Third Quarter 2026
Filed Nov 4, 2026Havertys Furniture Reports Operating Results for Third Quarter 2026
Third-quarter sales, comparable-store sales, gross margin, net income and diluted EPS increased from the prior-year period, while tariff refunds materially benefited reported gross margin and SG&A increased faster than sales.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30GAAP | $203.2M | – | 4.5% |
| Gross profit, three months ended September 30GAAP | $126.6M | – | – |
| Gross profit margin, three months ended September 30GAAP | 62.3% | – | – |
| Gross profit margin excluding the impact of IEEPA tariff refunds, three months ended September 30non-GAAP | 60.7% | – | – |
| Gross profit margin excluding the impact of IEEPA tariff refunds and LIFO, three months ended September 30non-GAAP | 61.3% | – | – |
| Variable SG&A, three months ended September 30GAAP | $39.3M | – | – |
| Fixed SG&A, three months ended September 30GAAP | $79.8M | – | – |
| Total SG&A, three months ended September 30GAAP | $119.1M | – | – |
| Total SG&A as a percentage of sales, three months ended September 30GAAP | 58.6% | – | – |
| Pre-tax income, three months ended September 30GAAP | $8.6M | – | – |
| Net income, three months ended September 30GAAP | $6.3M | – | – |
| Net income margin, three months ended September 30GAAP | 3.1% | – | – |
| Diluted earnings per share, three months ended September 30GAAP | $0.39 | – | – |
| Adjusted net income, three months ended September 30non-GAAP | $4.03M | – | – |
| Adjusted diluted EPS, three months ended September 30non-GAAP | $0.25 | – | – |
| Net sales, nine months ended September 30GAAP | $587.1M | – | – |
| Gross profit, nine months ended September 30GAAP | $362.5M | – | – |
| Gross profit margin, nine months ended September 30GAAP | 61.7% | – | – |
| Total SG&A, nine months ended September 30GAAP | $343.5M | – | – |
| Total SG&A as a percentage of sales, nine months ended September 30GAAP | 58.5% | – | – |
| Pre-tax income, nine months ended September 30GAAP | $21.9M | – | – |
| Net income, nine months ended September 30GAAP | $15.9M | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $0.97 | – | – |
| EBITDA, nine months ended September 30non-GAAP | $37.5M | – | – |
| Sales per square foot, nine months ended September 30other | $178 | – | – |
| Average ticket, nine months ended September 30other | $3,838 | – | – |
| Operating cash flow, nine months ended September 30GAAP | $52.4M | – | – |
| Capital expenditures, nine months ended September 30GAAP | $23M | – | – |
| Free cash flow, nine months ended September 30non-GAAP | $29.4M | – | – |
full year of 2026 outlook
- Gross marginbetween 61.3% to 61.5%
- Operating expensesFixed and discretionary expenses within SG&A for the full year of 2026 are expected to be in the $307.0 to $309.0 million range; variable SG&A expenses for the full year of 2026 are anticipated to be in the 19.2% to 19.4% range.
- Tax rate26.0%, excluding the impact from discrete items and any new tax legislation
- NotePlanned capital expenditures for the full year of 2026 are approximately $34.0 million.
- Note2026 guidance includes tariffs currently in effect as of November 4, 2026 but excludes future IEEPA tariff refunds that may be received for indirectly sourced products.
Capital returns
- Purchased approximately 723,000 shares of common stock for $16.6 million during the nine months ended September 30, 2026.
- Paid $15.8 million in quarterly cash dividends during the nine months ended September 30, 2026.
- Cash returns to shareholders were $32.4 million during the nine months ended September 30, 2026.
- Cash dividends per share for Common Stock were $0.33 for the three months ended September 30, 2026 and $0.99 for the nine months ended September 30, 2026.
- Cash dividends per share for Class A Common Stock were $0.31 for the three months ended September 30, 2026 and $0.93 for the nine months ended September 30, 2026.
What drove it
- Total sales increased 4.5% and comparable-store sales increased 4.1% for the third quarter.
- Total written business increased 2.8% and comparable-store written business increased 2.3% for the quarter.
- Design consultants accounted for 34.6% of written business in 2026 and 34.2% in 2025.
- Gross profit margin included approximately $3.2 million of IEEPA tariff refunds.
- Selling expense increased $1.8 million primarily due to higher sales commissions and third-party credit costs.
- Administrative expenses increased $4.1 million, driven primarily by stock-based compensation expense subject to accelerated recognition during the quarter, higher performance-based incentive compensation and group insurance costs.
Concerns
- The company cited a soft housing market, higher fuel prices, higher interest rates, continued geopolitical issues, and rising input costs.
- Variable SG&A guidance increased due to higher delivery, transportation, and third-party credit costs.
- Future IEEPA tariff refunds are excluded from 2026 guidance.
- Gross profit margins fluctuate quarter to quarter in relation to promotional cadence.
What to watch
- Execution of five store openings in the fourth quarter, including entry into Pittsburgh, Pennsylvania.
- The company's expectation to grow to 133 stores by year end.
- Tariff developments and the company's efforts to manage exposure to tariffs.
- Delivery, transportation, and third-party credit costs within variable SG&A.
- Achievement of full-year gross profit margin guidance of between 61.3% to 61.5%.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash equivalents at September 30, 2026 were $127.0 million.
- No debt outstanding at September 30, 2026, and credit availability of $100 million.
- Cash and cash equivalents were $120,321 thousand at September 30, 2026.
- Restricted cash and cash equivalents were $6,724 thousand at September 30, 2026.
- Inventories were $86,674 thousand at September 30, 2026.
- Net cash provided by operating activities was $52,360 thousand for the nine months ended September 30, 2026.
- Net cash used in investing activities was $22,885 thousand for the nine months ended September 30, 2026.
- Net cash used in financing activities was $34,302 thousand for the nine months ended September 30, 2026.
- Free cash flow was $29.4 million for the nine months ended September 30, 2026.
Analysis
Havertys reported third-quarter sales of $203.2 million, compared with $194.5 million in the prior-year period, alongside 4.1% comparable-store sales growth. Total written business increased 2.8% and comparable-store written business increased 2.3%. Management characterized the period as occurring against tougher year-over-year comparisons and cited a soft housing market, higher fuel prices, higher interest rates, continued geopolitical issues, and rising input costs.
Management, verbatim
Our team delivered another quarter of growth, extending our positive momentum in written and delivered comp-store sales against tougher year-over-year comparisons.
Steven G. Burdette, President and CEO
Gross profit margin was 62.3%, including approximately $3.2 million of IEEPA tariff refunds, and remained strong at 60.7%, excluding those refunds.
Steven G. Burdette, President and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported operating metrics
- Revenue guidance for full year 2026
- Segment revenue and segment profitability disclosures
- Previous-release outlook needed to compare reported results with prior guidance
- Quarterly operating cash flow and quarterly free cash flow
- GAAP operating income presented as a key-results line item
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.