Haverty (HVT) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 24, 2026

AI-Generated Deep Dive Summary

Haverty Furniture Companies (HVT) reported strong financial results for Q4 2025, with net sales reaching $201.9 million, a 9.5% year-over-year increase. Comparable store sales rose by 8.2%, driven by robust demand across its stores and e-commerce channels. Despite a slight decline in gross margin to 60.4% due to $3.9 million in LIFO charges, the company maintained profitability, with pretax income climbing to $10.8 million (5.3% operating margin) and net income reaching $8.5 million ($0.51 per diluted share). These figures reflect Haverty's ability to navigate cost pressures while delivering consistent growth. Key highlights from the quarter include a 10.9% year-over-year increase in average ticket values, with design-driven sales leading the way at an impressive 33.3% of total revenue. This shift underscores the company's focus on higher-margin products and its strategic emphasis on design. Sequentially, written sales showed growth across all months, while delivered sales surged by nearly 15% in December, signaling strong customer demand and efficient supply chain management. Haverty also demonstrated disciplined inventory management, with year-end inventories at $96.2 million, up from the previous year due to proactive purchases ahead of tariffs. The company's cash position remained healthy at $125.3 million, with no debt on its balance sheet. Capital expenditures totaled $4.4 million for Q4 and $19.7 million for the full year 2025, reflecting investments in store remodels and e-commerce infrastructure. Looking ahead, Haverty provided guidance for 2026, forecasting gross margins of 60.5%-61% and fixed SG&A expenses ranging from $307-$309 million. The company also announced plans to expand its footprint with five new stores, including an entry into Pennsylvania, and a renewed focus on remodels and design centers. Additionally, Haverty's balanced approach to shareholder returns—combining dividends and share buybacks—demonstrates its commitment to creating long-term value.

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Originally published on The Motley Fool on 2/24/2026