Company Expects 2026 Gross Profit Margin of 60.5%-61.0%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy HVT?
The company said, "On February 20, 2026, the Supreme Court invalidated the tariffs imposed by the administration under the International Emergency Economic Protection Act during 2025, and the administration announced its intention to impose new tariffs under different regulations. Our 2026 guidance includes the impact of the new tariffs announced by the administration. We continue to monitor tariff developments and assess their potential impact on our business as such changes could have a material impact on our results of operations. We expect gross profit margins for 2026 will be between 60.5% to 61.0%. Gross profit margins fluctuate quarter to quarter in relation to our promotional cadence. Our estimated gross profit margins for 2026 are based on anticipated product and freight costs and the impact on our LIFO reserve. Fixed and discretionary expenses within SG&A for the full year of 2026 are expected to be in the $307.0 to $309.0 million range. The increases over 2025 are primarily from store growth and inflation. Variable SG&A expenses for the full year of 2026 are anticipated to be in the 18.6% to 18.8% range. Our effective tax rate for 2026 is expected to be 26.0% excluding the impact of discrete items and any new tax legislation. Planned capital expenditures are approximately $33.5 million in 2026, an increase over 2025 due to our planned store growth for the year."
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About HVT
Haverty Furniture Companies, Inc. is a specialty retailer of residential furniture and accessories. The Company operates approximately 129 stores in 17 states in the Southern and Midwest regions of the United States. The Company buys its merchandise from numerous foreign and domestic manufacturers and importers. It carries various mattress product lines, such as Tempur-Pedic, Serta, Stearns and Foster, Beautyrest, and Sealy. Its distribution and delivery system uses a combination of three distribution centers (DCs) and four home delivery centers (HDCs). It uses third parties to handle over-the-road delivery of product from the DCs to the HDCs and market areas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Haverty Furniture Reports Q1 2026 Earnings with Positive Trends
- Sustained Sales Growth: Haverty Furniture reported net sales of $189.1 million for Q1, reflecting a 4.1% year-over-year increase and marking the third consecutive quarter of positive comps, indicating stable performance and a rebound in customer demand.
- Design Business Expansion: The design segment accounted for 35.3% of total sales, up 6.3% year-over-year, with the average ticket price rising 11.7% to approximately $8,300, showcasing the company's enhanced competitiveness in the high-end market.
- Inventory Management Optimization: The company expects inventory to drop below $100 million by the end of Q2, despite a $10.7 million increase to $106.9 million in Q1 due to new product introductions, reflecting proactive adjustments in supply chain management.
- Capital Expenditure Plans: Planned capital expenditures for 2026 are set at $34 million, an increase of $0.5 million from previous guidance, demonstrating confidence in future growth while maintaining a debt-free financial position.
See More
Haverty Furniture Reports Q1 Earnings Highlights
- Revenue Growth: Haverty Furniture reported Q1 revenue of $189.1 million, reflecting a 4.1% year-over-year increase, which demonstrates the company's ability to achieve stable sales growth in a competitive market, thereby boosting investor confidence in future performance.
- Comparable Store Sales Increase: Comparable store sales rose by 4.3%, indicating that the company successfully attracted more consumers amid recovering customer demand, further solidifying its market position.
- Gross Margin Improvement: The gross profit margin increased from 61.2% to 61.5%, showcasing the effectiveness of the company's cost control and pricing strategies, which enhances profitability and provides a stronger financial foundation for future investments.
- Capital Expenditure Plans: Haverty projects a capital expenditure of $33.5 million for 2026 while planning to expand its store network in Pennsylvania, a strategic move that will help further increase market share and enhance brand influence.
See More
Haverty Furniture to Announce Q1 Earnings on May 5th
- Earnings Announcement: Haverty Furniture (HVT) is set to release its Q1 earnings on May 5th before market open, with consensus EPS estimate at $0.26, reflecting a 13% year-over-year increase, and revenue estimate at $191.99 million, indicating a 5.7% year-over-year growth, showcasing the company's growth potential in a competitive market.
- Historical Performance Review: Over the past year, Haverty has exceeded EPS estimates 75% of the time and revenue estimates 50% of the time, indicating stability in profitability and revenue growth, which enhances investor confidence.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions for EPS estimates and two downward revisions, while revenue estimates also saw no upward revisions and two downward adjustments, reflecting a cautious market outlook on the company's future performance, necessitating close attention to management's guidance.
- Capital Expenditure Plans: Haverty projects a capital expenditure of $33.5 million for 2026 while planning to enter Pennsylvania and expand its store network, a strategic move that will help the company capture market share in new regions and enhance long-term growth potential.
See More
Haverty Furniture Reports Q4 2025 Earnings Highlights
- Significant Sales Growth: Haverty achieved net sales of $201.9 million in Q4 2025, reflecting a 9.5% year-over-year increase, with comparable store sales rising 8.2%, indicating strong market performance and sustained customer demand.
- New Store Expansion Plans: The company plans to open five new stores in 2026, including entry into Pennsylvania, marking its expansion into the 18th state, which is expected to enhance brand presence and market share.
- Increased Capital Expenditure: The capital expenditure budget for 2026 is set at $33.5 million, primarily for new store openings and remodels, demonstrating the company's confidence in future growth and proactive market opportunity capture.
- Inventory Management Strategy: Year-end inventories reached $96.2 million, up $12.7 million year-over-year, with management anticipating a decrease in inventory over the next six months to address new tariff challenges, ensuring operational efficiency and cost control.
See More
Haverty Furniture Q4 2025 Earnings Highlights
- Earnings Beat: Haverty Furniture reported a Q4 GAAP EPS of $0.51, exceeding expectations by $0.03, indicating robust profitability and enhancing market confidence in future performance.
- Significant Revenue Growth: The company achieved revenue of $201.9 million in Q4, a 9.5% year-over-year increase that surpassed expectations by $4.43 million, reflecting strong consumer demand and improved competitive positioning.
- Gross Margin Fluctuation: The gross profit margin for 2025 was 60.4%, down from 61.9% in 2024; however, excluding LIFO impacts, the margin was 62.4%, demonstrating effective cost control efforts by the company.
- Stock Buyback Authorization: The Board approved an additional $15 million for the stock repurchase program, indicating confidence in the company's stock value while providing additional returns to shareholders, thereby boosting investor sentiment.
See More
Haverty Furniture to Announce Q4 Earnings on February 24
- Earnings Announcement Date: Haverty Furniture (HVT) is set to release its Q4 earnings report on February 24 before market open, with a consensus EPS estimate of $0.48, reflecting a 2.0% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The revenue estimate stands at $197.47 million, representing a 7.1% year-over-year increase, indicating stable performance in the furniture market despite economic uncertainties that could affect consumer spending.
- Historical Performance Review: Over the past year, HVT has beaten EPS estimates 50% of the time and revenue estimates 25% of the time, suggesting volatility in the company's earnings performance that may influence investor decisions ahead of the earnings release.
- Estimate Revision Status: In the last three months, there have been no upward revisions for EPS or revenue estimates, with one downward revision each, reflecting a cautious market sentiment regarding the company's future performance, making the upcoming earnings report critical for assessing future trends.
See More
Haverty Furniture Reports Q1 2026 Earnings with Positive Trends
- Sustained Sales Growth: Haverty Furniture reported net sales of $189.1 million for Q1, reflecting a 4.1% year-over-year increase and marking the third consecutive quarter of positive comps, indicating stable performance and a rebound in customer demand.
- Design Business Expansion: The design segment accounted for 35.3% of total sales, up 6.3% year-over-year, with the average ticket price rising 11.7% to approximately $8,300, showcasing the company's enhanced competitiveness in the high-end market.
- Inventory Management Optimization: The company expects inventory to drop below $100 million by the end of Q2, despite a $10.7 million increase to $106.9 million in Q1 due to new product introductions, reflecting proactive adjustments in supply chain management.
- Capital Expenditure Plans: Planned capital expenditures for 2026 are set at $34 million, an increase of $0.5 million from previous guidance, demonstrating confidence in future growth while maintaining a debt-free financial position.
See More
Haverty Furniture Reports Q1 Earnings Highlights
- Revenue Growth: Haverty Furniture reported Q1 revenue of $189.1 million, reflecting a 4.1% year-over-year increase, which demonstrates the company's ability to achieve stable sales growth in a competitive market, thereby boosting investor confidence in future performance.
- Comparable Store Sales Increase: Comparable store sales rose by 4.3%, indicating that the company successfully attracted more consumers amid recovering customer demand, further solidifying its market position.
- Gross Margin Improvement: The gross profit margin increased from 61.2% to 61.5%, showcasing the effectiveness of the company's cost control and pricing strategies, which enhances profitability and provides a stronger financial foundation for future investments.
- Capital Expenditure Plans: Haverty projects a capital expenditure of $33.5 million for 2026 while planning to expand its store network in Pennsylvania, a strategic move that will help further increase market share and enhance brand influence.
See More
Haverty Furniture to Announce Q1 Earnings on May 5th
- Earnings Announcement: Haverty Furniture (HVT) is set to release its Q1 earnings on May 5th before market open, with consensus EPS estimate at $0.26, reflecting a 13% year-over-year increase, and revenue estimate at $191.99 million, indicating a 5.7% year-over-year growth, showcasing the company's growth potential in a competitive market.
- Historical Performance Review: Over the past year, Haverty has exceeded EPS estimates 75% of the time and revenue estimates 50% of the time, indicating stability in profitability and revenue growth, which enhances investor confidence.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions for EPS estimates and two downward revisions, while revenue estimates also saw no upward revisions and two downward adjustments, reflecting a cautious market outlook on the company's future performance, necessitating close attention to management's guidance.
- Capital Expenditure Plans: Haverty projects a capital expenditure of $33.5 million for 2026 while planning to enter Pennsylvania and expand its store network, a strategic move that will help the company capture market share in new regions and enhance long-term growth potential.
See More
Haverty Furniture Reports Q4 2025 Earnings Highlights
- Significant Sales Growth: Haverty achieved net sales of $201.9 million in Q4 2025, reflecting a 9.5% year-over-year increase, with comparable store sales rising 8.2%, indicating strong market performance and sustained customer demand.
- New Store Expansion Plans: The company plans to open five new stores in 2026, including entry into Pennsylvania, marking its expansion into the 18th state, which is expected to enhance brand presence and market share.
- Increased Capital Expenditure: The capital expenditure budget for 2026 is set at $33.5 million, primarily for new store openings and remodels, demonstrating the company's confidence in future growth and proactive market opportunity capture.
- Inventory Management Strategy: Year-end inventories reached $96.2 million, up $12.7 million year-over-year, with management anticipating a decrease in inventory over the next six months to address new tariff challenges, ensuring operational efficiency and cost control.
See More
Haverty Furniture Q4 2025 Earnings Highlights
- Earnings Beat: Haverty Furniture reported a Q4 GAAP EPS of $0.51, exceeding expectations by $0.03, indicating robust profitability and enhancing market confidence in future performance.
- Significant Revenue Growth: The company achieved revenue of $201.9 million in Q4, a 9.5% year-over-year increase that surpassed expectations by $4.43 million, reflecting strong consumer demand and improved competitive positioning.
- Gross Margin Fluctuation: The gross profit margin for 2025 was 60.4%, down from 61.9% in 2024; however, excluding LIFO impacts, the margin was 62.4%, demonstrating effective cost control efforts by the company.
- Stock Buyback Authorization: The Board approved an additional $15 million for the stock repurchase program, indicating confidence in the company's stock value while providing additional returns to shareholders, thereby boosting investor sentiment.
See More
Haverty Furniture to Announce Q4 Earnings on February 24
- Earnings Announcement Date: Haverty Furniture (HVT) is set to release its Q4 earnings report on February 24 before market open, with a consensus EPS estimate of $0.48, reflecting a 2.0% year-over-year decline, which may impact investor confidence in the company's profitability.
- Revenue Expectations: The revenue estimate stands at $197.47 million, representing a 7.1% year-over-year increase, indicating stable performance in the furniture market despite economic uncertainties that could affect consumer spending.
- Historical Performance Review: Over the past year, HVT has beaten EPS estimates 50% of the time and revenue estimates 25% of the time, suggesting volatility in the company's earnings performance that may influence investor decisions ahead of the earnings release.
- Estimate Revision Status: In the last three months, there have been no upward revisions for EPS or revenue estimates, with one downward revision each, reflecting a cautious market sentiment regarding the company's future performance, making the upcoming earnings report critical for assessing future trends.
See More
