Haverty Furniture Reports 10.6% Sales Increase in Q3 2025, Net Income Declines

Haverty Furniture Companies, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a net sales increase of $18.6 million, or 10.6%, to $194.5 million compared to the same period in 2024. For the nine months ended September 30, 2025, net sales rose by $18.5 million, or 3.4%, totaling $557.1 million. Despite these increases, the company experienced a slight decline in comparable-store sales, which decreased by $0.2 million, or 0.1%, for the nine-month period. The gross profit margin for the third quarter was 60.3%, a marginal increase from 60.2% in the prior year, attributed to improved product selection and pricing strategies.

In terms of expenses, selling, general, and administrative (SG&A) costs rose by $11.4 million, or 11.3%, in the third quarter, primarily due to higher administrative, advertising, and occupancy costs. SG&A expenses as a percentage of sales increased to 57.8% from 57.4% year-over-year. For the nine months, SG&A expenses also increased by $13.5 million, or 4.3%, reflecting similar trends in cost increases. The company reported net income of $4.7 million for the third quarter, down from $4.9 million in the same quarter of 2024, while net income for the nine months was $11.2 million, compared to $11.8 million in the prior year.

Havertys continues to focus on customer engagement through its free in-home design service, which accounted for 34.2% of total written sales in the third quarter. The average written ticket for these services increased to $7,986, up from $7,312 in the previous year. The company operates 129 stores across 17 states and plans to open additional locations in Houston, TX, and other markets in the coming years. The company’s cash and cash equivalents stood at $130.5 million as of September 30, 2025, with no outstanding borrowings under its $80 million revolving credit facility.

Looking ahead, Havertys acknowledges the challenges posed by a soft housing market and fluctuating consumer demand. The company is actively monitoring the impact of recent tariff changes on its supply chain and cost structure, particularly concerning imported goods. Management remains optimistic about its strategic initiatives and customer engagement efforts, which are expected to support future growth despite the current market conditions. The company’s ability to adapt to these challenges will be crucial as it navigates the evolving retail landscape.