# HAVERTY FURNITURE COMPANIES INC (HVT)

Informational only - not investment advice.

CIK: 0000216085
SIC: 5712 Retail-Furniture Stores
SIC breadcrumb: [Retail Trade](/division/G/) > [SIC Major Group 57](/major-group/57/) > [SIC 5712 Retail-Furniture Stores](/industry/5712/)
Latest 10-K filed: 2026-02-26
SEC page: https://www.sec.gov/edgar/browse/?CIK=216085
Filing source: https://www.sec.gov/Archives/edgar/data/216085/000162828026012199/hvt-20251231.htm

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 758995000 | USD | 2025 | 2026-02-26 |
| Net income | 19730000 | USD | 2025 | 2026-02-26 |
| Assets | 649052000 | USD | 2025 | 2026-02-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000216085.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 821,571,000 | 819,866,000 | 817,733,000 | 802,291,000 | 748,252,000 | 1,012,799,000 | 1,047,215,000 | 862,133,000 | 722,899,000 | 758,995,000 |
| Net income | 28,356,000 | 21,075,000 | 30,307,000 | 21,865,000 | 59,148,000 | 90,803,000 | 89,358,000 | 56,319,000 | 19,956,000 | 19,730,000 |
| Gross profit | 443,337,000 | 444,923,000 | 446,542,000 | 434,488,000 | 418,994,000 | 574,625,000 | 604,225,000 | 523,092,000 | 439,078,000 | 460,497,000 |
| Operating cash flow | 60,054,000 | 52,457,000 | 70,392,000 | 63,419,000 | 130,191,000 | 97,242,000 | 51,015,000 | 97,203,000 | 58,909,000 | 52,644,000 |
| Capital expenditures | 29,838,000 | 24,465,000 | 21,473,000 | 16,841,000 | 10,927,000 | 34,090,000 | 28,411,000 | 53,115,000 | 32,092,000 | 19,672,000 |
| Dividends paid | 30,409,000 | 11,392,000 | 35,464,000 | 15,056,000 | 50,521,000 | 52,446,000 | 33,948,000 | 35,240,000 | 20,468,000 | 20,837,000 |
| Share buybacks | 21,282,000 | 0.00 | 18,732,000 | 29,757,000 | 19,708,000 | 41,809,000 | 29,998,000 | 6,895,000 | 4,991,000 | 4,778,000 |
| Assets | 454,505,000 | 461,329,000 | 440,179,000 | 560,072,000 | 680,372,000 | 686,290,000 | 649,049,000 | 654,133,000 | 648,747,000 | 649,052,000 |
| Liabilities | 172,634,000 | 167,187,000 | 165,550,000 | 299,569,000 | 427,405,000 | 430,320,000 | 359,650,000 | 345,767,000 | 341,186,000 | 341,123,000 |
| Stockholders' equity | 281,871,000 | 294,142,000 | 274,629,000 | 260,503,000 | 252,967,000 | 255,970,000 | 289,399,000 | 308,366,000 | 307,561,000 | 307,929,000 |
| Cash and cash equivalents | 63,481,000 | 79,491,000 | 71,537,000 | 75,739,000 | 200,058,000 | 166,146,000 | 123,126,000 | 120,635,000 | 120,034,000 | 125,325,000 |
| Free cash flow | 30,216,000 | 27,992,000 | 48,919,000 | 46,578,000 | 119,264,000 | 63,152,000 | 22,604,000 | 44,088,000 | 26,817,000 | 32,972,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 3.45% | 2.57% | 3.71% | 2.73% | 7.90% | 8.97% | 8.53% | 6.53% | 2.76% | 2.60% |
| Return on equity | 10.06% | 7.16% | 11.04% | 8.39% | 23.38% | 35.47% | 30.88% | 18.26% | 6.49% | 6.41% |
| Return on assets | 6.24% | 4.57% | 6.89% | 3.90% | 8.69% | 13.23% | 13.77% | 8.61% | 3.08% | 3.04% |
| Liabilities / equity | 0.61 | 0.57 | 0.60 | 1.15 | 1.69 | 1.68 | 1.24 | 1.12 | 1.11 | 1.11 |
| Current ratio | 2.02 | 2.35 | 2.29 | 1.61 | 1.55 | 1.47 | 1.79 | 1.82 | 1.82 | 1.87 |

## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000216085.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2011-Q3 | 2011-09-30 |  |  | 0.01 | reported discrete quarter |
| 2012-Q1 | 2012-03-31 |  |  | 0.11 | reported discrete quarter |
| 2019-Q1 | 2019-03-31 |  |  | 0.17 | reported discrete quarter |
| 2019-Q2 | 2019-06-30 |  |  | 0.29 | reported discrete quarter |
| 2019-Q3 | 2019-09-30 |  |  | 0.31 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 | 206,289,000 | 11,792,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 220,347,000 | 17,154,000 |  | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 210,744,000 | 15,002,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 183,997,000 | 2,393,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 178,636,000 | 4,438,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 175,913,000 | 4,928,000 |  | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 184,353,000 | 8,197,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 181,567,000 | 3,778,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 181,025,000 | 2,689,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 194,484,000 | 4,729,000 |  | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 201,919,000 | 8,534,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 189,050,000 | 4,261,000 |  | reported discrete quarter |

## Macro Cross-References
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit
- [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit
- [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy
- [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate
- [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate
- [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio
- [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed
- [CE16OV](/indicator/CE16OV/): Employment Level
- [ICSA](/indicator/ICSA/): Initial Claims
- [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm
- [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [M2SL](/indicator/M2SL/): M2
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance
- [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States
- [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States
- [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States
- [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States
- [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States
- [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized
- [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized
- [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks
- [GDP](/indicator/GDP/): Gross Domestic Product
- [GPDI](/indicator/GPDI/): Gross Private Domestic Investment
- [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment
- [PCEC](/indicator/PCEC/): Personal Consumption Expenditures
- [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services
- [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt
- [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit
- [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts
- [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures
- [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing
- [USCONS](/indicator/USCONS/): All Employees, Construction
- [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade
- [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities
- [USGOVT](/indicator/USGOVT/): All Employees, Government
- [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private
- [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods
- [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- [BUSINV](/indicator/BUSINV/): Total Business Inventories
- [EXPGS](/indicator/EXPGS/): Exports of Goods and Services
- [IMPGS](/indicator/IMPGS/): Imports of Goods and Services
- [IR](/indicator/IR/): Import Price Index (End Use): All Commodities
- [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/216085/000162828026031027/hvt-20260331.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-06
Report date: 2026-03-31

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes contained herein and with the audited consolidated financial statements, accompanying notes, related information and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”).

Forward-Looking Statements and Risk Factors

Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology including “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements.

All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Forward-looking statements are by nature inherently uncertain and involve known and unknown risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. These risks and uncertainties include, but are not limited to:

•competition from national, regional and local retailers of home furnishings;

•our ability to anticipate changes in consumer preferences;

•our ability to maintain and enhance our brand;

•our ability to successfully implement our growth and other strategies;

•our ability to locate our stores in suitable locations to attract customers;

•importing a substantial portion of our merchandise from foreign sources (including the impact of tariffs);

•our dependence on third-party producers to meet our requirements;

•significant fluctuations and volatility in the cost of raw materials and components;

•risks in our supply chain, including price, availability and quality of raw materials and components utilized in the products we sell and our ability to forecast our supply chain needs;

•a failure by our vendors to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety;

•our reliance on third-party transportation vendors for product shipments from our suppliers;

•damage to one of our distribution centers;

•our reliance on information technology and any disruptions in our IT systems;

•the vulnerability of our information technology infrastructure to cyber-attacks, breaches and other disruptions;

•the effects of labor disruptions or labor shortages; and our ability to attract and retain key employees;

•the rise of oil and gasoline prices;

•increased transportation costs;

•changes in economic conditions such as consumer disposable income, fuel prices, inflation rates, recession and fears of recession, unemployment rates, interest rates, tax rates, consumer confidence, and changing government policies, laws and regulations;

•certain risks may not be fully covered by insurance;

•failure to protect our intellectual property;

•our ability to comply with all applicable laws and regulations;

•pending or unforeseen litigation;

•natural disasters, public health events, geopolitical instability or other disruptive events; and

•other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission filings.

12

Further information on the risks and uncertainties that could cause our actual results to differ from these forward-looking statements are described in "Item 1A. Risk Factors" of our Form 10-K for 2025 and in the subsequent reports we file with the Securities and Exchange Commission. Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties contained therein. All forward‑looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report except as required by law. We intend for any forward-looking statements to be covered by, and we claim the protection under, the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Industry Overview

The retail residential furniture industry is influenced by the overall strength of the economy, new and existing home sales, consumer confidence, spending on large ticket items, interest rates, and the availability of credit. The industry continues to face headwinds from rising consumer debt, constrained housing inventory, tight access to home mortgage credit, and ongoing economic uncertainty driven by changes in tariff policy and geopolitical tensions, including rising oil and raw material prices.

Throughout 2025, the U.S. presidential administration announced new and modified tariffs on imported goods, including those sourced from China, Vietnam, and other key manufacturing regions. In response, several affected countries implemented retaliatory tariffs, adding economic uncertainty and increased cost pressures across the industry. On February 20, 2026, certain tariffs were invalidated following a ruling by the U.S. Supreme Court, adding further uncertainty to the trade environment. On April 20, 2026, U.S. Customs and Border Protection ("CBP") launched the Centralized Automated Processing of Entries ("CAPE") system, a new system CBP is using to process refund claims for IEEPA tariffs on imported goods. The Company has submitted refund claims through CAPE with respect to products on which it paid IEEPA tariffs. We continue to actively monitor tariff developments and assess their potential impact on our business.

Business Overview

Havertys is a leading specialty retailer of residential furniture and accessories, founded in 1885 in Atlanta, Georgia. As of March 31, 2026, we operated 128 stores in 17 states throughout the Southern and Midwestern regions of the U.S. Our products are selected to appeal to a middle to upper-middle income consumer across a variety of styles. We have a seasoned, commission-based sales team, and offer free design services to customers seeking a more in-depth personalized experience. Unlike many competitors, we do not outsource delivery; instead, our Havertys delivery team ensures a seamless and professional delivery experience, which includes a detailed inspection of the product prior to delivery, as well as placement and assembly of the furniture in the customer's home. We are recognized in our markets for offering high-quality, fashionable products and delivering exception customer service.

Net Sales

Our sales are generated by customer purchases of merchandise and related fees, net of expected returns and sales tax. We record our sales when merchandise is delivered to the customer. Comparable-store or “comp-store” sales is a measure which indicates the performance of our existing stores and website by comparing the growth in sales in store and online for a particular month over the corresponding month in the prior year. Stores are considered non-comparable if they were not open during the corresponding month in the prior year or if the selling square footage has been changed significantly. The method we use to compute comp-store sales may not be the same method used by other retailers.

We also track “written sales” and “written comp-store sales,” which represent customer orders prior to delivery. As a retailer, comp-store sales and written comp-store sales are an indicator of relative customer spending and store performance. Comp-store sales, total written sales and written comp-store sales are intended only as supplemental information and none are substitutes for net sales presented in accordance with U.S. GAAP.

13

The following table outlines the changes in our sales and comp-store sales for the periods indicated.

2026

2025

Net Sales

Comp-Store Sales

Net Sales

Comp-Store Sales

Period

Total

 Dollars

%

 Change

$

Change

%

 Change

$

Change

Total

 Dollars

%

 Change

$

Change

%

 Change

$

Change

Q1

$

189.1 

4.1 

%

$

7.5 

4.3 

%

$

7.7 

$

181.6 

(1.3)

%

$

(2.4)

(4.8)

%

$

(8.8)

Net sales for the first quarter of 2026 increased $7.7 million, or 4.1%, compared to the same period in 2025. This growth was achieved despite continued pressure from a soft housing market which creates a challenging demand environment for the home furnishings industry. Our comp-store sales increased $7.7 million, or 4.3%, in the first quarter of 2026 compared to the same period in 2025. Written business for the first quarter of 2026 was up 6.4% compared to the first quarter of 2025, and comp-store written business was up 7.0%.

Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 35.3% of our total written sales for the first quarter of 2026, compared to 33.2% of total written sales for the same period in 2025, with a higher average written ticket of $8,312, compared to $7,439 for the same period in 2025.

Gross Profit

Gross profit margin for the first quarter of 2026 was 61.5%, up 30 basis points compared to the prior year period of 61.2%. The increase is primarily due to product selection, merchandise pricing and mix.

Substantially all of our occupancy and home delivery costs are included in selling, general and administrative expenses (“SG&A”), as are a portion of our warehousing expenses. Accordingly, our gross profit may not be comparable to those entities that include these costs in cost of goods sold.

Selling, General and Administrative Expenses

Our SG&A expenses as a percentage of sales for the first quarter of 2026 were 58.9% compared to 59.0% for the same period in 2025. SG&A expenses increased $4.1 million, or 3.8%, primarily due to higher selling, administrative, and occupancy costs. Selling expenses increased $2.4 million primarily due to third-party credit costs, sales commission and related benefit costs, consistent with the increase in net sales. Administrative expenses increased $0.8 million, driven by higher salaries and related benefits. Occupancy costs increased $0.6 million, largely due to costs associated with new store openings and the timing of repairs and maintenance.

We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses include the costs in the selling and delivery categories and certain warehouse and distribution expenses, as these amounts will generally move in tandem with our level of sales. The remaining categories and expenses for occupancy, advertising, and administrative costs are classified as fixed and discretionary because these costs do not fluctuate with sales.

The following table outlines our SG&A expenses by classification:

(In thousands)

Three Months Ended March 31,

2026

2025

$

% of

Net Sales

$

% of

Net Sales

Variable

$

36,279 

19.2 

%

$

33,647 

18.5 

%

Fixed and discretionary

74,998 

39.7 

%

73,555

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion provides an analysis of the Company’s financial condition and results of operations from management's perspective and should be read in conjunction with the consolidated financial statements and related notes included in this report. The discussion in this Form 10-K generally focuses on the year ended December 31, 2025 compared to the year ended December 31, 2024. A discussion of our results of operations and changes in financial condition for the 2024 year compared to 2023 has been excluded from this report, but can be found in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Form 10-K for the year ended December 31, 2024.

Industry Overview

The retail residential furniture industry is influenced by the overall strength of the economy, new and existing home sales, consumer confidence, spending on large ticket items, interest rates, and the availability of credit. Although inflation and home sales showed modest improvement in 2025, the industry continued to face headwinds from rising consumer debt, constrained housing inventory, tight access to home mortgage credit, and ongoing economic uncertainty driven by changes in tariff policy and geopolitical tensions.

Throughout 2025, the current U.S. presidential administration announced new and modified tariffs on imported goods, including those sourced from China, Vietnam, and other key manufacturing regions. In response, several affected countries implemented retaliatory tariffs, adding economic uncertainty and increased cost pressures across the industry. The evolving tariff landscape has led many home furnishing retailers to adjust sourcing strategies, reassess vendor relationships, and implement pricing actions in an effort to mitigate the impact of these policy changes. On February 20, 2026, certain tariffs were invalidated following a ruling by the U.S. Supreme Court, adding further uncertainty to the trade environment, particularly with respect to the scope and timing of any recovery related to the invalidated tariffs and the impact of new tariffs the administration has announced. We continue to assess the impact of tariff policy changes on our business.

Business Overview

We sell home furnishings in retail stores and online, recording revenue when products are delivered to the customer. Our product assortment is selected to appeal to middle to upper-middle income consumers across a variety of styles. Our commissioned sales team members receive comprehensive product and customer service training to ensure we provide a high-quality in-store experience. We also aim to have at least one designer serving each of our stores. These individuals collaborate with our sales team to provide customers additional confidence and design inspiration throughout the purchasing process. Unlike many of our competitors, we do not outsource the delivery function; instead, our Haverty's delivery team ensures a seamless and professional experience, which includes a detailed inspection of the product prior to delivery, as well as placement and assembly of the furniture in the customer's home. We are recognized in our markets for offering high-quality, fashionable products and delivering exceptional customer service.

Management Objectives

Management remains focused on gaining market share and improving profitability. These objectives can be achieved by concentrating our efforts on improving our customer's experience, highlighted by new products, high-touch service, and upgraded technology. In addition, our growth strategy includes the expansion of our retail operations to increase our footprint within our distribution network. The Company’s strategies for profitability include:

•increasing sales volume,

•maintaining strong gross margins,

•implementing targeted marketing initiatives,

•improving productivity and processes, and

•adopting efficiency and cost-saving measures.

22

Table of Contents

To support our objectives in 2025, we increased our investment in advertising and marketing initiatives and adopted a more aggressive promotional strategy.

Similar to other home furnishing retailers, our business was impacted by the current U.S. presidential administration's tariff policy implemented in 2025. To mitigate the impact of such tariff policy in 2025, we:

•leveraged our strong vendor relationships to minimize price increases,

•implemented targeted price increases on select products,

•reduced our China product sourcing to less than 5% of purchases, and

•re-sourced and re-assorted products, as needed.

Despite the challenges facing the home furnishings industry, we increased net sales by 5.0%, comparable-store sales by 2.1% and maintained a gross profit margin of 60.7%. This performance reflects the disciplined execution of our strategic initiatives and our continued focus on operational efficiency and delivering a high-quality experience for our customers.

Key Performance Indicators

We evaluate our performance based on several key metrics which include:

•store traffic,

•conversion rates,

•average ticket and average designer ticket,

•net sales,

•comparable store sales and written comparable store sales,

•sales per weighted average square foot,

•gross profit margin,

•selling, general and administrative costs as a percentage of sales,

•operating income,

•cash flow, and

•earnings per share.

These measurements are used to support management's economic decision-making, including decisions related to store growth, capital allocation and product pricing.

Net sales are generated by customer purchases of merchandise and related fees, net of expected returns and sales tax. We record our sales when the merchandise is delivered to the customer. Comparable-store or “comp-store” sales is a measure which indicates the performance of our existing stores and website by comparing the sales growth in store and online for a particular month over the corresponding month in the prior year. Stores are considered non-comparable if they were not open during the corresponding month in the prior year or if the selling square footage has been changed by more than 10%. Large clearance sales events from warehouses or temporary locations are also excluded from comparable store sales. The method we use to compute comp-store sales may not be the same method used by other retailers.

We also track written sales and "written comp-store sales", which represent customer orders prior to delivery. Written sales reflect the current pace or trend of customer transactions. As a retailer, comp‑store sales and written comp‑store sales are an indicator of relative customer spending and store performance. Comp-store sales, total written sales and written comp-store sales are intended only as supplemental information and are not a substitute for net sales presented in accordance with US GAAP.

Sales per weighted average (“WAVG”) square foot is calculated by dividing net sales by WAVG square footage. WAVG square footage is a daily WAVG based on the ratio of the days open in a period to the total days in the period and measures the efficiency of a store to generate revenue.

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Table of Contents

Results of Operations

The table and discussion below should be read in conjunction with our consolidated financial statements and related notes included in this report.

Statement of Earnings Data

Year Ended December 31,

(Dollars in thousands, except per share data)

2025

2024

2023

2022

2021

Net sales

$

758,995 

$

722,899 

$

862,133 

$

1,047,215 

$

1,012,799 

Gross profit

460,497 

439,078 

523,092 

604,225 

574,625 

Percent of net sales

60.7

%

60.7

%

60.7

%

57.7

%

56.7

%

Selling, general and administrative expenses

439,327 

419,221 

455,812 

486,298 

456,267 

Percent of net sales

57.9

%

58.0

%

52.9

%

46.4

%

45.1

%

Income before income taxes

26,833 

26,153 

72,711 

119,501 

118,535 

Percent of net sales

3.5

%

3.6

%

8.4

%

11.4

%

11.7

%

Net income

19,730 

19,956 

56,319 

89,358 

90,803 

Percent of net sales

2.6

%

2.8

%

6.5

%

8.5

%

9.0

%

Share Data

Diluted earnings per Common share

$

1.19 

$

1.19 

$

3.36 

$

5.24 

$

4.90 

Cash dividends – per share:

Common Stock(1)

$

1.29 

$

1.26 

$

2.18 

$

2.09 

$

2.97 

Class A Common Stock(1)

$

1.21 

$

1.18 

$

2.05 

$

1.96 

$

2.79 

Diluted weighted average common shares outstanding

16,592 

16,707 

16,774 

17,038 

18,543 

Balance Sheet Data

Total assets

$

649,052 

$

648,747 

$

654,133 

$

649,050 

$

686,290 

Inventories

96,155 

83,419 

93,956 

118,333 

112,031 

Net property and equipment

177,207 

182,622 

171,588 

137,475 

126,099 

Right-of-use lease assets

190,586 

194,411 

202,306 

207,390 

222,356 

Lease liabilities

216,417 

218,379 

217,754 

221,287 

230,352 

Customer deposits

35,504 

40,733 

35,837 

47,969 

98,897 

Total debt(2)

— 

— 

— 

— 

— 

Stockholders’ Equity

307,929 

307,561 

308,366 

289,399 

255,970 

Statement of Cash Flows Data

Net cash provided by operating activities

$

52,644 

$

58,909 

$

97,203 

$

51,015 

$

97,242 

Depreciation and amortization

23,822 

21,611 

18,603 

16,926 

16,304 

Capital expenditures

19,672 

32,092 

53,115 

28,411 

34,090 

Dividends paid

20,837 

20,468 

35,240 

33,948 

52,446 

Share repurchases

4,778 

4,991 

6,895 

29,998 

41,809 

Other Supplemental Data and Metrics

Number of stores

129 

129 

124 

122 

121 

Retail square footage at year-end (in 000s)

4,543 

4,539 

4,387 

4,363 

4,354 

Sales per WAVG retail square foot

$

167 

$

164 

$

197 

$

241 

$

232 

Average ticket (3)

$

3,530 

$

3,371 

$

3,278 

$

3,171 

$

2,865 

Net sales increase (decrease) %

5.0

%

(16.1

%)

(17.7

%)

3.4

%

35.4

%

Comparable store sales increase (decrease) %

2.1

%

(16.7

%)

(18.4

%)

3.4

%

17.9

%

Employees

2,392 

2,334 

2,574 

2,831 

2,845 

(1)Includes special dividends of $1.00 for Common Stock and $0.95 for Class A Common Stock paid in the fourth quarter of 2023 and 2022, and $2.00 for Common Stock and $1.90 for Class A Common Stock paid in the fourth quarter of 2021 and 2020.

(2)We have no funded debt.

(3)Average ticket is calculated by dividing total sales by the number of orders.

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Table of Contents

Net Sales

The following outlines our sales and comp-store sales increases and decreases for the periods indicated. (Amounts and percentages may not always add to totals due to rounding.)

December 31,

2025

2024

Net Sales

Comp-Store Sales

Net Sales

Comp-Store Sales

Period

Ended

Dollars

in millions

% Increase

(decrease)

over prior

period

% Increase

(decrease)

over prior

period

Dollars

in millions

% Decrease

over prior

period

% Decrease

over prior

period

Q1

$

181.6 

(1.3)

%

(4.8)

%

$

184.0 

(18.1)

%

(18.5)

%

Q2

181.0 

1.3 

(2.3)

178.6 

(13.4)

(13.6)

Q3

194.5 

10.6 

7.1 

175.9 

(20.2)

(20.5)

Q4

201.9 

9.5 

8.2 

184.4 

(12.5)

(13.7)

Year

$

759.0 

5.0 

%

2.1 

%

$

722.9 

(16.1)

%

(16.7)

%

Net sales in 2025 increased $36.1 million or 5.0% compared to 2024 due to price increases on select merchandise to mitigate the impact of tariffs and higher demand for our products due to the effectiveness of our advertising and marketing initiatives. Sales growth was achieved despite ongoing pressure from a soft housing market, driven by elevated mortgage rates and heightened economic and geopolitical uncertainty, which creates a challenging demand environment for the home furnishings industry.

Our sales team and design consultants continue to provide excellent service to our customers. The average ticket value in 2025 was $3,530, up 4.7% over last year. Design consultant engagement contributed 33.5% of our 2025 total written sales, with an average written ticket of $7,781. (See Note 2, "Revenues" of the Notes to Consolidated Financial Statements).

Gross Profit

Our cost of goods sold consists primarily of the purchase price of the merchandise together with inbound freight, handling within our distribution centers and transportation costs to the local markets we serve. Our gross profit is primarily dependent upon vendor pricing, the mix of products sold and promotional pricing activity. Substantially all of our occupancy and home delivery costs are included in selling, general and administrative expenses as is a portion of our warehousing expenses. Accordingly, our gross profit may not be comparable to those entities that include some of these expenses in cost of goods sold.

Gross profit as a percentage of net sales was 60.7% in 2025 and 2024. Due to changes in tariff policy and higher costs of goods sold under LIFO, the 2025 change in LIFO reserve generated a negative impact of $4.7 million, compared to a positive impact of $0.8 million in 2024. Excluding the impact of LIFO, our gross profit margins increased 70 basis points due to product selection, merchandise pricing and mix.

Selling, General and Administrative Expenses

SG&A expenses are comprised of five categories:

•selling,

•occupancy,

•transportation, delivery and certain warehousing costs,

•advertising and marketing, and

•general and administrative.

Selling expenses are primarily comprised of compensation of sales team members and sales support staff, and fees paid to credit card and third-party finance companies. Occupancy costs include rents, depreciation charges, insurance and property taxes, repairs and maintenance expense and utility costs. Delivery and transportation costs include personnel, fuel costs, depreciation and rental charges.

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Table of Contents

Warehouse costs include personnel, supplies, depreciation, and rental charges for equipment. Advertising and marketing expenses are primarily TV and digital media expenditures, market research expenses and agency fees. General and administrative expenses are comprised of compensation costs for store personnel exclusive of sales team members, information systems, executive, accounting, merchandising, advertising, supply chain, real estate and human resource departments.

We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses include the costs in the selling and delivery categories and certain warehouse expenses as these amounts will generally move in tandem with our level of sales. The remaining categories and expenses are classified as fixed and discretionary because these costs do not fluctuate with sales.

The following table outlines our SG&A expenses by classification:

2025

2024

(In thousands)

% of

Net Sales

% of

Net Sales

Variable

$

141,598 

18.7

%

$

139,859 

19.4

%

Fixed and discretionary

297,729 

39.2 

279,362 

38.6 

$

439,327 

57.9

%

$

419,221 

58.0

%

Our SG&A costs as a percent of sales for 2025 were 57.9% versus 58.0% in 2024. SG&A dollars increased $20.1 million, or 4.8%, for 2025 compared to 2024. The change was driven by increased sales and less leveraging of fixed costs. Our selling expenses increased $3.0 million, largely due to higher commissioned-based compensation. Our administrative expenses increased $11.3 million from 2024 due to higher salaries, performance-based incentive compensation and stock-based compensation costs. Advertising and marketing expenses increased $3.3 million from 2024 to 2025, due to an increased investment in television and direct mail advertising during the year. Occupancy costs increased $5.0 million, primarily due to increased depreciation expense, rent expense, and state and local taxes from the prior year. Warehouse, delivery, and transportation expenses decreased $2.4 million from 2024 to 2025, primarily due to increased productivity in our warehouse operations and lower payroll related benefits and insurance costs.

Interest (Income) Expense, Net

We earned $1.0 million less interest income, net of interest expense, in 2025 than in 2024 due to lower rates paid on cash, cash equivalents, and restricted cash equivalents.

Provision for Income Taxes

Our effective tax rate was 26.5% in 2025 compared to 23.7% in 2024. See Note 8, “Income Taxes” of the Notes to Consolidated Financial Statements for further information about our income taxes.

Liquidity and Capital Resources

At December 31, 2025, we had $125.3 million in cash and cash equivalents, and $6.5 million in restricted cash equivalents. See Note 1 to our consolidated financial statements for further discussion of our restricted cash equivalents. We believe that our current cash position, cash flow generated from operations, funds available from our credit agreement, and access to the long-term debt capital markets should be sufficient for our operating requirements and to enable us to fund our capital expenditures, dividend payments, and lease obligations through the next several years.

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Table of Contents

Our material cash requirements include contractual and other obligations arising in the normal course of business. These obligations primarily include operating lease obligations and purchase obligations. In addition to our cash requirements, we follow a disciplined approach to capital allocation. This approach first prioritizes investing in the business, followed by paying dividends. We may also return excess cash to shareholders in the form of share repurchases, cash dividends, or special cash dividends. We expect capital expenditures of approximately $33.5 million in 2026 to support our operations and strategic expansion, however these plans are subject to other potential opportunities, the economic environment, general business conditions and our financial performance.

Long-Term Debt

We currently have a $80.0 million revolving credit facility (the "Credit Agreement") with a bank. As of December 31, 2025, we had no outstanding borrowings and $80.0 million of available borrowings under the Credit Agreement. The Credit Agreement matures October 24, 2027. See Note 6, “Credit Arrangement” of the Notes to Consolidated Financial Statements for information about our Credit Agreement.

Leases

We use operating leases to fund a portion of our real estate, including our stores, distribution centers, and store support space.

At December 31, 2025, we had aggregate lease obligations of $216.4 million, with $36.0 million payable within 12 months. See Note 9, “Leases” of the Notes to Consolidated Financial Statements for further discussion of our operating leases.

Share Repurchases

The board of directors has authorized management, at its discretion, to purchase and retire limited amounts of our Common Stock and Class A Common Stock. We made cash payments of $4.8 million for repurchases of 216,482 shares of our Common Stock through open market purchases during 2025 and there is approximately $3.3 million at December 31, 2025 that may yet be purchased under the existing authorization.

Cash Flows Summary

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Table of Contents

Operating Activities. Cash flow generated from operations provides us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for products and services, employee compensation, operations, and occupancy costs.

Cash provided by or used in operating activities is also subject to changes in working capital. Working capital at any specific point in time is subject to many variables, including seasonality, inventory selection, the timing of cash receipts and payments, and vendor payment terms.

Net cash provided by operating activities in 2025 was $52.6 million driven primarily by net income of $19.7 million and non-cash adjustments to net income of $30.5 million consisting primarily of depreciation and amortization, stock-based compensation expense and changes in working capital. The changes in working capital were driven primarily by a $12.7 million increase in inventories and a $5.2 million decrease in customer deposit offset by $12.3 million decrease in other assets and liabilities and a $8.1 million increase in accrued liabilities and vendor repayments.

Net cash provided by operating activities in 2024 was $58.9 million driven primarily by net income of $20.0 million and non-cash adjustments to net income of $27.9 million consisting primarily of depreciation and amortization and stock-based compensation expense and changes in working capital. The changes in working capital were primarily driven by a $10.5 million decrease in inventories, a $7.0 million decrease in other assets and liabilities, and a $4.9 million increase in customer deposits offset by a $11.4 million decrease in accrued liabilities and vendor repayments.

Investing Activities. Cash used in investing activities in 2025 consisted primarily of $19.7 million of capital expenditures. In 2024, cash used in investing activities primarily reflected $32.1 million of capital expenditures.

Financing Activities. Cash used in financing activities in 2025 consisted primarily of $20.8 million of quarterly cash dividends and $4.8 million of share repurchases. Cash used in financing activities in 2024 primarily reflected $20.5 million of quarterly cash dividends and $5.0 million of share repurchases.

Our investing activities in stores and operations in 2025, 2024 and 2023 and planned outlays for 2026 are categorized in the table below. Capital expenditures for stores in the years noted do not necessarily coincide with the years in which the stores open.

(Approximate in thousands)

Proposed 2026

2025

2024

Stores:

New or replacement stores

$

17,300 

$

8,700 

$

18,000 

Remodels/expansions

4,400 

2,000 

4,600 

Other improvements

5,500 

5,300 

4,700 

Total stores

27,200 

16,000 

27,300 

Distribution(1)

3,150 

1,500 

2,900 

Information technology

3,150 

2,200 

1,900 

Total

$

33,500 

$

19,700 

$

32,100 

(1)In 2023 we purchased one distribution facility that was previously leased.

Critical Accounting Estimates and Assumptions

Our discussion and analysis is based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, and evaluate our estimates and judgments required by our policies on an ongoing basis and update them as appropriate based on changing conditions.

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Table of Contents

Accounting estimates are considered critical if both of the following conditions are met: (a) the nature of the estimates or assumptions is material because of the levels of subjectivity and judgment needed to account for matters that are highly uncertain and susceptible to change and (b) the effect of the estimates and assumptions is material to the financial statements.

We have reviewed our accounting estimates, and none were deemed to be considered critical for the accounting periods presented.