Haverty Furniture is showing its first positive signals after months of disappointment, with the Atlanta-based furniture retailer reporting unexpectedly strong numbers for the second quarter of 2025. Despite a challenging market environment, the company recorded its first revenue growth since Q4 2022, with sales increasing by 1.3 percent to $181 million, exceeding analyst expectations. Earnings per share reached $0.16, outperforming forecasts by two cents. The gross margin improved to 60.8 percent from 60.4 percent year-over-year, which CEO Steven Burdette attributed to new marketing and advertising strategies. This performance comes as a potential turning point for the stock, which has lost a substantial 29.4 percent over the past twelve months, currently trading at $20.87.
Financial Stability Despite Headwinds
Despite these improvements, Haverty continues to face significant challenges. Comparable store sales declined by 2.3 percent, reflecting ongoing pressure from a weak real estate market, low consumer confidence, and uncertainty regarding new tariffs. Administrative expenses increased by $4.2 million due to higher salaries and advertising costs, pushing the profit margin down to 1.5 percent. However, the company maintains a strong financial foundation with $113.8 million in cash reserves and zero debt. Management’s confidence in the future is demonstrated through continued dividend payments of $10.4 million and stock buybacks worth $2 million, despite an operational cash outflow of $13.4 million during the first six months of the year.
Ad
Haverty Furniture Stock: Buy or Sell?! New Haverty Furniture Analysis from February 4 delivers the answer:
The latest Haverty Furniture figures speak for themselves: Urgent action needed for Haverty Furniture investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 4.
Haverty Furniture: Buy or sell? Read more here...
