March-quarter revenue of $189.1 million was a 4.1% increase from the year-earlier quarter; we expected total revenue of $191.5 million. Along with a higher than projected operating margin, 1Q:26 EPS totaled $0.26 versus our projection of $0.24. As detailed in Exhibit 2 below, management maintained its 2026 guidance for all of its operating metrics except for cap-ex spending plans, which were slightly raised. As we update our model for HVT's planned store openings and closings and reflecting tempered revenue assumptions and margin forecasts for 2026, we now estimate 2026 and 2027 EPS of $1.73 and $2.97, respectively (from $1.85 and $3.00). Our $33 price target is based on 11x our refined 2027 EPS estimate of $2.97 (was $3.00). Our moderate risk rating factors in our expectation of a profit recovery in 2026 and 2027, the company's strong balance sheet and healthy free cash flow prospects.