by Highlights include an increase in its designer business and average ticket, plus new stores planned to open this year
ATLANTA — In its latest earnings call and release, Havertys not only touted its successes, but also hinted at how it plans to build on those successes moving forward in this calendar year and beyond.
They show a retailer that has remained focused on growing its store network, increasing its foot traffic and average tickets and also continuing to deploy its capital where it matters most, whether it be inventory or marketing spend.
First, here’s an overview of its Q4 and full-year results. For the fourth quarter ended Dec. 31, 2025, the company reported $201.9 million in total net sales, up 9.5% from $184.4 million the same period the prior year. Comparable-store sales increased 8.2%.
Net earnings totaled $8.5 million, or 51 cents per share, compared with $8.2 million, or 49 cents per share, the same period a year earlier.
Gross profit was $122 million, or 60.4% of sales, compared with $114.2 million, or 61.9% of sales, a year earlier.
For the full year, the company reported $759 million in sales, up 5% from $722.9 million the year before. Comparable-store sales rose 2.1%.
Net earnings for the full year were $19.7 million, or $1.19 per share, compared with $20 million, also $1.19 per share in 2024. Gross profit totaled $460.5 million, or 60.7% of sales, compared with $439.1 million, also 60.7% of sales in 2024.
During its Feb 24 conference call, company President and CEO Steven G. Burdette offered a window into some of the retailer’s success, particularly in rising tickets and its design business.
For example, while down slightly from the third quarter, its design business accounted for a third of sales (compared with 34.2% of written business in Q3), driven by its special-order upholstery business, which was up 14.8% from last year. The average design ticket in Q4 also rose 11.9% to $8,072, compared to the average Q4 ticket of $3,759, also up 10.9% year over year.
Burdette also noted that during Q4, its bedroom and upholstery sales were up in the mid-single digits, compared with occasional, up in the low single digits, and the mattress and dining categories coming in flat. He said that its inventory position remained strong, “as we continue to focus on having bestsellers in stock for immediate gratification for our customers. At year end, our inventories were up $12.7 million versus last year to $96.2 million.”
Inventories also were up by $3.7 million from the third quarter alone, noted Richard B. Hare, chief financial officer.
Burdette also said during the call that the company is opening five new stores this year, four of which have already been announced, including one in St. Louis, one in Nashville and two in Houston. It also will be entering Pennsylvania, its 18th state, with the opening of a store in north Pittsburgh in the fourth quarter of this year. He also noted that the company is in lease negotiations with several other locations it plans to announce as part of its Q1 call. In addition, the company has four planned remodels and it also will be refreshing its mattress and design areas in some 35% of its stores, which will bring its CapEx budget to around $33.5 million, up from about $25 million in 2025.
Hare noted that anticipated new, or replacement stores, remodels and expansions account for $27 million of the total, with investments in its distribution network expected to be $3.2 million. Investments in its information technology network are projected at $3.1 million.
Because of the demographic shifts and stagnant housing growth in the market, along with the need for a major remodel, the company will close its Alexandria, Louisiana, location in March.
Of course, the company also is impacted by tariffs, including the Section 122 tariffs implemented almost immediately after the Supreme Court’s decision striking down tariffs imposed under the International Emergency Economic Powers Act. Hare said it likely will take the first half of the year to work through its inventory on goods priced based on those tariffs. “But we will be strategic about it,” he added. “And if there are things we need to address to be competitive in certain price points, we will move on those.”
Thus Havertys appears to be entering the year in a position of strength, with cash equivalents and restricted cash equivalents at $131.9 million as of Dec. 31, 2025, no debt outstanding and the availability of some $80 million in credit.
But its financial capital is just one example of its many core strengths. The company’s strong business plan as seen in its latest earnings call is even more evidence of the growth opportunities it has ahead, which of course will be worth watching this year and beyond.
