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Havertys Furniture Reports Strong Third Quarter Results

In an impressive development, Havertys Furniture Companies, Inc. (NYSE: HVT) has unveiled its operating results for the third quarter of 2026, which ended on September 30. Amidst various economic challenges, the company reported growth metrics that reflect its robust business strategies.

Key Financial Highlights

For the third quarter, Havertys witnessed a 4.5% increase in consolidated sales, amounting to $203.2 million, compared to the previous year's results. The comparable store sales also rose by 4.1%, indicating a healthy performance across its existing locations. More importantly, the diluted earnings per share (EPS) jumped to $0.39, up from $0.28 in the same quarter of 2025.

Steven G. Burdette, President and CEO, emphasized the company's ability to maintain growth in a tricky economic environment characterized by higher fuel prices and interest rates, along with geopolitical uncertainties. He specifically noted that the gross profit margin improved to 62.3%, a significant enhancement compared to 60.3% from the previous year, despite reflecting the impact of approximately $3.2 million from IEEPA tariff refunds.

Business Operations and Investments

Havertys' strategy seems to have paid off as total written business expanded by 2.8%, with the comparable store written business growing by 2.3% during the quarter. Design consultants are becoming crucial, contributing 34.6% of the written business this year, up slightly from 34.2% last year.

The company also reported a rise in selling, general, and administrative (SGA) expenses, which amounted to 58.6% of sales, reflecting an increase in selling expenses mainly due to higher sales commissions and related costs. Administrative expenses surged by $4.1 million, largely attributed to rising stock-based compensation expenses and higher incentives and insurance costs.

Despite the challenges, Havertys remains optimistic, proudly announcing plans to open five new stores in the fourth quarter, among them a new outlet in Pittsburgh, Pennsylvania, marking the company’s entry into its 18th state. This brings the store total to 133 by year-end and showcases Havertys' commitment to growth through investments in people, products, and customer experience.

Financial Stability

On the financial side, Havertys reported $127.0 million in cash and equivalents at the end of September, demonstrating solid liquidity. The company also invested $23.0 million in capital expenditures during the first nine months of the year. Shareholder returns included approximately 723,000 shares repurchased for $16.6 million and $15.8 million in quarterly cash dividends. Notably, Havertys had no debt outstanding at the close of Q3 2026.

Looking Ahead

As Havertys approaches the end of the fiscal year, it remains cautious yet optimistic about future growth and market positioning. The management has set expectations for 2026 gross profit margins between 61.3% to 61.5% and continues to monitor tariff developments closely to manage business exposure effectively.

With plans firmly in place, Havertys is committed to executing its long-term growth strategy and reinforcing its value proposition to its team members and shareholders alike.

To learn more about Havertys Furniture Companies and stay updated on their progress, visit their website at www.havertys.com.