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Haverty Furniture Q1 2025 Earnings Report
Havertys reported a decrease in consolidated sales but an increase in diluted earnings per common share and gross profit margin for the first quarter ended March 31, 2025.
Key Takeaways
Havertys reported solid first quarter results with improved gross margins and earnings, despite a slight decrease in consolidated sales. Diluted EPS increased to $0.23 from $0.14 in the prior year, and gross profit margin improved to 61.2%.
Diluted earnings per common share increased to $0.23 from $0.14 in the prior year.
Consolidated sales decreased by 1.3% to $181.6 million, with comparable store sales down 4.8%.
Gross profit margin improved to 61.2% compared to 60.3% in the same period last year.
SG&A expenses decreased by $2.2 million, primarily due to lower selling, warehouse, and advertising costs, despite increases in occupancy and administrative costs.
Forward Guidance
Havertys' 2025 guidance includes current tariffs and anticipates stable gross profit margins, a decrease in variable SG&A expenses, and an increase in retail square footage, while capital expenditures are expected to decrease due to tariff uncertainty.
Positive Outlook
- Gross profit margins for 2025 are expected to remain between 60.0% to 60.5%.
- Variable SG&A expenses for the full year of 2025 are anticipated to decrease to 18.6% to 19.0% of sales, driven by lower warehouse and delivery costs and third-party credit expense.
- Effective tax rate for 2025 is expected to be 26.5%, excluding discrete items and new tax legislation.
- Retail square footage is expected to increase approximately 2.0% in 2025 over 2024.
- The company is closely monitoring tariff negotiations to minimize effects on business.
Challenges Ahead
- Guidance excludes the effects of additional proposed tariffs that have been paused by the Trump Administration.
- Planned capital expenditures for the full year of 2025 are approximately $24.0 million, a $3 million decrease from previous guidance due to tariff uncertainty.
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