strong gross margins.

Our recent opening of a third Houston location brings our total store count to 129. Looking ahead, we expect to resume store count growth in the first quarter of 2026, targeting five net new store openings for the year. Our third quarter results demonstrate that our customer first approach continues to resonate. We are encouraged by the positive momentum in our business and remain focused on delivering sustainable growth and long-term value to our customers and shareholders."

Third Quarter ended September 30, 2025 Compared to Same Period of 2024

• Total sales up 10.6%, comp-store sales up 7.1% for the quarter. Total written business increased 10.0% and comp-store written business increased 8.0% for the quarter.

• Design consultants accounted for 34.2% of written business in 2025 and 34.5% in 2024.

• Gross profit margins increased to 60.3% in 2025 from 60.2% in 2024.

• SG&A expenses were 57.8% of sales versus 57.4% and increased $11.4 million. The primary drivers of this change are:

  • increase in advertising and marketing costs of $2.8 million driven by increased spending on television and direct mail production.

  • increase in selling expense of $2.7 million primarily due to sales commissions and related benefit costs for higher sales volume

  • increase in occupancy costs of $1.4 million related to new stores and the timing of repairs and maintenance.

  • increase in administrative expenses of $3.8 million primarily from increased salaries and related benefits, performance-based incentive compensation and stock compensation costs.

Balance Sheet and Cash Flow for the Nine Months Ended September 30, 2025

• Cash, cash equivalents, and restricted cash equivalents at September 30, 2025 are $137.0 million.

• Generated $45.3 million in cash from operating activities primarily from earnings and changes in working capital including a $9.0 million increase in inventories, $8.3 million increase in accrued liabilities and vendor repayments, a $8.1 million increase in other assets and liabilities, and a $3.1 million reduction in customer deposits.

• Invested $15.3 million in capital expenditures.

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

• Paid $15.5 million in quarterly cash dividends.

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

Expectations and Other

• Our 2025 guidance includes tariffs currently in effect as of October 29, 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 to manage our exposure and minimize the effects on our business.

• Our expectations for gross profit margins for 2025 are between 60.4% to 60.7%, an increase from our prior 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 2025 are expected to be in the $296.0 to $298.0 million range, an increase from our previous guidance due to higher anticipated advertising and administrative costs. Variable SG&A expenses for the full year of 2025 are anticipated to be in the 18.6% to 18.8% range.

• 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, unchanged from our previous guidance. We expect retail square footage at the end of 2025 to remain consistent with 2024.

Key Results
(amounts in millions, except per share amounts)

Results of Operations

(1) See the reconciliation of the non-GAAP metrics at the end of the release.

HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

HAVERTY FURNITURE COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

GAAP to Non-GAAP Reconciliation

We report our financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). We supplement the reporting of our financial information under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. We believe that EBITDA is a meaningful measure to share with investors as useful information on our operating results and to provide additional information with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures we use in this release may be different from non-GAAP financial measures, including similarly titled measures, used by other companies.

Reconciliation of GAAP measures to EBITDA

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 October 30, 2025 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.