Haverty Furniture Companies, Inc. reported fourth‑quarter 2025 results that beat consensus expectations, delivering diluted earnings per share of $0.51 versus the $0.48 estimate and revenue of $201.9 million against a $197.5 million forecast.
The earnings beat is underpinned by a 9.5% year‑over‑year rise in consolidated sales, driven by a 8.2% increase in comparable‑store sales. EPS rose from $0.49 in Q4 2024 to $0.51, reflecting both higher sales and disciplined cost management.
Gross‑margin performance was mixed: the reported margin fell to 60.4% from 61.9% in the prior year, largely due to a $3.9 million LIFO charge related to tariff changes. When adjusted for LIFO, the margin actually expanded to 62.4% from 61.4%, indicating that underlying operations remained efficient. SG&A expenses improved to 55.7% of sales from 57.4% the previous year, further supporting profitability.
Revenue growth was led by stronger‑than‑expected sales in the design‑consultant segment, which benefited from premium pricing and a service‑centric model that continues to attract affluent customers. Other segments performed in line with expectations, and the company’s debt‑free balance sheet and $131.9 million cash position provide a solid financial foundation.
Management guided for 2026 with gross margins of 60.5%–61.0%, SG&A expenses of $307.0–$309.0 million, and capital expenditures of approximately $33.5 million. The guidance signals confidence in maintaining profitability while investing in growth, despite ongoing tariff volatility and a sluggish housing market.
Investors responded favorably to the results, citing the earnings beat, strong comparable‑store sales, and improved adjusted margin as evidence of resilient demand and effective execution.
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