#Havertys Furniture Achieves Notable Quarter
Havertys Furniture Companies, Inc. has reported encouraging financial results for the first quarter of 2026, with key metrics reflecting sustained growth and operational success. The announcement, made on May 5, 2026, highlighted year-over-year increases in earnings per share, total sales, and comparable store sales.
#Financial Highlights
For the first quarter ended March 31, 2026, Havertys recorded diluted earnings per share of $0.26, compared to $0.23 in the same period the previous year. Consolidated sales reached $189.1 million, marking a 4.1% increase. Comparable store sales rose by 4.3%, demonstrating strong customer engagement and effective sales strategies.
#Successful Design Program
A significant contributor to Havertys' growth has been its design program, which accounted for 35.3% of total written business during the quarter. This represents an increase of over 200 basis points from the previous year, underscoring the program's effectiveness in attracting customers, with average tickets for designer sales reported to be more than double the overall average ticket.
#Cost Management and Profit Margins
The company's gross profit margin improved to 61.5%, up from 61.2% in the first quarter of 2025. Both selling and administrative expenses saw slight increases but remained consistent with the company's overall sales growth strategy. The increase was primarily driven by higher commissioned-based compensation, alongside rising administrative and occupancy costs.
#Store Expansion Strategy
Havertys is actively expanding its presence with new store leases signed in key markets including Dallas, TX, Atlanta, GA, and Fredericksburg, VA. This growth approach aligns with their strategy to enhance market share while maintaining a strong balance sheet, including no funded debt and available credit of $80 million.
#Outlook for 2026
The company remains vigilant regarding external factors, such as tariffs, closely monitoring developments to mitigate impacts on business operations. Despite challenges, Havertys anticipates maintaining gross profit margins between 60.5% and 61.0% for the year and plans to increase capital expenditures to approximately $34.0 million, reflecting continued investment in growth initiatives.
#Key Takeaways
- Havertys reported EPS of $0.26, up from $0.23 in Q1 2025.
- Total sales increased by 4.1%, reaching $189.1 million.
- Comparable store sales grew by 4.3% for the quarter.
- A successful design program contributed 35.3% of written business.
- The company has no funded debt and remains focused on expanding its store base.
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