Haverty Furniture Companies, Inc. (NYSE:HVT and HVT.A), today reported operating results for the first quarter ended March 31, 2026.

First Quarter 2026 versus First Quarter 2025:

• Diluted earnings per common share ("EPS") of $0.26 versus $0.23.

• Consolidated sales increased 4.1% to $189.1 million.

• Comparable store sales increased 4.3%.

• Gross profit margin was 61.5% compared to 61.2%.

Steven G. Burdette, President and CEO said, "We are pleased with our first quarter results, delivering written business, delivered sales, and comp-store sales growth for a third consecutive quarter. Performance was led by strong Presidents' Day demand, gross profit margin expansion, and higher average tickets.

Our design program continues to be a key growth driver and differentiator for Havertys. Designer average tickets remain more than double our overall average ticket, and the program accounted for 35.3% of written business during the quarter, up over 200 basis points from 2025. We are excited about the program's trajectory and see significant opportunity ahead as we continue to provide a high-quality experience for our customers.

We also continued to execute on our store growth strategy, signing new store leases in the Dallas, TX, Atlanta, GA, and Fredericksburg, VA markets. With a strong balance, no funded debt, and sustained momentum across key operating metrics, we remain well positioned to continue growing our store base and execute on our long-term objectives."

First Quarter ended March 31, 2026 Compared to Same Period of 2025

• Total sales up 4.1%, comp-store sales up 4.3% for the quarter. Total written business increased 6.4% and comp-store written business increased 7.0% for the quarter.

• Design consultants accounted for 35.3% of written business in 2026 and 33.2% in 2025.

• Gross profit margins increased to 61.5% in 2026 from 61.2% in 2025.

• SG&A expenses were 58.9% of sales versus 59.0% and increased $4.1 million. The primary drivers of this change are:

  • increase in selling expense of $2.4 million primarily due to higher commissioned-based compensation and third-party credit costs

  • increase in administrative expenses of $0.8 million primarily from increased salaries and related benefits.

  • increase in occupancy costs of $0.6 million related to new stores and the timing of repairs and maintenance.

Balance Sheet and Cash Flow for the Three Months Ended March 31, 2026

• Cash, cash equivalents, and restricted cash equivalents at March 31, 2026 are $114.1 million.

• Invested $7.0 million in capital expenditures.

• Purchased approximately 91,000 shares of common stock for $2.0 million.

• Paid $5.3 million in quarterly cash dividends.

• No debt outstanding at March 31, 2026, and credit availability of $80.0 million.

Expectations and Other

• Our 2026 guidance includes tariffs currently in effect as of May 5, 2026. 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 18.6% to 18.8% range.

• 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.

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.

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 May 5, 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.