2Q:25 revenue of $181.0 million, up 1.3% from 2Q:24 and the company's first overall sales increase on a year-over-year basis since 4Q:22, reflected a same-store sales decrease of 2.3% and four net new store openings. We expected revenue of $177.0 million (consensus was $176.9 million), which assumed a same-store sales decline of 3.0% and four net new stores. As detailed in Exhibit 1 below, the gross margin easily topped our estimate, and even with operating expenses above our forecast, the operating margin easily outpaced our projection. Hence, 2Q:25 EPS of $0.16 exceeded our expectation of $0.07 versus consensus of $0.14. While Haverty does not provide sales or earnings guidance, management provides guidance for several operating metrics which are detailed in Exhibit 2 below. Notably, HVT reduced its outlook for variable SG&A expenses given lower warehouse and delivery costs. In addition, we highlight management's commentary that traffic was positive in 2Q:25 along with HVT stating that it is “encouraged by the positive sales and operational trends” in the business. For now, ahead of the 10am ET conference call (877-407-0312), we maintain our 2H:25 and 2026 EPS estimates, which we may update after the conference call. Despite continued industry headwinds, the company's balance sheet remains in excellent condition with no bank debt and $107.4 million of cash at the end of 2Q:25. We maintain our $35 price target, which is based on 11x our 2026 EPS forecast of $3.14. Our moderate risk rating includes our expectation of a solid earnings rebound in 2026, along with HVT's strong balance sheet and ample free cash flow.