Haverty Furniture A 2025 Q2 Earnings Net Income Falls 39.4% Despite Revenue Growth

Haverty Furniture A (HVT.A) reported its fiscal 2025 Q2 earnings on August 6, 2025. The company delivered year-over-year revenue growth for the first time since Q4 2022 but missed the mark on profitability. While top-line results exceeded the prior year, net income and EPS both declined significantly. The company maintained its guidance for gross profit margins and SG&A expenses, with no material revisions to forward-looking expectations.

Revenue
Haverty Furniture A reported total revenue of $181.03 million in the second quarter of 2025, representing a modest 1.3% increase compared to the same period in 2024. Upholstery was the largest revenue contributor, generating $80.88 million, while Bedroom Furniture and Dining Room Furniture added $26.89 million and $17.69 million, respectively. Occasional Furniture and Mattresses posted revenue of $12.99 million and $16.52 million, respectively, with Accessories and Other rounding out the total at $26.05 million. This diversified revenue base supported the company’s first year-over-year growth in over two years.

Earnings/Net Income
The company’s earnings declined sharply, with EPS falling 37.0% to $0.17 in Q2 2025, compared to $0.27 in the prior-year period. Net income also dropped by 39.4% to $2.69 million, from $4.44 million in Q2 2024. The significant reduction in profitability highlights the challenges the company faces despite improved sales performance.

Price Action
The stock price of Haverty Furniture A ended the latest trading day unchanged, with no movement recorded during the full trading week. However, the stock posted a 6.06% gain over the past month, showing some investor optimism amid mixed financial results.

Post-Earnings Price Action Review
Following the earnings release, the strategy of buying HVT.A after a revenue beat and holding for 30 days resulted in flat returns. The stock did not generate any excess returns, matching a benchmark return of 84.41% with a maximum drawdown of 0.00%. The Sharpe ratio was not calculable due to the absence of negative returns, suggesting the trade did not experience losses but also did not outperform significantly.

CEO Commentary
Steven G. Burdette, President and CEO, highlighted that the company delivered its first year-over-year sales increase since Q4 2022. He credited strong gross margins, positive traffic, and improved conversion rates to successful marketing and team performance. Despite challenges such as a soft housing market and low consumer confidence, he expressed optimism about continued operational improvements.

Guidance
Haverty expects 2025 gross profit margins to stay between 60.0% and 60.5%. SG&A fixed and discretionary expenses are projected to range between $291.0 million and $293.0 million, while variable SG&A is expected to remain between 18.5% and 18.8% of sales. The company anticipates EBITDA of $18.7 million for the first half of 2025 and plans $24.0 million in full-year capital expenditures. Retail square footage will remain consistent with 2024, and the effective tax rate is expected to be 26.5% for the year.

Additional News
In its first-half performance, Haverty Furniture A reported cumulative revenue of $363 million, a decrease of 0.01% compared to $363 million in the same period in 2024. The company’s cumulative net income was $6.467 million, representing a 5.33% decline from $6.831 million in the prior year. Basic EPS for the first half was $0.40, down from $0.42 in the same period in 2024. As a family-owned retailer of mid- to high-end residential furniture, Haverty operates 121 showrooms across 16 states under the Havertys brand. The company offers financing through its internal credit program and third-party financial institutions. Founded by J.J. Haverty in 1885 in Atlanta, Georgia, the company expanded through its 1929 initial public offering, growing from one store to 18 locations.