Haverty Furniture Companies, Inc. (HVT): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into how a legacy furniture retailer is positioning itself right now, and what I see is a sharp focus on the affluent customer through service, not just price cuts. This company is leaning hard into quality, with upholstery making up 43.3% of Q3 2025 sales, and their free design service is clearly working, fueling 34.2% of written sales. They're protecting margins, projecting them between 60.4% and 60.7%, even as they manage tariffs and push an average written ticket of $3,668. Let's break down exactly how their Product, Place, Promotion, and Price strategies are set up to deliver on this premium promise.

Haverty Furniture Companies, Inc. (HVT) - Marketing Mix: Product

Haverty Furniture Companies, Inc.'s product strategy centers on delivering residential furniture and accessories positioned in the middle-to-upper-middle price ranges. The core offering emphasizes quality construction and design variety to appeal to the discerning homeowner.

Product category performance for the third quarter of 2025 shows a clear concentration in seating and related items. Upholstery is the largest segment, accounting for 43.3% of Q3 2025 net sales of $194.5 million. The company also noted that special order upholstery saw a 7.1% increase during the quarter.

Haverty Furniture Companies, Inc. supports its physical goods with value-added services. The free in-home design service is a significant driver of sales, which drove 34.2% of Q3 2025 written sales. The average written ticket for sales involving design services was $7,986, an increase of 11.9% year-over-year, compared to the overall average ticket of $3,668.

The product assortment includes specific branded collections to differentiate the offering. Haverty Furniture Companies, Inc. carries national mattress brands like Tempur-Pedic® alongside its exclusive Skye® and 1885 Collections. Custom upholstery programs and eclectic looks are specifically designed to cater to the on-trend consumer seeking self-expression through their home furnishings.

Key product and service performance metrics for Q3 2025 include:

• Net sales growth year-over-year: 10.6%
• Comparable store sales growth year-over-year: 7.1%
• Total written business growth year-over-year: 10.0%
• Gross profit margin for the quarter: 60.3%
• Inventories on hand as of September 30, 2025: $92.4 million

The product strategy is also being managed against new supply chain cost pressures, with new tariffs finalized on October 14, 2025, on upholstered wood products from key sourcing countries at a rate of 25%, scheduled to increase to 30% beginning January 1, 2026.

Haverty Furniture Companies, Inc. (HVT) - Marketing Mix: Place

You're looking at how Haverty Furniture Companies, Inc. gets its products to the customer, which is all about physical presence and logistics right now. The core of their Place strategy is a focused physical footprint supported by a capable distribution network.

Haverty Furniture Companies, Inc. operates 129 stores across 17 states, concentrating primarily in the Southern and Midwestern U.S.. This network is supported by three distribution centers.

Strategic store optimization is ongoing, evidenced by the mid-October 2025 grand opening of a 41,500-square-foot showroom in New Caney, part of the greater Houston, TX market, marking their third location there. This followed a September 2025 store closure in Waco, Texas, keeping the total store count at 129 as of the October 30 investor call.

The distribution infrastructure is designed for scale; company officials noted on the October 30 call that they can support a return to over $1 billion in annual sales without needing major new investment in that infrastructure. For context, net sales for the full year 2024 were $722.9 million.

Haverty Furniture Companies, Inc. uses a seamless omni-channel approach, where the website acts as an extension of the physical showrooms. In 2024, online sales accounted for approximately 3.0% of total sales, with a focus on improving digital channels.

A key competitive advantage in Place is controlling the final mile delivery through its own dedicated teams, branded as 'Top Drawer Delivery'.

Here is a breakdown of the store count by state, based on the latest available data:

The distribution strategy relies on these physical hubs and delivery capabilities, which support the current sales base and the planned return to higher revenue levels. You can see the geographic concentration in the table above.

The company's current distribution network supports sales across these regions:

• Alabama: 6 Locations
• Arkansas: 2 Locations
• Indiana: 2 Locations
• Kansas: 1 Location
• Kentucky: 2 Locations
• Louisiana: 3 Locations
• Maryland: 4 Locations
• Mississippi: 1 Location
• Missouri: 3 Locations
• Ohio: 3 Locations
• South Carolina: 7 Locations
• Tennessee: 6 Locations

Haverty Furniture Companies, Inc. (HVT) - Marketing Mix: Promotion

Promotion activities for Haverty Furniture Companies, Inc. (HVT) in late 2025 show a clear investment in both broad-reach and targeted digital/direct channels. The company increased advertising and marketing costs by $2.8 million in Q3 2025, specifically allocating funds toward television advertising and a direct mail campaign, which was noted as the first in several years. This strategic spending contributed to positive momentum, as comparable store sales increased by 7.1% in the third quarter.

Targeted digital outreach proved highly effective earlier in the year. The 140th-anniversary email promotion, sent as a private offer to current email subscribers, successfully generated over $8 million in incremental revenue during Q1 2025. This highlights the value of the existing customer database as a direct promotional asset.

The in-store consultative sales force acts as a critical component of the promotion and sales conversion strategy. Design consultants are emphasized as a key tool, driving an average written ticket of $7,986 in Q3 2025, which represented an 11.9% increase for that segment. The design business remained a significant contributor, accounting for 34.2% of total written business in the third quarter. Haverty Furniture Companies, Inc. (HVT) communicates a 'customer first approach' in its messaging, which management noted resonated with customers.

The focus of marketing efforts is directed toward specific consumer segments. The company targets well-educated women in middle-to-upper-middle income households, with recent commentary noting continued spending from customers with household incomes over $150,000.

Here is a breakdown of key promotional effectiveness metrics from the third quarter of 2025:

The promotional strategy also includes ongoing financing offers to support purchasing decisions, such as continuing to offer 60-month no interest financing.

The company's communication themes and results include:

• Incremental revenue from Q1 140th-anniversary email promotion: over $8 million.
• Design average ticket growth: 11.9% in Q3 2025.
• Overall written business growth: 10.0% in Q3 2025.
• Focus on key event performance, such as the Labor Day weekend, which saw a written four-day increase of 13.6% over the prior year.

Haverty Furniture Companies, Inc. (HVT) - Marketing Mix: Price

Price setting for Haverty Furniture Companies, Inc. (HVT) reflects a strategy aimed at maintaining brand value while navigating external cost pressures. You see this in the forward-looking guidance, where full-year 2025 gross margins are projected to be between 60.4% and 60.7%. This contrasts with the 60.3% gross profit margin achieved in the third quarter of 2025, which management attributed to product selection, merchandising, and targeted pricing actions.

The average written ticket is a key indicator of realized pricing power and customer spend. For Q3 2025, the average written ticket increased 6.1%, reaching $3,668 overall. This performance suggests that pricing adjustments and effective merchandising are successfully driving higher transaction values. The design business, which accounted for 34.2% of written business in Q3 2025, shows even stronger pricing realization, with the designer average ticket rising 11.9% to $7,986.

To make these higher-value products accessible, Haverty Furniture Companies, Inc. employs specific financing incentives. The company proactively adjusts retail pricing to mitigate the impact of new tariffs, like the 25% duty on imported upholstered wood products. This is done while simultaneously avoiding lower quality, promotional price-driven merchandise to maintain brand value, aligning with their market position in the middle to upper-middle price ranges.

Here's a quick look at some key pricing and margin metrics from the recent reporting period:

The financing structure is designed to support larger purchases, which helps lift the average ticket. Key promotional financing options include:

• 0% interest for 36 months on purchases of $2,999 or more.
• A 10% minimum down payment is required for the 36-month promotion.
• Other financing terms include 0% interest for 60 months on purchases of $7,499 or more for furniture.

Management is focused on execution to ensure these pricing and financing levers work together. The company's debt-free balance sheet, with $137.0 million in cash as of September 30, 2025, provides financial flexibility to manage cost inputs like tariffs without immediate debt servicing pressure. Finance: draft 13-week cash view by Friday.