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Analogy 1: A more traditional and full-service version of Ashley Furniture.

Analogy 2: Like a Macy's or JCPenney, but exclusively focused on home furniture and mattresses.

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• Furniture: Sells a comprehensive selection of residential furniture for living rooms, bedrooms, dining rooms, and home offices.
• Mattresses: Offers various mattress types and sleep systems from leading brands to complement bedroom furniture.
• Home Décor and Accessories: Provides decorative accents, rugs, lighting, and wall art to enhance and complete home interiors.
• Interior Design Services: Offers complimentary professional design consultations and space planning to assist customers with their home furnishing needs.

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Haverty Furniture Companies (HVT)

Haverty Furniture Companies (HVT) is a retail company that sells home furnishings directly to individual consumers. It operates a chain of retail stores across several states and an e-commerce platform. Therefore, its major customers are not other companies, but rather individuals.

Customer Categories

Haverty Furniture serves the following categories of individual customers:

• New Homeowners and Home Upgraders: Individuals or families who are furnishing a new home, undergoing significant renovations, or looking to substantially refresh their living spaces. This category often requires multiple pieces of furniture and comprehensive room solutions.
• Quality and Style-Conscious Consumers: Customers who prioritize durability, craftsmanship, and specific design aesthetics (ranging from traditional to contemporary) over budget pricing. They are willing to invest in well-built furniture that offers lasting style and comfort.
• Customers Valuing Design Services and In-Store Experience: Individuals who appreciate professional design advice, personalized assistance with space planning, and the opportunity to physically interact with furniture in a showroom setting. This category values the full-service retail experience provided by Haverty's design consultants.

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Steven G. Burdette, President and Chief Executive Officer

Mr. Burdette will assume the role of President and Chief Executive Officer effective January 1, 2025, and also serves as a Director. He joined Havertys in 1983 as a manager trainee and has since gained experience across all facets of the business, including store management, distribution, operations, merchandising, and marketing. Prior to his current appointment, he served as Executive Vice President of Operations from 2017 to 2021 and President since 2021. Mr. Burdette earned a Bachelor of Business Administration in Finance from the University of Georgia.

Richard B. Hare, Executive Vice President, Chief Financial Officer, and Secretary

Mr. Hare has served as Executive Vice President, Chief Financial Officer, and Secretary since 2024, and has been the Chief Financial Officer since May 2017. Before joining Havertys, he held the position of Senior Vice President, Finance, Treasurer, and Chief Financial Officer of Carmike Cinemas, Inc. from March 2006 until its acquisition in December 2016. Carmike Cinemas operated 271 theaters across 41 states. He also served as Chief Accounting Officer and Controller at Greenfuels Holding Company, LLC, an energy development and management services company, from August 2002 to March 2006. His extensive financial background includes roles as Assistant Treasurer at Sanmina-SCI Corporation and Treasurer and Assistant Treasurer at Wolverine Tube, Inc. Mr. Hare began his career in audit practice at Coopers & Lybrand in 1989. He is a Certified Public Accountant, holds an MBA from Vanderbilt University, and a Bachelor of Science in Business Administration from Auburn University. He has been an independent director of Gray Television, Inc. since 2016.

Clarence H. Smith, Executive Chairman of the Board

Mr. Smith will transition to the role of Executive Chairman of the Board effective January 2025. He previously served as Chief Executive Officer of Havertys from 2003 until December 2024 and as President from 2002 to 2021. The great-grandson of the company's founder, Mr. Smith has dedicated his entire career to Havertys, starting as a management trainee in 1973. He advanced through various positions, including regional manager, senior vice president of stores, and Chief Operating Officer. Under his leadership, Havertys transformed into a specialty branded retailer and successfully navigated various economic challenges, including recessions and a global pandemic. He served as a Director at Oxford Industries Inc. from 2003 to 2024. Mr. Smith is a graduate of Vanderbilt University with a degree in psychology.

John L. Gill, Executive Vice President, Merchandising

Mr. Gill holds the position of Executive Vice President, Merchandising at Havertys.

Helen B. Bautista, Senior Vice President, Marketing and Digital

Ms. Bautista joined Havertys in 2019 and serves as Senior Vice President, Marketing and Digital. She brings over 20 years of experience in leading and implementing comprehensive marketing and advertising strategies and plans, with a focus on marketing integration, brand management, digital marketing, and analytics.

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The key risks to Haverty Furniture Companies (HVT) are primarily driven by its sensitivity to economic conditions, intense competition within the furniture retail market, and vulnerabilities in its supply chain, including tariffs.

1. Economic Downturns and Discretionary Consumer Spending: Haverty Furniture's business is highly susceptible to economic fluctuations, recessions, and shifts in consumer discretionary spending. Furniture is often a non-essential purchase, and a soft housing market, high interest rates, and persistent inflation directly impact consumer willingness and ability to spend on home furnishings, leading to declining sales and comparable store sales.
2. Intense Competition: The furniture retail market is highly competitive and fragmented. Haverty faces significant challenges from a diverse range of competitors, including large national chains like IKEA, Ashley HomeStore, and La-Z-Boy, as well as online retailers such as Wayfair. This intense competitive landscape puts pressure on pricing, service levels, and market share, potentially impacting Haverty's revenue growth and profitability.
3. Supply Chain Disruptions and Tariffs: Haverty is exposed to risks related to global supply chain disruptions, including material shortages and shipping delays, which can hinder production and delivery timelines. Furthermore, geopolitical risks and tariffs, such as the 25% tariff rate on upholstered wood products sourced from regions like Mexico, Vietnam, and Cambodia, directly increase the company's cost of goods sold and can negatively affect gross margins.

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• The increasing market penetration and sophistication of direct-to-consumer (DTC) online furniture retailers (e.g., Article, Burrow, Joybird), which bypass traditional showrooms and offer streamlined purchasing experiences, often with competitive pricing and innovative logistics. This model fundamentally challenges Haverty's showroom-centric business model and established customer acquisition strategies.
• The emerging business model of furniture subscription and rental services (e.g., Feather, Fernish), which offer flexible, non-ownership alternatives for consumers. These services particularly appeal to younger demographics, renters, and those seeking temporary or frequently changeable home furnishings, directly competing with the traditional outright purchase model.

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Haverty Furniture Companies (symbol: HVT) operates as a specialty retailer of residential furniture and accessories, with its main products encompassing a wide range of home furnishings such as sofas, upholstered products, bedroom furniture, occasional tables, entertainment centers, and mattresses. The company primarily serves middle to upper-middle income consumers, often homeowners, across the Southern and Midwestern United States, including states like Florida, Texas, Georgia, and Virginia.

The addressable market for Haverty Furniture Companies' main products and services is primarily the U.S. residential furniture and broader home furnishings market. In 2025, the U.S. furniture market size is valued at approximately USD 193.60 billion. More specifically, the U.S. home furniture market size is estimated to be USD 125.81 billion in 2025.

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Haverty Furniture Companies (HVT) anticipates several key drivers for future revenue growth over the next two to three years, primarily focusing on strategic expansion, operational enhancements, and optimized product offerings.

Here are 3-5 expected drivers:

1. Store Expansion and Market Penetration: Haverty's plans include expanding its store footprint, with new leases finalized for 2026 and continued store growth targets. The company increased its store count to 129 with a new Houston location in Q3 2025. This expansion in existing markets, particularly in the Southern and Midwestern United States, is expected to drive long-term demand and contribute to returning to over $1 billion in sales without additional investments in distribution infrastructure.
2. Enhanced Marketing and Merchandising Strategies: Improved marketing, including increased investment in digital and TV channels, along with optimized promotional strategies and merchandise assortments, are identified as crucial for revenue growth. Management has highlighted "improvements across marketing, merchandise assortments, promotions, supply chain, distribution, home delivery, service, and store execution" as contributing to steady growth in sales.
3. Growth in Key Product Categories: Specific product categories are outperforming and are expected to continue driving revenue. In Q3 2025, bedroom and bedding categories showed low to mid-double-digit increases, followed by upholstery and occasional furniture in high single digits, and dining room and decor in mid-single digits. The design business, driven by an increase in upholstery special orders, also remains robust.
4. Supply Chain Optimization and Diversification: Haverty is actively managing its supply chain, including moving much of its production out of China to mitigate the impact of potential tariffs and growing partnerships in regions like Vietnam. These enhancements are aimed at boosting gross margins and stabilizing profit, which indirectly supports revenue by improving competitiveness and product availability.
5. Digital Sales Growth and Omnichannel Investments: The company is investing in omnichannel capabilities and digital marketing efficiency, with digital sales showing an increasing trend. Web sales were up 8.4% in Q2, indicating that a focus on digital channels and a seamless online-to-offline customer experience will be a significant revenue driver.

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Share Repurchases

• Haverty Furniture Companies repurchased $2.0 million of common stock in the first half of 2025.
• As of December 31, 2024, the company repurchased $5.0 million worth of its Common Stock in 2024 and had approximately $8.1 million remaining under its current repurchase authorization.
• In 2020, the company returned $19.7 million to stockholders through the purchase of approximately one million shares of common stock.

Share Issuance

• Haverty Furniture Companies has shown no dilutive equity issuances, with weighted average diluted shares outstanding remaining stable at around 16.2 million in 2023 and 16.0 million in 2024.

Capital Expenditures

• Planned capital expenditures for 2025 are approximately $24.0 million, primarily focused on new store openings and relocations ($19.6 million), investments in the distribution network ($1.8 million), and information technology improvements ($2.6 million).
• Capital expenditures for 2024 totaled $32.1 million.
• In 2023, capital expenditures were $53.1 million, which included $28.2 million for the repurchase of a Florida distribution facility.