HVT

HAVERTY FURNITURE COMPANIES INC

Consumer Cyclical | Small Cap

$0.29

EPS Forecast

$194.9

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2026-08-29

Havertys Furniture (NYSE: HVT) Delivers Q2 2026 Momentum: EPS Rises, Margins Expand, and Store Plan Moves Ahead

Havertys Furniture Companies, Inc. (NYSE: HVT and HVT.A) reported its second quarter 2026 results for the period ended June 30, 2026. The company posted EPS of $0.32, up from $0.16 in the year-ago quarter, with consolidated sales of $194.9 million, a 7.7% increase. The release also notes a robust gross margin, modest SG&A leverage, and ongoing store expansion that should shape the revenue trajectory and the EPS consensus trajectory as analysts begin to model the back half of the year. The press release does not provide a formal revenue forecast, and details on a formal earnings surprise relative to market expectations were not disclosed.

Overview: A Quarter of Momentum That Wasn’t Just Store Traffic

  • EPS of $0.32, up from $0.16 a year earlier.
  • Consolidated sales rose to $194.9 million, up 7.7% year over year.
  • Comparable store sales up 8.0%.
  • Gross profit margin improved to 61.4% (vs. 60.8%), with an ex-IEEPA tariff refunds margin of 60.7% in 2026 vs 60.8% in 2025.
  • Two new stores opened in Q2: Fenton, Missouri and Mt. Juliet, Tennessee. The company expects to open five additional stores and relocate one, lifting total owned-and-operated locations to 133 by year-end.
  • Strategic footprint expansion continues with planned entry into Pittsburgh, Pennsylvania, extending Havertys’ geography to 18 states.

Financials and Margin Dynamics

The EPS expansion was accompanied by a favorable margin trajectory. Gross margin rose to 61.4% in the quarter, with the benefit of roughly $1.5 million in IEEPA tariff refunds contributing to the improvement. Excluding those refunds, gross margin was essentially flat versus the prior year, underscoring the ongoing mix and price/pack dynamics.

Selling, general and administrative expenses (SG&A) represented 58.0% of sales, a reduction from 59.3% in the prior period. The company cited a higher selling expense of about $3.1 million and administrative expense up about $2.8 million, balanced against the sales growth that helped maintain operating discipline.

Balance Sheet and Capital Allocation

Havertys ended June 30, 2026 with a liquidity-friendly position: $111.0 million in cash, cash equivalents, and restricted cash. Capital expenditures totaled about $13.1 million in the period, reflecting ongoing investments in new stores and infrastructure to support growth. The narrative emphasizes a strong balance sheet as a foundation for the expansion plan and ongoing store-level investments.

Strategy, Growth, and What It Signals for Peers

The quarter reinforces a theme seen in many home furnishings retailers: meaningful growth comes from a mix of store expansion, improved ticket size, and careful cost management. Havertys’ pace of new openings—two in the quarter with plans for five more and a relocation—points to a measured path to scale, not a sudden leap in footprint but a deliberate build-out that could yield scale economics over time.

The Pittsburgh entry expands a footprint already spanning 18 states, suggesting a regional strategy that leverages a balance of brick-and-mortar presence with a stable online/offline consumer mix. In sector terms, the first half momentum may tilt others toward higher-margin product mix (design services, higher-ticket items) and a tighter SG&A cadence as a percentage of sales.

Takeaways for Investors and Sector Peers

  • EPS trajectory: The year-over-year improvement in EPS is a positive signal, but investors will want to compare against any EPS consensus data in subsequent quarters as analysts start modeling the mix of gross margin drivers, pricing discipline, and the effect of new store openings.
  • Revenue forecast: The release does not include a formal revenue forecast; future quarterly updates will be watched for visibility into same-store sales momentum and new-store contribution to the top line.
  • Earnings surprise potential: The margin and sales growth executed alongside tariff refunds could yield a modest earnings surprise relative to conservative expectations if the quarter’s strength persists and the tariff tailwind repeats in subsequent periods.
  • Capital discipline: A cash position of $111.0 million and capex of $13.1 million suggest financing flexibility to fund growth without outsized leverage risk, a posture peers may envy in a volatile macro backdrop.
  • Sector implications: The combination of margin expansion, store growth, and selective cost control may encourage peers to lean into selective capital investments and an enhanced emphasis on design services as a differentiator in a competitive home furnishings landscape.

Bottom Line

Havertys’ Q2 2026 results deliver a tidy package: a meaningful EPS lift, a healthy margin profile, and a constructive store-growth plan that should translate into more revenue contribution in the near term. The absence of a formal revenue forecast means investors will rely on quarterly updates and the trajectory of same-store sales to gauge ongoing demand. For sector peers, the message is nuanced but clear: cost discipline, selective expansion, and the strategic use of unusual tailwinds—like tariff refunds—can meaningfully bolster earnings in a challenging consumer environment.

Note: This article references Havertys Furniture Companies, Inc. earnings disclosures for the quarter ended June 30, 2026. Figures are in U.S. dollars unless noted. For investors, keep an eye on EPS momentum, gross margin sustainability, and the pace of store openings as you model the rest of 2026 and beyond.