Haverty (HVT) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, February 24, 2026 astatine 10:09 AM CST 22 min read

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Tuesday, February 24, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — Steven G. Burdette

• Executive Vice President and Chief Financial Officer — Richard B. Hare

• Chief Marketing Officer — Tiffany Hinkle

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Steven G. Burdette: Good morning, and convey you for joining our 2025 4th fourth and 2025 year-end league call. We are excited to study an summation successful some written and delivered comp income for Q4, marking our 2nd consecutive 4th of affirmative comps. Our nett income for Q4 were $201,900,000, which was up 9.5% with comps up 8.2%. Total written income were up 3.5% with comps up 3.2%. Gross margins for the 4th came successful astatine 60.4% versus 61.9% past year. However, we did incur $3,900,000 successful LIFO charges during the quarter. Pretax income for the 4th was $10,800,000 oregon a 5.3% operating borderline versus $9,600,000 oregon a 5.2% operating margin, resulting successful $0.51 a stock versus $0.49 a share.

For the calendar twelvemonth 2025, our nett income came successful astatine $759,000,000, which was up 5% with comps up 2.1%. Gross margins for the twelvemonth were level with past year, coming successful astatine 60.7%, including $4,600,000 successful LIFO charges. Pretax profits were $26,800,000 oregon a 3.5% operating borderline versus $26,200,000 oregon a 3.6% operating margin, resulting successful $1.19 a share, which was level with past year. Richard volition supply further details regarding our SG&A expenses and LIFO interaction successful his discussion. During the quarter, we saw our written income autumn disconnected arsenic the 4th progressed.

However, it was bully to spot our after-Thanksgiving income up 6.2% with beardown mean summons successful plan astatine astir $8,500 and our wide mean summons astatine $4,400 plus. For Q4, our mean summons accrued 10.9% to $3,759 with plan mean summons increasing 11.9% to $8,072. Our plan concern accounted for 33.3% of our income driven by our upholstery peculiar bid concern up 14.8%. Traffic for the 4th followed our written income inclination during the quarter, ending with a alteration successful the debased azygous digits for the 4th overall. It is important to retrieve for examination purposes that we had conscionable experienced our archetypal affirmative postulation summation successful November and December 2024 pursuing the statesmanlike predetermination successful respective years.

Conversion rates remained somewhat down for the quarter. For the calendar year, our written concern was up 2.8%, with comps up 0.7%. Our mean summons came successful astatine $3,530, up 4.7%, and our decorator mean summons was $7,781, up 9.7%. Traffic was up successful the mid-single digits, with conversion rates continuing to amusement improvement. Our merchandising and proviso concatenation teams proceed to spouse with our outstanding vendors to guarantee that our products are flowing consistently to debar immoderate disruptions for our customers.