GET DAILY SIGNALSHaverty Furniture Companies (HVT) Reports +4.5% Sales Growth but Adjusted EPS Miss in Q3
Key Takeaways
- Net sales rose 4.5% year over year to $203.2 million in the third quarter of 2026, with comparable-store sales up 4.1%.
- Adjusted diluted earnings per share (EPS) of $0.25 missed the consensus estimate of $0.42, while reported diluted EPS was $0.39 versus $0.28 a year earlier.
- Gross profit margin expanded to 62.3%, helped by roughly $3.2 million in tariff refunds; excluding those refunds, gross margin was 60.7%.
- Selling, general, and administrative (SG&A) expenses increased 6% to $119.0 million, limiting operating leverage.
- Full-year 2026 gross margin guidance was raised to a range of 61.3% to 61.5%, and the company expects to finish the year with 133 stores.
- The balance sheet remained strong, with $120.3 million in cash and cash equivalents and no funded debt.
Putting These Results in Context
Haverty Furniture Companies operates as a specialty home furnishings retailer across the Southern and Midwestern United States. It delivered this report after a stretch of positive comparable-store sales even as the housing market stayed soft and interest rates remained elevated. Furniture demand tends to track consumer confidence and home-related spending, so these figures offer a window into discretionary purchases by its middle- to upper-middle-income customers. The quarter also featured several unusual factors, including midterm election advertising that management noted disrupted marketing efforts, higher fuel and freight costs, and evolving tariff policies. Investors were focused on whether revenue momentum could continue while margins handled rising selling, credit, and insurance expenses.
The Quarter’s Reported Figures
For the third quarter ended September 30, 2026, HVT posted net sales of $203.2 million, up 4.5% from $194.5 million in the same period a year earlier. Comparable-store sales increased 4.1%. Total written sales rose 2.8%, and written comparable-store sales grew 2.3%.
Reported diluted EPS came in at $0.39, compared with $0.28 the prior year, while net income rose to $6.3 million from $4.7 million. Adjusted diluted EPS of $0.25 fell short of the $0.42 consensus estimate, missing by about $0.17 per share. Revenue also landed slightly below the roughly $204.97 million expected.
Gross profit margin widened 200 basis points to 62.3% from 60.3%, supported by approximately $3.2 million in IEEPA tariff refunds recorded as a reduction in cost of sales. Without those refunds, the margin would have been 60.7%. SG&A expenses climbed 6% to $119.0 million, reflecting higher commission-based pay, third-party credit costs, accelerated stock-based compensation, and increased group insurance expenses. The company closed the quarter with 129 stores, $120.3 million in cash and cash equivalents, and no funded debt. I also checked this using Tickeron’s AI Screener to see how HVT stacks up against peers in the sector.
How the Market Responded
Shares traded lower after the release, falling about 4% in early trading as investors focused on the earnings shortfall rather than the sales growth and margin expansion. The gap between results and expectations stemmed more from profitability than from demand, with higher selling, credit, and administrative costs outpacing revenue gains. Management linked part of the expense increase to a one-time stock-award vesting charge and noted that roughly $2 million of the administrative cost rise was temporary. Sentiment ahead of the print had been positive given the recent run of comparable sales gains, yet the expense pressure tempered the reaction even as the stock stayed near the top of its 52-week range.
What to Watch Going Forward
Management lifted its full-year 2026 gross margin outlook to 61.3%–61.5%, incorporating tariff refunds already received, while future refunds are excluded from the guidance. Fixed and discretionary SG&A expenses are still projected between $307 million and $309 million, and variable SG&A is now expected at 19.2%–19.4% of sales, up from earlier forecasts due to higher delivery, transportation, and third-party credit costs.
Store expansion remains a key focus. The company anticipates ending 2026 with 133 stores following several fourth-quarter openings, including its first location in Pittsburgh, Pennsylvania, its 18th state. Management highlighted the designer business, which made up 34.6% of written sales, as an important driver for supporting higher average tickets.
On the cost front, investors should track fuel and freight rates, LIFO inventory accounting charges, credit costs, and the results of ongoing tariff discussions, including potential Section 232 changes on upholstered wood furniture and U.S.–Vietnam negotiations. Inventory dropped sharply during the quarter, and management expects it to rebuild toward $90 million–$100 million by year-end. With the midterm election cycle now complete, the company indicated plans to step up promotional activity through the holidays and into 2027.
Exploring Tools for Deeper Analysis
In my own research on names like HVT, I’ve found Tickeron’s AI Screener helpful for quickly filtering stocks by technical patterns, fundamentals, and industry trends. It lets users scan thousands of securities with customizable criteria and surface comparable setups across the home furnishings space without spending hours on manual reviews. This kind of targeted insight can complement traditional earnings analysis when evaluating retailers in a shifting macro environment.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HVT's RSI Oscillator leaves overbought zone
The 10-day RSI Indicator for HVT moved out of overbought territory on October 23, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 instances where the indicator moved out of the overbought zone. In 26 of the 39 cases the stock moved lower in the days that followed. This puts the odds of a move down at 67%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 37 of 56 cases where HVT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 66%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HVT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
HVT broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on HVT as a result. In 61 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 69%.
The Moving Average Convergence Divergence (MACD) for HVT just turned positive on October 15, 2026. Looking at past instances where HVT's MACD turned positive, the stock continued to rise in 32 of 45 cases over the following month. The odds of a continued upward trend are 71%.
HVT moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for HVT crossed bullishly above the 50-day moving average on October 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 69%.
Following a +1.57% 3-day Advance, the price is estimated to grow further. Considering data from situations where HVT advanced for three days, in 194 of 288 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
The Aroon Indicator entered an Uptrend today. In 153 of 230 cases where HVT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 67%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. HVT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 40 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.561) is normal, around the industry mean (1.560). P/E Ratio (20.725) is within average values for comparable stocks, (15.054). Projected Growth (PEG Ratio) (0.768) is also within normal values, averaging (1.177). Dividend Yield (0.045) settles around the average of (0.223) among similar stocks. P/S Ratio (0.581) is also within normal values, averaging (0.937).
The Tickeron SMR rating for this company is 77 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 78 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HVT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
an operator of furniture retail stores
Industry HomeImprovementChains
Advertisement