Revenues and Segment Reporting

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

We recognize revenue from merchandise sales and related service fees, net of expected returns and sales tax, at the time the merchandise is delivered to the customer. We record customer deposits when payments are received in advance of the delivery of merchandise. Such deposits totaled $39.4 million and $40.7 million at June 30, 2025 and December 31, 2024, respectively. Of the customer deposit liabilities at December 31, 2024, approximately $0.6 million have not been recognized through net sales in the six months ended June 30, 2025.

The following table presents our revenues disaggregated by each major product category and service:


(In thousands)	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
	Net Sales		% of Net Sales		Net Sales		% of Net Sales		Net Sales		% of Net Sales		Net Sales		% of Net Sales
Merchandise:
Case Goods
Bedroom Furniture	$	26,885	14.9	%	$	25,772	14.4	%	$	54,061	14.9	%	$	51,634	14.2	%
Dining Room Furniture	17,686		9.8		19,453		10.9		35,643		9.8		38,469		10.6
Occasional	12,990		7.2		13,183		7.4		25,909		7.1		27,390		7.6
	57,561		31.9		58,408		32.7		115,613		31.8		117,493		32.4
Upholstery	80,884		44.7		78,273		43.8		162,300		44.8		161,208		44.5
Mattresses	16,525		9.1		16,640		9.3		32,329		8.9		33,240		9.2
Accessories and Other (1)	26,055		14.3		25,315		14.2		52,350		14.5		50,692		14.0
	$	181,025	100.0	%	$	178,636	100.0	%	$	362,592	100.0	%	$	362,633	100.0	%


(1)			Includes delivery charges and product protection.

We operate within a single reportable segment. We use a market area approach for both financial and

operational decision making. Each of these market areas are considered individual operating segments. The

individual operating segments all have similar economic characteristics. The retail stores within the market

areas are similar in size and carry substantially identical products selected for the same target customer. We

also use the same distribution methods chain-wide.

Our chief operating decision maker (CODM) is an executive committee that includes the Chief Executive Officer, Executive Chairman, and Chief Financial Officer. Segment information is prepared on the same basis as our CODM manages our operating segments and evaluates results. The measure used by our CODM to assess performance and make operating decisions is income before income taxes as reported on our condensed consolidated statements of comprehensive income. Asset information is provided to the CODM on a consolidated basis.

The following table present significant segment expenses and other segment items regularly reviewed by our CODM:


	Three Months Ended June 30,				Six Months Ended June 30,
(in 000's)	2025		2024		2025		2024
Net Sales	$	181,025	$	178,636	$	362,592	$	362,633
Less:
Cost of goods sold (exclusive of depreciation and amortization)	70,923		70,652		141,407		143,630
Selling, general, and administrative
Advertising and marketing	12,108		11,028		23,184		23,202
Selling	25,953		26,585		51,666		54,323
Occupancy	25,868		24,412		51,340		48,255
Warehouse, delivery, and transportation	14,079		15,199		28,993		31,822
General and administrative	29,325		25,875		59,352		54,853
Total selling, general and administrative(a)	107,333		103,099		214,535		212,455

Other segment items(b)	65		101		223		78
Interest income	1,532		1,507		2,826		3,103
Interest expense	(40)		(40)		(80)		(81)
Income before income taxes	4,326		6,453		9,619		9,648
Income tax expense	1,637		2,015		3,152		2,817





Consolidated net income	$	2,689	$	4,438	$	6,467	$	6,831

(a) Depreciation and amortization expense included in selling, general and administrative expense totaled $5.9 million and $5.2 million for the three months ended June 30, 2025 and 2024, respectively, and $11.8 million and $10.1 million for the six months ended June 30, 2025 and 2024, respectively.

(b) Other segment items include gains (losses) on asset disposals and miscellaneous income (expense).

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-7

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

HAVERTY FURNITURE COMPANIES INC 10-Q