Haverty Furniture Companies (HVT) investor relations material

Executive summary

• Q3 net sales rose 4.5% YoY to $203.2m; comparable-store sales increased 4.1%, and diluted EPS was $0.39 versus $0.28.

• Total written business grew 2.8%, with written comparable sales up 2.3%; mid-single-digit traffic declines were offset by steady conversion and a 7.4% increase in average ticket.

• Performance came amid a soft housing market, higher fuel prices and interest rates, geopolitical issues, and rising input costs.

Financial highlights

• Q3 gross profit was $126.585m versus $117.264m; net income was $6.336m versus $4.729m.

• SG&A increased 6.0% to $119.030m; income before interest and income taxes rose $2.3m to $7.6m, and the effective tax rate was 26.0% versus 26.4%.

• Nine-month net sales were $587.144m versus $557.076m; net income was $15.903m versus $11.196m.

• Nine-month operating cash flow was $52.360m versus $45.285m; free cash flow was $29.4m versus $30.0m.

Outlook and guidance

• FY2026 gross-margin guidance rose to 61.3%–61.5% following tariff refunds; guidance includes tariffs effective Nov. 4 and excludes future indirect-source tariff refunds.

• FY2026 fixed and discretionary SG&A is expected at $307m–$309m; variable SG&A guidance is 19.2%–19.4%, raised for delivery, transportation, fuel-related, and credit costs.

• FY2026 capex remains $34m; the expected effective tax rate is 26%, excluding discrete items and potential new tax legislation.

• Inventory is expected to end 2026 at $90m–$100m; year-end store count is expected to reach 133 after five Q4 openings and one relocation.

• Cash generation and the revolving facility are expected to support operating needs, capex, dividends, and lease obligations through the next several years.