NYSE:HVT
HAVERTY FURNITURE COMPANIES INC
A North American home furnishing retailer delivering affordable furniture and decor through omnichannel platforms.
Key Metrics
Investment Thesis
Bull Case
Haverty offers an attractive entry point for value investors seeking exposure to the resilient home furnishings sector with a strong balance sheet holding over $125M in cash. The company's ability to grow revenue while maintaining stable profitability demonstrates operational efficiency and a loyal customer base that can weather economic headwinds.
Bear Case
Investors should be cautious given the recent significant decline in revenue from over $1B in 2022 to $759M in 2025, indicating a potential structural contraction in market demand. High levels of accrued expenses at $46.5M and a substantial retained earnings deficit suggest lingering operational pressures that could limit future dividend growth or share repurchase programs.
About HAVERTY FURNITURE COMPANIES INC
HAVERTY Furniture Companies Inc. is a leading home furnishing retailer serving North American markets with a wide assortment of furniture, rugs, decor, and bedding. The company operates through its Haverty, Ashley HomeStore, and Ashley HomeStore Direct channels, offering both online and brick-and-mortar shopping experiences. With total revenue of $759M in 2025 and strong operating cash flow of $52.6M, the firm balances inventory management with strategic store expansions.
Analysis
Management Discussion
Management successfully navigated a challenging macro environment, stabilizing net income from $20M in 2024 to $19.7M in 2025 despite revenue growth of approximately 5%. The company generated healthy operating cash flow of $52.6M and increased its cash position by $5.6M, reflecting disciplined capital allocation and effective working capital management.
Industry Overview
The home furnishing industry is highly competitive with low barriers to entry but significant capital requirements for inventory and store networks. Success depends on navigating supply chain complexities, adapting to evolving digital shopping habits, and maintaining price competitiveness against major discount retailers.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.05B | $862.1M | $722.9M | $759.0M |
| Cost of Revenue | $443.0M | $339.0M | $283.8M | $298.5M |
| Gross Profit | $604.2M | $523.1M | $439.1M | $460.5M |
| Operating Expenses | $486.3M | $455.9M | $419.0M | $438.8M |
| Operating Income | $117.9M | $67.2M | $20.1M | $21.7M |
| G&A | $486.3M | $455.8M | $419.2M | $439.3M |
| Stock-Based Comp | $7.2M | $8.0M | $6.7M | $7.3M |
| D&A | $16.9M | $18.6M | $21.6M | $23.8M |
| Other OpEx | $44.0K | $77.0K | $-214.0K | $-543.0K |
| Non-Operating Income | $1.6M | $5.5M | $6.1M | $5.1M |
| Pre-Tax Income | $119.5M | $72.7M | $26.2M | $26.8M |
| Income Tax | $30.1M | $16.4M | $6.2M | $7.1M |
| Continuing Ops | $89.4M | $56.3M | $20.0M | $19.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $89.4M | $56.3M | $20.0M | $19.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $89.4M | $56.3M | $20.0M | $19.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $276.3M | $251.6M | $238.9M | $249.3M |
| Cash & Equivalents | $123.1M | $120.6M | $120.0M | $125.3M |
| Inventory | $118.3M | $94.0M | $83.4M | $96.2M |
| Other Current Assets | $34.8M | $37.0M | $35.4M | $27.8M |
| Long-Term Assets | $372.8M | $402.5M | $409.9M | $399.7M |
| PP&E (Net) | $137.5M | $171.6M | $182.6M | $177.2M |
| Operating Leases | $207.4M | $202.3M | $194.4M | $190.6M |
| Other LT Assets | $27.9M | $28.6M | $32.8M | $31.9M |
| Total Assets | $649.0M | $654.1M | $648.7M | $649.1M |
| Current Liabilities | $154.4M | $138.3M | $131.6M | $133.4M |
| Accounts Payable | $23.3M | $18.8M | $14.9M | $15.4M |
| Current Leases | $34.4M | $37.4M | $36.3M | $36.0M |
| Deferred Revenue | $48.0M | $35.8M | $40.7M | $35.5M |
| Other Current Liab | $0 | $0 | $0 | $0 |
| Long-Term Liabilities | $205.2M | $207.5M | $209.6M | $207.7M |
| LT Operating Leases | $186.8M | $180.4M | $182.1M | $180.4M |
| Other LT Liab | $18.4M | $27.1M | $27.5M | $27.2M |
| Total Liabilities | $359.6M | $345.8M | $341.2M | $341.1M |
| Shareholders' Equity | $289.4M | $308.4M | $307.6M | $307.9M |
| Paid-In Capital | $108.7M | $113.3M | $117.3M | $123.4M |
| Retained Earnings | $398.4M | $419.5M | $419.0M | $417.9M |
| AOCI | $-756.0K | $-983.0K | $-869.0K | $-1.1M |
| Total L&E | $649.0M | $654.1M | $648.7M | $649.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $89.4M | $56.3M | $20.0M | $19.7M |
| Non-Cash Adjustments | $11.3M | $92.7M | $63.0M | $29.6M |
| Working Capital Changes | $-49.7M | $-51.8M | $-24.1M | $3.3M |
| Cash from Operations | $51.0M | $97.2M | $58.9M | $52.6M |
| Capital Expenditures | $28.4M | $53.1M | $32.1M | $19.7M |
| Cash from Investing | $-28.3M | $-53.1M | $-31.6M | $-19.6M |
| Share Buybacks | $30.0M | $6.9M | $5.0M | $4.8M |
| Dividends Paid | $33.9M | $35.2M | $20.5M | $20.8M |
| Cash from Financing | $-65.6M | $-46.3M | $-28.7M | $-27.5M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-42.9M | $-2.2M | $-1.5M | $5.6M |
| Beginning Cash | $172.9M | $129.9M | $127.8M | $126.3M |
| Ending Cash | $129.9M | $127.8M | $126.3M | $131.9M |
Frequently Asked Questions
How does HAVERTY FURNITURE COMPANIES INC make money?
The company's revenue is driven by its core furniture retail segment including dining, bedroom, living room, and accent pieces, supplemented by high-margin rugs, bedding, and decorative accessories sold via physical stores and direct-to-consumer e-commerce channels.
What are the main risks for HVT?
The retail furniture sector faces significant exposure to raw material price volatility and global shipping disruptions that can compress margins. Inventory management is critical given the company's large stock levels relative to revenue, making it vulnerable to shifting consumer tastes and economic downturns. Rising interest rates also impact discretionary spending on home goods.
What is HVT's competitive advantage?
Haverty leverages an extensive private label product portfolio to maintain higher gross margins while controlling supply chain costs, coupled with a robust omnichannel strategy that integrates online browsing with local store fulfillment capabilities.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.