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The market expects Hooker Furniture (HOFT) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they mi ...

MARTINSVILLE, Va., May 29, 2025 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (Nasdaq-GS: HOFT) will present its fiscal 2026 first quarter financial results via teleconference and live internet web cast on Thursday morning, June 12, 2025 at 9:00 AM Eastern Time. A live webcast of the call will be available on the Investor Relations page of the Company’s website at https://investors.hookerfurnishings.com/events and archived for replay. To access the call by phone, participants should go to this link (re ...

Customer Concentration - The company’s top five customers accounted for approximately 24% of consolidated sales in fiscal 2025, with no single customer exceeding 7%[27] - Less than 2% of the company’s sales in fiscal 2025 were to international customers, defined as sales outside of the United States and Canada[27] Supply Chain and Sourcing - The company’s five largest domestic upholstery suppliers accounted for 31% of raw materials purchases for domestic upholstered furniture manufacturing operations in fiscal 2025[26] - The company has observed price increases in imported raw materials, including fabrics, steel, and hides, following the implementation of initial reciprocal tariffs in April 2025[26] - The company’s reliance on offshore sourcing exposes it to risks related to fluctuations in the prices of purchased finished goods and customs issues[13] - Payment for imported products is generally due 10 to 14 days after quality audit inspections are complete[32] Inventory and Backlog - As of February 2, 2025, the consolidated order backlog was $71.824 million, a 27% decrease from the prior year-end, primarily due to a $15 million reduction in the Home Meridian backlog and a $3.4 million reduction in the Hooker Branded backlog[37] - The Home Meridian segment's backlog is considered a helpful indicator of sales for the upcoming 90-day period, while the Hooker Branded and Domestic Upholstery segments' backlogs are viewed as indicators for the upcoming 30-day period[35] - The Domestic Upholstery backlog did not include Sunset West, which was acquired at the beginning of fiscal 2023 and had approximately $1.6 million in backlog at fiscal 2020 year-end[38] - The company recorded a significant backlog increase during the COVID-19 crisis, reaching historical levels at the end of fiscal 2021 and 2022 due to supply chain challenges[36] Workforce and Employee Well-being - The company had 1,034 full-time employees as of February 2, 2025, with 895 located in the United States and 139 in Asia[42] - The company is committed to providing competitive compensation and comprehensive health benefits to ensure the well-being of its employees[45] Sustainability Initiatives - The company has implemented several sustainability initiatives, including purchasing renewable energy for multiple facilities and achieving 100% renewable energy operation for Sunset West and HF Custom[44] - The company has established partnerships with organizations like the Arbor Day Foundation and the Sustainable Furnishings Council to promote environmental responsibility and sustainability[44] Compliance and Ethics - The company maintains a Code of Business Conduct and Ethics, requiring all employees to comply with anti-corruption and anti-bribery training annually[46] - The company is subject to various federal, state, and local laws and regulations, but compliance has not materially affected its financial position in the past[48] Operational Changes - The company reduced the physical footprint of its Georgia warehouse by 400,000 square feet during fiscal 2024 and announced a planned exit from this warehouse in March 2025[29] - The company’s exit from the Accentrics Home business unit was driven by the need to reduce inventory for e-commerce shipping requirements[29] - The company does not use derivative financial instruments to manage exchange rate risks but may consider doing so in the future[25] - The company’s domestic upholstery segment products are made to order and carry significant amounts of raw materials for production[30]

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2025 increased by $7.7 million, approximately 8% gain over the previous year's Q4, driven by an additional week in the current period [5] - For fiscal 2025, consolidated net sales were $397.5 million, a decrease of $35.8 million or 0.3% compared to the previous fiscal year [7] - Consolidated operating loss was $18.1 million for the year, primarily due to lower sales volumes and $10.8 million in charges [8] Business Line Data and Key Metrics Changes - Hooker branded sales increased by 2% and Home Meridian sales increased by 13% based on average net sales per shipping day [6] - Hooker branded Q4 net sales rose by $3.8 million or 10% from the prior quarter, driven by a 14% increase in unit volume [17] - Home Meridian Q4 net sales increased by $6.3 million or 0.7% year over year, driven by strong hospitality sales [19] - Domestic upholstery Q4 net sales decreased by $2 million or about 7% year over year due to soft demand [20] Market Data and Key Metrics Changes - All three reportable segments experienced sales decreases driven by weak demand and a depressed housing market [8] - Year-end backlog fell 22%, driven mostly by a significantly improved in-stock position [18] - Cash and cash equivalents stood at $6.3 million, a decrease of $36.9 million from the previous year-end [22] Company Strategy and Development Direction - The company is focused on gaining market share and creating a pathway for profitability despite the ongoing furniture retail downturn [12] - Cost reduction initiatives are being accelerated, including the planned exit of the Savannah warehouse, expected to save $4 to $5.7 million annually beginning in fiscal 2027 [15][10] - The company is also opening a new leased facility in Vietnam to improve product flow and support margin expansion [15] Management's Comments on Operating Environment and Future Outlook - Management noted significant macroeconomic headwinds, including the weakest housing market in 50 years and lower consumer confidence [14] - Despite challenges, the company believes it is positioned to continue gaining market share through merchandising efforts and speed to market initiatives [28] - Management is evaluating strategies to mitigate the current economic environment, including potential additional tariffs [26] Other Important Information - The company expects to record net charges of between $3 million to $4 million in fiscal 2026 related to the Savannah warehouse exit [10] - The completion of cost reduction plans is expected by the second half of fiscal 2026, with total savings projected between $18 and $20 million [11] Q&A Session Summary Question: Insights on Hooker Branded's sales improvements - Management noted that the October market had a significant positive impact, particularly on Hooker case goods, with two new collections performing well [32] Question: Opportunities in domestic upholstery due to tariffs - Management sees a tremendous opportunity in domestic upholstery and has capacity to grow in this area [35] Question: Future gross margins for Home Meridian - Management indicated that there is a strong focus on growing Pulaski and Samuel Lawrence furniture, which is contributing to margin expansion [39] Question: Backlog comparison to pre-pandemic levels - Management did not provide specific figures but emphasized a focus on the right products and avoiding low-margin items [40] Question: Strategic inventory build and nimbleness - Management had already strategically increased inventory, which positioned the company well for current market conditions [46] Question: Market share growth sustainability - Management believes they can improve market share growth beyond the current 3 to 15 basis points pace [49]

Hooker Furnishings Corporation (HOFT) Q4 2025 Earnings Conference Call April 17, 2025 09:00 AM ET Company Participants Operator - Conference Call ModeratorJeremy Hoff - Chief Executive OfficerEarl Armstrong - Senior Vice President & Chief Financial OfficerUnknown Speaker - Unidentified/Unassigned Conference Call Participants Dave Storms - Analyst, StonegateAnthony Lebedinsky - Analyst, Sudodi & Co Operator Good day and welcome to the Hooker Furnishings Corporation fourth quarter 2025 earnings webcast call. ...

分组1 - Hooker Furniture reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.16 per share, representing an earnings surprise of -93.75% [1] - The company posted revenues of $104.46 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 3.22%, compared to year-ago revenues of $96.78 million [2] - Hooker Furniture shares have lost about 46% since the beginning of the year, while the S&P 500 has declined by -10.3% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.07 on $101.25 million in revenues, and for the current fiscal year, it is $1.20 on $438.35 million in revenues [7] - The Zacks Industry Rank indicates that the Furniture industry is currently in the bottom 5% of over 250 Zacks industries, which may negatively impact stock performance [8]

Financial Performance - Net sales for Q4 fiscal 2025 were $104.5 million, an increase of 8% compared to $96.8 million in the prior year quarter[5]. - Consolidated net loss for Q4 was $2.3 million, or ($0.22) per diluted share, compared to net income of $593,000, or $0.06 per diluted share in the prior year[5]. - For the full year fiscal 2025, consolidated net sales were $397.5 million, reflecting a decrease of $35.8 million, or 8.3%, compared to the previous fiscal year[5]. - Hooker Branded Q4 net sales rose $3.8 million, or 10.0%, driven by a 14% increase in unit volume, while fiscal 2025 net sales decreased $10.1 million, or 6.5%[7]. - Home Meridian Q4 net sales increased $6.3 million, or 21.7%, year-over-year, with gross margin reaching 22.9%, the highest since 2016[8]. - Domestic Upholstery Q4 net sales decreased $2.0 million, or 7.0%, year-over-year, with fiscal 2025 net sales down $12.6 million, or 9.9%[9]. - Total net sales for the 53 weeks ended February 2, 2025, were $397.465 million, a decrease from $433.226 million in the prior year, representing a decline of approximately 8.2%[30]. - The Hooker Branded segment generated net sales of $146.470 million for the 53 weeks ended February 2, 2025, down from $156.590 million in the prior year, a decrease of approximately 6.8%[30]. Cost Management and Savings - The company expects fiscal 2026 cost savings of at least $0.8 to $1.0 million from the Savannah warehouse exit, with annualized savings of $4.0 to $5.7 million beginning in fiscal 2027[4]. - Total annualized cost savings from the Savannah exit and additional measures are expected to be between $18 million to $20 million, fully realized in fiscal 2027[9]. Cash Flow and Assets - Cash and cash equivalents stood at $6.3 million, a decrease of $36.9 million from the previous year-end, largely due to increased accounts receivable and planned inventory increases[11]. - Total assets decreased to $313.94 million as of February 2, 2025, down from $343.59 million as of January 28, 2024[24]. - Current liabilities decreased to $39.97 million as of February 2, 2025, compared to $41.41 million as of January 28, 2024[24]. - Cash used in operating activities was $23.016 million for the year, compared to cash provided by operating activities of $55.471 million in the previous year[27]. - Financing activities resulted in a net cash outflow of $11.149 million, compared to an outflow of $22.756 million in the previous year[28]. - The company paid cash dividends of $9.854 million during the year, slightly up from $9.682 million in the previous year[28]. Profitability and Loss - The company reported a net loss of $12.507 million for the 53 weeks ended February 2, 2025, compared to a net income of $9.865 million for the previous year[27]. - The gross profit margin for the consolidated segment was 22.3% for the 53 weeks ended February 2, 2025, down from 25.1% in the previous year[30]. - The company reported a net loss of $2.33 million for the 14 weeks ended February 2, 2025, compared to a net income of $0.59 million for the same period last year[20]. - Basic and diluted loss per share for the 14 weeks ended February 2, 2025, was $0.22, compared to earnings per share of $0.06 for the same period last year[20]. - The company incurred a depreciation and amortization expense of $9.229 million for the 53 weeks ended February 2, 2025, compared to $8.956 million in the prior year[27]. Market Conditions and Risks - The company is focused on gaining market share and maximizing revenues through merchandising efforts and speed-to-market initiatives despite economic uncertainties[13]. - The company is facing risks related to macroeconomic uncertainties, including inflation and high interest rates, which could impact sales and operating costs[18]. - The restructuring of the Home Meridian segment is ongoing, with the goal of returning to consistent profitability[18]. - The company is planning to shift inventories to a new warehouse facility in Vietnam, which poses execution and working capital risks[18]. Inventory and Backlog - The order backlog as of February 2, 2025, was $52.636 million, a decrease from $71.824 million a year earlier, indicating a decline of approximately 26.7%[33]. - The company reported a significant increase in inventory valuation expense to $622 thousand for the 53 weeks ended February 2, 2025, compared to $1.829 million in the previous year[27].

Core Insights - Hooker Furnishings Corporation reported a consolidated net loss of $2.3 million for the fourth quarter of fiscal 2025, compared to a net income of $593,000 in the prior year quarter, reflecting ongoing challenges in the home furnishings market [5][6][20] - For the full fiscal year 2025, the company experienced a consolidated net sales decrease of $397.5 million, down 8.3% from the previous year, driven by weak demand and macroeconomic uncertainties [5][6][20] - The company announced additional planned cost savings of $8 to $10 million, which, combined with previously announced savings, are expected to total between $18 million to $20 million once fully implemented by fiscal 2027 [5][6][20] Fiscal 2025 Fourth Quarter Results - Net sales for the fourth quarter were $104.5 million, an increase of 8% compared to $96.8 million in the prior year quarter, with the additional week contributing approximately $7.7 million [5][6] - Consolidated operating loss was $2.7 million, or (2.5%) of net sales, compared to operating income of $340,000, or 0.4% of net sales, in the prior year quarter [5][6] - Charges recorded in the fourth quarter totaled $3.1 million, including $1.3 million in inventory write-downs and $718,000 in bad debt expense due to a large customer bankruptcy [5][6] Fiscal 2025 Full-Year Results - Consolidated net sales for the full year were $397.5 million, reflecting a decrease of $35.8 million, or 8.3%, compared to the previous fiscal year [5][6] - Consolidated operating loss for the year was $18.1 million, or (4.6%) of net sales, compared to operating income of $12.4 million, or 2.9% of net sales, in the prior year [5][6] - Significant charges for the year totaled $10.8 million, including $4.9 million in restructuring costs and $3.1 million in bad debt expense [5][6] Segment Performance - Hooker Branded segment saw fourth quarter net sales rise by $3.8 million, or 10%, driven by a 14% increase in unit volume, although full-year sales decreased by 6.5% [7][8] - Home Meridian segment reported a fourth quarter net sales increase of $6.3 million, or 21.7%, with gross margin reaching 22.9%, the highest since 2016 [8] - Domestic Upholstery segment experienced a fourth quarter net sales decrease of $2.0 million, or 7%, with a full-year decrease of 9.9% [9] Cash, Debt, and Inventory - Cash and cash equivalents decreased to $6.3 million, down $36.9 million from the previous year-end, largely due to increased accounts receivable and planned inventory increases [11][12] - The company maintained financial flexibility with $41 million in available borrowing capacity under its new loan agreement as of the end of fiscal 2025 [11][12] - Inventory levels increased to support new product collections and mitigate supply disruptions [12] Management Commentary - The CEO highlighted that despite macroeconomic headwinds, the company gained market share in its Legacy divisions throughout fiscal 2025 [6] - The company is focused on cost reduction initiatives to improve operating income and cash flow, including the planned exit of the Savannah warehouse [6] - The management remains optimistic about future market share growth and revenue maximization through merchandising efforts and improved product availability [6]

Core Viewpoint - Hooker Furnishings Corporation has decided to exit its Savannah, Georgia distribution center and consolidate operations in existing facilities due to unsustainable business conditions caused by rising freight costs and a shift in competitive positioning for its Home Meridian segment's Accentrics Home brand [1][2]. Company Operations - The Savannah distribution facility commenced operations in October 2021 but faced challenges shortly after due to a significant increase in post-COVID container freight rates, which rose from approximately $4,000 to over $25,000 per container [2]. - The company liquidated inventory and closed the Accentrics Home brand in 2024 as part of a broader strategy to exit unprofitable businesses within the Home Meridian segment [2][3]. - Hooker Furnishings Corporation is a designer, marketer, and importer of various home furnishings, including casegoods, upholstered furniture, and outdoor furniture, serving residential, hospitality, and contract markets [4][5]. Financial Implications - The company anticipates recording net charges of between $1.6 million and $2.0 million in fiscal 2025 and between $3.0 million and $4.0 million in fiscal 2026 related to the Savannah exit [3]. - Preliminary estimates suggest potential savings of between $750,000 and $1.0 million in net operating expenses in fiscal 2026, with annualized savings expected to be between $4.0 million and $4.5 million starting in fiscal 2027 [3].