HAVERTY FURNITURE COMPANIES INC (HVT) Q4 2024 Earnings Summary

Executive Summary

Q4 2024 delivered $184.4M revenue, $0.49 diluted EPS, and 61.9% gross margin; sales fell 12.5% YoY and comps declined 13.7%, but revenue improved sequentially vs. Q3 and margins remained strong despite a smaller LIFO tailwind .
2025 outlook calls for gross margin of 60.0%–60.5% and fixed/discretionary SG&A of $291–$293M, with variable SG&A at 19.0%–19.3% and a 26.5% tax rate; capex planned at ~$27.1M .
Strategic growth continued: five net new stores in 2024 and a return to Houston; management is finalizing leases for a third Houston store in late 2025 and targets 6–8 stores in that market longer-term .
Near-term catalysts: sequential traffic and written-sales improvement exiting Q4, stable 2025 margin guidance, and continued store expansion; key overhangs include macro/housing softness and tariff risks (China in effect; Canada/Mexico possible), which management expects to mitigate without changing margin guidance .

What Went Well and What Went Wrong

What Went Well
- Gross margins held up: 61.9% in Q4; excluding LIFO, margins rose ~40 bps YoY (LIFO +$0.9M in Q4’24 vs. +$2.8M in Q4’23) .
- Sequential demand indicators improved: written sales trended better through the quarter (Oct low-teens decline → nearly flat in Dec) and traffic turned positive YoY in Q4; average ticket rose ~4% to just under $3,400; design business ~32% of sales with designer average ticket >$7,200 .
- Growth/investment continues: five net new stores in 2024, return to Houston (two stores open, third lease in process), and site tech upgrades (Adobe) that lifted organic traffic double digits on the homepage .
What Went Wrong
- Demand remained soft: revenue down 12.5% YoY and comps -13.7% in Q4; EPS declined to $0.49 from $0.90 YoY .
- SG&A deleverage on lower volumes: SG&A 57.4% of sales vs. 54.4% last year, even as absolute SG&A fell $8.9M (lower selling, delivery, and admin, partially offset by higher occupancy) .
- Macro/tariff headwinds persist: higher mortgage rates continue to pressure big-ticket demand; tariff exposure (China; potential Canada/Mexico) is a watch item, though management expects to mitigate via vendor negotiations, pricing, and assortment without altering margin guidance .

Financial Results

Quarterly P&L (USD Millions, except per-share; periods ordered oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$178.6	$175.9	$184.4
Gross Profit ($M)	$108.0	$105.9	$114.2
Gross Margin %	60.4%	60.2%	61.9%
SG&A ($M)	$103.1	$100.9	$105.8
SG&A % of Sales	57.7%	57.4%	57.4%
Pre-tax Income ($M)	$6.5	$6.9	$9.6
Pre-tax Margin %	3.6%	3.9%	5.2%
Net Income ($M)	$4.4	$4.9	$8.2
Net Margin %	2.5%	2.8%	4.4%
Diluted EPS ($)	$0.27	$0.29	$0.49

YoY and vs. Estimates (Q4 2024)

Metric	Q4 2023	Q4 2024	YoY	S&P Global Consensus	Vs. Consensus
Revenue ($M)	$210.7	$184.4	-12.5%	n/a (unavailable)	n/a
Diluted EPS ($)	$0.90	$0.49	—	n/a (unavailable)	n/a
Gross Margin %	62.4%	61.9%	-50 bps	n/a (unavailable)	n/a

KPIs and Operating Indicators

KPI	Q2 2024	Q3 2024	Q4 2024
Comp-store sales change	-13.6%	-20.5%	-13.7%
Total written sales change	-15.2%	-15.3%	-6.7%
Design business share	34.5% of written (YTD)	~34% of sales (quarter)	~32% of sales (quarter)
Average ticket	$3,332 (YTD)	$3,365 (YTD)	~“just under $3,400” (quarter)
Cash, cash & restricted ($M)	$116.1	$127.4	$126.3
LIFO impact on GP (Q4)	—	—	+$0.9M vs. +$2.8M in Q4’23

Note: Havertys does not report segment financials; no segment table is applicable.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Profit Margin %	FY2025	—	60.0%–60.5%	New (set for 2025)
SG&A Fixed/Discretionary ($M)	FY2025	—	$291–$293	New
SG&A Variable (% of sales)	FY2025	—	19.0%–19.3%	New
Effective Tax Rate	FY2025	28.0% (FY2024 guide)	26.5%	Lower vs. FY2024
Capital Expenditures ($M)	FY2025	~$33.0 (FY2024 plan)	~$27.1	Lower vs. FY2024
Store Openings	FY2025	5 net/year plan reiterated	Goal of 5; third Houston store late ’25	Maintained/expanded in Houston

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Demand/Traffic	Q3: Traffic improving but still cautious; hurricanes impacted operations; Labor Day mid-teens decline; average ticket ~+$3%	Traffic turned positive YoY in Q4; written improved through quarter (Dec nearly flat); avg ticket ~+$4%	Improving sequentially, still macro-sensitive
Gross Margin/LIFO	Q2/Q3 guides: FY24 GM 60.0–60.5%; Q3 LIFO benefit immaterial vs. prior year	Q4 GM 61.9%; LIFO +$0.9M vs. +$2.8M in Q4’23; ex-LIFO +40 bps YoY; 2025 GM 60.0–60.5%	Stable; managed despite less LIFO
SG&A/Cost Control	Q2/Q3: SG&A down in dollars, deleverage on lower sales	Q4 SG&A -$8.9M YoY; deleverage to 57.4% vs. 54.4%	Controls ongoing; deleverage risk persists on volume
Store Growth (Houston)	Q3: 2024 plan for 5 net new; Houston priority; second Baybrook opened Jan’25	Two Houston stores open; leases for third in late ’25; target 6–8 in market; five net new stores in 2024	Accelerating presence in a priority market
Marketing/Tech	Q3: A/B testing, AR features; new media partner; traffic lift	Adobe site upgrade drove double-digit organic lift on homepage; broader rollout planned	Digital funnel improving
Supply Chain	Q3: Managed through port strike; inventories down; healthy turns	Avoided potential Jan port disruption; inventory to rise 5–10% to support bestsellers and growth	Proactive inventory stance
Tariffs/Macro	Q3: High rates, election uncertainty; hurricane disruptions	China tariffs active; Canada/Mexico likely; plan to mitigate via vendor/pricing/assortment without changing margin guide; mortgage rates still a headwind	Tariff watch; cautious macro/ housing backdrop

Management Commentary

“Gross margins did remain strong for the company, coming in at 61.9% for the quarter and 60.7% for the year.”
“Traffic improve[d] over the quarter… average ticket rose… to just under $3,400. Our design business continued to improve… approximately 32% of our business… designer average ticket grew to over $7,200.”
“We will… increase inventories on our bestsellers… expect inventories to rise approximately 5% to 10% over the next few quarters.”
“We are dealing with tariff issues with China, Canada, and Mexico… We will… adjust retail pricing or look to reassort… [and] do not expect this to impact our current margin guidance.”
“We achieved our goal of opening five net new stores in 2024, with a notable return to the Houston, TX market… we now have two stores.”

Q&A Highlights

Monthly cadence: Delivered sales down low-teens each month; written sales improved sequentially (Oct low-teens decline, Nov mid-single-digit decline, Dec nearly flat), driving better exit rates .
No intra-quarter guide: Management declined to comment on Q1 performance (including Presidents’ Day) .
Regional trends: Florida through Georgia and central US were stronger; west/east a bit weaker .
Tariffs and margins: Plan is to mitigate tariff impacts via vendor actions and pricing; comfortable maintaining flat margin guidance while prioritizing volume growth .
SG&A outlook: Fixed/discretionary up ~4–5% YoY in 2025, driven about half by inflation and ~$4M by occupancy (new stores), plus higher marketing; maintain variable SG&A at 19.0%–19.3% .

Estimates Context

S&P Global consensus for Q4 2024 EPS and revenue was unavailable at the time of analysis due to data access limits, so we cannot assess beat/miss versus Street. We anchored all comparisons to company-reported actuals in the press release and call .

Key Takeaways for Investors

Sequential stabilization: Written sales and traffic improved through Q4 with December nearly flat on written; sets a better starting point for 2025 despite macro softness .
Margin durability: 2025 gross margin guide (60.0%–60.5%) and Q4 ex-LIFO improvement show pricing/mix discipline; management plans to offset tariff headwinds without changing guidance .
Operating leverage optionality: SG&A is tightly managed, but deleverage persists on lower sales; upside if volumes rebound with housing/traffic recovery .
Growth vector in Houston: Multi-year plan to 6–8 stores in a large, underpenetrated market; two open with a third lease targeted for late 2025 .
Inventory posture: Intentional 5–10% build in bestsellers to support service levels and store growth; watch working capital and turns .
Balance sheet strength: ~$126M in cash/restricted, no debt, $80M credit availability provide flexibility for growth capex and shareholder returns .
Macro watch items: Mortgage rates and potential Canada/Mexico tariffs remain the principal external risks; management messaging is cautious on 2025 demand but constructive on self-help and mix .

Appendix: Additional Data

Cash flow and returns (FY2024): Operating cash flow $58.9M; capex $32.1M; FCF $26.8M; dividends $20.5M; repurchases $5.0M; no debt .
Non-GAAP: FY2024 EBITDA $41.7M vs. $85.8M in FY2023 (company reconciliation) .
Prior quarters (for trend): Q2 revenue $178.6M, EPS $0.27, GM 60.4%; Q3 revenue $175.9M, EPS $0.29, GM 60.2% .

Sources: Havertys Q4 2024 8-K/press release (Feb 24, 2025) , Q4 2024 earnings call (Feb 25, 2025) , Q3 2024 8-K/press release and call (Oct 30–31, 2024) , Q2 2024 8-K/press release (July 31, 2024) .