Haverty Furniture Reports Slight Increase in Net Sales but Decline in Profitability for Q2 2025

Haverty Furniture Companies, Inc. reported its financial results for the second quarter and the first half of 2025, revealing a slight increase in net sales but a decline in profitability compared to the previous year. For the three months ended June 30, 2025, net sales reached $181.0 million, a 1.3% increase from $178.6 million in the same period of 2024. However, net income fell to $2.7 million, down from $4.4 million a year earlier, resulting in diluted earnings per share of $0.16 compared to $0.27 in the prior year. For the six months ended June 30, 2025, net sales were nearly flat at $362.6 million, compared to $362.6 million in 2024, while net income decreased to $6.5 million from $6.8 million.

The company experienced a decline in comparable-store sales, which fell by 2.3% in the second quarter and 3.5% for the first half of 2025. This decline was attributed to a challenging demand environment influenced by a soft housing market and cautious consumer spending. Despite these challenges, written business for the second quarter increased by 0.4%, although comp-store written business decreased by 2.1%. The gross profit margin improved slightly to 60.8% for the second quarter, up from 60.4% in the prior year, primarily due to better product selection and pricing strategies.

Haverty's selling, general, and administrative (SG&A) expenses increased by 4.1% in the second quarter, driven by higher administrative, occupancy, and advertising costs. SG&A expenses as a percentage of sales rose to 59.3% from 57.7% in the same quarter of 2024. The company reported a total of 128 stores as of June 30, 2025, with plans to open additional locations in Houston, TX, and St. Louis, MO, by the end of 2026. The company also repurchased $2.0 million of its common stock during the first half of 2025.

Looking ahead, Haverty's management remains cautious about the economic environment, particularly regarding consumer spending and housing market conditions. The company is actively monitoring the impact of recent tariff changes on its supply chain and cost structure, as new tariffs on imports from various countries were announced in July 2025. Despite these challenges, Haverty's management believes that its current cash position, along with available credit facilities, will support its operational needs and capital expenditures in the coming years. The company continues to focus on enhancing customer engagement through its in-home design services, which have contributed significantly to its sales.