Havertys Furniture (NYSE:HVT) reported fourth-quarter financial results that edged past analyst expectations, delivering a modest top-line beat and a slight earnings per share (EPS) surprise. The market's initial reaction was decisively positive, with shares trading significantly higher in pre-market activity.
Earnings and Revenue Versus Estimates
The Atlanta-based furniture retailer posted quarterly sales of $201.9 million, a 9.5% increase compared to the same period last year. This figure came in above the consensus analyst estimate of approximately $199.4 million. On the bottom line, Havertys reported diluted EPS of $0.51, surpassing the estimated $0.48.
-
Reported Q4 2025 Revenue: $201.9 million
-
Analyst Estimate for Revenue: $199.4 million
-
Result: Beat by approximately $2.5 million
-
Reported Q4 2025 EPS: $0.51
-
Analyst Estimate for EPS: $0.48
-
Result: Beat by $0.03 per share
For the full year 2025, consolidated sales reached $759.0 million, a 5.0% increase over 2024. Full-year diluted EPS was $1.19, matching the previous year's result.
Market Reaction and Price Action
The earnings beat was met with strong investor approval. Following the release, Havertys' stock saw a pre-market surge of over 6%. This positive movement stands in contrast to the stock's performance over recent weeks, which had seen modest declines. The sharp pre-market gain suggests the market views the quarterly outperformance and management's commentary as favorable indicators for the company's trajectory amid a challenging retail environment.
Key Highlights from the Quarter
Beyond the headline numbers, the earnings release highlighted several important operational and financial trends:
- Comparable Store Sales Growth: The company saw an 8.2% increase in comparable store sales for the quarter, indicating healthy organic growth at existing locations.
- Gross Margin Dynamics: The reported gross profit margin was 60.4%, down 150 basis points from the prior year. However, management noted this was heavily impacted by a $3.9 million negative adjustment to its LIFO (Last-In, First-Out) inventory reserve related to tariff changes. Excluding this LIFO impact, the gross margin would have been 62.4%, an improvement from 61.4% in Q4 2024.
- Operating Efficiency: Selling, general and administrative (SG&A) expenses improved as a percentage of sales to 55.7% from 57.4% a year ago, demonstrating leverage on higher sales volume.
- Strong Balance Sheet: Havertys maintains a debt-free balance sheet with $131.9 million in cash and cash equivalents. The company also has $80 million in available credit.
- Capital Return to Shareholders: In 2025, Havertys returned $25.6 million to shareholders through a combination of dividends ($20.8 million) and share repurchases ($4.8 million). The Board also approved an additional $15 million authorization for its stock buyback program.
- Expansion Plans: The company announced plans to enter a new state, Pennsylvania, with a store in Pittsburgh later in 2026, contributing to a total of five planned new store openings for the year.
Forward Outlook and Analyst Estimates
In its release, Havertys provided guidance for 2026, anticipating gross profit margins between 60.5% and 61.0%. The company expects fixed and discretionary SG&A expenses to be in the range of $307.0 to $309.0 million, with capital expenditures planned at approximately $33.5 million to support new store growth.
This company-provided outlook can be compared to current analyst projections. The consensus sales estimate for the full 2026 fiscal year stands at approximately $822.4 million. For the upcoming first quarter of 2026, analysts are expecting revenue of about $196.7 million and EPS of $0.38.
For a detailed look at future earnings estimates and historical performance, you can review the earnings and estimates data for HVT.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investing carries risks, including the potential loss of principal. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
