As we see it, HVT will benefit from favorable same-store comparisons and several internal initiatives such as new in-store displays, more efficient marketing, increased traction with its e-commerce site and plans to use more direct mail to reach new customers. That said, given the still ongoing softness in the housing market amid high interest rates, we reduce our revenue forecasts for the balance of 2025. While we still expect HVT to profit from strong gross margins and effective expense controls, we trim our 2025 EPS estimate by $0.11 to $1.18. Otherwise, we maintain our 2026 EPS estimate of $3.14 (with fine-tuned quarterly forecasts), which assumes an annual revenue gain of 10.6% and an operating margin of 7.7%. 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.