Haverty Furniture Points to Design Sales Momentum While Freight Expenses Climb
Haverty Furniture said comparable-store sales have risen for four straight quarters, including an 8% gain in the second quarter, as average tickets increased about 15%. Design-related tickets averaged roughly $8,800 and represented 36.5% of quarterly revenue. The retailer expects about eight store openings and four closures this year, but container rates are up 25% to 30% and fuel costs are adding pressure.
Haverty, founded 141 years ago, runs 130 stores across 17 states, mostly in Southern and Midwestern markets, with distribution hubs in Florida, Georgia, and Texas. It plans to add Pittsburgh in Q4, entering an 18th state. Its typical shopper earns at least $150,000, lives in suburbia, and owns a large single-family home.
New locations are expected to pay back in three to four years and deliver at least 25% cash-on-cash returns. Management aims for roughly five openings yearly. Design usage sits near 17% of tickets, though the company sees potential for 25% to 30%; custom orders rose about 24%.
Haverty's expansion and design-led sales may affect furniture shoppers, employees, suppliers, and communities where stores open or close. Higher freight and fuel costs could pressure prices or delivery fees, potentially influencing household budgets. Store openings may create local jobs and retail activity, while closures could reduce options. The focus on affluent homeowners may mean benefits concentrate among higher-income customers, with broader effects depending on whether cost pressures are passed along.