# Haverty Furniture Companies Inc: Form 10-Q for the period ended Jun 30, 2025

- Company: [Haverty Furniture Companies Inc](/companies/hvt.md) (CIK 216085)
- Form: 10-Q
- Filed: 2025-08-05
- Accepted by EDGAR: Aug 5, 2025, 11:43 ET
- Period: 2025-06-30
- Accession: 0001628280-25-037688
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/216085/000162828025037688/hvt-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/216085/000162828025037688/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $181.0m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $362.6m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $70.9m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $141.4m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-04-01 to 2025-06-30 | $110.1m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2025-01-01 to 2025-06-30 | $221.2m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-04-01 to 2025-06-30 | $107.3m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 6 months, 2025-01-01 to 2025-06-30 | $214.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $1.6m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $3.2m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $2.7m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $6.5m | us-gaap:NetIncomeLoss |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | $13.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $11.7m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 6 months, 2025-01-01 to 2025-06-30 | $10.4m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2025-01-01 to 2025-06-30 | $2.0m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-06-30 | $107.4m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $236.1m | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $642.7m | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $130.5m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-06-30 | $337.8m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-06-30 | $304.9m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 18,022 characters.

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes contained herein and with the audited consolidated financial statements, accompanying notes, related information and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024 (“Form 10-K”).

### Forward-Looking Statements and Risk Factors

Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology including “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements.

All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Forward-looking statements are by nature inherently uncertain and involve known and unknown risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. These risks and uncertainties include, but are not limited to:

- competition from national, regional and local retailers of home furnishings;
- our ability to anticipate changes in consumer preferences;
- our ability to successfully implement our growth and other strategies;
- our ability to maintain and enhance our brand;
- importing merchandise from foreign sources (including the impact of tariffs);
- fluctuations and volatility in the cost of raw materials and components;
- our dependence on third-party producers to meet our requirements;
- our vendors' ability to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety;
- risks in our supply chain, including price, availability and quality of raw materials and components utilized in the products we sell and our ability to forecast our supply chain needs;
- our reliance on third-party transportation vendors for product shipments from our suppliers;
- the effects of labor disruptions or labor shortages; and our ability to attract and retain key employees;
- the rise of oil and gasoline prices;
- increased transportation costs;
- damage to one of our distribution centers;
- the vulnerability of our information technology infrastructure to cyber-attacks, breaches and other disruptions;
- changes in general domestic and international economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions, and changing government policies, laws and regulations;
- pending or unforeseen litigation;
- and other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission filings.

Further information on the risks and uncertainties that could cause our actual results to differ from these forward-looking statements are described in "Item 1A. Risk Factors" of our Form 10-K for 2024 and in the subsequent reports we file with the Securities and Exchange Commission. Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties contained therein. All forward‑looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report except as required by law. We intend for any forward-looking statements to be covered by, and we claim the protection under, the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

### Impact of tariffs imposed by the U.S government

As disclosed in "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024, we are subject to political and economic risks inherent in global sourcing, including tariffs and other import measures put in place by the United States ("U.S.").

In the first quarter of 2025, the U.S. government announced new tariffs on imported goods. A 90-day pause

on escalating tariffs (excluding China), was implemented in April 2025 and expired on August 1, 2025.

On July 31, 2025, the Trump administration announced significant modifications to the United States’ global tariff framework through a series of executive orders. Effective August 7, 2025, the U.S. will impose new tariff rates ranging from 10% to 41% on imports from over 67 countries. The baseline tariff of 10% remains in place for countries with which the U.S. maintains a trade surplus. Countries that have entered into recent trade agreements with the U.S.—including the European Union—will be subject to a negotiated 15% tariff rate. Other countries, including Cambodia, Indonesia and Vietnam, have agreed to rates between 19% and 20%. Tariffs for Chinese goods, currently set at 55%, are part of ongoing discussions with the U.S. administration. Countries that have not engaged in negotiations or failed to meet the administration’s expectations face significantly higher tariffs. For example, Canada will see tariffs on certain non-compliant goods rise from 25% to 35%, following a determination that it has not sufficiently adhered to the terms of the U.S.-Mexico-Canada Agreement. The Company continues to assess the impact of these tariff changes on its supply chain and cost structure. While the full implications remain uncertain, management is actively monitoring developments and evaluating mitigation strategies.

### Net Sales

Our sales are generated by customer purchases of home furnishings. Revenue is recognized upon delivery to the customer. Comparable-store or “comp-store” sales is a measure which indicates the performance of our existing stores and website by comparing the growth in sales in store and online for a particular month over the corresponding month in the prior year. Stores are considered non-comparable if they were not open during the corresponding month in the prior year or if the selling square footage has been changed significantly. The method we use to compute comp-store sales may not be the same method used by other retailers. We record our sales when the merchandise is delivered to the customer. We also track “written sales” and “written comp-store sales,” which represent customer orders prior to delivery. As a retailer, comp-store sales and written comp-store sales are an indicator of relative customer spending and store performance. Comp-store sales, total written sales and written comp-store sales are intended only as supplemental information and none are substitutes for net sales presented in accordance with U.S. GAAP.

The following table outlines the changes in our sales and comp-store sales for the periods indicated. (Amounts and percentages may not always add to totals due to rounding.)

| Period | 2025 Net Sales Total Dollars | % Change | $ Change | Comp-Store Sales % Change | $ Change | 2024 Net Sales Total Dollars | % Change | $ Change | Comp-Store Sales % Change | $ Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Q1 | $181.6 | (1.3)% | $(2.4) | (4.8)% | $(8.8) | $184.0 | (18.1)% | $(40.8) | (18.5)% | $(41.4) |
| Q2 | $181.0 | 1.3% | $2.4 | (2.3)% | $(4.0) | $178.6 | (13.4)% | $(27.7) | (13.6)% | $(27.7) |
| YTD Q2 | $362.6 | —% | $— | (3.5)% | $(12.8) | $362.6 | (15.9)% | $(68.4) | (16.2)% | $(69.1) |

Net sales for the second quarter of 2025 increased $2.4 million, or 1.3%, compared to the same period in 2024. This growth was achieved despite continued pressure from a soft housing market and cautious consumer spending due to economic uncertainty, which continues to create a challenging demand environment for the home furnishings industry. Our comp-store sales decreased $4.0 million, or 2.3%, in the second quarter of 2025 compared to the same period in 2024. Written business for the second quarter of 2025 was up 0.4% compared to the second quarter of 2024, and comp-store written business was down 2.1%.

Net sales for the six months ended June 30, 2025 were comparable to the same period in 2024. Our comp-store sales decreased $12.8 million or 3.5%, in the first six months ended June 30, 2025 compared to the same period in 2024. Written business for the first six months of 2025 decreased 1.2% compared to the same prior year period. Comp-store written business was down 4.3%.

Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 33.4% of our total written sales for the second quarter of 2025, compared to 36.0% for the same period in 2024, with a higher average written ticket of $7,631, compared to $7,260 for the same period in 2024.

For the six months ended June 30, 2025, design consultants contributed to 33.3% of our total written sales, with an average written ticket of $7,525, compared to 34.1% and an average written ticket of $7,015 for the same prior year period.

### Gross Profit

Gross profit margin for the second quarter of 2025 was 60.8%, up 40 basis points compared to the prior year period of 60.4%. The increase is primarily due to product selection, merchandise pricing and mix.

Gross profit margin for the first six months ended June 30, 2025 was 61.0%, up 60 basis points compared 60.4% for the same period in 2024, primarily due to product selection, merchandise pricing and mix.

Substantially all of our occupancy and home delivery costs are included in selling, general and administrative expenses (“SG&A”), as are a portion of our warehousing expenses. Accordingly, our gross profit may not be comparable to those entities that include these costs in cost of goods sold.

### Selling, General and Administrative Expenses

Our SG&A expenses as a percentage of sales for the second quarter of 2025 were 59.3% compared to 57.7% for the same period in 2024. SG&A expenses increased $4.2 million, or 4.1%, primarily due to increases in administrative, occupancy, and advertising and marketing costs, partially offset by decreases in warehouse and delivery expenses. Administrative expenses increased $3.4 million, driven by higher salaries, performance-based incentive compensation, and stock-based compensation. Occupancy costs increased $1.5 million, primarily due to costs associated with new store openings. Advertising and marketing costs increased $1.1 million, primarily due to higher television and interactive marketing spend. These increases were partially offset by a $1.1 million decrease in warehouse and delivery costs, driven by lower salaries and related benefits due to lower headcount.

Our SG&A expenses as a percentage of sales for the first six months of 2025 were 59.2% compared to 58.6% for the same period in 2024. SG&A expenses increased $2.1 million, or 1.0%, primarily due to increases in administrative and occupancy costs, partially offset by decreases in warehouse and delivery, and selling expenses. Administrative expenses increased $4.5 million due to higher salaries, performance-based incentive compensation, and stock-based compensation. Occupancy costs increased $3.1 million, largely due to costs associated with new store openings. These increases were offset by a $2.8 million decrease in warehouse and delivery costs, primarily due to lower salaries and related benefits, and a $2.7 million reduction in selling expenses due to lower third-party creditor cost.

We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses include the costs in the selling and delivery categories and certain warehouse and distribution expenses, as these amounts will generally move in tandem with our level of sales. The remaining categories and expenses for occupancy, advertising, and administrative costs are classified as fixed and discretionary because these costs do not fluctuate with sales.

The following table outlines our SG&A expenses by classification:

*(In thousands)*

|  | Three Months Ended June 30, 2025 $% of Net Sales |  | 2024 $% of Net Sales |  | Six Months Ended June 30, 2025 $% of Net Sales |  | 2024 $% of Net Sales |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Variable | $33,353 | 18.4% | $34,746 | 19.4% | $67,000 | 18.5% | $71,732 | 19.8% |
| Fixed and discretionary | 73,980 | 40.9% | 68,353 | 38.3% | 147,535 | 40.7% | 140,723 | 38.8% |
|  | $107,333 | 59.3% | $103,099 | 57.7% | $214,535 | 59.2% | $212,455 | 58.6% |

15

The variable expenses in dollars were lower in the second quarter of 2025 and for the first six months of 2025 compared to the same period in 2024, primarily due to decreases in third-party credit costs.

Fixed and discretionary expenses increased in the second quarter of 2025 and for the first six months of 2025 primarily due to increases in occupancy costs and administrative expenses compared to the prior year comparable periods.

### Liquidity and Capital Resources

### Cash and Cash Equivalents

At June 30, 2025, we had $107.4 million in cash and cash equivalents, and $6.4 million in restricted cash equivalents. We believe that our current cash position, cash flow generated from operations, funds available from our credit agreement, and access to the long-term debt capital markets should be sufficient for our operating requirements and enable us to fund our capital expenditures, dividend payments, and lease obligations through the next several years. In addition, we believe we have the ability to obtain alternative sources of financing, if needed.

### Long-Term Debt

In October 2022, we entered into the Fourth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures October 24, 2027, provides for a $80.0 million revolving credit facility. The borrowing base at June 30, 2025 was $109.3 million and the net availability was $80.0 million.

### Leases

We lease a portion of our real estate, including our stores, distribution centers, and store support space, pursuant to operating leases.

### Cash Flows Summary

*Operating Activities.* Cash flow generated from operations provides us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for products and services, employee compensation, operations, and occupancy costs.

Cash provided by or used in operating activities is also subject to changes in working capital. Working capital at any specific point in time is subject to many variables, including seasonality, inventory selection, the timing of cash receipts and payments, and vendor payment terms.

Net cash provided by operating activities was $13.4 million in the first six months of 2025 compared to $17.5 million during the same period in 2024. This difference resulted primarily from changes in working capital. Working capital was primarily impacted by increased inventories in 2025 compared to a reduction in 2024, reduced customer deposits, changes in operating lease assets and liabilities, and the timing of other payments and cash receipts.

*Investing Activities.* Cash used in investing activities decreased by $4.2 million in the first six months of 2025 compared to the first six months of 2024, due to lower capital expenditures.

*Financing Activities.* Cash used in financing activities increased $0.9 million in the first six months of 2025 compared to the first six months of 2024 due to common stock repurchases, offset by a decrease in taxes on vested shares. In the first six months of 2025, common stock repurchases totaled $2.0 million. There were no repurchases in the first six months of 2024. Dividends paid were comparable in 2025 and 2024.

### Store Plans and Capital Expenditures

| Location or Market | Opening Quarter Actual or Planned | Category |
| --- | --- | --- |
| Houston, TX | Q-1-25 | Open |
| Daytona, FL | Q-2-25 | Relocation |
| Atlanta, GA | Q-2-25 | Closure |
| Waco, TX | Q-3-25 | Closure |
| Houston, TX | Q-4-25 | Open |
| St. Louis, MO | Q-1-26 | Open |
| Nashville, TN | Q-2-26 | Open |
| Houston, TX | Q-3-26 | Open |
| Houston, TX | Q-4-26 | Open |

Assuming the new stores open as planned, we will end 2025 with 129 stores.

### Critical Accounting Estimates

Critical accounting estimates are those that we believe are both significant and that require us to make difficult, subjective or complex judgments, often because we need to estimate the effect of inherently uncertain matters. We base our estimates and judgments on historical experiences and various other factors that we believe to be appropriate under the circumstances. Actual results may differ from these estimates, and we might obtain different estimates if we used different assumptions or conditions. We reviewed our accounting estimates, and none were deemed to be considered critical for the accounting periods presented in our Form 10-K. We had no significant changes in those accounting estimates since our last annual report.

## Market risk

As filed, 236 characters.

For quantitative and qualitative disclosures about market risk, see "Item 7A. Quantitative and Qualitative Disclosures About Market Risk,” of our Form 10-K. Our exposure to market risk has not changed materially since December 31, 2024.

## Controls and procedures

As filed, 1,654 characters.

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, our management, including the CEO and CFO, concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report and provide reasonable assurance that information required to be disclosed in the reports the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including the CEO and CFO, as appropriate, to allow timely decisions regarding disclosure.

There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13a-15 that occurred during the Company’s fiscal quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. We have reviewed our financial reporting process to provide reasonable assurance that we could report our financial results accurately and timely, and we will continue to evaluate the impact of any related changes to our internal control over financial reporting.

## Risk factors

As filed, 184 characters.

"Item 1A. Risk Factors” in our Form 10-K includes a discussion of our known material risk factors. There have been no material changes from the risk factors described in our Form 10-K.

Filed Aug 5, 2025.
Source: SEC EDGAR, the filing index for accession 0001628280-25-037688. Last ingested by Listed: Oct 24, 2026, 14:56 ET. No prices; not investment advice.