Haverty Furniture Companies (HVT) investor relations material

Executive summary

• Achieved third consecutive quarter of positive comparable sales, with net sales of $189.1 million, up 4.1% year-over-year and comp sales up 4.3%, despite a soft housing market.

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

• Aggressive store growth strategy includes new leases and openings in multiple markets, with a net increase planned for 2026.

• Remain debt-free, with strong vendor partnerships, robust liquidity, and focus on customer experience.

• Operated 128 stores as of March 31, 2026, opening the 129th in April, and acquired new locations through bankruptcy proceedings.

Financial highlights

• Gross margin improved to 61.5% from 61.2% year-over-year; adjusted gross margin (excluding LIFO) was 61.8%.

• Net income reached $4.3 million ($0.26/share), up from $3.8 million ($0.23/share) year-over-year.

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

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

• Ended Q1 with $107.5 million in cash and no funded debt; free cash flow was negative at $(9.9) million.

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 costs at 18.6–18.8%.

• Capital expenditures planned at $34 million, mainly for new stores, remodels, and IT investments.

• Effective tax rate anticipated at 26% for 2026.

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