Haverty Furniture Sees Design Sales Fuel Growth as Freight Costs Rise

Haverty Furniture Sees Design Sales Fuel Growth as Freight Costs Rise Written by MarketBeat September 26, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points Design sales are driving growth: Haverty reported four consecutive quarters of positive comparable-store sales, including an 8% increase in the second quarter. Average tickets rose about 15%, while design-related tickets averaged roughly $8,800 and accounted for 36.5% of quarterly revenue. Expansion remains a priority: The company expects eight store openings and four closures this year, ending with approximately 133 locations, and plans to open about five stores annually. Haverty is targeting a three- to four-year payback and at least a 25% cash-on-cash return on new stores. Freight costs threaten margins: Container rates have increased 25% to 30%, and higher fuel costs are pressuring delivery and supply-chain expenses. Haverty is maintaining its 60.5% to 61% gross-margin target while monitoring tariffs, overseas labor issues and potential disruptions. MarketBeat previews top five stocks to own in October . Bassett Furniture: Buy Now, Sit Back, and Collect Dividends Haverty Furniture Companies NYSE: HVT said it is seeing continued strength in higher-ticket furniture purchases and its in-store design business, even as the company monitors freight costs, promotional activity and uncertainty around tariffs. Speaking during a fireside chat, Tiffany Hinkle, Haverty’s AVP of Financial Reporting, described the Atlanta-based retailer as a 141-year-old seller of residential furniture and accessories with 130 stores in 17 states. The company planned to enter its 18th state with a Pittsburgh location in the fourth quarter. Haverty operates primarily across Southern and Midwestern markets and has distribution centers in Florida, Georgia and Texas. Get HVT alerts: Sign Up 3 High-Yield Bargains to Watch in 2025’s Second Half Hinkle said the company’s target customer generally has household income of at least $150,000, lives in suburban areas and owns a large single-family home. Haverty aims to open about five stores annually within the reach of its current distribution network. Design Sales and Ticket Growth President and CEO Steve Burdette said positive traffic, stable conversion rates and higher average ticket values supported the company’s performance. Haverty reported four consecutive quarters of positive comparable-store sales, with second-quarter comparable sales up 8% and year-to-date written comparable sales up 12.3%, according to the discussion. Analysts' Top 3 Retail Picks Gearing Up for a Strong 2025 Burdette said average ticket rose roughly 15%, with design-related average tickets reaching about $8,800. Design sales represented nearly 36.5% of revenue during the reported quarter. “Design is driving our business,” Burdette said, describing it as a key differentiator for Haverty relative to other furniture retailers. The company believes its design service can reach more customers. Hinkle said about 17% of current customer tickets use design services, compared with what the company believes could be a 25% to 30% range. Haverty is investing in store signage, updated design centers, display screens, tables, material swatches and other tools intended to create a more collaborative planning process for customers, sales associates and designers. Custom special orders increased about 24%, Hinkle said, largely alongside the growing design business. She added that the company does not see a meaningful gross-margin difference between custom orders and other sales. Category Trends and Store Expansion Burdette said all major categories posted growth, with upholstery, occasional furniture, bedroom and dining room products producing double-digit gains. Mattresses and décor also increased, although at lower rates. He identified outdoor furniture as a significant opportunity, noting Haverty currently has a limited online offering in that category. Richard Hare, Haverty’s executive vice president and CFO, said the company had opened its 130th store in Fredericksburg, Virginia. Haverty expects eight store openings and four closures during the year, including one relocation, resulting in a net increase of four locations to 133 by year-end. New stores generally require $2 million to $3 million of spending to retrofit a location into the Haverty brand format, Hare said. The company targets a three- to four-year payback period, at least a 25% cash-on-cash return and store-level breakeven by month 12. Margins, Freight and Inventory Hare said Haverty remains committed to a gross-margin range of 60.5% to 61%. While the company has benefited from tariff refunds, he said those gains are not sustainable, though Haverty expected to receive some additional tariff relief in the second half of the year. Burdette said lower tariff rates of 10% and 12.5% had provided relief from prior levels near 20%, th