Haverty Furniture Companies (HVT) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales rose 9.5% year-over-year to $201.9 million, with comparable sales up 8.2%, marking the second consecutive quarter of positive comps.

• Full-year 2025 net sales increased 5% to $759 million, reflecting effective customer-focused strategies and marketing efforts.

• Diluted EPS for 2025 was $1.19, up from $1.10 in 2024; Q4 EPS rose to $0.51 from $0.49.

• Written sales and average ticket values grew, especially in design services, supported by strategic initiatives and marketing investments.

• Five new store openings are planned for 2026, including entry into Pennsylvania and Pittsburgh.

Financial highlights

• Q4 gross margin was 60.4%, down from 61.9% last year; adjusted gross margin (excluding LIFO) was 62.4%.

• Full-year gross profit margin was 60.7%; excluding LIFO, 61.3% (up from 60.6%).

• Q4 pre-tax income was $10.8 million (5.3% margin); full-year pre-tax profit was $26.8 million.

• Q4 net income was $8.5 million, or $0.51 per diluted share; full-year net income was $19.7 million.

• Ended Q4 with $131.9 million in cash and no funded debt.

Outlook and guidance

• 2026 gross margin expected between 60.5% and 61%, factoring in new tariffs and LIFO estimates.

• Fixed and discretionary SG&A for 2026 projected at $307–309 million, mainly due to store growth and inflation; variable SG&A at 18.6–18.8%.

• CapEx planned at $33.5 million for 2026, with $27.2 million for new stores and remodels.

• Effective tax rate for 2026 anticipated at 26%.

• Five new store locations planned for 2026, including entry into Pittsburgh, PA.