Haverty Furniture Q2 2025 Earnings: Sales Increase 1.3% Despite 2.3% Comps Decline

Haverty Furniture Companies reported Q2 2025 sales of $181 million, up 1.3% YoY, with comps down 2.3%. Gross margins rose to 60.8% from 60.4% in Q2 2024. Pretax profits for the quarter were $4.3 million, a 2.4% operating margin, compared to $6.5 million or 3.6% in Q2 2024. The company remains focused on returning to positive same-store sales.

Haverty Furniture Companies, Inc. (NYSE: HVT) reported its second-quarter (Q2) 2025 financial results, showcasing a 1.3% year-over-year (YoY) increase in net sales to $181 million, despite a 2.3% decrease in comparable store sales. The company's gross margins improved to 60.8% from 60.4% in the same period last year, driven by enhanced product selection and merchandising mix. Pretax profits for the quarter were $4.3 million, representing a 2.4% operating margin, down from $6.5 million or 3.6% in Q2 2024 [1].

The company's President and CEO, Steven G. Burdette, highlighted the resilience of the consumer despite challenging economic conditions, including a struggling housing market, high interest rates, and geopolitical uncertainties. Despite these headwinds, Haverty's traffic remained positive, with an average ticket of just under $3,400 and a designer average ticket growing by approximately 5%. However, the overall design and special order business experienced a mid-single-digit decrease due to temporary disruptions in special order capabilities from China vendors, exacerbated by additional tariffs [1].

Haverty's digital marketing efforts have shown promise, with a 15.6% increase in organic traffic since converting to Adobe's Edge delivery service. The company also invested an additional $1.1 million in promotional strategies, though it did not result in increased credit usage. Instead, the overall credit cost decreased by double digits compared to the same period last year [1].

The company is actively expanding its store footprint, with plans to open two new stores in Houston, Texas, and one relocation in Daytona Beach in 2025, while closing two locations in Atlanta and Waco, Texas. This strategic move aims to maintain the company's goal of opening five new stores per year in 2026 [1].

Haverty's operational consistency and debt-free balance sheet are key competitive advantages, positioning the company to capture market share despite the challenging economic environment. The company remains focused on returning to positive same-store sales and is committed to its customer-focused in-home design approach.

References:
[1] Haverty Furniture Companies, Inc. (2025). Haverty Furniture Companies, Inc. Q2 2025 Earnings Call Transcript. Retrieved from https://seekingalpha.com/article/4807753-haverty-furniture-companies-inc-hvt-q2-2025-earnings-call-transcript