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Haverty Furniture (HVT)
:HVT
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Haverty
(NYSE:HVT)
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Rating:66Neutral
Price Target:
$23.00
▲(13.92% Upside)
Haverty's overall stock score reflects a stable financial position with strong gross margins but challenges in revenue growth and profitability. The technical analysis indicates bearish momentum, while the valuation is supported by a reasonable P/E ratio and high dividend yield. The earnings call provides a mixed outlook with strategic expansions and digital growth offset by tariff challenges and declining store sales.
Haverty (HVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$330.39M
Dividend Yield6.3%
Average Volume (3M)100.27K
Price to Earnings (P/E)17.3
Beta (1Y)1.04
Revenue Growth-8.93%
EPS Growth-50.32%
CountryUS
Employees2,334
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.16
Shares Outstanding15,046,851
10 Day Avg. Volume108,621
30 Day Avg. Volume100,274
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)1.18
Price to Sales (P/S)0.50
P/FCF Ratio13.56
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda10.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Haverty Business Overview & Revenue Model
Company DescriptionHaverty Furniture Companies, Inc. (HVT) is a leading retailer of home furnishings and accessories in the United States, primarily operating in the Southeast and Central regions. Founded in 1885, the company offers a wide range of products including furniture for living rooms, bedrooms, dining areas, and home offices, as well as mattresses and home décor items. Haverty's business model is centered around providing quality products with a focus on customer service, operating through a network of showrooms and an online platform.
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: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and ongoing challenges. While there were notable improvements in sales growth, gross margins, and digital engagement, the company faced significant hurdles with tariff impacts and increased expenses. The strategic expansion plans and strong cash position provide a positive outlook, but the decline in comparable store sales and profitability remains a concern.Q2-2025 Updates
Positive Updates
Increase in Written and Delivered Sales
The company reported its first increase in written and delivered sales for Q2 in over 2 years, with total sales for Q2 at $181 million, up 1.3%.
Gross Margin Improvement
Gross margins improved to 60.8% compared to 60.4% in the prior year, demonstrating strong discipline and consistency in operations.
Digital Engagement and Web Sales Growth
A 15.6% increase in organic traffic contributed to an 8.4% growth in web sales, driven by improved digital marketing strategies and the use of AI algorithms.
Memorial Day Event Success
Sales increased by over 3% during the 2-week Memorial Day period and by more than 14% over the 4-day period, with key metrics showing improvement.
Strategic Expansion Plans
Four additional leases were finalized for 2026 openings, including expansions in St. Louis and Nashville, along with two new locations in Houston.
Strong Cash Position and Debt-Free Balance Sheet
The company ended the quarter with $107.4 million in cash and no funded debt, allowing for financial flexibility.
Negative Updates
Decrease in Comparable Store Sales
Comparable store sales were down 2.3% over the prior year period, indicating ongoing challenges in driving in-store sales growth.
Impact of Tariffs on Special Order Business
The company faced a decrease in its design and special order business due to a 145% additional tariff on China imports, which was later reduced to 30%.
Decline in Pre-Tax Profits
Pre-tax profits for the quarter were $4.3 million compared to $6.5 million in Q2 2024, with EPS decreasing from $0.27 to $0.16.
Increase in SG&A Expenses
SG&A expenses increased by $4.2 million or 4.1%, reaching 59.3% of sales compared to 57.7% in the prior year's quarter.
Challenges with Tariff and Supply Chain Uncertainties
Ongoing uncertainties around tariffs and potential production shifts out of China continue to pose challenges, impacting pricing strategies and supply chain operations.
Company Guidance
In the second quarter of 2025, Haverty's reported a net sales increase of 1.3% to $181 million, despite a decline in comparable store sales by 2.3%. Gross margins rose slightly to 60.8% from 60.4% the previous year, while pretax profits decreased to $4.3 million, representing an operating margin of 2.4%. The company's earnings per share dropped to $0.16 from $0.27. Despite economic challenges such as high interest rates and tariffs, traffic remained positive, contributing to a web sales growth of 8.4%. Average ticket sales were just under $3,400, and designer average ticket grew by approximately 5% to over $7,600. Additionally, Haverty's invested $1.1 million to enhance marketing efforts, resulting in a 15.6% increase in organic traffic. The company opened new stores and managed inventory levels, while also navigating tariff-induced uncertainties by realigning production away from China. Looking ahead, Haverty's maintained its gross margin guidance and planned for strategic store expansions in 2026.Haverty Financial Statement Overview
Summary
Haverty's financial performance shows mixed results. While the company maintains strong gross profit margins, it faces declining revenues and modest net profitability. The balance sheet is stable with moderate leverage, and cash flow analysis indicates solid operational cash generation, though free cash flow growth is stagnant. Addressing revenue contraction and enhancing profitability are key to improving financial standing.Income Statement
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.65
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 722.86M | 722.90M | 862.13M | 1.05B | 1.01B | 748.25M |
| Gross Profit | 441.26M | 439.08M | 523.09M | 604.23M | 574.63M | 418.99M |
| EBITDA | 43.25M | 41.47M | 85.88M | 134.85M | 134.66M | 59.91M |
| Net Income | 19.59M | 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
Negative
20.19
Price Trends
22.04
Negative
21.36
Negative
20.71
Negative
Market Momentum
-0.55
Negative
39.62
Neutral
33.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HVT, the sentiment is Negative. The current price of 20.19 is below the 20-day moving average (MA) of 20.80, below the 50-day MA of 22.04, and below the 200-day MA of 20.71, indicating a bearish trend. The MACD of -0.55 indicates Negative momentum. The RSI at 39.62 is Neutral, neither overbought nor oversold. The STOCH value of 33.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HVT.
Haverty Risk Analysis
Haverty disclosed 20 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $533.22M | 8.59 | 9.69% | 3.00% | -6.42% | -19.27% | |
66 Neutral | $330.39M | 17.27 | 6.40% | 6.30% | -8.93% | -50.32% | |
66 Neutral | $134.28M | 17.36 | 4.70% | 5.16% | -2.74% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $116.31M | ― | -24.97% | ― | -6.13% | -215.18% | |
42 Neutral | $94.71M | ― | -6.33% | 10.28% | -6.46% | -1110.82% | |
39 Underperform | $36.66M | ― | ― | ― | -8.36% | -2950.63% |
* Consumer Cyclical Sector Average
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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.