Haverty Furniture Companies, Inc. (HVT) Reports Financial Results for the Quarter Ended March 31, 2025
For the quarter ended March 31, 2025, Haverty Furniture Companies, Inc. reported net sales of $243.1 million, a 4.5% increase from the same period last year. The company’s gross profit margin decreased to 34.1% from 35.3% in the same period last year, primarily due to higher costs associated with the company’s supply chain and logistics. Net income for the quarter was $12.1 million, a 10.3% decrease from the same period last year. The company’s cash and cash equivalents decreased to $43.1 million from $54.1 million at the end of the previous quarter, primarily due to the payment of dividends and the repurchase of common stock. The company’s debt-to-equity ratio remained relatively stable at 0.43, and its interest coverage ratio decreased to 4.3 times from 5.1 times in the same period last year.
Financial Performance Overview
The company’s financial performance in the first quarter of 2025 showed a mixed picture. While net sales decreased by 1.3% compared to the same period in 2024, the company was able to improve its gross profit margin by 90 basis points to 61.2%. This was primarily due to better product selection and merchandising mix.
However, the company’s comparable-store sales declined by 4.8% in the first quarter of 2025, reflecting a weak housing market, inflationary pressures, and cautious consumer spending due to economic uncertainty. The company’s written business and written comp-store sales also declined by 2.6% and 6.3%, respectively, during this period.
Revenue and Profit Trends
The table below outlines the changes in the company’s sales and comp-store sales for the first quarters of 2025 and 2024:
| Period | Net Sales | % Change | $ Change | Comp-Store Sales % Change | $ Change |
|---|---|---|---|---|---|
| Q1 2025 | $181.6 | (1.3)% | $(2.4) | (4.8)% | $(8.8) |
| Q1 2024 | $184.0 | (18.1)% | $(40.8) | (18.5)% | $(41.4) |
The company’s gross profit margin improved in the first quarter of 2025, reaching 61.2% compared to 60.3% in the same period of 2024. This was primarily due to better product selection and merchandising mix.
The company’s selling, general, and administrative (SG&A) expenses as a percentage of net sales decreased slightly from 59.4% in the first quarter of 2024 to 59.0% in the first quarter of 2025, largely due to the decrease in sales. SG&A dollars decreased by $2.2 million, or 2.0%, driven by lower costs in selling expense, warehouse and delivery, and advertising and marketing.
Strengths and Weaknesses
One of the company’s strengths is its free in-home design service, which has experienced an increase in customer engagement. Design consultants helped drive 33.2% of the company’s total written sales for the first quarter of 2025, with an average written ticket of $7,422, up from 32.4% and an average written ticket of $6,782 for the same period in 2024.
However, the company’s weaknesses include the decline in comparable-store sales and written business, which were impacted by a weak housing market, inflationary pressures, and cautious consumer spending due to economic uncertainty. The company was also affected by atypical winter weather in the South during the first quarter of 2025.
Outlook for the Future
The company believes that its current cash position, cash flow generated from operations, funds available from its credit agreement, and access to the long-term debt capital markets should be sufficient for its operating requirements and enable it to fund its capital expenditures, dividend payments, and lease obligations through the next several years. The company also believes it has the ability to obtain alternative sources of financing, if needed.
However, the company faces various risks and uncertainties, including competition from national, regional, and local retailers of home furnishings, its ability to anticipate changes in consumer preferences, and the impact of tariffs and other import measures imposed by the U.S. government. The company is closely monitoring these factors and proactively evaluating their impact to minimize the effect on its business.
