Haverty Furniture Companies (HVT) investor relations material

Executive summary

• Achieved third consecutive quarter of positive comparable sales, with Q1 net sales of $189.1 million, up 4.1% year-over-year, and comp sales up 4.3%, driven by strong Presidents' Day demand and higher average tickets.

• Written sales rose 6.4% with comps up 7%; average ticket increased 11.9% to $3,700, and design business accounted for 35.3% of sales, up over 200 basis points year-over-year.

• Aggressive store growth strategy includes eight new stores and four closures, with net three openings expected in 2026, and new leases signed in Dallas, Atlanta, and Fredericksburg.

• Remain debt-free with $107.5 million in cash and cash equivalents at quarter-end, and operated 128 stores as of March 31, 2026, opening the 129th in April.

• Design business continues to grow, with potential to exceed 50% of sales.

Financial highlights

• Gross margin increased to 61.5% from 61.2% year-over-year; adjusted gross margin was 61.8%.

• Net income was $4.3 million, or $0.26 per share, up from $3.8 million, or $0.23 per share; EBITDA increased to $11.3 million from $9.9 million.

• SG&A expenses rose to $111.3 million, but as a percentage of sales, declined to 58.9%.

• Inventories increased $10.7 million to $106.9 million, driven by new products and pre-Chinese New Year orders.

• Free cash flow was negative at $(9.9) million, down from $0.1 million in Q1 2025.

Outlook and guidance

• Gross margin for 2026 expected between 60.5% and 61%, factoring in product, freight, and LIFO expenses.

• SG&A expenses projected at $307–309 million for 2026, mainly due to store growth and inflation.

• Capital expenditures planned at $34 million, with $27.7 million for new stores, remodels, and expansions.

• Effective tax rate for 2026 anticipated at 26%.

• Management expects current cash, operating cash flow, and credit availability to be sufficient for several years.