Earnings

Havertys Raises 2026 Gross-Margin Outlook After Tariff Refunds

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter sales were $203.2 million as comparable-store growth cooled to 4.1% and IEEPA refunds lifted the margin to 62.3%.

Haverty Furniture Companies (HVT), the full-service home furnishings retailer, raised its 2026 gross-profit-margin outlook to 61.3% to 61.5% after receiving IEEPA tariff refunds, while comparable-store sales growth cooled to 4.1% in the third quarter.

Consolidated sales were $203.2 million, up 4.5% from a year earlier. That pace slowed from 7.7% growth in the second quarter. Comparable-store sales rose 4.1%, after 8.0% in the prior quarter. Diluted earnings were $0.39 a share, compared with $0.28 a year earlier.

Gross profit margin was 62.3%, including approximately $3.2 million of IEEPA tariff refunds. Excluding those refunds, the margin was 60.7%. President and CEO Steven G. Burdette said the team delivered another quarter of growth in written and delivered comp-store sales against tougher year-over-year comparisons, while navigating a soft housing market, higher fuel prices, higher interest rates, continued geopolitical issues, and rising input costs.

Written business slowed more sharply than delivered sales. Total written business increased 2.8%, and comp-store written business increased 2.3%, after 12.6% and 12.3% increases in the second quarter. Design consultants accounted for 34.6% of written business, down from 36.5% in the second quarter.

SG&A expenses were 58.6% of sales, up from 57.8% a year earlier, and increased $6.7 million. The company said selling expense rose $1.8 million, primarily from higher sales commissions and third-party credit costs, and administrative expenses rose $4.1 million, driven primarily by stock-based compensation subject to accelerated recognition, higher performance-based incentive compensation, and group insurance costs. Pre-tax income was $8.6 million, or 4.2% of sales. Net income was $6.3 million.

The company said it is growing to 133 stores by year-end with five fourth-quarter openings, including entry into Pittsburgh, Pennsylvania, its 18th state. Burdette said the openings reflect financial strength and execution of the long-term growth strategy.

For the nine months ended September 30, 2026, sales were $587.1 million, up from $557.1 million. Diluted EPS was $0.97. Cash, cash equivalents, and restricted cash equivalents were $127.0 million at quarter-end. The company invested $23.0 million in capital expenditures, purchased about 723,000 shares for $16.6 million, and paid $15.8 million in quarterly cash dividends. There was no debt outstanding, and credit availability was $100 million.

Full-year 2026 guidance includes tariffs in effect as of November 4, 2026, but excludes future IEEPA refunds that may be received for indirectly sourced products. The company said it is actively monitoring tariff developments. Variable SG&A for the full year is now anticipated at 19.2% to 19.4%, an increase from the previous 18.7% to 18.9% range, due to higher delivery, transportation, and third-party credit costs. Fixed and discretionary SG&A remain expected at $307.0 million to $309.0 million. Planned capital expenditures for 2026 remain approximately $34.0 million. The expected effective tax rate is 26.0%, excluding discrete items and new tax legislation.

More on HVT

September 28, 2026 QBook Stronger demand supports expansion as pricing diverges

HAVERTY FURNITURE COMPANIES INC — all coverage and financials