Haverty Furniture Companies Inc’s shares slipped 0.4% to $27.34 in pre-market trading on Tuesday, extending losses after the company flagged mounting cost pressures from logistics and tariffs.
The furniture retailer’s stock had closed at $27.38 on Monday, down 0.08 points or 0.29%, while after-hours activity showed a rebound to $27.78, up 0.40 points or 1.46%. The decline follows management’s disclosure of a 25% to 30% increase in container shipping rates starting in mid-August, driven by elevated bunker fuel costs. Additional headwinds include Section 301 tariffs of 10% and 12.5% imposed in July, alongside persistent Section 232 tariffs of 25% on upholstered wood furniture.
Diesel fuel prices, which remain above $5 per gallon, are expected to continue weighing on margins through year-end, compounding the tariff-related pressures. These challenges come as analysts trimmed their price target for Haverty Furniture to $29.50 from $33.00, reflecting reduced near-term growth expectations.
Despite the cost pressures, the company maintained its dividend commitment, declaring a cash dividend of $0.33 per common share for the third quarter of 2026. The dividend is payable on September 9, 2026, to shareholders of record as of August 25, 2026. Haverty Furniture has paid a dividend every year since 1935, underscoring its long-standing return policy.
In a separate development, the board authorized a new share repurchase program valued at up to $15 million, providing additional capital deployment flexibility amid the current operational challenges.
