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Haverty (HVT)
NYSE:HVT
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Haverty
(NYSE:HVT)
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Rating:58Neutral
Price Target:
$21.50
▼(-10.97% Downside)
Action:DowngradedDate:02/25/26
The score is driven primarily by mixed financial performance—stable balance sheet and positive cash generation but meaningful profitability compression and revenue softness in the financial statement analysis. The earnings call adds support via sales momentum, strong liquidity, and shareholder returns, while technical indicators are neutral-to-weak near term. Valuation is helped by the high dividend yield but constrained by a mid-range P/E.
Positive Factors
Cash Generation
Sustained positive operating and free cash flow provide durable internal funding for dividends, buybacks and capex. Even if FCF is choppy, consistent cash conversion reduces external financing reliance and supports capital allocation over the next several quarters.
Balance Sheet & Liquidity
A strong cash balance and no funded debt materially lower refinancing and liquidity risk, enabling the company to pursue five new stores, remodels and share buybacks while absorbing temporary cost shocks without stressing the balance sheet.
Gross Margin Resilience
High underlying gross margins (~60%+) reflect pricing power and a favorable merchandise mix (notably design/upholstery). This margin buffer supports long-term profitability resilience and helps absorb higher freight, tariffs or modest SG&A increases.
Negative Factors
Profitability Compression
Sharp margin and ROE deterioration signal weaker earnings power and reduce flexibility to fund growth or returns. Multi-year revenue softness and an extreme 2025 disruption indicate recovery of operating leverage may take multiple quarters and limit durable profit expansion.
Elevated Inventory / Working Capital
Inventory pre-buys to hedge tariffs tie up cash and raise working capital risk. If demand softens or markdowns occur, elevated stock levels can depress margins and cash flow, constraining the company's ability to invest or return capital in the medium term.
Tariff & Policy Uncertainty
Unpredictable tariffs and LIFO freight impacts create a persistent cost-overhang that can compress gross and operating margins. Management is modeling tariffs into guidance, but policy volatility raises the risk of recurring cost shocks to margins and forecasting accuracy.
Haverty (HVT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$342.37M
Dividend Yield5.44%
Average Volume (3M)115.86K
Price to Earnings (P/E)18.6
Beta (1Y)0.90
Revenue Growth-1.05%
EPS Growth-24.24%
CountryUS
Employees2,334
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.51
Shares Outstanding14,934,110
10 Day Avg. Volume129,989
30 Day Avg. Volume115,861
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.19
Price to Sales (P/S)0.48
P/FCF Ratio11.15
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit0.94
Enterprise Value/Ebitda9.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.06
Revenue Forecast (FY)$812.65M
Haverty Business Overview & Revenue Model
Company DescriptionHaverty Furniture Companies, Inc. (HVT) is a leading retailer of residential furniture and accessories in the United States. Established in 1885, the company operates through a network of showrooms primarily located in the Southeastern and Midwestern regions. Haverty offers a wide range of products, including sofas, chairs, bedroom and dining room sets, and home decor items, focusing on quality and value for customers. The company is known for its customer service and design consultation, positioning itself as a destination for consumers looking to furnish their homes.
How the Company Makes MoneyHaverty makes money primarily by selling home furnishings and related products to consumers through its retail stores and associated selling channels. Its core revenue stream is merchandise sales—furniture (across major home categories), mattresses, and home accessories—where earnings are driven by the retail margin between product cost (sourcing/manufacturing costs and freight) and the final selling price. In addition to product sales, the company generates revenue from services and programs that support the purchase and ownership experience, such as delivery and other customer service offerings associated with fulfilling and installing products. The company’s overall profitability is influenced by factors including store traffic and conversion, average ticket size and product mix (higher-margin categories and brands), promotional cadence and discounting, supply chain efficiency (inbound freight, distribution, and last-mile delivery costs), and inventory management. Information on specific material partnerships contributing to earnings is null.
Haverty Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a generally constructive operational and financial picture: solid top-line growth (Q4 and full-year), notable gains in average ticket, design penetration and e-commerce, a strong cash position and no funded debt, plus planned store expansion and shareholder returns. Key challenges include gross margin pressure driven by LIFO/tariff-related costs, elevated inventories from pre-buying against tariffs, some traffic softness late in the quarter and ongoing tariff/policy uncertainty. Management has baked tariff expectations into guidance, expects margins to normalize ex-LIFO, and provided clear capital and SG&A guidance for 2026.Q4-2025 Updates
Positive Updates
Quarterly and Annual Sales Growth
Q4 net sales were $201.9M, up 9.5% year-over-year; comparable store sales (comps) increased 8.2% in Q4. Full-year 2025 net sales were $759.0M, up 5.0% with comps up 2.1%.
Improving Same-Store and Written Sales Momentum
Total written sales in Q4 rose 3.5% (comps up 3.2%). Q4 marked the second consecutive quarter of positive comps, with strong after-Thanksgiving sales up 6.2%.
Average Ticket and Design Business Strength
Q4 average ticket rose 10.9% to $3,759; design average ticket increased 11.9% to $8,072. Design accounted for 33.3% of sales, driven by upholstery special orders up 14.8%.
E-commerce and Digital Engagement Gains
Written e-commerce sales increased 12.3% in Q4 and web traffic and key site engagement grew double digits year-over-year, contributing to in-store performance.
Adjusted Gross Margin Improvement (Ex-LIFO)
Excluding Q4 LIFO expense ($3.9M) and prior-year LIFO pickup, adjusted gross profit margin increased 100 basis points to 62.4% from 61.4% year-over-year.
Profitability and Earnings Per Share
Q4 pretax income was $10.8M with operating margin of 5.3%; Q4 net income was $8.5M, or $0.51 per diluted share, up from $0.49 a year ago. Full-year EPS was $1.19, flat with prior year.
Strong Balance Sheet and Capital Allocation
Ended Q4 with $125.3M cash and cash equivalents and no funded debt. Paid $20.8M dividends in 2025, repurchased $4.8M of stock during the year, and Board approved an additional $15M buyback authorization.
Planned Store Growth and Capital Investment
Ended year at 129 stores; plans for 5 new stores in 2026 (including entry into Pennsylvania) plus 4 remodels. 2026 CapEx planned at ~$33.5M to support store growth, remodels and IT/distribution investments.
Inventory Positioned to Support Demand
Year-end inventory was $96.2M with management stating inventories are positioned to keep best sellers in stock and expecting inventories to decline over the next 6 months as purchases work through.
Negative Updates
Reported Gross Margin Compression Due to LIFO
GAAP gross margin in Q4 declined 150 basis points to 60.4% from 61.9%, driven largely by a $3.9M LIFO charge in the quarter (FY LIFO charges totaled $4.6M).
Elevated Inventories from Tariff Preparation
Inventories increased $12.7M year-over-year to $96.2M as the company front-loaded purchases to get ahead of tariff changes, potentially tying up working capital.
Quarterly Traffic and Order Momentum Deceleration
Traffic in Q4 ended down in the low single digits and written sales decelerated as the quarter progressed (notably November/December softening versus October), despite positive comps overall.
Customer Deposits and Delivery Timing Shifts
Customer deposits declined $5.2M year-over-year to $35.5M and were down $8.4M versus Q3 2025, which may indicate timing shifts in deposit activity or deliveries.
Tariff and Policy Uncertainty
Legal and regulatory uncertainty: IEEPA tariffs invalidated by Supreme Court, followed by a new 10% Section 122 tariff (stackable with Section 301). Management noted ongoing volatility and potential margin/freight/LIFO impacts, although 2026 guidance includes current tariff expectations.
Modest SG&A Increase and Cost Pressures
SG&A rose $6.6M (6.3%) to $112.5M in Q4; although SG&A as a percent of sales improved, management guided full-year fixed/discretionary SG&A higher ($307M–$309M for 2026) driven by store growth and modest inflation.
Store Closure
After evaluation, management will close the Alexandria, Louisiana store in March due to demographic shifts, stagnant housing growth and need for a major remodel.
Company Guidance
Haverty’s 2026 guidance calls for gross margins of 60.5%–61.0% (incorporating current estimates for product freight and LIFO), fixed/discretionary SG&A of $307–$309 million (vs. roughly $298M in 2025, ~+$10M largely from occupancy for store growth and modest inflation), variable SG&A of 18.6%–18.8% of sales, planned CapEx of $33.5 million (≈$27.2M for new/replacement stores/remodels, $3.2M distribution, $3.1M IT), an anticipated effective tax rate of ~26% (excludes stock award vesting or new tax legislation), and guidance that reflects the impact of recent tariff actions (current Section 122 tariff ~10% in effect for 150 days through July 24, with LIFO and freight impacts expected); the company plans five new stores and four remodels in 2026 and approved an additional $15M share buyback authorization (adding to ~ $18.3M existing).Haverty Financial Statement Overview
Summary
Mixed fundamentals: cash flow remains consistently positive with generally positive free cash flow, and leverage appears manageable. However, operating performance has weakened versus 2021–2022, with net margin compressing materially and multi-year revenue declines flagged as the primary risk in the provided statement analysis.Income Statement
Profitability has deteriorated meaningfully from 2021–2023 levels: net margin fell from ~8–9% (2020–2022) to ~6.5% (2023) and ~2.8% (2024). Revenue has been trending down for several years (negative growth in 2020 and 2023–2024), and the 2025 annual revenue figure shows an extreme collapse versus prior years, which makes that period look highly disrupted. A positive offset is that gross margin has remained strong and stable around ~60% (2023–2025), suggesting pricing/merchandise mix resilience, but operating profitability is currently pressured.42
Neutral
Balance Sheet
Leverage looks manageable and fairly steady, with debt-to-equity generally in the ~0.70–0.92 range and improving from the higher 2020–2021 levels. Equity has remained stable (~$256M–$308M) and assets are broadly flat (~$649M–$686M), indicating balance-sheet stability. The main weakness is the sharp drop in returns on equity in 2024 and especially 2025, reflecting weaker earnings power rather than a balance-sheet build.62
Positive
Cash Flow
Cash generation remains a relative bright spot: operating cash flow has stayed positive and sizable across years (roughly ~$51M–$130M), and free cash flow has also remained positive (roughly ~$23M–$119M). However, free cash flow has been choppy—down in 2021–2022, rebounding in 2023, then declining again in 2024 and 2025. Cash flow relative to reported profits is decent but not consistently strong, and the recent downward trend in free cash flow is a key watch item.67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 759.00M | 722.90M | 862.13M | 1.05B | 1.01B |
| Gross Profit | 460.50M | 439.08M | 523.09M | 604.23M | 574.63M |
| EBITDA | 50.66M | 41.47M | 85.88M | 134.85M | 134.66M |
| Net Income | 19.73M | 19.96M | 56.32M | 89.36M | 90.80M |
Balance Sheet | |||||
| Total Assets | 649.05M | 648.75M | 654.13M | 649.05M | 686.29M |
| Cash, Cash Equivalents and Short-Term Investments | 131.87M | 120.03M | 120.64M | 123.13M | 166.15M |
| Total Debt | 216.42M | 218.38M | 217.75M | 221.29M | 230.35M |
| Total Liabilities | 341.12M | 341.19M | 345.77M | 359.65M | 430.32M |
| Stockholders Equity | 307.93M | 307.56M | 308.37M | 289.40M | 255.97M |
Cash Flow | |||||
| Free Cash Flow | 32.97M | 26.82M | 44.09M | 22.60M | 63.15M |
| Operating Cash Flow | 52.64M | 58.91M | 97.20M | 51.02M | 97.24M |
| Investing Cash Flow | -19.56M | -31.63M | -53.06M | -28.32M | -34.00M |
| Financing Cash Flow | -27.52M | -28.74M | -46.29M | -65.62M | -97.15M |
Haverty Technical Analysis
Negative
24.15
Price Trends
24.43
Negative
23.71
Negative
22.23
Negative
Market Momentum
-0.99
Positive
29.28
Positive
28.31
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 24.15 is above the 20-day moving average (MA) of 22.32, below the 50-day MA of 24.43, and above the 200-day MA of 22.23, indicating a bearish trend. The MACD of -0.99 indicates Positive momentum. The RSI at 29.28 is Positive, neither overbought nor oversold. The STOCH value of 28.31 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 22 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $490.29M | 8.56 | 8.72% | 3.12% | -6.22% | -22.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $342.37M | 18.64 | 6.32% | 5.44% | -1.05% | -24.24% | |
57 Neutral | $125.45M | 22.07 | 3.67% | 4.59% | -2.74% | ― | |
54 Neutral | $128.79M | -1.14 | -15.57% | 7.20% | -12.09% | -204.66% | |
53 Neutral | $115.69M | -5.06 | -9.74% | ― | -6.40% | 11.65% | |
42 Neutral | $9.13M | -0.05 | ― | ― | -6.63% | -904.47% |
* Consumer Cyclical Sector Average
HVT
Haverty
21.06
0.92
4.58%
BSET
Bassett Furniture
14.50
-0.71
-4.68%
HOFT
Hooker Furniture
11.95
1.21
11.31%
SCVL
Shoe Carnival
17.91
-3.72
-17.19%
DLTH
Duluth Holdings
3.15
1.12
55.17%
LESL
Leslie's
0.98
-15.52
-94.06%
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.