Download PDF

1. Company Snapshot

1.a. Company Description

Haverty Furniture Companies, Inc.operates as a specialty retailer of residential furniture and accessories in the United States.The company offers furniture merchandise under the Havertys brand name.


It also provides custom upholstery products and eclectic looks; and mattress product lines under the Sealy, Stearns and Foster, Tempur-Pedic, and Serta names, as well as private label Skye name.The company sells home furnishings through its retail stores, as well as through its Website.As of December 31, 2021, it operated 121 showrooms in 16 states in the Southern and Midwestern regions.


Haverty Furniture Companies, Inc.was founded in 1885 and is headquartered in Atlanta, Georgia.

Show Full description

1.b. Last Insights on HVT

Haverty Furniture Companies, Inc.'s recent stock performance was negatively driven by several factors. Despite beating Q4 earnings and revenue estimates, the company's diluted earnings per common share (EPS) decreased to $0.49 from $0.90 in the same period last year. The decline in EPS, coupled with a significant decrease in operating income, is a major concern for investors. Additionally, the company's announcement of a lower dividend payment rate for Class A common stock ($0.30 per share) compared to the previous payment ($0.32 per share) may also be weighing on investor sentiment.

1.c. Company Highlights

2. Haverty's Q3 2025 Earnings: A Mixed Bag

Haverty's reported a revenue growth of 10.6% to $194.5 million in Q3 2025, with comparable store sales increasing by 7.1%. Gross margins remained strong at 60.3%, a 10 basis point increase from the previous year. However, pretax profits declined to $6.4 million, resulting in an operating margin of 3.3% compared to 3.9% in Q3 2024. Earnings per share (EPS) came in at $0.28, beating analyst estimates of $0.24. As Richard Hare mentioned, the overall increase in margins was due to product selection and merchandising, pricing, and mix.

Publication Date: Nov -20

📋 Highlights
  • Q3 Sales Growth:: Sales increased to $194.5M (+10.6%) with comparable store sales up 7.1%.
  • Gross Margin Expansion:: Gross margin rose to 60.3% (+10 bps) driven by product mix and pricing.
  • Profitability Decline:: Pretax profit fell to $6.4M (3.3% margin) vs. $6.9M (3.9%) in Q3 2024; EPS at $0.28 vs. $0.29.
  • Monthly Sales Trends:: Written sales grew 10.6% (July), 10.9% (August), 8% (September); deliveries rose 11.6%–13.1%.
  • Tariff Impact:: LIFO expenses increased due to tariffs in Q3, with continued effects expected into Q4.

Segment Performance

The company's written business trends in Q3 showed a steady increase, with July up 10.6%, August up 10.9%, and September up 8% on a same-day week basis. Deliveries were fairly consistent, with 11.6% in July, 7% in August, and 13.1% in September. The company did not observe any significant regional differences in their markets.

Tariff Impact and Expense Guidance

The company is seeing an impact from tariffs, with LIFO expense expected to increase as the material comes in. The anticipated effective tax rate in 2025 is expected to be 26.5%. Regarding expense guidance, the company expects marketing expenses to be flat in '26 compared to '25, providing an opportunity to leverage expenses as sales grow.

Valuation and Outlook

With a revenue growth estimate of 8.3% for next year, the company's valuation metrics appear reasonable. The current P/E Ratio is 42.92, indicating a premium valuation. However, the Dividend Yield is 5.72%, which is attractive for income investors. The EV/EBITDA ratio is 11.22, suggesting a relatively moderate valuation. Analysts' estimates and the company's guidance suggest a stable outlook, with a focus on improving conversion rates and managing expenses.

3. NewsRoom

Card image cap

Havertys Furniture Announces Fourth Quarter Cash Dividend

Nov -07

Source: accessnewswire.com

Card image cap

Haverty Furniture Companies, Inc. (HVT) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

Card image cap

Haverty Furniture (HVT) Q3 Earnings and Revenues Surpass Estimates

Oct -29

Source: zacks.com

Card image cap

Havertys Furniture Reports Operating Results for Third Quarter 2025

Oct -29

Source: accessnewswire.com

Card image cap

Havertys Furniture To Host Third Quarter 2025 Earnings Conference Call on October 30, 2025

Oct -22

Source: accessnewswire.com

Card image cap

Havertys Furniture Announces Participation in Telsey Advisory Group 2025 Global Consumer & Retail Conference

Oct -01

Source: accessnewswire.com

Card image cap

Havertys Furniture Announces Third Quarter Cash Dividend

Aug -08

Source: accessnewswire.com

Card image cap

Haverty Furniture Companies, Inc. (HVT) Q2 2025 Earnings Call Transcript

Aug -01

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.84%)

6. Segments

Upholstery

Expected Growth: 1.8%

Haverty Furniture's upholstery segment growth of 1.8% is driven by increasing demand for home furnishings, rising consumer spending, and the company's strategic focus on product innovation, quality, and customer service. Additionally, the company's efforts to enhance the in-store experience and expand its e-commerce platform have contributed to the growth.

Case Goods - Bedroom Furniture

Expected Growth: 1.9%

Haverty's Case Goods - Bedroom Furniture segment growth of 1.9% is driven by increasing demand for affordable, quality furniture, particularly among millennials and Gen Z consumers. Additionally, the company's focus on e-commerce expansion, strategic pricing, and effective inventory management contribute to the segment's growth.

Accessories and Other

Expected Growth: 1.7%

The 1.7% growth in Accessories and Other segment of Haverty Furniture Companies, Inc. is driven by increasing demand for home decor and furniture accessories, expansion of online channels, and strategic partnerships with suppliers. Additionally, the company's focus on enhancing customer experience and investing in digital marketing initiatives have contributed to the growth.

Case Goods - Dining Room Furniture

Expected Growth: 1.8%

Haverty's Case Goods - Dining Room Furniture segment growth of 1.8% is driven by increasing consumer spending on home furnishings, rising demand for quality dining room furniture, and the company's strategic focus on product innovation and customer experience. Additionally, the segment benefits from Haverty's strong brand reputation and expanding e-commerce platform.

Mattresses

Expected Growth: 2.1%

Haverty Furniture Companies, Inc.'s 2.1% growth in mattresses is driven by increasing consumer spending on home furnishings, rising demand for online shopping, and the company's strategic expansion into new markets. Additionally, the company's focus on premium and luxury mattress brands, such as Tempur-Pedic and Serta, contributes to its growth.

Case Goods - Occasional

Expected Growth: 1.9%

Haverty's Case Goods - Occasional segment growth of 1.9% is driven by increasing consumer spending on home furnishings, particularly among millennials and Gen Z, who prioritize unique, high-quality pieces. Additionally, the company's focus on e-commerce expansion, in-store experience enhancements, and targeted marketing efforts contribute to the segment's growth.

7. Detailed Products

Living Room Furniture

Haverty Furniture Companies, Inc. offers a wide range of stylish and comfortable living room furniture, including sofas, loveseats, sectionals, chairs, ottomans, and coffee tables.

Dining Room Furniture

Haverty's dining room furniture collection includes beautifully crafted dining tables, chairs, buffets, and hutches to create a warm and inviting dining space.

Bedroom Furniture

Haverty offers a wide selection of bedroom furniture, including beds, dressers, nightstands, and mirrors, to create a relaxing and comfortable retreat.

Mattresses

Haverty carries a variety of high-quality mattresses from top brands, offering comfort, support, and a restful night's sleep.

Home Office Furniture

Haverty's home office furniture collection includes desks, chairs, bookshelves, and filing cabinets, designed to create a productive and organized workspace.

Accent Furniture

Haverty offers a wide range of accent furniture, including rugs, lamps, and decorative accessories, to add a personal touch to any room.

8. Haverty Furniture Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Haverty Furniture Companies, Inc. faces moderate threat from substitutes due to the availability of alternative furniture options from online retailers and local competitors.

Bargaining Power Of Customers

Haverty Furniture Companies, Inc. has a high bargaining power of customers due to the presence of many competitors in the market, allowing customers to negotiate prices and terms.

Bargaining Power Of Suppliers

Haverty Furniture Companies, Inc. has a low bargaining power of suppliers due to its large scale of operations and ability to negotiate better prices with suppliers.

Threat Of New Entrants

Haverty Furniture Companies, Inc. faces a low threat of new entrants due to the high barriers to entry in the furniture retail industry, including high capital requirements and established brand recognition.

Intensity Of Rivalry

Haverty Furniture Companies, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.39%
Debt Cost 3.95%
Equity Weight 58.61%
Equity Cost 11.25%
WACC 8.23%
Leverage 70.62%

11. Quality Control: Haverty Furniture Companies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Buckle

A-Score: 6.8/10

Value: 4.5

Growth: 3.9

Quality: 7.5

Yield: 10.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Weyco

A-Score: 6.5/10

Value: 7.4

Growth: 5.9

Quality: 7.1

Yield: 9.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Ethan Allen

A-Score: 6.2/10

Value: 6.1

Growth: 3.8

Quality: 6.4

Yield: 10.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Haverty Furniture

A-Score: 4.8/10

Value: 3.9

Growth: 3.4

Quality: 3.8

Yield: 9.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Live Ventures

A-Score: 4.2/10

Value: 8.7

Growth: 3.7

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Tile Shop Holdings

A-Score: 3.5/10

Value: 4.7

Growth: 3.4

Quality: 3.1

Yield: 2.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.0$

Current Price

24$

Potential

-0.00%

Expected Cash-Flows