Havertys Furniture Reports Positive Q2 2026 Results Amid Growth Strategies
Havertys Furniture Companies, Inc. has released its operating results for the second quarter of 2026, illustrating a robust performance and a continuation of its growth strategy. For the quarter ending June 30, the company reported a remarkable 7.7% increase in consolidated sales, totaling $194.9 million compared to $181.0 million in the same period last year. This growth reflects a positive trend across the business, highlighted by an 8.0% rise in comparable store sales, which is an important metric for assessing the performance of existing stores.
The earnings per share (EPS) also saw significant improvement, increasing to $0.32 from $0.16 year-over-year. This upward movement in earnings is reflective of Havertys' commitment to strategic initiatives that enhance customer experience and operational efficiency. Notably, the gross profit margin rose to 61.4% in Q2 2026, compared to 60.8% in the previous year. Removing the effects of approximately $1.5 million in IEEPA tariff refunds, the gross profit margin would still be strong at 60.7% compared to 60.8% in Q2 2025.
According to Steven G. Burdette, President and CEO, the second quarter results exhibit sustained momentum with contributions from improved sales growth across all channels, including a successful Memorial Day weekend where the average transaction size saw double-digit growth. The company also made significant strides in expanding its footprint by opening new stores in Fenton, Missouri and Mt. Juliet, Tennessee. This is part of Havertys' strategic vision, which aims to increase its store count to 133 by year-end with plans for further expansion into Pittsburgh, Pennsylvania.
In examining the financials further, total written business has increased by 12.6% with comparable written business up 12.3% during the same timeframe. The design consultants’ contribution to written business rose significantly to 36.5% in 2026, compared to 33.4% in 2025, indicating greater customer engagement and the effectiveness of Havertys’ services.
The balance sheet remains strong, with cash and cash equivalents reported at $111.0 million by June 30, 2026, without any outstanding debt. Capital expenditures for the year have been wisely allocated, amounting to $13.1 million, which underpins the company’s ongoing investments in growth and infrastructure. Additionally, Havertys repurchased around 723,000 shares of its common stock for $16.6 million, emphasizing its commitment to returning value to shareholders. Furthermore, the company paid out $10.6 million in quarterly dividends, sustaining a steady return for its investors.
Looking ahead, Havertys navigates potential external risks, particularly concerning tariffs and cost fluctuations related to imported goods. They are committed to monitoring these developments closely to manage exposure effectively. The company maintains its guidance for gross profit margins between 60.5% to 61.0% for the year and anticipates an effective tax rate of 26.0% for 2026, without the effects from discrete items and new tax regulations.
As stated, the expected fixed and discretionary selling, general and administrative (SGA) expenses are projected in the range of $307.0 million to $309.0 million, with variable SGA expenses expected to increase slightly due to rising selling costs. Capital investment plans remain intact, with approximately $34.0 million directed towards store growth.
Havertys’ results from the second quarter underline their effective execution of growth strategies and their ongoing commitment to providing an excellent customer experience. The company’s focus on enhancing their operational capabilities and expanding their market presence while ensuring financial health positions them securely as they enter the latter half of 2026. With a proactive approach to challenges and a clear strategic vision, Havertys Furniture appears to be on a promising path of growth and value generation for both its customers and shareholders.
The earnings per share (EPS) also saw significant improvement, increasing to $0.32 from $0.16 year-over-year. This upward movement in earnings is reflective of Havertys' commitment to strategic initiatives that enhance customer experience and operational efficiency. Notably, the gross profit margin rose to 61.4% in Q2 2026, compared to 60.8% in the previous year. Removing the effects of approximately $1.5 million in IEEPA tariff refunds, the gross profit margin would still be strong at 60.7% compared to 60.8% in Q2 2025.
According to Steven G. Burdette, President and CEO, the second quarter results exhibit sustained momentum with contributions from improved sales growth across all channels, including a successful Memorial Day weekend where the average transaction size saw double-digit growth. The company also made significant strides in expanding its footprint by opening new stores in Fenton, Missouri and Mt. Juliet, Tennessee. This is part of Havertys' strategic vision, which aims to increase its store count to 133 by year-end with plans for further expansion into Pittsburgh, Pennsylvania.
In examining the financials further, total written business has increased by 12.6% with comparable written business up 12.3% during the same timeframe. The design consultants’ contribution to written business rose significantly to 36.5% in 2026, compared to 33.4% in 2025, indicating greater customer engagement and the effectiveness of Havertys’ services.
The balance sheet remains strong, with cash and cash equivalents reported at $111.0 million by June 30, 2026, without any outstanding debt. Capital expenditures for the year have been wisely allocated, amounting to $13.1 million, which underpins the company’s ongoing investments in growth and infrastructure. Additionally, Havertys repurchased around 723,000 shares of its common stock for $16.6 million, emphasizing its commitment to returning value to shareholders. Furthermore, the company paid out $10.6 million in quarterly dividends, sustaining a steady return for its investors.
Looking ahead, Havertys navigates potential external risks, particularly concerning tariffs and cost fluctuations related to imported goods. They are committed to monitoring these developments closely to manage exposure effectively. The company maintains its guidance for gross profit margins between 60.5% to 61.0% for the year and anticipates an effective tax rate of 26.0% for 2026, without the effects from discrete items and new tax regulations.
As stated, the expected fixed and discretionary selling, general and administrative (SGA) expenses are projected in the range of $307.0 million to $309.0 million, with variable SGA expenses expected to increase slightly due to rising selling costs. Capital investment plans remain intact, with approximately $34.0 million directed towards store growth.
Havertys’ results from the second quarter underline their effective execution of growth strategies and their ongoing commitment to providing an excellent customer experience. The company’s focus on enhancing their operational capabilities and expanding their market presence while ensuring financial health positions them securely as they enter the latter half of 2026. With a proactive approach to challenges and a clear strategic vision, Havertys Furniture appears to be on a promising path of growth and value generation for both its customers and shareholders.
Topics Consumer Products & Retail）
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