hvt-20260331

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 March 31, 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 May 5, 2026, were: Common Stock – 14,885,377; Class A Common Stock – 1,209,976.

HAVERTY FURNITURE COMPANIES, INC.

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		Page No.

PART I.	FINANCIAL INFORMATION

	Item 1. Financial Statements

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

	Condensed Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2026 and 2025 (unaudited)	2

	Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 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	12

	Item 3. Quantitative and Qualitative Disclosures about Market Risk	16

	Item 4. Controls and Procedures	16

PART II.	OTHER INFORMATION

	Item 1. Legal Proceedings	17

	Item 1A. Risk Factors	17

	Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	17

	Item 5. Other Information	17

	Item 6. Exhibits	18

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In thousands)	March 31, 2026		December 31, 2025

Assets
Current assets
Cash and cash equivalents	$	107,456	$	125,325
Restricted cash and cash equivalents	6,606		6,547
Inventories	106,861		96,155
Prepaid expenses	12,055		10,236
Other current assets	7,840		11,064
Total current assets	240,818		249,327
Property and equipment, net	178,693		177,207
Right-of-use lease assets	193,783		190,586
Deferred income taxes	20,786		19,301
Other assets	13,261		12,631
Total assets	$	647,341	$	649,052
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	19,281	$	15,447
Customer deposits	40,419		35,504
Accrued liabilities	36,178		46,531
Current lease liabilities	35,070		35,967
Total current liabilities	130,948		133,449
Noncurrent lease liabilities	184,168		180,450
Other liabilities	25,614		27,224
Total liabilities	340,730		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 – 30,674; 2025 – 30,633	30,674		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	125,037		123,373
Retained earnings	416,805		417,853
Accumulated other comprehensive loss	(1,111)		(1,111)
Less treasury stock at cost – Common Stock (2026 – 15,789 and 2025 – 15,699 shares) and Convertible Class A Common Stock (2026 and 2025 – 522 shares)	(266,526)		(264,551)
Total stockholders’ equity	306,611		307,929
Total liabilities and stockholders’ equity	$	647,341	$	649,052

See notes to these condensed consolidated financial statements.

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HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


(In thousands, except per share data)	Three Months Ended March 31,
	2026		2025

Net sales	$	189,050	$	181,567
Cost of goods sold (exclusive of depreciation and amortization)	72,833		70,484
Gross profit	116,217		111,083

Expenses:
Selling, general and administrative	111,277		107,202
Other income, net	(53)		(158)
Total expenses	111,224		107,044

Income before interest and income taxes	4,993		4,039
Interest income, net	967		1,254

Income before income taxes	5,960		5,293
Income tax expense	1,699		1,515
Net income	$	4,261	$	3,778

Other comprehensive income	—		—


Comprehensive income	$	4,261	$	3,778

Basic earnings per share:
Common Stock	$	0.27	$	0.24
Class A Common Stock	$	0.25	$	0.21

Diluted earnings per share:
Common Stock	$	0.26	$	0.23
Class A Common Stock	$	0.25	$	0.21

Cash dividends per share:
Common Stock	$	0.33	$	0.32
Class A Common Stock	$	0.31	$	0.30

See notes to these condensed consolidated financial statements.

INDEX

HAVERTY FURNITURE COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


(In thousands)	Three Months Ended March 31,
	2026		2025
Cash Flows from Operating Activities:
Net income	$	4,261	$	3,778
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	6,283		5,895
Share-based compensation expense	2,376		2,080
Other	(1,454)		(924)
Changes in operating assets and liabilities:
Inventories	(10,706)		(5,285)
Customer deposits	4,915		2,027
Other assets and liabilities	(1,211)		3,124
Accounts payable and accrued liabilities	(7,365)		(4,541)
Net cash (used in) provided by operating activities	(2,901)		6,154

Cash Flows from Investing Activities:
Capital expenditures	(6,954)		(6,127)
Proceeds from sale of land, property, and equipment	21		5
Net cash used in investing activities	(6,933)		(6,122)

Cash Flows from Financing Activities:




Dividends paid	(5,309)		(5,173)
Common stock repurchased	(1,990)		(2,000)
Taxes on vested restricted shares	(677)		(885)
Net cash used in financing activities	(7,976)		(8,058)

Decrease in cash, cash equivalents, and restricted cash equivalents during the period	(17,810)		(8,026)
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	$	114,062	$	118,288

See notes to these condensed consolidated financial statements.

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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 March 31, 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							4,261						4,261
Dividends declared:
Common Stock, $0.33 per share							(4,934)						(4,934)
Class A Common Stock, $0.31 per share							(375)						(375)

Acquisition of treasury stock											(1,990)		(1,990)
Restricted stock issuances	41				(718)								(677)
Amortization of restricted stock					2,376								2,376
Directors' Compensation Plan					6						15		21

Balances at March 31, 2026	$	30,674	$	1,732	$	125,037	$	416,805	$	(1,111)	$	(266,526)	$	306,611

INDEX

For the three months ended March 31, 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							3,778						3,778
Dividends declared:
Common Stock, $0.32 per share							(4,799)						(4,799)
Class A Common Stock, $0.30 per share							(374)						(374)
Class A conversion	26		(26)										—
Acquisition of treasury stock											(2,000)		(2,000)
Restricted stock issuances	53				(938)								(885)
Amortization of restricted stock					2,080								2,080


Balances at March 31, 2025	$	30,498	$	1,767	$	118,399	$	417,565	$	(869)	$	(261,999)	$	305,361

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

We have an $80.0 million revolving credit facility (the “Credit Agreement”) secured primarily by our inventory and maturing on October 24, 2027. Availability fluctuates based on a borrowing base calculation reduced by outstanding letters of credit.

At March 31, 2026 and December 31, 2025, there were no outstanding borrowings under the Credit Agreement. The borrowing base was $126.7 million at March 31, 2026, and there were no outstanding letters of credit. Accordingly, the net availability was $80.0 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 are 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 present significant segment expenses and other segment items regularly reviewed by our CODM:


	Three Months Ended March 31,
(In thousands)	2026		2025
Net Sales	$	189,050	$	181,567
Less:
Cost of goods sold (exclusive of depreciation and amortization)	72,833		70,484
Selling, general, and administrative
Advertising and marketing	11,560		11,077
Selling	28,093		25,712
Occupancy	26,084		25,472
Warehouse, delivery, and transportation	14,721		14,914
General and administrative	30,819		30,027
Total selling, general and administrative(a)	111,277		107,202

Other segment items(b)	53		158
Interest income	1,007		1,294
Interest expense	(40)		(40)
Income before income taxes	5,960		5,293
Income tax expense	1,699		1,515





Consolidated net income	$	4,261	$	3,778

(a) Depreciation and amortization expense included in selling, general and administrative expense totaled $6.3 million and $5.9 million for the three months ended March 31, 2026 and 2025.

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

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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 $40.4 million and $35.5 million at March 31, 2026 and December 31, 2025, respectively. Of the customer deposit liabilities at December 31, 2025, approximately $1.8 million have not been recognized through net sales in the three months ended March 31, 2026.

The following table presents our revenues disaggregated by each major product category and service:


(In thousands)	Three Months Ended March 31,
	2026				2025
	Net Sales		% of Net Sales		Net Sales		% of Net Sales
Merchandise:
Case Goods
Bedroom Furniture	$	27,254	14.4	%	$	27,176	15.0	%
Dining Room Furniture	18,815		10.0		17,957		9.9
Occasional	14,215		7.5		12,919		7.1
	60,284		31.9		58,052		32.0
Upholstery	86,222		45.6		81,415		44.8
Mattresses	16,137		8.5		15,804		8.7
Accessories and Other (1)	26,407		14.0		26,296		14.5
	$	189,050	100.0	%	$	181,567	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 or any restrictions or covenants imposed by lessors. 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 March 31, 2026, we entered into five leases for additional retail locations, which had not yet commenced.

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


	Three Months Ended March 31,
	2026		2025
Operating lease cost	$	12,306	$	12,334
Variable lease cost	1,627		1,302
Total lease expense	$	13,933	$	13,636

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


	Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12,510	$	12,489
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	14,990	$	9,657

Note I – Income Taxes

Our effective tax rate for the three months ended March 31, 2026 and 2025 was 28.5% and 28.6%, respectively. The primary differences in the effective rate and the statutory rate were nondeductible items and additional tax expense related to vested stock awards.

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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 three months ended March 31, 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	205,046	26.81		164,029	26.81
Awards vested or rights exercised(1)	—	—		(69,419)	23.81
Forfeited	(2,900)	24.54		—	—
Adjustment of units based on performance	—	—		34,178	22.94
Outstanding at March 31, 2026	503,066	$	26.52	396,370	$	25.84
Restricted units expected to vest	503,066	$	26.52	418,677	$	25.89


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

The aggregate intrinsic value of outstanding service-based restricted stock awards was approximately $10.7 million at March 31, 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 three months ended March 31, 2026 was approximately $1.7 million. The aggregate intrinsic value of outstanding performance awards at March 31, 2026 expected to vest was approximately $8.9 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 $2.4 million and $2.1 million for the three months ended March 31, 2026 and 2025, respectively. Forfeitures are recognized as they occur. As of March 31, 2026, the total compensation cost related to unvested equity awards was approximately $15 million and is expected to be recognized over a weighted-average period of two years.

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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 March 31,
	2026		2025
Numerator:
Common:
Distributed earnings	$	4,934	$	4,799
Excess distributions	(973)		(1,290)
Basic	3,961		3,509
Class A Common earnings	300		269
Diluted	$	4,261	$	3,778

Class A Common:
Distributed earnings	$	375	$	374
Excess distributions	(75)		(105)
	$	300	$	269
Denominator:
Common:
Weighted average shares outstanding - basic	14,928		14,931
Assumed conversion of Class A Common Stock	1,210		1,263
Dilutive options, awards and common stock equivalents	499		369
Total weighted-average diluted Common Stock	16,637		16,563

Class A Common:
Weighted average shares outstanding	1,210		1,263

Basic earnings per share:
Common Stock	$	0.27	$	0.24
Class A Common Stock	$	0.25	$	0.21

Diluted earnings per share:
Common Stock	$	0.26	$	0.23
Class A Common Stock	$	0.25	$	0.21

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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.

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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, certain tariffs were invalidated following a ruling by the U.S. Supreme Court, adding further uncertainty to the trade environment. On April 20, 2026, U.S. Customs and Border Protection ("CBP") launched the Centralized Automated Processing of Entries ("CAPE") system, a new system CBP is using to process refund claims for IEEPA tariffs on imported goods. The Company has submitted refund claims through CAPE with respect to products on which it paid IEEPA tariffs. 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 March 31, 2026, we operated 128 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 exception 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)

Net sales for the first quarter of 2026 increased $7.7 million, or 4.1%, 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. Our comp-store sales increased $7.7 million, or 4.3%, in the first quarter of 2026 compared to the same period in 2025. Written business for the first quarter of 2026 was up 6.4% compared to the first quarter of 2025, and comp-store written business was up 7.0%.

Our free in-home design service continues to provide strong customer engagement. Design consultants helped drive 35.3% of our total written sales for the first quarter of 2026, compared to 33.2% of total written sales for the same period in 2025, with a higher average written ticket of $8,312, compared to $7,439 for the same period in 2025.

Gross Profit

Gross profit margin for the first quarter of 2026 was 61.5%, up 30 basis points compared to the prior year period of 61.2%. The increase is primarily due to product selection, merchandise pricing and mix.

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

Our SG&A expenses as a percentage of sales for the first quarter of 2026 were 58.9% compared to 59.0% for the same period in 2025. SG&A expenses increased $4.1 million, or 3.8%, primarily due to higher selling, administrative, and occupancy costs. Selling expenses increased $2.4 million primarily due to third-party credit costs, sales commission and related benefit costs, consistent with the increase in net sales. Administrative expenses increased $0.8 million, driven by higher salaries and related benefits. Occupancy costs increased $0.6 million, largely due to costs associated with new store openings and the timing of repairs and maintenance.

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 March 31,
	2026				2025
	$		% of Net Sales		$		% of Net Sales
Variable	$	36,279	19.2	%	$	33,647	18.5	%
Fixed and discretionary	74,998		39.7	%	73,555		40.5	%
	$	111,277	58.9	%	$	107,202	59.0	%

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

Liquidity and Capital Resources

Cash and Cash Equivalents

At March 31, 2026, we had $107.5 million in cash and cash equivalents, and $6.6 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 October 2022, we entered into the Fourth Amendment to our Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with Truist Bank. The Credit Agreement, which matures October 24, 2027, provides for a $80.0 million revolving credit facility. The borrowing base at March 31, 2026 was $126.7 million and the net availability was $80.0 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 used in operating activities was $2.9 million in the first three months of 2026, compared to $6.2 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 a higher inventory increase 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 $0.8 million in the first three months of 2026 compared to the first three months of 2025, due to higher capital expenditures.

Financing Activities. Cash used in financing activities in the first three months of 2026 were comparable to the first three months of 2025.

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-1-27	Open

In April 2026, we opened our 129th store in the St. Louis, MO market.

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.

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 March 31, 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 stock repurchase program has no expiration date but may be terminated by our Board at any time.

The following table presents information with respect to our repurchase of Havertys' common stock during the first 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
January 1 - January 31	—	$	—	—	$	3,343,000
February 1 - February 28	—	$	—	—	$	18,343,000
March 1 - March 31	90,590	$	21.97	90,590	$	16,353,000



Total	90,590			90,590

Item 5. Other Information

During the three months ended March 31, 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).
*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 March 31, 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: May 6, 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)