Haverty Furniture A 2025 Q2 Earnings Declining Earnings Amid Revenue Growth

Haverty Furniture A reported mixed results in Q2 2025, with revenue rising 1.3% year-over-year but earnings falling. The company beat its own expectations for sales growth, the first in over two years, but net income declined 39.4% to $2.69 million, and it did not raise its full-year guidance.

Revenue was driven by a broad-based recovery, with Upholstery leading the way at $80.88 million, while Bedroom Furniture, Dining Room Furniture, and Mattresses all posted meaningful contributions. Accessories and Other added $26.05 million, and Occasional sales reached $12.99 million. The total came to $181.03 million, showing the first year-over-year sales increase since Q4 2022.

Earnings and Net Income
Despite the revenue lift, earnings fell sharply, with EPS dropping 37% to $0.17 from $0.27 in the prior year. Net income also declined significantly, signaling ongoing cost or margin pressures. These results highlight a revenue-positive but earnings-negative quarter.

Price Action
The stock edged down 0.00% on the latest trading day and for the week, but gained 6.06% month-to-date. This contrasts with a post-earnings strategy of holding the stock for 30 days, which returned 0.00%, underperforming the 82.32% benchmark return and showing no excess returns or drawdowns.

Post-Earnings Price Action Review
The post-earnings trading strategy showed no return, as the holding period yielded 0.00%, while the benchmark returned 82.32%. The strategy experienced no drawdowns and had a Sharpe ratio of 0.00%, indicating it neither lost value nor generated excess returns, reflecting the market’s muted reaction to the earnings.

CEO Commentary
CEO Steven G. Burdette attributed the sales growth to improved gross margins, positive traffic trends, and better conversion rates. He credited new marketing initiatives, team performance, and the company’s 140-year heritage. Despite economic headwinds—such as a soft housing market and tariff uncertainty—Burdette remains optimistic. He also noted the importance of design consultants, who accounted for 33.4% of written business.

Guidance
For 2025, Haverty reaffirmed gross profit margin guidance of 60.0% to 60.5% and expects SG&A expenses between $291.0 million and $293.0 million. EBITDA is projected to rise to $18.7 million, and the effective tax rate is forecast at 26.5%. Capital spending remains steady at $24.0 million, with no changes to retail square footage.

Additional News
On August 5, 2025, Haverty Furniture A’s shares traded up 0.6%. The report was briefly delayed due to technical issues requiring JavaScript and cookies to be enabled. While no major non-earnings announcements were detailed in the additional news, the report coincided with broader market volatility tied to consumer confidence and housing trends. No major strategic shifts, executive changes, or capital return actions were disclosed within the three-week period following the earnings report.