Haverty Furniture Companies (HVT) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 rose 4.1% year-over-year to $189.1 million, marking the third consecutive quarter of positive comparable sales, with comp-store sales up 4.3%.

• Gross profit margin expanded to 61.5% from 61.2% year-over-year, with adjusted/ex-LIFO margin at 61.8%.

• Design business accounted for 35.3% of sales, up over 200 basis points year-over-year, with average ticket at $8,300.

• Store base reached 129 stores across 17 states, with new leases signed in Dallas, Atlanta, and Fredericksburg, and aggressive growth plans for 2026.

• Ended quarter debt-free with $114.1 million in cash, cash equivalents, and restricted cash.

Financial highlights

• Net income was $4.3 million, or $0.26 per share, up from $3.8 million, or $0.23 per share; diluted EPS reached $0.30 in some reports.

• Pre-tax income was $6 million (3.2% margin), up from $5.3 million (2.9% margin) last year.

• SG&A expenses rose to $111.3 million but declined as a percentage of sales to 58.9%.

• Inventories increased to $106.9 million, driven by new products and pre-Chinese New Year orders.

• Free cash flow was negative at $(9.9) million, down from $0.1 million in Q1 2025.

Outlook and guidance

• Gross margin for 2026 expected between 60.5% and 61%, factoring in product, freight, and LIFO expenses.

• SG&A expenses projected at $307–309 million for 2026, with variable SG&A at 18.6%–18.8% of sales.

• Capital expenditures planned at $34 million, with $27.7 million for new stores, remodels, and expansions.

• Effective tax rate for 2026 anticipated at 26%.

• Management expects current cash, operating cash flow, and credit availability to be sufficient for several years.