Haverty Furniture Companies, Inc. reports positive trends in their merchandising strategy, with bedroom and upholstery categories showing mid-single digit growth. The company’s inventories are in good shape, with a $12.7 million increase to $96.2 million compared to the previous year-end.
The company anticipates a decline in tariffs over the next six months, with recent updates impacting their inventory purchases. The Supreme Court ruled IEEPA tariffs illegal, leading to a new 10% worldwide tariff effective immediately. Haverty Furniture plans to navigate these changes thoughtfully to minimize impacts on customers, team members, and shareholders.
Haverty Furniture’s marketing efforts have been successful, with web traffic and engagement increasing double digits year over year. A direct mail campaign targeted new customers, contributing to a 12.3% increase in e-commerce sales for the quarter. The company is focusing on promotions like 60 months no interest to drive sales, despite a slight increase in credit costs.
Despite challenges, Haverty Furniture plans to open five new stores in 2026 and invest in store remodels and CapEx projects. The company will close its Alexandria, Louisiana location due to market shifts. The distribution, home delivery, and customer service teams continue to provide exceptional service across 17 states, with plans to expand into Pennsylvania.
In the fourth quarter of 2025, Haverty Furniture saw a 9.5% increase in net sales, with gross profit margins decreasing to 60.4%. Selling, general, and administrative expenses rose by 6.3%, while income before taxes increased to $10.8 million. The company ended the year with no funded debt and continues to focus on financial stability and growth.
Haverty Furniture remains cautious in response to changing tariff policies, aiming to work through existing inventory before adjusting prices. The company expects to maintain its gross margin guidance despite tariff fluctuations. With a focus on strategic inventory management and competitive pricing, Haverty Furniture aims to navigate uncertain market conditions successfully.
Read more at Yahoo Finance: Haverty (HVT) Q4 2025 Earnings Call Transcript