HAVERTY FURNITURE COMPANIES INC (HVT.A) is a Consumer Discretionary stock trading at $27.18 (as of 2026-09-01) and a trailing P/E of 12.5. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.
Understand HAVERTY FURNITURE COMPANIES INC: how it makes money
Havertys sells furniture to customers, earning revenue from furniture sales.
High gross margin (61.5%) does not translate into strong operating profit (operating margin 3.2%), so results depend heavily on controlling operating costs.
Business quality (Weak): Business quality grade is Weak.
Bull case
Revenue growing modestly: Revenue is up 4.0% year over year (latest period ended 2026-03-31). If this growth persists, it can help spread fixed operating costs despite thin operating profitability.
Healthy gross margin buffer: Gross margin is 61.5%. A higher gross margin can provide some room to absorb promotions or product cost pressures while still generating operating profit.
Bear case
Very thin operating margin: Operating margin is 3.2% (latest period ended 2026-03-31). With such a low conversion from gross profit to operating profit, earnings can be sensitive to expense inflation, weak demand, or other operating cost pressures.
Quality flagged as Weak: The provided business_quality_grade is Weak. That label suggests structural or execution challenges that can make it harder to sustain profitability improvements even if gross margins remain intact.