Haverty Furniture Companies (HVT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $181.6 million, down 1.3% year-over-year, with comparable store sales down 4.8% amid weak housing and cautious consumer spending.

• Gross margin improved to 61.2% from 60.3% year-over-year, driven by product selection and merchandising mix.

• Net income was $3.8 million ($0.23 per diluted share), up from $2.4 million ($0.14 per share) last year, reflecting higher gross margin and lower SG&A expenses.

• Free in-home design service engagement increased, contributing 33% of total written sales with higher average ticket size.

• Pre-tax profit rose to $5.3 million (2.9% margin) from $3.2 million (1.7% margin) in Q1 2024.

Financial highlights

• SG&A expenses decreased by $2.2 million to $107.2 million, now 59% of sales.

• Cash and cash equivalents at quarter-end were $111.9 million, with no funded debt and $80 million in credit available.

• CapEx for Q1 was $6.1 million; $5.2 million in dividends paid; $2 million in share repurchases.

• Operating cash flow was $6.2 million for Q1 2025, up from $3.1 million in Q1 2024.

• Inventories increased $5.3 million since year-end 2024, now at $88.7 million.

Outlook and guidance

• 2025 gross margin expected between 60%-60.5%.

• SG&A expenses projected at $291-$293 million for 2025, up due to store growth and inflation.

• CapEx guidance reduced by $3 million, now planned at $24 million for 2025.

• Effective tax rate for 2025 anticipated at 26.5%.

• Guidance assumes current tariffs remain in place for the year; store plans being reevaluated due to tariff changes.