Haverty Furniture Companies, Inc. (HVT): Business Model Canvas [Dec-2025 Updated]

You're looking to map the engine room of Haverty Furniture Companies, Inc., and frankly, understanding their model is key to seeing where they stand in the current retail climate. Honestly, their business isn't just about selling sofas; it's a full-service play targeting middle to upper-middle income households through 128 showrooms, heavily leaning on that free in-home design service to boost sales. Based on late 2025 data, they clocked a Trailing Twelve Month revenue of $741.43 million as of September 30, 2025, all while keeping a rock-solid, debt-free balance sheet boasting $111.9 million in cash as of Q1 2025. This canvas lays out precisely how they manage high costs-like projected SG&A between $296 million and $298 million for 2025-to deliver their high-quality value proposition. Check out the nine blocks below to see the full strategic picture.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Key Partnerships

You're looking at how Haverty Furniture Companies, Inc. (HVT) manages the external relationships critical to its operations as of late 2025. These partnerships are key to managing costs, especially with ongoing trade policy uncertainty.

• - Strategic vendor partnerships to mitigate tariff challenges
• - Third-party logistics for over-the-road product delivery
• - Local technical learning institutions for employee training

The focus on strategic vendor partnerships is a direct response to the tariff environment. Haverty Furniture Companies, Inc. management stated plans to mitigate the impact of tariffs by working with their vendors, presumably by negotiating cost absorption or sourcing shifts. This is important because an estimated 58% of what the company sells is ultimately not produced domestically, though only about 20.8% of case goods sales and 5.9% of upholstery sales involve direct imports from Asia and Mexico. The success of these vendor relations is reflected in the gross margin performance; for Q3 2025, the gross profit margin was 60.3%, up from 60.2% in the same period last year. Management projects gross margins for the full year 2025 to range between 60% and 60.5%. If tariffs remain low, price increases passed to the consumer are expected to be targeted and minimal, supported by supplier agreements. This strategy is backed by a strong balance sheet, with Haverty Furniture Companies, Inc. reporting $111.9 million in cash and cash equivalents at the end of Q1 2025.

For moving product, Haverty Furniture Companies, Inc. relies on logistics partners, supported by a planned capital expenditure of $1.8 million for distribution network investments in 2025. While specific 2025 third-party logistics (3PL) partner data for Haverty Furniture Companies, Inc. isn't public, the industry context shows high reliance on outsourced services. In 2025, the percentage of shippers reporting they increased their use of outsourced logistics services rose to 87%. The expectation for speed is high; 53% of 3PLs report that customers expect deliveries in less than two days. The company's internal performance metrics, based on 2024 data, show the delivery timeline challenge: time between purchase and delivery averages 3 to 5 days for in-stock items and 5 to 7 weeks for special order items. The U.S. 3PL market size in 2025 stands at $246.25 billion.

Haverty Furniture Companies, Inc. supports teammate development through corporate training and access to digital learning resources, specifically mentioning partnerships with local technical learning institutions. This focus on upskilling is a resource investment, as in 2023, team members consumed approximately 93,000 hours of learning. The company is committed to developing professional, technical, and leadership skills for its workforce.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Key Activities

You're managing a specialty retailer that's been around since 1885, so the key activities are all about maintaining that physical presence while modernizing the service layer. Here's the quick math on what's keeping the lights on and driving sales for Haverty Furniture Companies, Inc. (HVT) as of late 2025.

Retail operations management across 128 showrooms

Managing the physical footprint is central. As of December 31, 2024, Haverty Furniture Companies, Inc. (HVT) operated 129 stores across 17 states in the Southern and Midwestern regions. These showrooms collectively covered approximately 4.5 million retail square feet. For the nine months ended September 30, 2025, the company reported sales per square foot of $164. The company is focused on optimizing floor presentations and personalized shopping experiences within these locations.

Providing free in-home design and consultation services

This high-touch service is a major differentiator. The average sales ticket for a customer who has a designer visit their home is generally twice that of the average in-store sales ticket. For the first quarter of 2025, design consultants accounted for 33.2% of written business. By the third quarter of 2025, this figure increased slightly to 34.2% of written business. This service reinforces the brand's position as a destination for design.

• Average sales ticket uplift from design visit: 2x the average in-store ticket.
• Design business contribution to written business (Q3 2025): 34.2%.
• Design business contribution to written business (Q1 2025): 33.2%.

Supply chain and inventory management for domestic and Chinese imports

Managing the flow of goods requires constant monitoring, especially with global trade dynamics. In 2024, Haverty Furniture Companies, Inc. (HVT) imported about $100 million in finished goods made in China. The main sources for recent imports include Vietnam, China, and Singapore. The top ten suppliers accounted for approximately 41.3% of product purchases during 2024. To manage potential disruptions, management detailed efforts to shift production away from China in Q1 2025. Inventory levels were actively managed; for instance, inventories rose by $5.3 million to $88.7 million at the end of Q1 2025.

Strategic store expansion, aiming for five new stores per year

The plan involves measured physical growth, often utilizing former 'big box' retail sites. The company stated a plan to open an average of five new stores per year in both 2024 and 2025. For the full year of 2025, planned capital expenditures are approximately $24.0 million. Of that, $19.6 million is allocated for new stores, remodels, and expansions. However, the expectation for retail square footage at the end of 2025 is to remain consistent with 2024, with plans to resume store count growth in the first quarter of 2026, targeting five net new store openings for that year.

The company paid $20.5 million in quarterly cash dividends in 2024. For the first nine months of 2025, $15.5 million was paid in quarterly cash dividends.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Key Resources

You're looking at the core assets that let Haverty Furniture Companies, Inc. (HVT) operate and compete in late 2025. These aren't just things they own; they are the foundation for delivering their value proposition.

Brand Recognition is a major intellectual asset, specifically holding high recognition across the Southern and Midwest US markets. This intangible asset helps drive customer relationships and revenue streams without heavy reliance on external marketing spend for initial awareness.

The physical resources are substantial, centered around their brick-and-mortar presence. Haverty Furniture Companies, Inc. (HVT) maintains an extensive retail footprint, which the model identifies as approximately 4.5 million retail square feet. This physical network is critical for product display and customer interaction, even as e-commerce grows. For context on recent scale, the company was anticipating a 2.0% increase in retail square footage for the full year 2025.

Financial capital is clearly a strength for Haverty Furniture Companies, Inc. (HVT) as of the first quarter of 2025. You see a very clean balance sheet, which is a huge operational advantage. Here's the quick math on their liquidity and debt status from the Q1 2025 filing:

To be fair, looking at the trailing twelve months ending September 2025, the cash generation was robust, showing strong operational conversion. Their Free Cash Flow (FCF) was US$39m, which significantly outpaced the reported profit of US$19.4m for the same period, resulting in a negative accrual ratio of -0.11.

Another key resource is their control over the final mile of service. Haverty Furniture Companies, Inc. (HVT) relies on its proprietary Top Drawer Delivery in-house logistics team. While external partners like XPO Logistics handled a significant portion of deliveries historically (around 60% as of 2023 data), the in-house team is a vital asset for controlling the customer experience, which directly supports the value proposition of quality service.

The operational capabilities tied to this logistics resource are supported by strong gross margins. For Q1 2025, the gross profit margin improved to 61.2% from 60.3% year-over-year. This margin strength helps fund the maintenance and expansion of these core physical and human resources.

The human capital supporting the sales process is also a quantifiable asset. Consider the shift in sales contribution:

• Design consultant sales contribution increased to 33.2% in Q1 2025.
• Design consultant sales contribution was 32.4% in Q1 2024.

Also, the average ticket value shows the effectiveness of the sales force and product mix:

• Average ticket value in Q1 2025 was $3,314.
• Average ticket value in Q1 2024 was $3,195.

Finance: draft 13-week cash view by Friday.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Value Propositions

You're looking at the core differentiators Haverty Furniture Companies, Inc. uses to capture its target market. It's about service and quality, not just the product itself.

Full-service, high-quality furniture in the middle to upper-middle price range

Haverty Furniture Companies, Inc. positions itself as a full-service home furnishings retailer. As of late 2025, the company operates 129 showrooms across 17 states in the Southern and Midwestern U.S.. The merchandise assortment is focused on the middle to upper-middle price tiers. For the third quarter ended September 30, 2025, net sales reached $194.5 million.

Free in-home design service that doubles average sales ticket

The free in-home design service is a clear value driver, directly correlating with significantly higher transaction values. The data from recent quarters definitely supports the 'doubling' effect when comparing designer tickets to the overall average ticket.

The design business is a substantial part of the sales engine; for instance, in Q1 2025, it accounted for approximately 33% of total sales.

Custom order capabilities for personalized home expression

Personalization is supported through custom order options, particularly in upholstery. In Q3 2025, the company saw a 7.1% increase in special order upholstery sales, which helped drive the design business segment. This shows customers are actively using the ability to tailor their purchases.

Reliable, branded Top Drawer Delivery service

The branded delivery service is designed to remove friction post-purchase. The Top Drawer Delivery service includes several key steps:

• - Professional team uncrates and inspects all pieces.
• - In-home assembly is completed by the trained employees.
• - Final review is conducted to ensure customer satisfaction.
• - Complimentary removal of the old mattress upon new mattress delivery.
• - Real-time delivery updates and a photo of the uniformed driver are provided.

Operationally, the focus on this branded service seems to have some efficiency benefits, as warehouse and delivery expenses decreased by $1.1 million in the second quarter of 2025 compared to the second quarter of 2024, due to lower salaries and related benefit costs. That's a defintely tangible cost saving.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Customer Relationships

You're looking at how Haverty Furniture Companies, Inc. (HVT) keeps its customers engaged, and honestly, it leans heavily on a high-touch, personalized approach. This isn't just about selling a sofa; it's about designing a room.

Personalized, High-Touch Experience via In-Home Designers

The free in-home design service is a core differentiator. This personalized assistance significantly enhances the customer experience. For instance, in the third quarter of 2025, design consultants accounted for 34.2% of total written sales, a figure that was 34.5% in the third quarter of 2024. Even in the first quarter of 2025, the design business contributed approximately 33% of sales. This service, which is provided at no cost to the customer, drives higher-value transactions. The average written ticket for this service saw strong growth, increasing to $7,986 in Q3 2025 from $7,312 the prior year. To give you a clearer picture of this relationship driver, here's how the design service ticket value has trended:

The ability to customize furniture, especially through custom upholstery with over 2,300 fabric or leather options, is a key part of tailoring that experience.

Full-Service Model Emphasizing Quality, Fashion, Value, and Service

Haverty Furniture Companies, Inc. frames its offering around quality and value, which you can see reflected in their average transaction size. For the full fiscal year 2024, the average ticket increased by 2.84% to settle at $3,371, up from $3,278 in 2023. Similarly, in Q1 2025, the average ticket grew by about 4% to just over $3,300. The emphasis on service is supported by a strong financial foundation; management highlighted a debt-free balance sheet as of December 31, 2024. The company's focus on fashion is evident in merchandising efforts, such as introducing new products like motion furniture with advanced features. The commitment to value is supported by maintaining strong gross margins, hitting 61.2% in Q1 2025 and 60.3% in Q3 2025.

Targeted Email Campaigns for Anniversary and Promotional Events

Haverty Furniture Companies, Inc. uses targeted outreach to drive specific sales periods. For example, the 140th-anniversary initiative, which included a targeted email campaign, generated over $8 million in revenue during the first quarter of 2025. Furthermore, the company noted that its first direct mail campaign in years was effective in bringing in new customers. These marketing investments contribute to the Selling, General, and Administrative (SG&A) expenses; for instance, advertising and marketing costs increased by $2.8 million in Q3 2025, contributing to the total SG&A expense rise of $11.4 million for that quarter. The projection for full-year 2025 fixed and discretionary SG&A expenses is between $296.0 million and $298.0 million. The Labor Day event in Q3 2025 was a clear success, recording a 13.6% increase in written sales compared to the prior year.

Finance: review Q4 2025 marketing spend against the $2.8 million Q3 advertising cost increase by next Tuesday.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Channels

You're looking at how Haverty Furniture Companies, Inc. (HVT) gets its products in front of customers as of late 2025. It's a classic brick-and-mortar play with a digital layer supporting it, which is what they call an omni-channel approach. Honestly, the physical footprint is still the main event here.

The core of the distribution network is its fleet of physical showrooms. As of the third quarter of 2025, Haverty Furniture Companies, Inc. operated 129 showrooms across 17 states in the Southern and Midwestern United States. To give you some scale, as of the end of 2024, these locations totaled approximately 4.5 million retail square feet. The company plans to add five net new stores in 2026, showing they still believe in the power of physical presence. Florida leads the way with 33 locations, making up about 26% of the total footprint.

Here's a quick look at how the physical and digital channels are stacking up based on the latest figures we have:

The e-commerce website functions as an extension, helping customers with inspiration and viewing products, which is key for an omni-channel retailer. The digital side is definitely gaining traction; the e-commerce segment saw sales grow by 13.6% in the third quarter of 2025. Still, for context, online sales were only about 3.0% of total sales in 2024, so the physical store remains the primary transaction point, even with the digital lift.

The direct sales force is embedded right there in the retail stores. They rely on in-store associates, specifically design consultants, to drive a significant portion of their business. For instance, design consultants accounted for 34.2% of the total written business in the third quarter of 2025. This high-touch service is a deliberate part of their strategy to distinguish themselves from online-only competitors.

You can see the channel mix is still heavily weighted toward physical interaction, but the growth rate in e-commerce suggests they're successfully driving traffic both ways. The key channel drivers are:

• Maintaining 129 showrooms across 17 states.
• Leveraging the website for inspiration and viewing, with Q3 2025 e-commerce sales up 13.6%.
• Utilizing in-store design consultants for 34.2% of written business.

Finance: draft 13-week cash view by Friday.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Customer Segments

Haverty Furniture Companies, Inc. targets the middle to upper-middle income households. This segment is characterized by a focus on quality home furnishings and is willing to spend more for durable, stylish pieces. Specifically, management noted in Q3 2025 that customers with household incomes over $150,000 are still spending, which provides confidence for the remainder of 2025 and into 2026.

The core demographic is often described as well-educated women, typically suburban homeowners. This group is served through Haverty Furniture Companies, Inc.'s network of 129 showrooms operating across 17 states in the Southern and Midwestern regions of the U.S. The company positions itself to appeal to these more affluent customers rather than those seeking only promotional, price-oriented stores.

These customers are those who value style, quality, and definitely value. The focus on quality is reflected in the company's gross profit margin, which was 60.3% for the third quarter ended September 30, 2025. The value proposition is supported by the average transaction size; for Q3 2025, the overall average ticket reached $3,668.

The emphasis on design services is a key indicator of the segment's willingness to invest in higher-value solutions. Design consultants were responsible for 34.2% of written business in the third quarter of 2025. This indicates a subset of the customer base that engages deeply with the brand's consultative selling approach.

• - Customers seeking quality merchandise in middle to upper-middle price ranges.
• - Shoppers whose purchasing decisions are influenced by style and quality assurance.
• - Homeowners in the Southern and Midwestern U.S. regions.
• - Buyers whose average spend is significant, evidenced by the $3,668 average ticket in Q3 2025.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Cost Structure

You're looking at the core costs Haverty Furniture Companies, Inc. has to cover to keep the lights on and the sofas moving. It's a capital-intensive business, and the numbers for 2025 clearly show where the money goes. Honestly, the biggest chunk is always the product itself, which is standard for retail.

The cost of the furniture sold, or Cost of Goods Sold (COGS), is high because the projected gross margin for the full year 2025 is expected to land between 60.4% and 60.7%. This means the cost of the inventory itself is roughly 39.3% to 39.6% of sales. Gross profit margins do fluctuate quarter to quarter based on promotional cadence, as seen when Q3 2025 hit 60.3% compared to 60.2% in Q3 2024.

Selling, General, and Administrative (SG&A) expenses are significant, reflecting the cost of running a national brand with physical stores. For the full year 2025, fixed and discretionary expenses within SG&A are projected to be in the $296.0 million to $298.0 million range. This is an increase from previous guidance due to higher anticipated advertising and administrative costs. To give you a clearer picture of the components, here's a look at the key projected costs for 2025:

That planned CapEx of $24 million for 2025 is earmarked for growth and operational improvements. You can see the specific allocation for maintaining and expanding the physical footprint and technology backbone. It's a clear signal of where Haverty Furniture Companies, Inc. is putting its investment dollars to work.

• Investments in new stores, remodels, and expansions: $19.6 million
• Investments in information technology: $2.6 million
• Investments in the distribution network: $1.8 million

The costs tied to the in-house delivery and distribution network are a specific focus area within both CapEx and SG&A. While the $1.8 million is set aside for network investments under CapEx, the operating costs are also notable. For instance, in Q3 2025, advertising and marketing costs, which are part of SG&A, increased by $2.8 million over the prior year due to television and direct mail spending. You can anticipate continued reductions in third-party credit costs and warehouse and delivery expenses, but maintaining that large, owned delivery fleet is a fixed operational cost you have to factor in, even if they are working to keep the variable portion of SG&A tight, projected between 18.6% and 18.8% for the year. That's a lot of trucks and personnel to manage. Finance: draft 13-week cash view by Friday.

Haverty Furniture Companies, Inc. (HVT) - Canvas Business Model: Revenue Streams

The primary revenue stream for Haverty Furniture Companies, Inc. is the sales of residential furniture and accessories across its store footprint in the Southern and Midwestern U.S. This top-line figure reflects the total income generated from product sales before any costs or expenses are subtracted.

For the Trailing Twelve Month (TTM) period ending September 30, 2025, Haverty Furniture Companies, Inc. recorded total revenue of $741.43 million. This compares to the annual revenue of $722.90 million reported for the full year 2024. The third quarter of 2025 specifically showed consolidated sales increasing by 10.6% year-over-year, reaching $194.5 million in net sales.

The composition of these sales, based on the third quarter 2025 net sales, shows a clear focus on core furniture categories. You can see the breakdown below:

A significant component driving higher-margin sales is the company's emphasis on the in-home design consultation channel. This free service is designed to increase customer engagement and ticket size. For the third quarter ended September 30, 2025, the contribution from design consultants to total written business was 34.2%. The average written ticket associated with these design consultant sales in that quarter was $7,986.

The revenue generation is supported by the company's physical presence and operational efficiency metrics:

• The company operated 129 stores across 17 states as of the Q3 2025 report.
• Comparable store sales increased by 7.1% for the third quarter of 2025.
• Gross profit margin for the third quarter of 2025 was reported at 60.3%.
• The company's Price-to-Sales (P/S) Ratio was listed as 0.50 based on the TTM revenue.