Were there any notable regional differences in operating area performance, or was it consistent?

Steven Burdette stated that performance was pretty much across the board, with every district showing positive growth. The Midwest and Eastern districts continued to perform well, and Florida and Texas were positive despite more difficult comparisons. “Yes, it's pretty much across the board. I mean, every district was up. It was great to see. We continue to have strength out of the Midwest, which continues to do well. Our Eastern district has done well. Florida and Texas have more difficult comparisons, but they were all positive. Every district was positive. So it was a very encouraging quarter.”

Is the average ticket increase primarily price-driven, and what is the confidence level for continued improvement?

Steven Burdette clarified that while pricing contributes, the increase is also significantly driven by more units per ticket, in the mid-single-digit range for both overall and design tickets. He expressed confidence in solid gains continuing, especially with the potential upside in design business penetration. “Yes. Anthony, the real exciting thing is, yes, it is driven somewhat by pricing, but we're getting more units per ticket, and that's overall as a company and as in the design tickets. And so we're in that mid-single-digit range of increasing units per ticket. And that, in combination with our pricing, is driving that increase in average ticket. And I feel good about it.”

What were the traffic trends in Q2, especially compared to Q1, and is the consumer returning to furniture stores?

Steven Burdette confirmed that traffic turned positive in Q2, consistent throughout the quarter, after being negative in Q1 due to weather and geopolitical events. He expressed encouragement from this rebound. “Yes. As I commented in the notes there that, yes, traffic did turn back positive. It was negative in the first quarter. We did say there were other reasons for that. As you pointed out, the weather and then the breakout of the war, Epic Fury at the end of February and early March. But we did see a nice bounce back in traffic, and it was pretty consistent throughout the quarter and came in slightly positive. So we're encouraged by that.”

HVT

Haverty Furniture (HVT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 4, 2026

Source: earnings call transcript

Executive summary

Haverty Furniture Q2 FY26 — Double-Digit Sales Growth and EPS Doubling

Haverty Furniture delivered a strong second quarter, marked by double-digit written sales growth and a doubling of EPS, driven by robust average ticket increases and effective inventory management. The company is expanding its store footprint and leveraging AI across operations, while navigating rising fuel and financing costs. Management remains optimistic about continued momentum into the second half of the year.

Highlights

Net sales increased 7.7% to $194.9 million, with comparable store sales up 8%.
Total written sales grew 12.6%, with comparable written sales up 12.3%.
Gross margin expanded 60 basis points to 61.4% from 60.8% year-over-year.
Diluted EPS doubled to $0.32 from $0.16 in the prior year quarter.
Average ticket rose 14% to over $3,800, driven by increased units per ticket.

Concerns

Container rates expected to increase 25% to 30% due to bunker fuel rates starting mid-August.
Diesel fuel prices above $5 per gallon will continue to increase transportation and delivery fuel expenses through year-end.
Additional fuel increases will impact product input costs for the remainder of the year.
Cost of 60-months-no-interest financing programs continues to tick up.

Guidance & targets

Category	Target	Timeline	Confidence
Gross margins	60.5% to 61% high materiality	FY26	High
Fixed and discretionary SG&A expenses	$307 million to $309 million medium materiality	FY26	High
Variable type SG&A costs	18.7% to 18.9% medium materiality	FY26	High
Planned Capital Expenditure	approximately $34 million medium materiality	FY26	High
Effective tax rate	26% medium materiality	FY26	High
Inventory level	$95 million range medium materiality	Q3 FY26	High
Store count	133 stores medium materiality	FY26 end	High

Risks & headwinds

Container rates increase beginning mid-August, remainder of the year

25% to 30% increase

Mitigation:Potential future tariff refunds to offset some cost pressures.

Diesel fuel costs through year-end

If diesel fuel remains above $5 a gallon, continued increases in transportation and delivery fuel expenses

Mitigation:Potential future tariff refunds to offset some cost pressures.

Product input costs remainder of the year

Additional impact of fuel increases on product input costs

Mitigation:Potential future tariff refunds to offset some cost pressures.

Financing costs

Cost of 60-months-no-interest financing programs continues to tick up

Mitigation:Stay aggressive with credit offerings during promotional periods to meet customer demands and remain competitive.

What to watch in Q3 FY26

Indirectly sourced tariff refunds

This calendar year

Current Negotiations ongoing, not yet received

Target Receipt of $1M-$1.5M in refunds

Why it matters

Will help offset rising fuel-related cost pressures and impact gross margin.

On the indirectly sourced, those involve multiple parties. Negotiations are in progress right now to determine what amount we'll get. It could be 2 or 3 more parties involved with this. Some of our vendors incurred legal fees. So that could impact the amount. It is ongoing. Big picture, I don't expect it to result in a materially different amount from the direct, plus or minus $1 million to $1.5 million. So we'll just have to wait and see, and we will record that once we receive it. And we hope to get something in this calendar year for the indirects.

Find out whether HVT delivers this. Inve re-checks your case every morning.

Q&A highlights

How did written and delivered comparable sales trend month-over-month in Q2?

Richard Hare provided a detailed breakdown: written sales were up 10.6% in April, 15.7% in May, and 10.2% in June. Delivered sales were up approximately 4% in April, 8% in May, and 11% in June.

“So just on the written business, April was -- this is for the whole company, 10.6% increase. May was 15.7% and June was 10.2%. So as Steve said earlier, double digits every month was terrific. Delivered business, a lot of momentum picking up during the quarter. We were up approximately 4% in April, approximately 8% in May, and approximately 11% in June.”

asked by Anthony Lebiedzinski · answered by Richard Hare

2 min read 6 chapters

Detailed narrative

Strong Sales Performance and Average Ticket Growth

Haverty's reported net sales of $194.9 million, up 7.7% year-over-year, with comparable store sales increasing 8%. Written sales were even stronger, up 12.6% overall and 12.3% on a comparable basis, marking the fourth consecutive quarter of positive written and delivered comp sales.

A key driver was a 14% rise in average ticket to over $3,800, primarily due to an increase in units per ticket and strong performance in design-led custom orders, which grew 23.6%.

Inventory Management and Supply Chain Efficiency

The company successfully reduced inventories from $106.9 million at the end of Q1 to $100.5 million at the end of Q2, demonstrating effective collaboration across supply chain, distribution, merchandising, and store operations. This reduction was achieved while meeting customer demand and improving inventory turns, with a target to end Q3 around $95 million.

The company's merchandising and supply chain teams continue to execute, keeping assortments nimble and best sellers in stock.

Tariff Impact and Mitigation

New Section 301 tariffs were set at 10% and 12.5%, while Section 232 tariffs on upholstered wood furniture remained at 25%. The company received $2.1 million in IEEPA tariff refunds, with $1.5 million recognized as a reduction to COGS. Management expects potential future refunds from third-party suppliers (estimated plus or minus $1 million to $1.5 million) to help offset rising fuel-related cost pressures, aiming to maintain gross margin guidance.

Strategic Store Expansion and Refreshes

Haverty's opened two new stores in Q2 (St. Louis, Nashville) and plans to open six more in the second half of 2026, including entry into its 18th state with a Pittsburgh location. The company also continues to refresh mattress departments and design centers, with over half expected to be complete by year-end 2026 and the remainder in 2027, aiming to capitalize on growth opportunities and enhance customer experience.

AI Integration and Customer Engagement

The company is expanding its use of AI beyond marketing, supply chain, and IT into customer-facing and operational areas like home delivery, customer chat, sales, and designer communications. This initiative is expected to improve execution and customer service, serving as a point of differentiation. Marketing efforts continue to focus on attracting new customers, who spend 50% more than repeat customers, while also rewarding loyalty.

Cost Pressures and Financial Flexibility

Haverty's is actively managing three key cost pressures: a 25-30% increase in container rates due to bunker fuel, higher transportation and delivery fuel expenses if diesel remains above $5/gallon, and the impact of fuel increases on product input costs. Despite these, the company maintains a strong balance sheet with $104.3 million in cash and no funded debt, plus $100 million in credit availability, providing flexibility to manage these headwinds.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.