Haverty Furniture 2025 Q2 Earnings Earnings Fall 37% Despite Revenue Growth

Haverty Furniture (HVT) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025. The company delivered modest revenue growth but saw a significant decline in earnings. Revenue rose 1.3% year-over-year, while EPS dropped 37%, missing expectations for stronger profitability.

Haverty Furniture generated $181.03 million in revenue for fiscal 2025 Q2, a 1.3% increase from $178.64 million in the same period last year. The company's revenue was driven by its Upholstery segment, which accounted for the largest portion at $80.88 million. Bedroom Furniture contributed $26.89 million, while Dining Room Furniture added $17.69 million. Accessories and Other accounted for $26.05 million, Occasional brought in $12.99 million, and Mattresses added $16.52 million. The performance reflects the company’s broad product mix and market presence across key furniture categories.

Earnings per share declined 37.0% to $0.17 in 2025 Q2, down from $0.27 in 2024 Q2. Net income also fell to $2.69 million from $4.44 million a year earlier, representing a 39.4% decline. While the company managed revenue growth and improved gross margins, the earnings contraction signals underlying operational challenges that must be addressed.

The stock price of Haverty Furniture edged up 2.59% during the latest trading day, 1.14% during the most recent full trading week, and has dropped 4.55% month-to-date. The mixed performance reflects investor uncertainty in the face of a challenging economic environment.

The post-earnings price action strategy of buying HVT when it beat earnings and holding for 30 days yielded no return. This approach underperformed the market benchmark with a strategy return of 0.00% and a maximum drawdown of 0.00%. The stock did not capitalize on its earnings beat and instead tracked the broader market’s performance, highlighting the limitations of mechanical trading strategies in uncertain markets.

Steven G. Burdette, President and CEO, noted that Haverty Furniture achieved year-over-year sales growth for the first time since Q4 2022, with strong gross margins, positive traffic, and improved conversion rates despite a soft housing market, low consumer confidence, and tariff uncertainty. He attributed the improved sales performance to effective new marketing strategies, team dedication, and the company’s 140-year experience.

For 2025, Haverty Furniture expects gross profit margins to remain between 60.0% and 60.5%. Fixed and discretionary SG&A expenses are projected to range between $291.0 million and $293.0 million, while variable SG&A is expected to be between 18.5% and 18.8%. The company also anticipates a 26.5% effective tax rate, excluding discrete items and new tax legislation. Capital expenditures for 2025 are estimated at approximately $24.0 million, with retail square footage remaining consistent with 2024. The guidance excludes the impact of yet-to-be-finalized Trump Administration tariffs, which could further influence financial outcomes.

Additional News
Technical analysis has shown bullish momentum for Haverty Furniture, with the 15-minute stock chart triggering a KDJ Golden Cross and a Bullish Marubozu on August 5th at 13:30. These signals suggest a potential upward trend in the stock price, with buyers currently in control. On July 30, 2025, the company’s Q2 earnings report revealed that revenue of $181.03 million exceeded the Zacks Consensus Estimate by 2.34%, though EPS fell short of expectations. Despite the mixed earnings results, the stock has shown resilience, with positive technical indicators reinforcing investor optimism. Haverty Furniture is scheduled to host an earnings conference call on July 31, 2025, at 10:00 a.m. ET, where further insights into the company’s performance and future prospects will be discussed. Investors and analysts can access the live webcast via the company’s investor relations website.