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] - 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 same prior year period [58] Profitability and Expenses - 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] - 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 4.3% from $313.4 million in 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 Liquidity - As of September 30, 2025, the company had $130.5 million in cash and cash equivalents and $6.5 million in restricted cash equivalents, indicating a strong liquidity position [68] - Net cash provided by operating activities was $45.3 million in the first nine months of 2025, up 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, with common stock repurchases totaling $2.0 million, compared to no repurchases in the same period of 2024 [75] - The borrowing base under the credit agreement was $133.9 million as of September 30, 2025, with net availability of $80.0 million [69] - The company anticipates funding its capital expenditures, dividend payments, and lease obligations through its current cash position and cash flow generated from operations over the next several years [68] - Operating cash flows are primarily driven by cash received from customers, offset by payments for products, services, and operational costs [71] - Working capital changes significantly impact cash flows, influenced by factors such as seasonality and inventory selection [72] - The company has the ability to obtain alternative sources of financing if needed, ensuring financial flexibility [68] Business Operations - 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] - 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 continues to assess the impact of new tariffs on its supply chain and cost structure, with significant tariff increases on imported goods effective October 2025 [54]
Haverty Furniture(HVT_A) - 2025 Q3 - Quarterly Report