Haverty Furniture Reports 4.1% Sales Increase and Improved Profitability in Q1 2026

Haverty Furniture Companies, Inc. reported a net sales increase of 4.1% for the first quarter of 2026, reaching $189.1 million compared to $181.6 million in the same period of 2025. The company's gross profit for the quarter was $116.2 million, resulting in a gross profit margin of 61.5%, which is an increase of 30 basis points from the previous year. Net income for the quarter was $4.3 million, or $0.27 per share for common stock, up from $3.8 million, or $0.24 per share, in the first quarter of 2025. This growth in profitability was attributed to improved product selection and pricing strategies.

In terms of operational metrics, Havertys experienced a 4.3% increase in comparable store sales, with written business up 6.4% year-over-year. The company’s free in-home design service contributed significantly to customer engagement, accounting for 35.3% of total written sales, compared to 33.2% in the prior year. The average written ticket also increased to $8,312 from $7,439, indicating a higher spending per customer. The company operated 128 stores across 17 states as of March 31, 2026, and plans to open additional locations in St. Louis, Nashville, and Dallas later in the year.

Havertys' selling, general, and administrative (SG&A) expenses rose by 3.8% to $111.3 million, primarily due to increased selling and administrative costs associated with higher sales volumes. SG&A as a percentage of sales slightly decreased to 58.9% from 59.0% in the previous year. The company reported a net cash outflow from operating activities of $2.9 million for the quarter, a significant change from the $6.2 million cash inflow reported in the same period last year, largely due to changes in working capital and inventory levels.

The company continues to navigate a challenging retail environment influenced by economic factors such as rising consumer debt and fluctuating housing markets. Havertys is actively monitoring tariff developments that could impact its cost structure, particularly in light of recent changes in U.S. trade policy. The company maintains a strong liquidity position with $107.5 million in cash and cash equivalents and an $80 million revolving credit facility, which it believes will support its operational needs and capital expenditures in the coming years.

Looking ahead, Havertys remains focused on enhancing its customer experience through its design services and expanding its store footprint. The company anticipates that its strategic initiatives, including the opening of new locations and continued investment in customer engagement, will drive further growth despite the prevailing market uncertainties.