Core Point - Haverty Furniture Companies, Inc. announced a quarterly dividend increase from $0.32 to $0.33 per share on its common stock [1] Summary by Category - **Dividend Announcement** - The Board of Directors declared a $0.01 increase in the quarterly dividend [1]

Financial Performance - Net sales for Q3 2025 increased by $18.6 million, or 10.6%, compared to Q3 2024, despite a challenging housing market [57] - Comp-store sales for Q3 2025 rose by $12.5 million, or 7.1%, compared to the same period in 2024 [57] - Gross profit margin for Q3 2025 was 60.3%, up 10 basis points from 60.2% in Q3 2024, driven by product selection and pricing [61] - For the nine months ended September 30, 2025, net sales increased by $18.5 million, or 3.4%, compared to the same period in 2024 [58] - Written business for the first nine months of 2025 increased by 2.6% compared to the prior year period [58] Expenses - SG&A expenses as a percentage of sales for Q3 2025 were 57.8%, an increase from 57.4% in Q3 2024, with total SG&A expenses rising by $11.4 million, or 11.3% [63] - SG&A expenses for the first nine months of 2025 were $326.9 million, up $13.5 million, or 4.3%, from the same period in 2024 [64] - Variable expenses in Q3 2025 were $36.5 million, representing 18.7% of net sales, compared to 18.9% in Q3 2024 [66] Cash Flow and Investments - As of September 30, 2025, the company had $130.5 million in cash and cash equivalents, with an additional $6.5 million in restricted cash equivalents [68] - Net cash provided by operating activities was $45.3 million in the first nine months of 2025, an increase from $42.0 million in the same period of 2024, primarily due to changes in working capital [73] - Cash used in investing activities decreased by $8.6 million in the first nine months of 2025 compared to the same period in 2024, attributed to lower capital expenditures [74] - Cash used in financing activities increased by $0.8 million in the first nine months of 2025 compared to the same period in 2024 [75] Store Expansion and Future Plans - The company plans to open a total of 129 stores by the end of 2025, including new locations in Houston, TX, and St. Louis, MO [76] - The company anticipates the opening of multiple new locations in 2026, including Nashville, TN, and additional openings in Houston, TX [76] Supply Chain and Tariffs - The company continues to assess the impact of new tariffs on its supply chain and cost structure, with significant tariff increases on imported goods expected [54] Financial Position - The borrowing base at September 30, 2025, was $133.9 million, with net availability of $80.0 million under the revolving credit facility [69] - The company believes its current cash position and access to credit facilities will be sufficient for operating requirements and capital expenditures in the coming years [68] Accounting Estimates - There were no significant changes in critical accounting estimates since the last annual report [77] Design Consultants - Design consultants contributed to 34.2% of total written sales in Q3 2025, with an average written ticket of $7,986, compared to $7,312 in Q3 2024 [59]

Financial Data and Key Metrics Changes - The company reported Q3 2025 sales of $194.5 million, a 10.6% increase year-over-year, with comparable store sales up 7.1% [3][13] - Gross margin improved to 60.3% from 60.2% in Q3 2024, with a pre-tax profit of $6.4 million, down from $6.9 million in the prior year [4][14] - Earnings per share (EPS) decreased to $0.28 from $0.29 in Q3 2024 [15] Business Line Data and Key Metrics Changes - The design business accounted for 34.2% of sales, driven by a 7.1% increase in special order upholstery [5] - Average ticket size increased to over $4,000, with design average ticket rising to over $8,000 [4][5] - All product categories showed increases, with bedroom and bedding leading in growth at low to mid double digits [9] Market Data and Key Metrics Changes - Customer traffic remained positive, with mid single-digit growth compared to last year [5] - The company noted that customers with household incomes over $150,000 continued to spend, providing confidence for future performance [5] Company Strategy and Development Direction - The company aims to return to a billion-dollar revenue level without additional investments in distribution infrastructure [3] - Plans to open four additional stores in 2026, focusing on improving customer experience through investments in bedding departments and design centers [11] - The company is adjusting retail prices strategically to maintain values and margins in response to new tariffs [6][7] Management's Comments on Operating Environment and Future Outlook - Management highlighted ongoing challenges such as high interest rates, rising home prices, and geopolitical tensions affecting consumer confidence [5] - Despite these challenges, management expressed optimism due to strong performance in key markets and customer segments [5][12] Other Important Information - The company invested an additional $2.8 million in marketing during the quarter, including a successful direct mail campaign [10] - The company has a debt-free balance sheet and ended the quarter with $130.5 million in cash and cash equivalents [16] Q&A Session Summary Question: Can you comment on the monthly trends in Q3 and any regional differences? - Management reported July sales up 10.6%, August up 10.9%, and September up over 8%, with consistent delivery performance across regions [20][21] Question: Can you quantify the impact of tariffs on the quarter? - Management indicated they do not have a specific dollar impact but adjusted pricing to mitigate tariff effects [22][24] Question: How should expenses be viewed for next year? - Management expects normal inflationary increases in non-variable costs, with a focus on maintaining marketing levels [26][28] Question: What is the level of sales needed to leverage SG&A expenses? - Historical data suggests that sales above $800 million lead to significant operating margin expansion [35]

Core Insights - Haverty Furniture (HVT) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, but down from $0.29 per share a year ago, representing an earnings surprise of +16.67% [1] - The company achieved revenues of $194.48 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.28% and increasing from $175.91 million year-over-year [2] Financial Performance - Over the last four quarters, Haverty Furniture has consistently surpassed consensus EPS estimates [2] - The company has also topped consensus revenue estimates four times in the same period [2] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $195.95 million, and for the current fiscal year, it is $1.13 on revenues of $741.69 million [7] Market Position - Haverty Furniture shares have declined approximately 6.6% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The company's Zacks Rank is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The Retail - Home Furnishings industry, to which Haverty Furniture belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Haverty's stock performance [5]

Financial Performance - Diluted earnings per share ("EPS") for Q3 2025 was $0.28, a decrease from $0.29 in Q3 2024[4] - Consolidated sales increased by 10.6% to $194.5 million compared to $175.9 million in the same quarter last year[4] - Comparable store sales rose by 7.1% for the quarter, with total written business increasing by 10.0%[8] - Gross profit margin improved to 60.3% in Q3 2025 from 60.2% in Q3 2024[8] - Net income for the nine months ended September 30, 2025, was $11,196,000, a decrease of 4.8% compared to $11,759,000 in 2024[14] - EBITDA for the nine months ended September 30, 2025, increased to $29,981,000, up 8.4% from $27,666,000 in 2024[16] Expenses and Cash Flow - Selling, general and administrative (SG&A) expenses were 57.8% of sales, up from 57.4%, with a total increase of $11.4 million[8] - The company generated $45.3 million in cash from operating activities, with a free cash flow of $30.0 million[11] - Net cash provided by operating activities was $45,285,000 for the nine months ended September 30, 2025, compared to $41,989,000 in 2024, reflecting a 7.9% increase[14] - Capital expenditures for the nine months ended September 30, 2025, were $15,277,000, a decrease of 37.1% from $24,285,000 in 2024[14] - Cash, cash equivalents, and restricted cash equivalents at the end of the period increased to $136,977,000 from $127,365,000, representing a growth of 7.3%[14] - Dividends paid increased slightly to $15,534,000 in 2025 from $15,295,000 in 2024, marking a 1.6% increase[14] Inventory and Customer Deposits - The company reported a significant change in inventories, with a decrease of $8,987,000 in 2025 compared to an increase of $5,268,000 in 2024[14] - Customer deposits decreased to $3,122,000 in 2025 from $8,103,000 in 2024, indicating a decline of 61.5%[14] Future Plans and Guidance - The company plans to open five net new stores in 2026, following the recent opening of a third location in Houston[3] - The guidance for gross profit margins in 2025 is between 60.4% to 60.7%, an increase from previous estimates[8] - Forward-looking statements indicate expectations for retail and operating margins, capital expenditures, and growth plans for 2025[23] Financial Position - Cash, cash equivalents, and restricted cash equivalents at September 30, 2025, totaled $137.0 million[8] - No debt was outstanding as of September 30, 2025, with credit availability of $80.0 million[8] - The company has 129 showrooms across 17 states, focusing on middle to upper-middle price ranges[21]

Core Insights - Haverty Furniture Companies, Inc. reported diluted earnings per common share (EPS) of $0.28 for the third quarter of 2025, a slight decrease from $0.29 in the same quarter of 2024 [1] Financial Performance - The third quarter of 2025 showed a decline in EPS compared to the previous year, indicating potential challenges in maintaining profitability [1]

Group 1 - Haverty Furniture Companies, Inc. will release its third quarter 2025 financial results on October 29, 2025, after the market closes [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Haverty Furniture Companies, Inc. will participate in the 2025 Global Consumer & Retail Conference [1] Company Participation - Steven Burdette, President and CEO, and Richard Hare, Executive Vice President and CFO, will represent the company at the conference [1]

Summary of Haverty Furniture Companies Conference Call Company Overview - **Company Name**: Haverty Furniture Companies, Inc. (NYSE: HVT) - **Established**: 140 years ago - **Store Count**: 129 stores across 17 states, primarily in Florida, Texas, and Georgia [4][5] - **Target Customer**: Female, aged 35-55, married, college-educated, with household income above $150,000 [4] Business Strategy and Operations - **Distribution Centers**: Operates seven distribution centers located in Dallas, Texas; Braselton, Georgia; and Lakeland, Florida, with four cross-docks in various states [4] - **Store Growth**: Aims to open five stores annually but will only open three this year, resulting in a net of 129 stores by year-end [5] - **Product Mix**: Positioned in the upper middle segment, competing with brands like Crate & Barrel and Pottery Barn [6] - **Design Services**: Design services account for about one-third of business volume, with an average ticket of $3,400, and $7,600 for design services specifically, growing at 5% [6] Marketing and Customer Engagement - **Media Strategy**: Utilizes broadcast, OTT, and digital platforms, including Instagram and Pinterest, to reach customers [10][11] - **Website Revamp**: Launched a new website in late 2022, which took time to stabilize, but has since seen double-digit organic growth [12][13] - **Regret-Free Guarantee**: Implemented to enhance customer confidence, with no increase in exchange rates or markdowns reported [15][16] Financial Performance - **Credit Program**: Approximately one-third of sales are made through credit, primarily via Synchrony, with high approval ratings [22] - **Capital Allocation**: Planned capital allocation for the year is around $24 million, focusing on new stores and infrastructure [55] - **Dividends**: The company has paid dividends since 1935, with ongoing discussions about special dividends and buybacks [55] Market Conditions and Challenges - **Housing Market**: Currently at a 30-40 year low, impacting store performance; however, the company remains optimistic about future growth [30][31] - **E-commerce Goals**: Aims for e-commerce to reach 10% of total business, currently in low single digits [32][34] - **Tariffs Impact**: Tariffs primarily affect bedroom and dining room categories, with ongoing adjustments to sourcing strategies [36][37] Operational Efficiency - **Staffing Changes**: Reduced headcount from 3,500 pre-pandemic to below 2,400, while maintaining operational efficiency [50][51] - **AI Utilization**: Exploring AI for marketing and operational efficiencies, aiming to grow without increasing headcount [53] Future Outlook - **Growth Strategy**: Focus on expanding in Florida and Texas, with plans for new stores in metropolitan areas and contiguous states [26][29] - **Long-term Goals**: Aiming to return to $1 billion in sales, emphasizing commitment to customer service and operational excellence [57] Key Takeaways - Haverty Furniture Companies is strategically positioned in the furniture market with a focus on design and customer service - The company is navigating current market challenges while planning for future growth and operational efficiency - Strong financial management and a commitment to shareholder returns through dividends and potential buybacks are evident This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, market positioning, and operational insights.