HAVERTYS (NYSE:HVT) and (NYSE:HVT.A), today reported its operating results for the fourth quarter ended December 31, 2025.

Fourth quarter 2025 versus fourth quarter 2024:

• Diluted earnings per common share ("EPS") of $0.51 versus $0.49.

• Consolidated sales increased 9.5% to $201.9 million. Comparable store sales increased 8.2%.

• Gross profit margin of 60.4% versus 61.9%. Excluding the impact of LIFO, gross profit margin was 62.4% for 2025 and 61.4% for 2024.

FY 2025 versus FY 2024:

• Diluted earnings per common share ("EPS") of $1.19 for 2025 and 2024.

• Consolidated sales increased 5.0% to $759.0 million. Comparable store sales increased 2.1%.

• Gross profit margin was 60.7% for 2025 and 2024. Excluding the impact of LIFO, gross profit margin was 61.3% for 2025 and 60.6% for 2024.

• Pre-tax income of $26.8 million versus $26.2 million.

Stock Repurchase Program:

• The Board of Directors approved an additional $15 million authorization for the Company's stock repurchase program.

Steven G. Burdette, President and CEO, said, "Our fourth quarter results were highlighted by our second consecutive quarter of growth in both written and delivered sales and comp-store sales. This sustained momentum reflects the effectiveness of our customer-first approach and strategic marketing investments, which continue to drive traffic and increase average tickets while maintaining strong gross margins, even as we navigate persistent industry headwinds. We are pleased to announce that we plan to enter our 18th state, in Pittsburgh, Pennsylvania, later this year, bringing our total planned store openings for 2026 to five locations.

In 2025, we returned $25.6 million to our shareholders through $4.8 million in share repurchases and $20.8 million in quarterly dividends. Our disciplined capital management approach reflects our commitment to delivering long-term value while maintaining the financial strength needed to grow in a challenging environment.

Our 2025 results demonstrate that our strategic initiatives and clear value proposition continue to resonate. We are encouraged by the positive momentum in our business and remain focused on delivering sustainable growth and long-term value for our customers and shareholders."

Fourth Quarter ended December 31, 2025 Compared to Same Period of 2024

• Total sales up 9.5%, comp-store sales up 8.2% for the quarter. Total written sales increased 3.5% and written comp-store sales increased 3.2% for the quarter.

• Design consultants accounted for 33.3% of written business in 2025 and 31.8% in 2024.

• Gross profit margins decreased 150 basis points to 60.4% in 2025 from 61.9% in 2024. In 2025, the change in LIFO reserve generated a negative impact of $3.9 million compared to a positive impact of $0.9 million in 2024.

• SG&A expenses were 55.7% of sales versus 57.4% and increased $6.6 million. The primary drivers of this change are:

  • increase of $2.9 million in selling expenses due to higher commissioned-based compensation and third-party credit costs.

  • increase of $3.1 million in administrative expenses due to performance-based incentive compensation and stock based compensation costs.

Balance Sheet and Cash Flow

• Cash, cash equivalents, and restricted cash equivalents at December 31, 2025 are $131.9 million.

• Generated $52.6 million in cash from operating activities primarily from earnings and changes in working capital, including a $12.7 million increase in inventories, a $5.2 million decrease in customer deposits, a $12.3 million decrease in other assets and liabilities and an $8.1 million increase in accrued liabilities and vendor repayments.

• Invested $19.7 million in capital expenditures.

• Purchased 216,482 shares of common stock for $4.8 million.

• Paid $20.8 million in quarterly cash dividends in 2025.

• No debt outstanding at December 31, 2025 and credit availability of $80.0 million.

Expectations and Other

• On February 20, 2026, the Supreme Court invalidated the tariffs imposed by the administration under the International Emergency Economic Protection Act during 2025, and the administration announced its intention to impose new tariffs under different regulations. Our 2026 guidance includes the impact of the new tariffs announced by the administration. We continue to monitor tariff developments and assess their potential impact on our business as such changes could have a material impact on our results of operations.

• We expect gross profit margins for 2026 will be between 60.5% to 61.0%. Gross profit margins fluctuate quarter to quarter in relation to our promotional cadence. Our estimated gross profit margins for 2026 are based on anticipated product and freight costs and the impact on our LIFO reserve.

• 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. The increases over 2025 are primarily from store growth and inflation. 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 of discrete items and any new tax legislation.

• Planned capital expenditures are approximately $33.5 million in 2026, an increase over 2025 due to our planned store growth for the year.

Stock Repurchase Program

The Company also reported today that, on February 20, 2026, its Board of Directors approved a new authorization under its stock repurchase program that permits the Company to purchase an additional $15.0 million of its common stock and Class A common stock. As of February 24, 2026, there is approximately $18.3 million remaining under the existing authorization. Shares may be repurchased, at the Company's discretion, from time-to-time in the open market.