Haverty (25F) Q3 2026 Earnings Report

The call was broadly positive, with sales, comparable-store performance, earnings, gross margin, e-commerce, store expansion, liquidity, and consumer credit metrics all showing strength. The company also raised its full-year gross margin guidance and maintained its capital investment plans. These positives were partly offset by declining traffic, higher SG&A and operating costs, fuel and freight inflation, supply-chain and tariff uncertainty, inventory-management challenges, and election-related marketing disruption.

For calendar year 2026, guidance includes tariffs currently in effect as of November 4, 2026, but excludes any future tariff refunds that may be received from indirectly sourced products; gross margins are expected to be between 61.3% and 61.5%, fixed and discretionary-type SG&A expenses are expected to remain in the $307 million-$309 million range, variable-type costs within SG&A are expected to be in the range of 19.2%-19.4%, planned CapEx remains at $34 million, including $27.7 million for anticipated new or replacement stores, remodels, and expansions, $3.2 million for investments in the distribution network, and approximately $3.1 million for investments in information technology, and the anticipated effective tax rate remains at 26%, excluding the impact of vesting of stock awards and any potential new tax legislation. Havertys expects to end the year with inventory somewhere between $90 million and $100 million, plans to open five new stores in Q4 and close one that will be a relocation, expects to end the year with 133 stores, and expects the ongoing refresh of its mattress departments and design centers to be completed in all stores in 2027.