Haverty Furniture(US:HVT)2025-10-31 14:46Financial 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]