10-Q · May 6, 2026
Haverty Furniture's Q1 2026 results showed a revenue of $189.1 million, marking a 4.1% increase from the prior year, but just short of the expected $192.3 million. The company reported diluted EPS of $0.26, matching…
Earnings analysis · 10-Q
HVT earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Havertys delivered a strong Q2 recovery: revenue rose 7.7% year over year to $194.9 million, comparable-store sales increased 8.0%, and diluted EPS doubled to $0.32. Gross margin rose to 61.4% and SG&A leverage lifted…
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Havertys delivered a strong Q2 recovery: revenue rose 7.7% year over year to $194.9 million, comparable-store sales increased 8.0%, and diluted EPS doubled to $0.32. Gross margin rose to 61.4% and SG&A leverage lifted the implied operating margin to 3.4%, while first-half operating cash flow increased to $21.4 million. The improvement is tempered by a $1.5 million tariff-refund benefit, higher variable selling costs, and continued tariff and housing-market uncertainty; Item 1A reports no material changes to risk factors from the 2025 Form 10-K.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $0.32
What stood out
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Sales and EPS accelerated
Q2 net sales were $194.9 million, up $13.9 million, or 7.7%, year over year, and up $5.8 million, or 3.1%, from Q1 2026 sales of $189.1 million. Diluted EPS was $0.32, up from $0.16 in Q2 2025 and $0.26 in Q1 2026.
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Demand indicators strengthened
Comparable-store sales increased 8.0% ($14.2 million) in Q2, while written business rose 12.6% and comp-store written business increased 12.3%. Design consultants generated 36.5% of written business, versus 33.4% a year earlier, and their average written ticket rose to $8,835 from $7,631.
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Margins and cost leverage improved
Gross margin expanded 60 basis points year over year to 61.4%, while SG&A fell to 58.0% of sales from 59.3%. This produced an implied operating margin of 3.4%, approximately 190 basis points above the prior-year 1.5% implied margin.
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Operating cash generation improved
First-half operating cash flow rose to $21.4 million from $13.4 million a year ago, an $8.0 million improvement, primarily reflecting working-capital changes. Free cash flow and absolute capital expenditures were not disclosed in the provided filing text; investing cash use rose $1.4 million year over year.
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Liquidity supports expansion and returns
Liquidity remained substantial at June 30, with $104.3 million of cash and cash equivalents, $6.7 million of restricted cash, and $100.0 million of net availability under the revolver. The amended $100.0 million facility matures June 29, 2031.
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Store expansion and repurchases continue
The company operated 129 stores as of June 30 and plans three Q4 2026 openings in Dallas, Houston and Pittsburgh, plus an Atlanta relocation. It repurchased 600,000 shares for $13.866 million in June at $23.11 per share.
What to watch
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Tariffs cloud margin durability
The 61.4% Q2 gross margin included $1.5 million of refunds related to invalidated IEEPA tariffs, so reported margin expansion is partly non-recurring. New Section 301 tariffs of 10.0% to 12.5% took effect July 24, 2026 and apply to sourcing countries including Vietnam.
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Selling-cost rate increased
Variable SG&A increased to 19.3% of sales from 18.4% a year ago, with dollar expense rising to $37.6 million from $33.4 million, driven primarily by higher commissions and third-party credit costs.
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Housing-linked demand remains vulnerable
Management cites a soft housing market and headwinds from consumer debt, constrained housing inventory and mortgage-credit access despite Q2 comp-store sales growth of 8.0%. These conditions may pressure demand for large-ticket furniture purchases.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that the Section 301 tariffs effective July 24, 2026 range from 10.0% to 12.5% for approximately 60 countries and that it will continue monitoring tariff developments.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.