We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
HAVERTYS (HVT - Free Report) isn’t waiting for a turnaround in furniture. This Zacks Rank #5 (Strong Sell) will still open new stores in 2025 and 2026.
HAVERTYS is a furniture retailer founded in 1885 with 130 stores in 17 states in the Midwest and South. It also operates 3 regional distribution centers and 4 home delivery centers.
HAVERTYS Beats Big in the Fourth Quarter of 2024
On Feb 24, 2025, HAVERTYS reported its fourth quarter 2024 results and blew out the Zacks Consensus by $0.30. Earnings were $0.47 versus the consensus of $0.17.
However, it has only beat twice in the last 5 quarters as the furniture industry remains challenged.
Consolidated sales fell 12.5% to $184.4 million year-over-year. Comparable sales, an important metric for retailers, fell 13.7%.
For the full year, consolidated sales fell 16.1% to $722.9 million. Comparable sales fell 16.7% compared with 2023.
The business hasn’t found a bottom yet.
Gross profit margin for the year was 60.7%, the same as in 2023.
The good news was that HAVERTYS added 5 stores in 2024, opening 6 and closing 1. It returned to Houston for the first time in 40 years with 2 new stores.
Inventories also dropped to $83.4 million in 2024 from $94 million in 2023.
It’s free in-home design service also continued to expand. In the fourth quarter, design consultants were 31.8% of written business versus 29.2% in 2023.
HAVERTYS is a Dividend Aristocrat
HAVERTYS has an 89-year track record of consistent dividends. In 2024, HAVERTYS returned $25.5 million to shareholders. It paid quarterly dividends of $20.5 million and bought $5 million in common shares.
The current dividend is yielding 5.9%.
It has a strong balance sheet. As of Dec 31, 2024, the company had cash and cash equivalents of $126.3 million and no debt outstanding. It also had credit availability of $80 million.
Analysts Cut HAVERTYS Earnings Estimates
HAVERTYS continues to prepare for the turnaround in the furniture business which is based on a rebound in housing sales.
In 2025, it has planned capital expenditures of $27.1 million. In addition to the second store in Houston it opened in the first quarter of 2025, it expects to open another store in the third quarter of 2025 and others in mid-2026.
Analysts were too bullish going into 2025. The housing market has not rebounded this year, as many had expected.
As a result, 2 earnings estimates were cut in the last 30 days for 2025. The Zacks Consensus Estimate has fallen to $1.44 from $1.87 in the last 2 months.
That is still earnings growth of 25.2%, as the company made $1.15 in 2024.
Here’s what it looks like on the 5-year price and consensus chart.
Image Source: Zacks Investment Research
HVT Sells Off: Is It a Deal?
Shares of HAVERTYS have fallen 22.3% in the last 6 months. Here it is compared with homebuilder Pulte.
Image Source: Zacks Investment Research
It trades with a forward P/E of 15.1. While that is attractive, with the earnings being cut, it has some characteristics of a value trap.
Investors might want to stay on the sidelines until a bottom is found in HAVERTYS. Look for a reversal in the consensus earnings estimates and a better Zacks Rank for clues.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Bear of the Day: HAVERTYS (HVT)
HAVERTYS (HVT - Free Report) isn’t waiting for a turnaround in furniture. This Zacks Rank #5 (Strong Sell) will still open new stores in 2025 and 2026.
HAVERTYS is a furniture retailer founded in 1885 with 130 stores in 17 states in the Midwest and South. It also operates 3 regional distribution centers and 4 home delivery centers.
HAVERTYS Beats Big in the Fourth Quarter of 2024
On Feb 24, 2025, HAVERTYS reported its fourth quarter 2024 results and blew out the Zacks Consensus by $0.30. Earnings were $0.47 versus the consensus of $0.17.
However, it has only beat twice in the last 5 quarters as the furniture industry remains challenged.
Consolidated sales fell 12.5% to $184.4 million year-over-year. Comparable sales, an important metric for retailers, fell 13.7%.
For the full year, consolidated sales fell 16.1% to $722.9 million. Comparable sales fell 16.7% compared with 2023.
The business hasn’t found a bottom yet.
Gross profit margin for the year was 60.7%, the same as in 2023.
The good news was that HAVERTYS added 5 stores in 2024, opening 6 and closing 1. It returned to Houston for the first time in 40 years with 2 new stores.
Inventories also dropped to $83.4 million in 2024 from $94 million in 2023.
It’s free in-home design service also continued to expand. In the fourth quarter, design consultants were 31.8% of written business versus 29.2% in 2023.
HAVERTYS is a Dividend Aristocrat
HAVERTYS has an 89-year track record of consistent dividends. In 2024, HAVERTYS returned $25.5 million to shareholders. It paid quarterly dividends of $20.5 million and bought $5 million in common shares.
The current dividend is yielding 5.9%.
It has a strong balance sheet. As of Dec 31, 2024, the company had cash and cash equivalents of $126.3 million and no debt outstanding. It also had credit availability of $80 million.
Analysts Cut HAVERTYS Earnings Estimates
HAVERTYS continues to prepare for the turnaround in the furniture business which is based on a rebound in housing sales.
In 2025, it has planned capital expenditures of $27.1 million. In addition to the second store in Houston it opened in the first quarter of 2025, it expects to open another store in the third quarter of 2025 and others in mid-2026.
Analysts were too bullish going into 2025. The housing market has not rebounded this year, as many had expected.
As a result, 2 earnings estimates were cut in the last 30 days for 2025. The Zacks Consensus Estimate has fallen to $1.44 from $1.87 in the last 2 months.
That is still earnings growth of 25.2%, as the company made $1.15 in 2024.
Here’s what it looks like on the 5-year price and consensus chart.
Image Source: Zacks Investment Research
HVT Sells Off: Is It a Deal?
Shares of HAVERTYS have fallen 22.3% in the last 6 months. Here it is compared with homebuilder Pulte.
Image Source: Zacks Investment Research
It trades with a forward P/E of 15.1. While that is attractive, with the earnings being cut, it has some characteristics of a value trap.
Investors might want to stay on the sidelines until a bottom is found in HAVERTYS. Look for a reversal in the consensus earnings estimates and a better Zacks Rank for clues.