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 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]

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 slight 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, indicating positive momentum in customer traffic and sales performance[4] - Gross profit margin improved to 60.3% in Q3 2025 from 60.2% in Q3 2024[4] - 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] - Net cash provided by operating activities was $45,285,000, an increase of 7.8% compared to $41,989,000 in the same period of 2024[14] Business Operations - Total written business increased by 10.0%, while comparable store written business grew by 8.0% for the quarter[8] - SG&A expenses were 57.8% of sales, up from 57.4%, with a total increase of $11.4 million primarily due to higher advertising and administrative costs[8] - The company plans to open five net new stores in 2026, resuming store count growth[3] - Comparable-store sales growth is a key performance indicator for the company, reflecting the performance of existing stores and online sales[17] Cash and Investments - Cash, cash equivalents, and restricted cash equivalents at September 30, 2025, totaled $137.0 million[8] - Cash, cash equivalents, and restricted cash equivalents at the end of the period increased to $136,977,000 from $127,365,000 in 2024, reflecting a growth of 7.3%[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] - The company paid dividends totaling $15,534,000 during the nine months ended September 30, 2025, compared to $15,295,000 in 2024, marking a slight increase[14] - The company repurchased $2,000,000 in common stock during the nine months ended September 30, 2025[14] Future Outlook - Expected gross profit margins for 2025 are projected to be between 60.4% to 60.7%, an increase from prior guidance[8] - The effective tax rate for 2025 is anticipated to be 26.5%, excluding the impact from discrete items and new tax legislation[8] - The company anticipates continued focus on retail and operating margins, with plans for capital expenditures in 2025[23] - Forward-looking statements indicate potential risks including competition, changes in consumer preferences, and supply chain vulnerabilities[24]

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]