Haverty Furniture Companies (HVT) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw the first year-over-year sales growth since Q4 2022, with net sales up 1.3% to $181 million, despite a 2.3% decline in comparable store sales and a challenging housing market.

• Gross profit margin improved to 60.8% from 60.4% year-over-year, driven by disciplined merchandising and product selection.

• Net income for Q2 2025 was $2.7 million, down from $4.4 million in Q2 2024; diluted EPS was $0.16 versus $0.27.

• SG&A expenses rose 4.1% to $107.3 million, mainly due to higher administrative, occupancy, and marketing costs.

• Positive traffic trends and improved conversion rates were noted, aided by digital and promotional strategies.

Financial highlights

• Net sales for Q2 2025 were $181 million; comparable store sales declined 2.3%.

• Gross profit margin increased by 40 basis points to 60.8%.

• SG&A expenses were 59.3% of sales, up from 57.7% in Q2 2024.

• Net income margin for Q2 2025 was 1.5%, down from 2.5% in Q2 2024.

• Ended Q2 with $107.4 million in cash and no funded debt.

Outlook and guidance

• Gross margin guidance for 2025 remains at 60%-60.5%, with anticipated impacts from product and freight costs.

• SG&A expenses for 2025 expected at $291-$293 million; variable SG&A at 18.5%-18.8%.

• CapEx for 2025 planned at $24 million, with $19.6 million for new stores, remodels, and expansions.

• Effective tax rate for 2025 projected at 26.5%, excluding discrete items and new legislation.

• Management expects continued pressure from economic uncertainty, tariffs, and a soft housing market.