Haverty (HVT) AI Stock Analysis

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Haverty

(NYSE:HVT)

Rating:66Neutral

Price Target:

$22.50

▲(0.31% Upside)

Haverty's overall stock score is supported by stable financial performance with strong gross margins and solid dividend yield. However, the score is tempered by technical indicators showing neutral momentum and mixed earnings call sentiment due to declining sales and profitability challenges.

Haverty (HVT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$368.32M

Dividend Yield5.65%

Average Volume (3M)84.42K

Price to Earnings (P/E)19.3

Beta (1Y)1.02

Revenue Growth-8.93%

EPS Growth-50.32%

CountryUS

Employees2,334

SectorConsumer Cyclical

Sector Strength73

IndustryHome Improvement

Share Statistics

EPS (TTM)0.16

Shares Outstanding15,046,851

10 Day Avg. Volume83,882

30 Day Avg. Volume84,419

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.19

Enterprise Value/Revenue1.22

Enterprise Value/Gross Profit2.00

Enterprise Value/Ebitda18.82

Forecast

1Y Price Target

$22.50

Price Target Upside0.31% Upside

Rating ConsensusHold

Number of Analyst Covering1

Haverty Business Overview & Revenue Model

Company DescriptionHaverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name. It also provides custom upholstery products and eclectic looks; and mattress product lines under the Sealy, Stearns and Foster, Tempur-Pedic, and Serta names, as well as private label Skye name. The company sells home furnishings through its retail stores, as well as through its Website. As of December 31, 2021, it operated 121 showrooms in 16 states in the Southern and Midwestern regions. Haverty Furniture Companies, Inc. was founded in 1885 and is headquartered in Atlanta, Georgia.

How the Company Makes MoneyHaverty generates revenue primarily through the sale of furniture and home goods in its retail showrooms and online store. The company employs a direct-to-consumer model, allowing customers to purchase products through various channels. Key revenue streams include in-store sales, online sales, and financing options for customers, which often include installment payment plans. The company also benefits from strong partnerships with furniture manufacturers and suppliers, enabling it to offer a diverse product selection. Seasonal promotions, clearance events, and financing offers contribute to increased sales volume, while their focus on customer service and delivery options enhances customer satisfaction and repeat business.

Haverty Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: 7.47%|

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with some positive developments such as increased sales, gross margin improvement, and successful marketing strategies. However, these positives were offset by challenges including a decline in comparable store sales, decreased profits, and supply chain issues due to tariffs. The sentiment reflects cautious optimism amid ongoing economic uncertainties.

Q2-2025 Updates

Positive Updates

Increase in Sales and Gross Margin

Sales for Q2 2025 were $181 million, up 1.3% from the previous year, with a gross margin increase of 40 basis points to 60.8%.

Memorial Day Sales Success

Sales increased by over 3% during the 2-week period and by more than 14% over the 4-day period, with all key metrics showing improvement.

Web Sales Growth

Web sales grew by 8.4% for the quarter, driven by a 15.6% increase in organic traffic after converting to Adobe's Edge delivery service.

Positive Traffic Trends

Traffic in the quarter remained positive in the mid-single digit compared to the same period last year.

Design and Special Order Business Recovery

Special order capabilities from China vendors are expected to be fully operational in Q3 after tariff reductions.

AI and Marketing Strategy

Use of AI algorithms and increased investment in marketing resulted in more effective engagement and sales.

Debt-Free Balance Sheet

The company ended the quarter with $107.4 million in cash and cash equivalents and no funded debt.

Negative Updates

Decline in Comparable Store Sales

Comparable store sales were down 2.3% in Q2 2025.

Decrease in Pre-Tax Profits and EPS

Pre-tax profits decreased to $4.3 million from $6.5 million, and EPS dropped to $0.16 from $0.27 compared to Q2 2024.

Impact of Tariffs and Supply Chain Challenges

The 145% additional tariffs on China imports caused a temporary suspension of special orders, impacting sales.

Decrease in Average Ticket and Design Business

Overall average ticket decreased slightly, and the design and special order business was down mid-single digits.

Increased SG&A Expenses

SG&A expenses increased by $4.2 million or 4.1%, impacting the operating margin.

Store Closures

Plans to close two locations, one in Atlanta and one in Waco, Texas, resulting in a net decrease in stores by year-end.

Company Guidance

In the Haverty's Second Quarter 2025 Earnings Conference Call, the company reported a 1.3% increase in net sales to $181 million, despite a 2.3% decline in comparable store sales. Gross margin improved slightly to 60.8% from 60.4%, and pretax profits were $4.3 million, yielding an operating margin of 2.4%, compared to $6.5 million and a 3.6% margin in Q2 2024. Earnings per share (EPS) dropped to $0.16 from $0.27 in the prior year. Despite challenges like high tariffs and a struggling housing market, traffic increased in the mid-single digits, and web sales grew by 8.4%. The average ticket was just under $3,400, with designer average ticket rising by 5% to over $7,600. The company remains proactive in addressing tariffs and is optimistic about resuming its special order business with reduced tariffs on China imports. Inventory levels rose by 5%, and the company plans to open new stores, maintaining a focus on expanding its market footprint. Despite a decrease in overall credit usage, Haverty's invested an additional $1.1 million in promotions, such as the 60 months no interest offer, to stay competitive.

Haverty Financial Statement Overview

Summary

Haverty maintains strong gross profit margins but faces declining revenues and modest net profitability. The balance sheet is stable with moderate leverage, and cash flow generation is solid, though growth is stagnant. Revenue contraction and profitability enhancement are needed.

Income Statement

Positive

Haverty's income statement reveals a declining revenue trend over recent years, with TTM (Trailing-Twelve-Months) revenue of $360M compared to $723M in 2024. Gross and net profit margins for TTM are 61.1% and 3.6%, respectively, indicating strong gross profitability but modest net profitability. EBIT and EBITDA margins are also relatively low, at 3.7% and 6.5%, respectively, suggesting operational challenges. The revenue growth rate from 2024 to TTM is negative, indicating a contraction in sales.

Balance Sheet

Positive

Haverty's balance sheet shows a stable equity position with a debt-to-equity ratio of 0.71, reflecting manageable leverage. The return on equity for TTM is 4.3%, indicating moderate profitability on shareholders' equity. The equity ratio stands at 47.4%, demonstrating a balanced capital structure. Overall, the company maintains a stable financial position, but there are opportunities for improving returns.

Cash Flow

Positive

The cash flow statement shows a decrease in free cash flow from $27M in 2024 to $26.9M TTM, reflecting a slight contraction. The operating cash flow to net income ratio is 4.17 for TTM, indicating strong cash generation relative to net income. However, free cash flow growth is stagnant, pointing to potential challenges in operational cash generation due to declining revenues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	360.63M	722.90M	862.13M	1.05B	1.01B	748.25M
Gross Profit	220.30M	439.08M	523.09M	604.23M	574.63M	418.99M
EBITDA	23.37M	41.47M	85.88M	134.85M	134.66M	59.91M
Net Income	13.13M	19.96M	56.32M	89.36M	90.80M	59.15M
Balance Sheet
Total Assets	642.67M	648.75M	654.13M	649.05M	686.29M	680.37M
Cash, Cash Equivalents and Short-Term Investments	113.77M	120.03M	120.64M	123.13M	166.15M	200.06M
Total Debt	217.31M	218.38M	217.75M	221.29M	230.35M	233.67M
Total Liabilities	337.80M	341.19M	345.77M	359.65M	430.32M	427.40M
Stockholders Equity	304.87M	307.56M	308.37M	289.40M	255.97M	252.97M
Cash Flow
Free Cash Flow	26.90M	26.82M	44.09M	22.60M	63.15M	119.26M
Operating Cash Flow	54.74M	58.91M	97.20M	51.02M	97.24M	130.19M
Investing Cash Flow	-27.41M	-31.63M	-53.06M	-28.32M	-34.00M	65.36M
Financing Cash Flow	-29.63M	-28.74M	-46.29M	-65.62M	-97.15M	-71.18M

Haverty Technical Analysis

Technical Analysis Sentiment

Positive

Last Price22.43

Price Trends

50DMA

21.02

Positive

100DMA

20.09

Positive

200DMA

20.93

Positive

Market Momentum

MACD

0.31

Negative

RSI

61.09

Neutral

STOCH

92.19

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVT, the sentiment is Positive. The current price of 22.43 is above the 20-day moving average (MA) of 21.40, above the 50-day MA of 21.02, and above the 200-day MA of 20.93, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 61.09 is Neutral, neither overbought nor oversold. The STOCH value of 92.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HVT.

Haverty Risk Analysis

Haverty disclosed 11 risk factors in its most recent earnings report. Haverty reported the most risks in the "Production" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Haverty Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	77 Outperform	$185.67M	13.86	9.48%	2.02%	7.24%	-9.51%
ARHS	75 Outperform	$1.74B	25.35	20.48%	―	4.76%	-19.79%
FND	71 Outperform	$8.87B	42.80	9.73%	―	4.88%	0.05%
HVT	66 Neutral	$368.32M	19.27	6.40%	5.65%	-8.93%	-50.32%
Sector *	61 Neutral	$17.23B	11.50	-5.97%	3.09%	1.49%	-16.00%
BSET	56 Neutral	$144.77M	58.58	1.46%	4.86%	-7.22%	―
LESL	39 Underperform	$65.17M	―	12.90%	―	-8.36%	-2957.86%

* Consumer Cyclical Sector Average

Performance Comparison

HVT

Haverty

22.43

-4.93

-18.02%

BSET

Bassett Furniture

16.45

4.33

35.73%

FLXS

Flexsteel

35.21

-3.05

-7.97%

FND

Floor & Decor Holdings

83.43

-23.82

-22.21%

LESL

Leslie's

0.35

-2.86

-89.10%

ARHS

Arhaus

12.80

1.35

11.79%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025