Havertys Reports Strong Q1 Earnings with 13% EPS Growth and Increased Capex for Store Expansion

summarizeSummary

Havertys Furniture reported strong Q1 2026 earnings with double-digit EPS growth, increased sales, and expanded gross margins, alongside a raised capital expenditure outlook for store expansion.

check_boxKey Events

• Strong Q1 Financial Performance

  Diluted EPS increased 13% to $0.26, consolidated sales grew 4.1% to $189.1 million, and comparable store sales rose 4.3% year-over-year.

• Gross Margin Expansion

  Gross profit margin improved to 61.5% from 61.2% in the prior year quarter, driven by strong demand and higher average tickets.

• Increased Capital Expenditure Guidance

  Planned capital expenditures for 2026 were raised to approximately $34.0 million, up from previous guidance, to support continued store growth.

• Share Repurchase Activity

  The company repurchased approximately 91,000 shares of common stock for $2.0 million during the quarter.

auto_awesomeAnalysis

Havertys Furniture delivered robust first-quarter results, exceeding prior year performance with a 13% increase in diluted EPS and 4.1% growth in consolidated sales. The company also reported positive comparable store sales and expanded gross profit margins. Management highlighted strong demand and the success of its design program as key drivers. Furthermore, the company increased its capital expenditure guidance for 2026, signaling continued investment in store growth and a positive outlook. The company's strong balance sheet with no funded debt provides a solid foundation for these expansion plans.