Havertys Furniture Reports Operating Results for Second Quarter 2026

Haverty delivers strong Q2 growth, doubling EPS and boosting sales with no debt.

Risk flags

• ●Event-driven performance claims, such as 'double-digit' average ticket growth during Memorial Day weekend, are not supported by specific numerical evidence. This lack of granularity limits independent verification and may overstate the impact of short-term sales events.
• ●Forward-looking statements about store openings and geographic expansion are plausible but remain projections until executed. Delays or cost overruns in opening five additional stores and entering a new state could affect the targeted year-end store count and associated revenue growth.
• ●Gross margin improvement is partly attributable to a one-time $1.5 million tariff refund. Excluding this, gross margin is flat year-over-year, indicating that underlying margin expansion may be less robust than headline figures suggest.

Bottom line

Haverty's Q2 results show tangible operational and financial progress, with EPS and net income doubling year-over-year and sales growth outpacing inflation. The company maintains a strong balance sheet, holding $111 million in cash and no debt, and continues to return capital to shareholders through buybacks and dividends. Most of the narrative is supported by detailed financials, though some event-driven claims lack supporting numbers. Planned store expansion and margin guidance are near-term and operationally routine, limiting execution risk. The main caveat is that headline margin gains rely on a one-off tariff refund, not underlying business improvement. For investors, the most important takeaway is that Haverty is delivering on core financial metrics while maintaining conservative leverage and disciplined capital allocation, but future margin gains will need to come from operational efficiency rather than non-recurring items.

Announcement summary

(NYSE: HVT) Haverty Furniture Companies, Inc. reported diluted earnings per common share ("EPS") of $0.32 for the second quarter ended June 30, 2026, compared to $0.16 in the prior year period. Consolidated sales increased 7.7% to $194.9 million, and comparable store sales increased 8.0%. Gross profit margin was 61.4% compared to 60.8%, with approximately $1.5 million in IEEPA tariff refunds contributing to the margin. The company opened two new stores in Fenton, Missouri and Mt. Juliet, Tennessee, and plans to open five additional stores and complete one relocation, targeting a store count of 133 at year-end. Cash, cash equivalents, and restricted cash equivalents at June 30, 2026 were $111.0 million, with $13.1 million invested in capital expenditures and $16.6 million spent on share repurchases. The company paid $10.6 million in quarterly cash dividends and had no debt outstanding at June 30, 2026, with credit availability of $100 million. The company projects gross profit margins for 2026 between 60.5% to 61.0%, fixed and discretionary SG&A expenses in the $307.0 to $309.0 million range, variable SG&A expenses in the 18.7% to 18.9% range, an effective tax rate of 26.0%, and planned capital expenditures of approximately $34.0 million for the full year.

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