Haverty Furniture Reports Q1 2025 Financial Results with $3.8M Net Income

Haverty Furniture Companies, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $3.8 million, or $0.24 per share for common stock, compared to $2.4 million, or $0.15 per share, in the same period last year. The company's net sales for the quarter totaled $181.6 million, reflecting a decrease of 1.3% from $183.9 million in the first quarter of 2024. The decline in sales was attributed to a weak housing market, inflationary pressures, and cautious consumer spending, which collectively suppressed demand for home furnishings.

In terms of operational metrics, Havertys experienced a 4.8% decrease in comparable-store sales, amounting to a decline of $8.8 million. The company noted that its written business for the quarter was down 2.6%, with written comparable-store sales also decreasing by 6.3%. Despite these challenges, customer engagement with the company's free in-home design service increased, contributing to 33.2% of total written sales, with an average written ticket rising to $7,422 from $6,782 in the prior year.

Havertys' gross profit margin improved to 61.2%, up from 60.3% in the previous year, primarily due to favorable product selection and merchandising mix. Selling, general, and administrative expenses decreased by 2.0% to $107.2 million, representing 59.0% of sales, down from 59.4% in the prior year. The reduction in SG&A costs was driven by lower selling expenses and decreased advertising and marketing costs, although occupancy costs increased due to new store openings.

The company maintained a strong liquidity position with $111.9 million in cash and cash equivalents as of March 31, 2025. Havertys also reported net cash provided by operating activities of $6.2 million, an increase from $3.1 million in the same quarter of 2024, primarily due to higher net income and favorable changes in working capital. Looking ahead, Havertys plans to open new stores in Houston and relocate a store in Daytona, while also reevaluating its capital expenditures in light of increased tariffs on imported goods. The company aims to end 2025 with a total of 129 stores.