Havertys - 10-Q quarterly report FY2026 Q2

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___

Commission file number: 1-14445

HAVERTY FURNITURE COMPANIES, INC.

(Exact name of registrant as specified in its charter)


Maryland			58-0281900
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
780 Johnson Ferry Road, Suite 800 Atlanta, Georgia			30342
(Address of principal executive offices)			(Zip Code)
(404) 443-2900
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HVT	NYSE
Class A Common Stock	HVTA	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

The numbers of shares outstanding of the registrant’s two classes of $1 par value common stock as of August 3, 2026, were: Common Stock – 14,383,650; Class A Common Stock – 1,209,976.

HAVERTY FURNITURE COMPANIES, INC.

INDEX


		Page No.

PART I.	FINANCIAL INFORMATION

	Item 1. Financial Statements

	Condensed Consolidated Balance Sheets – June 30, 2026 (unaudited) and December 31, 2025	1

	Condensed Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2026 and 2025 (unaudited)	2

	Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2026 and 2025 (unaudited)	3

	Notes to Condensed Consolidated Financial Statements (unaudited)	4

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

	Item 3. Quantitative and Qualitative Disclosures about Market Risk	17

	Item 4. Controls and Procedures	18

PART II.	OTHER INFORMATION

	Item 1. Legal Proceedings	19

	Item 1A. Risk Factors	19

	Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	19

	Item 5. Other Information	19

	Item 6. Exhibits	20

INDEX

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


(In thousands)	June 30, 2026		December 31, 2025

Assets
Current assets
Cash and cash equivalents	$	104,295	$	125,325
Restricted cash and cash equivalents	6,665		6,547
Inventories	100,502		96,155
Prepaid expenses	17,393		10,236
Other current assets	8,448		11,064
Total current assets	237,303		249,327
Property and equipment, net	178,806		177,207
Right-of-use lease assets	205,422		190,586
Deferred income taxes	20,011		19,301
Other assets	14,514		12,631
Total assets	$	656,056	$	649,052
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	20,627	$	15,447
Customer deposits	43,337		35,504
Accrued liabilities	41,168		46,531
Current lease liabilities	35,220		35,967
Total current liabilities	140,352		133,449
Noncurrent lease liabilities	195,493		180,450
Other liabilities	26,139		27,224
Total liabilities	361,984		341,123

Stockholders’ equity
Capital Stock, par value $1 per share
Preferred Stock, Authorized – 1,000 shares; Issued: None
Common Stock, Authorized – 50,000 shares; Issued: 2026 – 30,787; 2025 – 30,633	30,787		30,633
Convertible Class A Common Stock, Authorized – 15,000 shares; Issued: 2026 – 1,732; 2025 – 1,732	1,732		1,732
Additional paid-in capital	126,678		123,373
Retained earnings	416,791		417,853
Accumulated other comprehensive loss	(1,111)		(1,111)
Less treasury stock at cost – Common Stock (2026 – 16,403 and 2025 – 15,699 shares) and Convertible Class A Common Stock (2026 and 2025 – 522 shares)	(280,805)		(264,551)
Total stockholders’ equity	294,072		307,929
Total liabilities and stockholders’ equity	$	656,056	$	649,052

See notes to these condensed consolidated financial statements.

INDEX

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


(In thousands, except per share data)	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Net sales	$	194,941	$	181,025	$	383,991	$	362,592
Cost of goods sold (exclusive of depreciation and amortization)	75,210		70,923		148,043		141,407
Gross profit	119,731		110,102		235,948		221,185

Expenses:
Selling, general and administrative	113,163		107,333		224,439		214,535
Other (income) expense, net	74		(65)		21		(223)
Total expenses	113,237		107,268		224,460		214,312

Income before interest and income taxes	6,494		2,834		11,488		6,873
Interest income, net	923		1,492		1,889		2,746

Income before income taxes	7,417		4,326		13,377		9,619
Income tax expense	2,111		1,637		3,810		3,152
Net income	$	5,306	$	2,689	$	9,567	$	6,467

Other comprehensive income	—		—		—		—


Comprehensive income	$	5,306	$	2,689	$	9,567	$	6,467

Basic earnings per share:
Common Stock	$	0.33	$	0.17	$	0.60	$	0.40
Class A Common Stock	$	0.31	$	0.15	$	0.56	$	0.37

Diluted earnings per share:
Common Stock	$	0.32	$	0.16	$	0.58	$	0.39
Class A Common Stock	$	0.31	$	0.15	$	0.56	$	0.37

Cash dividends per share:
Common Stock	$	0.33	$	0.32	$	0.66	$	0.64
Class A Common Stock	$	0.31	$	0.30	$	0.62	$	0.60

See notes to these condensed consolidated financial statements.

INDEX

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


(In thousands)	Six Months Ended June 30,
	2026		2025
Cash Flows from Operating Activities:
Net income	$	9,567	$	6,467
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,340		11,831
Share-based compensation expense	4,493		3,986
Other	585		1,156
Changes in operating assets and liabilities:
Inventories	(4,347)		(9,851)
Customer deposits	7,833		(1,382)
Other assets and liabilities	(8,050)		658
Accounts payable and accrued liabilities	(1,058)		512
Net cash provided by operating activities	21,363		13,377

Cash Flows from Investing Activities:
Capital expenditures	(13,148)		(11,702)
Proceeds from sale of land, property, and equipment	54		19
Net cash used in investing activities	(13,094)		(11,683)

Cash Flows from Financing Activities:




Dividends paid	(10,629)		(10,353)
Common stock repurchased	(16,568)		(2,000)
Taxes on vested restricted shares	(1,984)		(1,884)
Net cash used in financing activities	(29,181)		(14,237)

Decrease in cash, cash equivalents, and restricted cash equivalents during the period	(20,912)		(12,543)
Cash, cash equivalents, and restricted cash equivalents at beginning of period	131,872		126,314
Cash, cash equivalents, and restricted cash equivalents at end of period	$	110,960	$	113,771

See notes to these condensed consolidated financial statements.

INDEX

HAVERTY FURNITURE COMPANIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note A - Business and Basis of Presentation

Haverty Furniture Companies, Inc. (“Havertys,” “the Company,” “we,” “our,” or “us”) is a specialty retailer of residential furniture and accessories in the middle to upper-middle price ranges. We operate all of our stores using the Havertys brand and do not franchise our concept. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes required by United States of America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. We believe all adjustments, normal and recurring in nature, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our latest Annual Report on Form 10-K.

The preparation of interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from those estimates.

Note B – Stockholders’ Equity

The following outlines the changes in each caption of stockholders’ equity for the current and comparative period and the dividends per share for each class of shares.

For the three months ended June 30, 2026:


(in thousands)	Common Stock		Class A Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balances at March 31, 2026	$	30,674	$	1,732	$	125,037	$	416,805	$	(1,111)	$	(266,526)	$	306,611
Net income							5,306						5,306
Dividends declared:
Common Stock, $0.33 per share							(4,945)						(4,945)
Class A Common Stock, $0.31 per share							(375)						(375)

Acquisition of treasury stock											(14,578)		(14,578)
Restricted stock issuances	113				(1,420)								(1,307)
Amortization of restricted stock					2,118								2,118
Directors' Compensation Plan					943						299		1,242

Balances at June 30, 2026	$	30,787	$	1,732	$	126,678	$	416,791	$	(1,111)	$	(280,805)	$	294,072

INDEX

For the six months ended June 30, 2026:


(in thousands)	Common Stock		Class A Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balances at December 31, 2025	$	30,633	$	1,732	$	123,373	$	417,853	$	(1,111)	$	(264,551)	$	307,929
Net income							9,567						9,567
Dividends declared:
Common Stock, $0.66 per share							(9,878)						(9,878)
Class A Common Stock, $0.62 per share							(751)						(751)

Acquisition of treasury stock											(16,568)		(16,568)
Restricted stock issuances	154				(2,138)								(1,984)
Amortization of restricted stock					4,493								4,493
Directors' Compensation Plan					950						314		1,264

Balances at June 30, 2026	$	30,787	$	1,732	$	126,678	$	416,791	$	(1,111)	$	(280,805)	$	294,072

For the three months ended June 30, 2025:


(in thousands)	Common Stock		Class A Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balances at March 31, 2025	$	30,498	$	1,767	$	118,399	$	417,565	$	(869)	$	(261,999)	$	305,361
Net income							2,689						2,689
Dividends declared:
Common Stock, $0.32 per share							(4,807)						(4,807)
Class A Common Stock, $0.30 per share							(373)						(373)
Class A conversion	35		(35)										—

Restricted stock issuances	100				(1,099)								(999)
Amortization of restricted stock					1,906								1,906
Directors' Compensation Plan					868						226		1,094

Balances at June 30, 2025	$	30,633	$	1,732	$	120,074	$	415,074	$	(869)	$	(261,773)	$	304,871

INDEX

For the six months ended June 30, 2025:


(in thousands)	Common Stock		Class A Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balances at December 31, 2024	$	30,419	$	1,793	$	117,257	$	418,960	$	(869)	$	(259,999)	$	307,561
Net income							6,467						6,467
Dividends declared:
Common Stock, $0.64 per share							(9,606)						(9,606)
Class A Common Stock, $0.60 per share							(747)						(747)
Class A conversion	61		(61)										—
Acquisition of treasury stock											(2,000)		(2,000)
Restricted stock issuances	153				(2,037)								(1,884)
Amortization of restricted stock					3,986								3,986
Directors' Compensation Plan					868						226		1,094

Balances at June 30, 2025	$	30,633	$	1,732	$	120,074	$	415,074	$	(869)	$	(261,773)	$	304,871

Note C – Interim LIFO Calculations

Inventories are measured using the last-in, first-out (LIFO) method of valuation using an annual LIFO index. Accordingly, interim LIFO calculations must necessarily be based on management’s estimates of the components of the calculation including year-end inventory levels and the expected rate of inflation or deflation for the year. Since these estimates may be affected by factors beyond management’s control, interim results are subject to change based upon the final year-end LIFO inventory valuation.

Note D – Fair Value of Financial Instruments

The fair values of our cash and cash equivalents, restricted cash and cash equivalents, accounts payable and customer deposits approximate their carrying values due to their short-term nature. The assets related to our self-directed, non-qualified deferred compensation plans for certain executives and employees are valued using quoted market prices multiplied by the number of shares held, a Level 1 valuation technique.

Note E – Credit Agreement

Effective June 29, 2026, the revolving credit facility (the "Credit Agreement") was amended to, among other things, increase the borrowing capacity to $100.0 million and extend the maturity date to June 29, 2031. Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit.

At June 30, 2026 and December 31, 2025, there were no outstanding borrowings under the Credit Agreement. The borrowing base was $137.4 million at June 30, 2026, and there were no outstanding letters of credit. Accordingly, the net availability was $100.0 million.

INDEX

Note F – Segment Reporting

We operate within a single reportable segment. We use a market area approach for both financial and

operational decision making. Each of these market areas is considered individual operating segments. The

individual operating segments all have similar economic characteristics. The retail stores within the market

areas are similar in size and carry substantially identical products selected for the same target customer. We

also use the same distribution methods chain-wide.

Our chief operating decision maker (CODM) is our President and Chief Executive Officer. Segment information is prepared on the same basis as our CODM manages our operating segments and evaluates results. The measure used by our CODM to assess performance and make operating decisions is income before income taxes as reported on our condensed consolidated statements of comprehensive income. Asset information is provided to the CODM on a consolidated basis.

The following table presents significant segment expenses and other segment items regularly reviewed by our CODM:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Net Sales	$	194,941	$	181,025	$	383,991	$	362,592
Less:
Cost of goods sold (exclusive of depreciation and amortization)	75,210		70,923		148,043		141,407
Selling, general, and administrative
Advertising and marketing	11,700		12,108		23,259		23,184
Selling	29,040		25,953		57,133		51,666
Occupancy	25,268		25,868		51,352		51,340
Warehouse, delivery, and transportation	14,992		14,079		29,713		28,993
General and administrative	32,163		29,325		62,982		59,352
Total selling, general and administrative(a)	113,163		107,333		224,439		214,535

Other segment items(b)	(74)		65		(21)		223
Interest income	963		1,532		1,969		2,826
Interest expense	(40)		(40)		(80)		(80)
Income before income taxes	7,417		4,326		13,377		9,619
Income tax expense	2,111		1,637		3,810		3,152





Consolidated net income	$	5,306	$	2,689	$	9,567	$	6,467

(a) Depreciation and amortization expense included in selling, general and administrative expense totaled $6.1 million and $5.9 million for the three months ended June 30, 2026 and 2025, respectively, and $12.3 million and $11.8 million for the six months ended June 30, 2026 and 2025.

(b) Other segment items include gains (losses) on asset disposals and miscellaneous income (expense).

INDEX

Note G – Revenues

We recognize revenue from merchandise sales and related service fees, net of expected returns and sales tax, at the time the merchandise is delivered to the customer. We record customer deposits when payments are received in advance of the delivery of merchandise. Such deposits totaled $43.3 million and $35.5 million at June 30, 2026 and December 31, 2025, respectively. Of the customer deposit liabilities at December 31, 2025, approximately $0.7 million have not been recognized through net sales in the six months ended June 30, 2026.

The following table presents our revenues disaggregated by each major product category and service (amounts and percentages may not always add due to rounding):


(In thousands)	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	Net Sales		% of Net Sales		Net Sales		% of Net Sales		Net Sales		% of Net Sales		Net Sales		% of Net Sales
Merchandise:
Case Goods
Bedroom Furniture	$	29,491	15.1	%	$	26,885	14.9	%	$	56,745	14.8	%	$	54,061	14.9	%
Dining Room Furniture	20,270		10.4		17,686		9.8		39,085		10.2		35,643		9.8
Occasional	14,722		7.6		12,990		7.2		28,938		7.5		25,909		7.1
	64,483		33.1		57,561		31.9		124,768		32.5		115,613		31.8
Upholstery	86,580		44.4		80,884		44.7		172,801		45.0		162,300		44.8
Mattresses	16,791		8.6		16,525		9.1		32,928		8.6		32,329		8.9
Accessories and Other (1)	27,087		13.9		26,055		14.3		53,494		13.9		52,350		14.5
	$	194,941	100.0	%	$	181,025	100.0	%	$	383,991	100.0	%	$	362,592	100.0	%


(1)			Includes delivery charges and product protection.

Note H – Leases

We have operating leases for retail stores, offices, warehouses, and certain equipment. Our leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 20 years. We determine if an arrangement is or contains a lease at lease inception. Our leases do not have any residual value guarantees. We have lease agreements for real estate with lease and non-lease components, which are accounted for separately.

Certain of our lease agreements for retail stores include variable lease payments, generally based on sales volume. The variable portions of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred.

Certain of our equipment lease agreements include variable lease costs, generally based on usage of the underlying asset (mileage, fuel, etc.). The variable portions of payments are not included in the initial measurement of the right-of-use asset or lease liability due to uncertainty of the payment amount and are recorded in the period incurred.

As of June 30, 2026, we had entered into two leases for additional retail locations, which had not yet commenced.

INDEX

Lease expense is charged to selling, general and administrative expenses. Components of lease expense were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	11,944	$	12,550	$	24,250	$	24,884
Variable lease cost	1,542		1,311		3,169		2,613
Total lease expense	$	13,486	$	13,861	$	27,419	$	27,497

Supplemental cash flow information related to leases is as follows (in thousands):


	Six Months Ended June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	23,945	$	23,809
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	34,977	$	19,051

Note I – Income Taxes

Our effective tax rate for the six months ended June 30, 2026 and 2025 was 28.5% and 32.8%, respectively. The primary differences in the effective rate and the statutory rate were state income taxes, nondeductible items and additional tax expense related to vested stock awards.

INDEX

Note J – Stock-Based Compensation Plans

As more fully discussed in Note 13 of the notes to the consolidated financial statements in our 2025 Annual Report on Form 10-K, we have awards outstanding for Common Stock under stock-based employee compensation plans.

The following table summarizes our award activity during the six months ended June 30, 2026:


	Service-Based Restricted Stock Awards			Performance-Based Restricted Stock Awards
	Shares or Units (#)	Weighted-Average Award Price ($)		Shares or Units (#)	Weighted-Average Award Price ($)
Outstanding at December 31, 2025	300,920	$	26.30	267,582	$	27.50
Granted/Issued	208,046	26.73		164,029	26.81
Awards vested or rights exercised(1)	(171,771)	26.85		(69,419)	33.07
Forfeited	(3,400)	24.88		—	—
Adjustment of units based on performance	—	—		34,178	22.91
Outstanding at June 30, 2026	333,795	$	26.30	396,370	$	25.84
Restricted units expected to vest	333,795	$	26.30	441,969	$	25.94


(1)			Includes shares repurchased from employees for employee’s tax liability.

The total fair value of service-based restricted stock awards that vested during the six months ended June 30, 2026 was approximately $3.8 million. The aggregate intrinsic value of outstanding service-based restricted stock awards was approximately $8.5 million at June 30, 2026. The restrictions on the service-based awards generally lapse or vest annually, primarily over one-year and three-year periods.

The total fair value of performance-based restricted stock awards that vested during the six months ended June 30, 2026 was approximately $1.7 million. The aggregate intrinsic value of outstanding performance awards at June 30, 2026 expected to vest was approximately $11.3 million. The performance awards are based on one-year performance periods but cliff vest in approximately three years from grant date.

The compensation for all awards is charged to selling, general and administrative expenses over the respective grants’ vesting periods, primarily on a straight-line basis. The amount charged was approximately $4.5 million and $4.0 million for the six months ended June 30, 2026 and 2025, respectively. Forfeitures are recognized as they occur. As of June 30, 2026, the total compensation cost related to unvested equity awards was approximately $13.6 million and is expected to be recognized over a weighted-average period of two years.

INDEX

Note K – Earnings Per Share

We report our earnings per share using the two-class method. The income per share for each class of common stock is calculated assuming 100% of our earnings are distributed as dividends to each class of common stock based on the contractual rights of the classes.

The Common Stock of the Company has a preferential dividend rate of at least 105% of the dividend paid on the Class A Common Stock. Holders of the Class A Common Stock have greater voting rights which include voting as a separate class for the election of up to 75% of the total number of directors whereas holders of the Common Stock vote as a separate class for the election of at least 25% of the total number of directors. On all other matters subject to shareholder vote, holders of the Class A Common Stock have ten votes per share as opposed to holders of the Common Stock receiving one vote per share. Class A Common Stock may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class A Common Stock.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Common:
Distributed earnings	$	4,945	$	4,807	$	9,878	$	9,606
Excess distributions	(12)		(2,309)		(985)		(3,600)
Basic	4,933		2,498		8,893		6,006
Class A Common earnings	373		191		674		461
Diluted	$	5,306	$	2,689	$	9,567	$	6,467

Class A Common:
Distributed earnings	$	375	$	373	$	751	$	747
Excess distributions	(2)		(182)		(77)		(286)
	$	373	$	191	$	674	$	461
Denominator:
Common:
Weighted average shares outstanding - basic	14,856		14,983		14,892		14,957
Assumed conversion of Class A Common Stock	1,210		1,237		1,210		1,250
Dilutive options, awards and common stock equivalents	424		306		462		337
Total weighted-average diluted Common Stock	16,490		16,526		16,564		16,544

Class A Common:
Weighted average shares outstanding	1,210		1,237		1,210		1,250

Basic earnings per share:
Common Stock	$	0.33	$	0.17	$	0.60	$	0.40
Class A Common Stock	$	0.31	$	0.15	$	0.56	$	0.37

Diluted earnings per share:
Common Stock	$	0.32	$	0.16	$	0.58	$	0.39
Class A Common Stock	$	0.31	$	0.15	$	0.56	$	0.37

INDEX

Note L – Contingencies

The Company is subject to various claims and legal proceedings covering a wide range of matters, including with respect to product liability and personal injury claims that arise in the ordinary course of its business activities. We currently have no pending claims or legal proceedings that we believe would be reasonably likely to have a material adverse effect on our financial condition, results of operations or cash flows. However, there can be no assurance that either future litigation or an unfavorable outcome in existing claims will not have a material impact on our business, reputation, financial position, cash flows or results of operations.

IND E X

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes contained herein and with the audited consolidated financial statements, accompanying notes, related information and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”).

Forward-Looking Statements and Risk Factors

Statements in this Quarterly Report on Form 10-Q (the "Form 10-Q") and the schedules hereto that are not purely historical facts or that necessarily depend on future events, including statements about our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology including “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would,” or similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers, and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements.

All forward-looking statements are based upon currently available information and the Company's current assumptions, expectations, and projections about future events. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Forward-looking statements are by nature inherently uncertain and involve known and unknown risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. These risks and uncertainties include, but are not limited to:

•competition from national, regional and local retailers of home furnishings;

•our ability to anticipate changes in consumer preferences;

•our ability to maintain and enhance our brand;

•our ability to successfully implement our growth and other strategies;

•our ability to locate our stores in suitable locations to attract customers;

•importing a substantial portion of our merchandise from foreign sources (including the impact of tariffs);

•our dependence on third-party producers to meet our requirements;

•significant fluctuations and volatility in the cost of raw materials and components;

•risks in our supply chain, including price, availability and quality of raw materials and components utilized in the products we sell and our ability to forecast our supply chain needs;

•a failure by our vendors to meet our quality control standards or comply with changes to the legislative or regulatory framework regarding product safety;

•our reliance on third-party transportation vendors for product shipments from our suppliers;

•damage to one of our distribution centers;

•our reliance on information technology and any disruptions in our IT systems;

•the vulnerability of our information technology infrastructure to cyber-attacks, breaches and other disruptions;

•the effects of labor disruptions or labor shortages; and our ability to attract and retain key employees;

•the rise of oil and gasoline prices;

•increased transportation costs;

•changes in economic conditions such as consumer disposable income, fuel prices, inflation rates, recession and fears of recession, unemployment rates, interest rates, tax rates, consumer confidence, and changing government policies, laws and regulations;

•certain risks may not be fully covered by insurance;

•failure to protect our intellectual property;

•our ability to comply with all applicable laws and regulations;

•pending or unforeseen litigation;

•natural disasters, public health events, geopolitical instability or other disruptive events; and

•other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission filings.

Further information on the risks and uncertainties that could cause our actual results to differ from these forward-looking statements are described in "Item 1A. Risk Factors" of our Form 10-K for 2025 and in the subsequent reports we file with the Securities and Exchange Commission. Consequently, all forward-looking statements in this report are qualified by the factors, risks and uncertainties contained therein. All forward‑looking statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report except as required by law. We intend for any forward-looking statements to be covered by, and we claim the protection under, the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Industry Overview

The retail residential furniture industry is influenced by the overall strength of the economy, new and existing home sales, consumer confidence, spending on large ticket items, interest rates, and the availability of credit. The industry continues to face headwinds from rising consumer debt, constrained housing inventory, tight access to home mortgage credit, and ongoing economic uncertainty driven by changes in tariff policy and geopolitical tensions, including rising oil and raw material prices.

Throughout 2025, the U.S. presidential administration announced new and modified tariffs on imported goods, including those sourced from China, Vietnam, and other key manufacturing regions. In response, several affected countries implemented retaliatory tariffs, adding economic uncertainty and increased cost pressures across the industry. On February 20, 2026, tariffs that had been imposed under the International Emergency Economic Powers Act ("IEEPA tariffs") were invalidated following a ruling by the U.S. Supreme Court, adding further uncertainty to the trade environment.

On February 24, 2026, the administration imposed a 10% tariff under Section 122 of the Trade Act of 1974 impacting nearly all goods imported into the United States. By law, the Section 122 tariffs may only be in place for 150 days, resulting in their expiration on July 24, 2026. On July 24, 2026, new tariffs ranging from 10% to 12.5% on imports from approximately 60 countries took effect under Section 301 of the Trade Act of 1974. These tariffs apply to goods from countries from which the Company sources its merchandise, including Vietnam.

To address refunds related to the invalidated IEEPA tariffs, on April 20, 2026, U.S. Customs and Border Protection ("CBP") launched the Consolidated Administration and Processing of Entries ("CAPE") system to process refund claims. The Company submitted refund claims for direct vendor purchases through CAPE that were received in June 2026.

We continue to actively monitor tariff developments and assess their potential impact on our business.

Business Overview

Havertys is a leading specialty retailer of residential furniture and accessories, founded in 1885 in Atlanta, Georgia. As of June 30, 2026, we operated 129 stores in 17 states throughout the Southern and Midwestern regions of the U.S. Our products are selected to appeal to a middle to upper-middle income consumer across a variety of styles. We have a seasoned, commission-based sales team, and offer free design services to customers seeking a more in-depth personalized experience. Unlike many competitors, we do not outsource delivery; instead, our Havertys delivery team ensures a seamless and professional delivery experience, which includes a detailed inspection of the product prior to delivery, as well as placement and assembly of the furniture in the customer's home. We are recognized in our markets for offering high-quality, fashionable products and delivering exceptional customer service.

Net Sales

Our sales are generated by customer purchases of merchandise and related fees, net of expected returns and sales tax. We record our sales when merchandise is delivered to the customer. Comparable-store or “comp-store” sales is a measure which indicates the performance of our existing stores and website by comparing the growth in sales in store and online for a particular month over the corresponding month in the prior year. Stores are considered non-comparable if they were not open during the corresponding month in the prior year or if the selling square footage has been changed significantly. The method we use to compute comp-store sales may not be the same method used by other retailers.

We also track “written sales” and “written comp-store sales,” which represent customer orders prior to delivery. As a retailer, comp-store sales and written comp-store sales are an indicator of relative customer spending and store performance. Comp-store sales, total written sales and written comp-store sales are intended only as supplemental information and none are substitutes for net sales presented in accordance with U.S. GAAP.

The following table outlines the changes in our sales and comp-store sales for the periods indicated.


	2026										2025
	Net Sales						Comp-Store Sales				Net Sales						Comp-Store Sales
Period	Total Dollars		% Change		$ Change		% Change		$ Change		Total Dollars		% Change		$ Change		% Change		$ Change
Q1	$	189.1	4.1	%	$	7.5	4.3	%	$	7.7	$	181.6	(1.3)	%	$	(2.4)	(4.8)	%	$	(8.8)
Q2	$	194.9	7.7	%	$	13.9	8.0	%	$	14.2	$	181.0	1.3	%	$	2.4	(2.3)	%	$	(4.0)

YTD Q2	$	384.0	5.9	%	$	21.4	6.2	%	$	22.0	$	362.6	—	%	$	—	(3.5)	%	$	(12.8)

In the second quarter of 2026, net sales increased $13.9 million, or 7.7%, compared to the same period in 2025. This growth was achieved despite continued pressure from a soft housing market which creates a challenging demand environment for the home furnishings industry. Comp-store sales increased $14.2 million, or 8.0%, in the second quarter of 2026 compared to the same period in 2025. Written business for the second quarter of 2026 was up 12.6% and comp-store written business was up 12.3% compared to the second quarter of 2025.

For the six month period ended June 30, 2026, net sales increased $21.4 million, or 5.9% compared to the prior year comparable period. Comp-store sales increased $22.0 million or 6.2%, in the first six months ended June 30, 2026 compared to the same period in 2025. Written business for the first six months of 2026 increased 9.5% and comp-store written business increased 9.6% compared to the same prior year period.

Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 36.5% of our total written business for the second quarter of 2026, compared to 33.4% of total written business for the same period in 2025, with a higher average written ticket of $8,835, compared to $7,631 for the same period in 2025.

For the six months ended June 30, 2026, design consultants contributed to 35.9% of our total written business, with an average written ticket of $8,573, compared to 33.3% and an average written ticket of $7,525 for the same prior year period.

Gross Profit

Gross profit margin for the second quarter of 2026 was 61.4%, up 60 basis points from 60.8% in the prior-year comparable period. For the six months ended June 30, 2026, gross profit margin was 61.4% up 40 basis points compared to 61.0% for the same period in 2025. The gross margin improvement in both periods was driven by product selection, merchandise pricing and mix, and the receipt of $1.5 million in IEEPA tariff refunds in June 2026.

Substantially all of our occupancy and home delivery costs are included in selling, general and administrative expenses (“SG&A”), as are a portion of our warehousing expenses. Accordingly, our gross profit may not be comparable to those entities that include these costs in cost of goods sold.

Selling, General and Administrative Expenses

SG&A expenses as a percentage of sales for the second quarter of 2026 were 58.0% compared to 59.3% for the same period in 2025. The decrease as a percentage of sales was primarily due to improved leveraging of fixed and discretionary expenses on higher sales volume. SG&A expenses increased $5.8 million, or 5.4%, primarily due to higher selling and administrative costs. Selling expenses increased $3.1 million due to higher third-party credit costs and sales commissions, consistent with the increase in net sales. Administrative expenses increased $2.8 million, due to higher salaries, performance-based incentive compensation and related benefits.

SG&A expenses as a percentage of sales for the first six months of 2026 were 58.4% compared to 59.2% for the same period in 2025, primarily due to improved leveraging of fixed and discretionary expenses on higher sales volume. SG&A expenses increased $9.9 million, or 4.6%, primarily due to increases in selling and administrative expenses. Selling expenses increased $5.5 million due to higher third-party credit costs and sales commissions, consistent with the increase in net sales. Administrative expenses increased $3.6 million due to higher salaries, performance-based incentive compensation and related benefits.

We classify our SG&A expenses as either variable or fixed and discretionary. Our variable expenses include the costs in the selling and delivery categories and certain warehouse and distribution expenses, as these amounts will generally move in tandem with our level of sales. The remaining categories and expenses for occupancy, advertising, and administrative costs are classified as fixed and discretionary because these costs do not fluctuate with sales.

The following table outlines our SG&A expenses by classification:


(In thousands)	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	$		% of Net Sales		$		% of Net Sales		$		% of Net Sales		$		% of Net Sales
Variable	$	37,610	19.3	%	$	33,353	18.4	%	$	73,888	19.2	%	$	67,000	18.5	%
Fixed and discretionary	75,553		38.7	%	73,980		40.9	%	150,551		39.2	%	147,535		40.7	%
	$	113,163	58.0	%	$	107,333	59.3	%	$	224,439	58.4	%	$	214,535	59.2	%

The variable expenses in dollars were higher in the second quarter and first half of 2026 compared to the same periods in 2025, primarily driven by higher commission expense resulting from increased sales. Fixed and discretionary expenses increased in the second quarter and first half of 2026 due to increases in administrative expenses compared to the prior year comparable periods.

Interest Income, Net

Interest income, net of interest expense, decreased $0.6 million in the second quarter of 2026 and $0.9 million in the six months ended June 30, 2026, compared to the prior year comparable periods, primarily due to lower rates paid on cash, cash equivalents, and restricted cash equivalents.

Provision for Income Taxes

Our effective tax rate for the six months ended June 30, 2026 and 2025 was 28.5% and 32.8%, respectively. See Note I, “Income Taxes” of the Notes to Condensed Consolidated Financial Statements for further information about our income taxes.

Liquidity and Capital Resources

Cash and Cash Equivalents

At June 30, 2026, we had $104.3 million in cash and cash equivalents, and $6.7 million in restricted cash equivalents. We believe that our current cash position, cash flow generated from operations, funds available from our credit agreement, and access to the long-term debt capital markets should be sufficient for our operating requirements and enable us to fund our capital expenditures, dividend payments, and lease obligations through the next several years. In addition, we believe we have the ability to obtain alternative sources of financing, if needed.

Long-Term Debt

In June 2026, we entered into the Sixth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures June 29, 2031, provides for a $100.0 million revolving credit facility. The borrowing base at June 30, 2026 was $137.4 million and the net availability was $100.0 million.

Leases

We lease a portion of our real estate, including our stores, distribution centers, and store support space, pursuant to operating leases.

Cash Flows Summary

Operating Activities. Cash flow generated from operations provides us with a significant source of liquidity. Our operating cash flows result primarily from cash received from our customers, offset by cash payments we make for products and services, employee compensation, operations, and occupancy costs.

Cash provided by or used in operating activities is also subject to changes in working capital. Working capital at any specific point in time is subject to many variables, including seasonality, inventory selection, the timing of cash receipts and payments, and vendor payment terms.

Net cash provided by operating activities was $21.4 million in the first six months of 2026, compared to $13.4 million provided by operating activities during the same period in 2025. This difference resulted primarily from changes in working capital. Working capital was primarily impacted by higher customer deposits in 2026 compared to 2025, offset by a lower inventory increase and higher prepaid expenses in 2026 compared to 2025, changes in other assets and liabilities, and the timing of vendor payments and cash receipts.

Investing Activities. Cash used in investing activities increased by $1.4 million in the first six months of 2026 compared to the first six months of 2025, due to higher capital expenditures.

Financing Activities. Cash used in financing activities in the first six months of 2026 increased $14.9 million compared to first six months of 2025 primarily due to higher share repurchases, including a $13.9 million purchase resulting from a privately negotiated transaction.

Store Plans


Location or Market	Opening Quarter Actual or Planned	Category
Alexandria, LA	Q-1-26	Closure
St. Louis, MO	Q-2-26	Open
Nashville, TN	Q-2-26	Open
San Angelo, TX	Q-2-26	Closure
Fredericksburg, VA	Q-3-26	Open
College Station, TX	Q-3-26	Closure
Dallas, TX	Q-4-26	Open
Houston, TX	Q-4-26	Open
Pittsburgh, PA	Q-4-26	Open
Atlanta, GA	Q-4-26	Relocation
Houston, TX	Q-4-26	Open

Critical Accounting Estimates

Critical accounting estimates are those that we believe are both significant and that require us to make difficult, subjective or complex judgments, often because we need to estimate the effect of inherently uncertain matters. We base our estimates and judgments on historical experiences and various other factors that we believe to be appropriate under the circumstances. Actual results may differ from these estimates, and we might obtain different estimates if we used different assumptions or conditions. We reviewed our accounting estimates, and none were deemed to be considered critical for the accounting periods presented in our Form 10-K. We had no significant changes in those accounting estimates since our last annual report.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For quantitative and qualitative disclosures about market risk, see "Item 7A. Quantitative and Qualitative Disclosures About Market Risk,” of our Form 10-K. Our exposure to market risk has not changed materially since December 31, 2025.

INDEX

Item 4. Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, our management, including the CEO and CFO, concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report and provide reasonable assurance that information required to be disclosed in the reports the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including the CEO and CFO, as appropriate, to allow timely decisions regarding disclosure.

There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13a-15 that occurred during the Company’s fiscal quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. We have reviewed our financial reporting process to provide reasonable assurance that we could report our financial results accurately and timely, and we will continue to evaluate the impact of any related changes to our internal control over financial reporting.

INDEX

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings is provided in Note L - Contingencies of the Notes to the Condensed Consolidated Financial Statements set forth in this Form 10-Q.

Item 1A. Risk Factors

"Item 1A. Risk Factors” in our Form 10-K includes a discussion of our known material risk factors. There have been no material changes from the risk factors described in our Form 10-K.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

The Board of Directors has authorized management, at its discretion, to purchase and retire limited amounts of our Common Stock and Class A Common Stock. The program was initially approved on November 3, 1986, with additional repurchase authorizations approved on August 5, 2022 and, most recently, on February 20, 2026, when the Board authorized an additional $15.0 million.

The following table presents information with respect to our repurchase of Havertys' common stock during the second quarter of 2026:


	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs
April 1 - April 30	—	$	—	—	$	16,353,000
May 1 - May 31	32,500	$	21.90	32,500	$	15,641,000
June 1 - June 30	600,000	$	23.11	600,000	$	1,775,000



Total	632,500			632,500

Repurchases under our program may be made through open market or privately negotiated transactions in amounts and prices management considers appropriate. In June 2026, the Company repurchased 600,000 shares of its common stock for an aggregate purchase price of $13,866,000 in a privately negotiated transaction. The purchase price of $23.11 per share represents a 2% discount to the closing price for the common stock on June 16, 2026.

The timing and number of shares repurchased will depend on a variety of factors including market price, general market and economic conditions, available capital, and applicable legal and regulatory requirements. The stock repurchase program has no expiration date but may be terminated by our Board at any time.

Item 5. Other Information

During the three months ended June 30, 2026, none of our directors or officers adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

INDEX

Item 6. Exhibits

(a)Exhibits

The exhibits listed below are filed with or incorporated by reference into this report (those filed with this report are denoted by an asterisk). Unless otherwise indicated, the exhibit number of documents incorporated by reference corresponds to the exhibit number in the referenced documents.


Exhibit Number						Description of Exhibit (Commission File No. 1-14445)
3.1						Articles of Amendment and Restatement of the Charter of Haverty Furniture Companies, Inc. effective May 26, 2006 (Exhibit 3.1 to our Second Quarter 2006 Form 10-Q).
3.2						By-laws of Haverty Furniture Companies, Inc. as amended and restated effective February 24, 2023 (Exhibit 3.2 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2022).
*10.1						Sixth Amendment to Amended and Restated Credit Agreement, dated as of June 29, 2026, by and among Haverty Furniture Companies, Inc., Havertys Credit Services, Inc. and Truist Bank.
*10.2						2026 Long-Term Incentive Plan effective as of May 11, 2026.
*31.1						Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as amended.
*31.2						Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d‑14(a) under the Securities Exchange Act of 1934, as amended.
**32.1						Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
101						The following financial statements from Haverty Furniture Companies, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, formatted in inline XBRL, include: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Statements of Cash Flows and (iv) the Notes to Condensed Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

* Filed herewith.

** Furnished herewith.

INDEX

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.


	HAVERTY FURNITURE COMPANIES, INC. (Registrant)

Date: August 4, 2026	By:	/s/ Steven G. Burdette
		Steven G. Burdette President, Chief Executive Officer, and Director (principal executive officer)

	By:	/s/ Richard B. Hare
		Richard B. Hare Executive Vice President and Chief Financial Officer (principal financial and accounting officer)

Havertys - 10-Q quarterly report FY2026 Q2

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