Haverty Furniture Companies (HVT) 16th Annual East Coast IDEAS Conference summary

Business performance and market positioning

• Achieved positive delivered, written, and same-store sales growth for three consecutive quarters despite industry headwinds.

• Target customer is a resilient, affluent suburban homeowner with a household income over $150,000.

• Store base is concentrated in the Southern and Midwestern U.S., with recent expansion into St. Louis and upcoming entry into Pittsburgh.

• Operates 130 stores across 17 states, with plans to enter an 18th state in Q4.

• Price points are positioned above lower-end competitors and below luxury brands.

Operational strengths and customer experience

• Maintains a proprietary distribution and delivery network, ensuring quality and speed with in-house staff.

• In-stock merchandise can be delivered in 3–5 days, with thorough inspection and professional assembly.

• Offers free in-store design services, significantly increasing average ticket size and driving higher-value sales.

• Designer-involved sales accounted for 35% of revenue and 17% of tickets in Q1, with ongoing efforts to grow this segment.

Financial performance and strategic outlook

• Q1 saw gross profit margin expansion (up 60 bps excluding LIFO) and increased diluted EPS.

• Upholstery is the largest revenue category at 46%, followed by case goods at 32%.

• Maintains a strong balance sheet with over $100 million in cash and no funded debt.

• Capital allocation is balanced between dividends, share repurchases, and occasional special dividends; over 100% of earnings returned to shareholders in recent years.

• 2026 guidance: gross margins of 60.5–61%, fixed/discretionary expenses of $307–309 million, and variable SG&A of 18.6–18.8%.