Core Viewpoint - Hooker Furnishings Corporation has entered into a cooperation agreement with Global Value Investment Corporation (GVIC) to appoint an independent director with industry expertise to its Board, enhancing governance and strategic direction [1][2][3] Group 1: Cooperation Agreement - The cooperation agreement stipulates that GVIC and Hooker will work together to identify a mutually agreeable independent director within 45 days [1] - Upon identification, the Board will increase its size from eight to nine members and appoint the new director immediately [1] - GVIC has committed to vote in favor of Hooker's nominees at the 2026 and 2027 annual meetings, subject to certain conditions [3] Group 2: Leadership Changes - W. Christopher Beeler, Jr., the Board Chair, plans to retire at the 2026 annual meeting and will not seek re-election, a decision made without any disagreement with the Company [2][3] - The CEO of Hooker expressed gratitude for Beeler's 33 years of service, highlighting his instrumental role in navigating economic cycles [3] Group 3: Company Overview - Hooker Furnishings Corporation is a designer, marketer, and importer of various home furnishings, including casegoods, upholstered furniture, and outdoor furniture, serving residential and commercial markets [4][5] - The company operates manufacturing facilities in Virginia, North Carolina, and California, with distribution centers in Virginia, North Carolina, and Vietnam [5]

Core Insights - Hooker Furniture Corporation (NASDAQ: HOFT) reported disappointing financial results with revenue of $70.7 million, operating income of -$16.3 million, and adjusted EPS of -$1.99, falling short of consensus estimates [1] - Revenue declined by 32.2% year-over-year, primarily due to the sale of the majority of its HMI business segment, while Hooker Branded net sales increased by 4.4% year-over-year and Domestic Upholstery grew by 3.0% [1] - Consolidated gross margins improved to 25.6% following the sale of the lower margin HMI business, although overall profitability was impacted by one-time trade name impairment charges related to the HMI transaction [1] Financial Performance - Revenue: $70.7 million, compared to estimates of $85.2 million and $85.5 million [1] - Operating Income: -$16.3 million, against estimates of -$2.2 million [1] - Adjusted EPS: -$1.99, compared to estimates of -$0.15 and -$0.14 [1] Business Segment Performance - HMI Business Segment: Majority sold, contributing to revenue decline [1] - Hooker Branded Net Sales: Increased by 4.4% year-over-year [1] - Domestic Upholstery: Increased by 3.0% year-over-year [1] Strategic Focus - Management is focused on navigating macroeconomic challenges such as housing market weakness, high mortgage rates, and subdued consumer demand [1] - The company aims to position itself for a return to profitability [1]

Core Insights - Hooker Furnishings Corporation has completed the sale of the Pulaski Furniture and Samuel Lawrence Furniture casegoods brands to Magnussen Home Furnishings for approximately $6.1 million, with certain post-closing adjustments [1][2] - The CEO of Hooker Furnishings highlighted that this transaction is a significant milestone towards enhanced profitability and was completed at a higher price than initially estimated [2] - The company has experienced a modest improvement in sales and margins in its Hooker Branded and Domestic Upholstery segments during the fiscal third quarter [2] Financial Details - The sale price of $6.1 million includes a holdback of ten percent for 210 days for customary indemnification and final purchase price adjustments [2] - Hooker Furnishings has also shed approximately $4.8 million in showroom lease liabilities as Magnussen assumes the lease of HMI's High Point showroom [2] Strategic Outlook - The company is optimistic about future opportunities, particularly with the Margaritaville licensed collection and plans to create shareholder value through a new share repurchase program [2] - The focus on a more streamlined business model is expected to enhance operational efficiency as the company moves into the next calendar year [2] Company Background - Hooker Furnishings Corporation is a designer, marketer, and importer of various home furnishings, including casegoods, leather, and fabric-upholstered furniture, with a history spanning 101 years [4] - The company operates in multiple markets, including residential, hospitality, and contract, and has manufacturing facilities in Virginia, North Carolina, and California [4]

Sales Performance - For the nine-month period of fiscal 2026, the combined net sales of Pulaski Furniture and Samuel Lawrence Furniture accounted for approximately 15% of consolidated net sales[98]. - Consolidated net sales for Q3 FY2026 decreased by $11.9 million, or 14.4%, to $70.7 million compared to $82.7 million in the prior-year period, primarily due to timing of shipments in the hospitality business[106]. - For the first nine months of FY2026, consolidated net sales decreased by $22.0 million, or 9.4%, to $211.1 million compared to $233.1 million in the prior-year period, largely due to lower hospitality net sales[109]. - The Hooker Branded segment's net sales increased by 1.1% for both Q3 and the nine-month period, supported by higher average selling prices[120]. - Domestic Upholstery segment's net sales increased by $870,000, or 3.0%, in Q3, with Shenandoah Furniture reporting a 7.2% increase for the quarter[120]. - All Other segment's net sales decreased significantly, primarily due to a decline in hospitality net sales from timing of shipments[120]. - Hooker Branded segment's net sales decreased by $990,000, or 8.0%, in the third quarter, and by $1.7 million, or 5.0%, for the nine-month period[123]. - Consolidated net sales for the third quarter were $18.2 million, a decrease of 24.5% compared to the prior year[123]. - Net sales decreased by $11.3 million, or 52.3%, in Q3 and $22.5 million, or 37.6%, for the nine-month period due to significantly lower unit volume[132]. Order Backlog - Consolidated order backlog decreased 10.3% compared to the fiscal year-end on February 2, 2025, and 23.8% compared to the prior year third quarter end[104]. - Hooker Branded's backlog increased 17.2% compared to fiscal year-end and 7.9% compared to the prior-year third quarter, supported by a 4.1% increase in incoming orders during the quarter[105]. - Domestic Upholstery's backlog decreased 10.9% from year-end but increased 7.5% compared to the prior-year quarter-end, driven by a 3.5% increase in incoming orders[105]. - The absence of large projects in the hospitality business during the current period contributed to the decrease in consolidated order backlog[104]. Strategic Changes - The divestiture of Pulaski Furniture and Samuel Lawrence Furniture brands represents a strategic shift and will result in a significant change to the Company's operations and financial reporting[98]. - Management initiated a formal process to sell the Pulaski Furniture and Samuel Lawrence Furniture brands due to substantial sales declines and misalignment with long-term strategic direction[96][97]. - The Home Meridian segment will be eliminated following the sale of Pulaski Furniture and Samuel Lawrence Furniture, with its remaining brand reclassified into the "All Other" category[98]. - The Company is focused on realigning its portfolio around its strongest brands to achieve sustainable, long-term profitability[97]. Financial Performance - Gross profit from continuing operations decreased by $2.4 million, but gross margin improved slightly to 25.6% from 24.8% in the prior-year period, driven by margin improvement at Hooker Branded[107]. - Consolidated operating loss for Q3 FY2026 was $16.3 million, including $15.6 million in non-cash impairment charges, with a net loss of $12.5 million, or ($1.18) per diluted share[108]. - Consolidated gross margin improved to 25.0% from 23.9% in the prior-year period, despite a $2.9 million decrease in gross profit, primarily due to increased profitability at Domestic Upholstery[110]. - The company recorded $15.6 million in non-cash impairment charges during the third quarter, including $14.5 million for goodwill impairment in the Sunset West division[125]. - The operating loss for the third quarter was $16.3 million, driven by the $15.6 million impairment charge and $597,000 in restructuring costs[126]. - Net loss from continuing operations for the third quarter was $3.6 million, a decrease of 17.7% compared to the prior year[129]. - The company reported a diluted loss per share from continuing operations of $0.34 for the third quarter[129]. Cost Management - The company exceeded its initial goal to reduce fixed costs by approximately $25 million by the end of Q3 FY2026, with a new cost structure in place[113]. - Restructuring costs of approximately $600,000 were recorded in Q3 FY2026, primarily related to severance associated with cost-reduction initiatives[108]. - Consolidated selling and administrative (S&A) expenses decreased by $5.9 million in the third quarter and by $9.7 million for the nine-month period, primarily due to the exit of the PRI business and lower restructuring costs[123]. - The Domestic Upholstery segment's S&A expenses decreased by $263,000, or 1.4%, in the third quarter, with restructuring costs totaling $127,000[124]. - All Other S&A expenses decreased significantly due to the absence of bad debt from a major customer bankruptcy in the prior year[124]. Cash Flow and Financing - Cash provided by operating activities totaled $22.9 million compared to $(11.9) million used in operations for the same period last year[140]. - Cash used in financing activities was $25.5 million, compared to $8.3 million in the prior-year period, mainly due to $17.9 million of repayments on the revolving credit facility[138]. - Cash generated from collections of trade accounts receivable was $13.6 million, compared to $1.4 million outflows in the prior-year period[140]. - The company recorded a net loss from discontinued operations of $(8,640) million, a decrease of 83.6% compared to the previous year[136]. - The Amended and Restated Loan Agreement provides for a revolving credit facility of up to $70 million, with an option to increase by up to $30 million[145]. - As of November 2, 2025, the company had $4.1 million in outstanding loans and $2.1 million in letters of credit, with an availability of $63.8 million based on the current borrowing base[153]. - The company expects to incur approximately $1 million in capital expenditures for the remainder of fiscal 2026 to maintain and enhance operating systems and facilities[154]. - A quarterly cash dividend of $0.115 per share was declared on December 11, 2025, to be paid on December 31, 2025[155]. - The outstanding loans under the Amended and Restated Loan Agreement bear interest at a rate of Term SOFR plus 1.85%, with a potential annual increase in interest expenses of approximately $41,000 for a 1% increase in the SOFR rate[158]. - The company incurred $480,000 in debt issuance costs in fiscal 2025 and an additional $33,000 in the first half of fiscal 2026[153]. - The financial covenant requires a maintenance ratio of at least 1.0 to 1.0 for EBITDA net of capital expenditures to debt service and dividends if availability falls below 10%[151]. Market Risks - The company is exposed to market risks including interest rate changes, raw materials price risk, and foreign currency exchange rate fluctuations[157]. - The company does not use derivative financial instruments to manage currency risk but may consider doing so in the future[160]. - The Amended and Restated Loan Agreement allows for prepayment of outstanding principal amounts without penalty, subject to certain conditions[148]. - The obligations under the loan agreement are secured by a first priority security interest in substantially all assets of the borrowers, excluding real estate[150].

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1 - The investment strategy is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1].

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q3 2026 were $70.7 million, a decrease of $11.9 million or 14.4% compared to the prior year period [2] - Gross profit decreased by $2.4 million, but gross margin improved to 25.6%, up from 24.8% last year [3] - Operating loss from continuing operations totaled $16.3 million, and net loss from continuing operations was $12.5 million or $1.18 per diluted share [5] - Year-to-date consolidated net sales from continuing operations were $211.1 million, down $22 million or 9.4% compared to the prior year [6] Business Line Data and Key Metrics Changes - Domestic upholstery sales increased by 3% in Q3, while Hooker branded sales rose by 1.1% [3][6] - Hooker Branded net sales increased by 1.1% in both Q3 and the nine-month period, driven by higher average selling prices despite lower unit volume [15] - Domestic upholstery gross profit increased by $261,000 in Q3, with gross margin remaining consistent year over year [16] Market Data and Key Metrics Changes - The hospitality business experienced a decline in sales due to the timing of shipments, with several large projects shipping in the previous year's third quarter [3] - Discontinued operations for Pulaski Furniture and Samuel Lawrence Furniture saw combined net sales decline by $11.3 million in Q3 and $22.5 million year-to-date [8] Company Strategy and Development Direction - The company is focusing on exiting low-margin, tariff-sensitive categories and directing efforts towards stronger brands [9] - A new Margaritaville license collection is expected to drive significant organic growth, with initial purchase commitments exceeding historical levels [10] - The company aims to transition from a cost reduction strategy to an organic growth story, emphasizing core expertise in better-to-best home furnishings [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic pressures, including elevated housing prices and inflation, but expressed cautious optimism about improving profitability [22] - The company believes it is better positioned to improve profitability even in a prolonged downturn due to a more efficient cost structure and sharper portfolio focus [22] Other Important Information - The company recorded $22.1 million in non-cash impairment charges, which do not affect liquidity or ongoing operations [4] - Cash and cash equivalents stood at $1.4 million, with $63.8 million in available borrowing capacity at quarter end [18] - A new share repurchase program was authorized, allowing for the repurchase of up to $5 million of outstanding common shares [19] Q&A Session Summary Question: Impact of shipment timing in hospitality division - Management noted that the hospitality brand had significant contributions from large hotel projects last year, which did not repeat this quarter [24] Question: Sustaining sales gains in core business - Management expressed confidence in sustaining sales gains due to product momentum and significant product introductions [25][26] Question: Retail partners' feedback on Black Friday sales - Management reported relative positivity from retail partners regarding sales during peak retail times, but emphasized the need for more consistent demand [27][28] Question: Revenue impact from discontinued operations - Management indicated that discontinued operations had a significant drag on operating income, with further details expected in upcoming filings [29] Question: Long-term operating margins outlook - Management affirmed that it is reasonable to expect a return to historical operating margins when market conditions improve [30][31] Question: Future showroom operations - Management confirmed the exit from the Atlanta showroom and indicated a small presence in Las Vegas will be maintained [37][38] Question: Margaritaville margin profile - Management suggested that the margin profile for Margaritaville could be estimated based on historical Hooker Branded margins [41] Question: Future cost-cutting measures - Management highlighted that additional savings would be identified as they finalize their cost structure and divestiture of brands [42][43] Question: Signs of demand recovery - Management noted cautious optimism from partners but did not identify specific green shoots indicating demand recovery [45][46]

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q3 2026 were $70.7 million, a decrease of $11.9 million or 14.4% compared to the prior year period [2][3] - Gross profit decreased by $2.4 million, but gross margin improved to 25.6%, up from 24.8% last year [3] - Operating loss from continuing operations totaled $16.3 million, and net loss from continuing operations was $12.5 million or $1.18 per diluted share [5][6] - Year-to-date consolidated net sales from continuing operations were $211.1 million, down $22 million or 9.4% compared to the prior year [6][7] - Gross margin for the nine-month period improved to 25%, up from 23.9% in the prior year [7] Business Line Data and Key Metrics Changes - Domestic Upholstery sales increased by 3% in Q3, while Hooker Branded sales rose by 1.1% [3][15] - Hooker Branded reported GAAP operating income of $711,000 for Q3 compared to a loss of $1.5 million [15] - Domestic Upholstery backlog fell from year-end but rose year-over-year on a 3.5% increase in orders [17] Market Data and Key Metrics Changes - The hospitality business experienced a decline due to the timing of shipments, with several large projects shipping in the previous year's third quarter [3][4] - Discontinued operations for Pulaski Furniture and Samuel Lawrence Furniture saw combined net sales decline by $11.3 million in Q3 and $22.5 million year-to-date [8][17] Company Strategy and Development Direction - The company is focusing on becoming a higher margin, design-driven entity by exiting low-margin, tariff-sensitive categories [9][10] - The launch of the Margaritaville license collection is seen as a significant organic growth opportunity, with initial purchase commitments exceeding historical levels [10][11] - A new share repurchase program has been authorized, allowing the company to repurchase up to $5 million of outstanding shares, while also recalibrating the dividend [19][20] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the retail environment, noting that while peak sales periods are positive, consistent demand is needed [28][46] - The company believes it is better positioned to improve profitability even in a prolonged downturn due to a more efficient cost structure and sharper portfolio focus [22][46] Other Important Information - The company recorded $22.1 million in non-cash impairment charges, which included $14.5 million on Sunset West goodwill [4][5] - Cash and cash equivalents stood at $1.4 million, with $63.8 million in available borrowing capacity at quarter end [18][19] Q&A Session Summary Question: Impact of shipment timing in hospitality division - Management noted that the hospitality brand had significant contributions from large hotel projects last year, which did not repeat this quarter [24] Question: Sustainability of sales gains in core business - Management expressed confidence in sustaining sales gains due to product momentum and significant product introductions [25][26] Question: Revenue from discontinued operations - Management indicated that discontinued operations were a significant drag on operating income, with further details expected in upcoming filings [29] Question: Margin profile for Margaritaville line - Management suggested that the margin profile could be estimated based on historical Hooker Branded margins [41] Question: Future cost-cutting measures - Management indicated that additional savings would be identified in future announcements, with a focus on the divestiture of brands creating opportunities [43] Question: Signs of demand recovery - Management reported cautious optimism from retail partners but did not identify specific green shoots indicating demand recovery [46]

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q3 2026 were $70.7 million, a decrease of $11.9 million or 14.4% compared to the prior year period [2] - Gross profit decreased by $2.4 million, but gross margin improved to 25.6%, up from 24.8% last year [3] - Operating loss from continuing operations totaled $16.3 million, and net loss from continuing operations was $12.5 million or $1.18 per diluted share [5] - Year-to-date consolidated net sales from continuing operations were $211.1 million, down $22 million or 9.4% compared to the prior year [6] Business Line Data and Key Metrics Changes - Domestic upholstery sales increased by 3% in Q3, while Hooker branded sales were up 1.1% [3] - Hooker Branded net sales increased 1.1% in both Q3 and the nine-month period, driven by higher average selling prices despite lower unit volume [15] - Domestic upholstery gross profit rose $1.5 million for the nine-month period, with gross margin improving by 170 basis points [17] Market Data and Key Metrics Changes - The hospitality business experienced a decline in sales due to the timing of shipments, with several large projects shipping in the previous year's third quarter [3] - Discontinued operations for Pulaski Furniture and Samuel Lawrence Furniture saw combined net sales decline by $11.3 million in Q3 and $22.5 million year-to-date [8] Company Strategy and Development Direction - The company is focusing on exiting low-margin, tariff-sensitive categories and directing efforts towards stronger brands [9] - A new Margaritaville license collection is expected to drive significant organic growth, with initial purchase commitments exceeding historical levels [10] - The company aims to transition from a cost reduction strategy to an organic growth story, emphasizing core expertise in better-to-best home furnishings [12] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic pressures, including elevated housing prices and inflation, continue to impact the business [23] - There is cautious optimism from retail partners regarding demand, but the company is prepared to weather ongoing challenges [46] - The company believes it is better positioned to improve profitability even in a prolonged downturn due to a more efficient cost structure [23] Other Important Information - The company recorded $22.1 million in non-cash impairment charges, which do not affect liquidity or ongoing operations [4] - Cash and cash equivalents decreased to $1.4 million, with $63.8 million in available borrowing capacity at quarter end [18] - A new share repurchase program has been authorized, allowing for the repurchase of up to $5 million of outstanding common shares [19] Q&A Session Summary Question: Impact of shipment timing in hospitality division on sales - Management indicated that the hospitality brand had significant contributions from large hotel projects last year, which did not repeat this quarter [25] Question: Sustainability of sales gains in core business - Management expressed confidence in sustaining sales gains due to product momentum and significant product introductions [26][27] Question: Revenue contribution from discontinued operations - Management acknowledged that discontinued operations were a significant drag on operating income, with further details expected in upcoming filings [30] Question: Margin profile for Margaritaville line - Management suggested that the margin profile could be estimated based on historical Hooker Branded margins [41] Question: Future cost-cutting measures - Management confirmed that additional savings are expected, particularly from the divestiture of brands and exiting high-cost operations [43] Question: Signs of demand recovery - Management noted cautious optimism from partners but did not identify specific green shoots indicating demand recovery [46]

分组1 - Hooker Furniture reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of a loss of $0.15 per share, compared to a loss of $0.20 per share a year ago, resulting in an earnings surprise of +360.00% [1] - The company posted revenues of $70.73 million for the quarter ended October 2025, missing the Zacks Consensus Estimate by 17.27%, and down from year-ago revenues of $104.35 million [2] - Hooker Furniture shares have declined approximately 22.2% since the beginning of the year, contrasting with the S&P 500's gain of 17.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $94.18 million, and for the current fiscal year, it is -$0.46 on revenues of $347.11 million [7] - The Zacks Industry Rank indicates that the Furniture industry is currently in the bottom 9% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

Financial Performance - Hooker Furnishings reported a consolidated net sales decrease of 14.4% in Q3, primarily due to an $11 million reduction in shipments from the Samuel Lawrence Hospitality segment[8]. - Net sales for the thirteen weeks ended November 2, 2025, were $70,730,000, a decrease of 14.5% compared to $82,670,000 for the same period in 2024[27]. - Consolidated net sales for the thirteen weeks ended November 2, 2025, were $70,730 million, down from $82,670 million in the same period of 2024, representing a decrease of 14.4%[38]. - Gross profit for the thirty-nine weeks ended November 2, 2025, was $52,736,000, down from $55,681,000 in 2024, reflecting a decline of 3.4%[28]. - The company reported a net loss of $21,174,000 for the thirteen weeks ended November 2, 2025, compared to a net loss of $4,131,000 for the same period in 2024[30]. - Basic loss per share for the thirteen weeks ended November 2, 2025, was $1.99, compared to a loss of $0.39 per share in the same period of 2024[28]. - Operating loss for the thirty-nine weeks ended November 2, 2025, was $17,418,000, compared to an operating loss of $9,581,000 in 2024[28]. - Net loss for the thirty-nine weeks ended November 2, 2025, was $27,503 million, compared to a loss of $10,174 million for the same period in 2024[35]. Cost Management - The company achieved approximately $25–$26.5 million in annualized savings from its multi-phase cost-reduction program, reducing its overall cost structure by 25% over the past 18 months[4][6]. - Selling and administrative expenses for the thirty-nine weeks ended November 2, 2025, were $52,667,000, down from $62,408,000 in 2024, indicating a reduction of 15.6%[28]. Impairment Charges - The company recorded non-cash impairment charges totaling $22.1 million in Q3, impacting its operating loss of $16.3 million for the quarter[8]. - The company incurred goodwill and trade name impairment charges of $15,576,000 for the thirteen weeks ended November 2, 2025, compared to $781,000 in the same period of 2024[28]. - The company reported a tradename impairment of $15,576 million for the thirty-nine weeks ended November 2, 2025, compared to $778 million in the previous year[35]. Sales and Orders - Hooker Branded net sales increased by 1.1% in both Q3 and the nine-month period, driven by higher average selling prices despite lower unit volume[7]. - Domestic Upholstery net sales rose by $870,000, or 3.0%, in Q3, with a mixed performance across divisions[13]. - Order backlog declined by 10.3% from fiscal year-end and 23.8% from the prior-year Q3, attributed to a large hospitality project in the previous year[8]. - The order backlog as of November 2, 2025, was $32,735 million, a decrease from $42,938 million in October 2024, reflecting a decline of 23.7%[41]. Cash and Liquidity - Cash and cash equivalents decreased to $1.4 million, with $63.8 million in available borrowing capacity as of quarter-end[11][12]. - Cash used in financing activities for the thirty-nine weeks ended November 2, 2025, was $25,511 million, compared to $8,311 million in the same period of 2024, indicating increased cash outflows[36]. - Cash and cash equivalents decreased from $6,295 million at the beginning of the year to $1,354 million at the end of the quarter, a decline of 78.4%[36]. Strategic Initiatives - A new share repurchase program has been authorized, allowing the company to repurchase up to $5 million of its outstanding common shares, alongside a recalibrated dividend reduced by 50% to $0.46 per share annually[14][15]. - The launch of the Margaritaville licensed collection is expected to drive significant organic growth, supported by a 14,000-square-foot showroom and 55 committed retail galleries across the U.S.[4]. - The company aims to improve profitability despite macroeconomic challenges, focusing on its core businesses for sustainable growth[18]. Risks and Challenges - Future risks include potential adverse political acts affecting international markets and the cyclical nature of the furniture industry, which is sensitive to consumer confidence[24]. - The company plans to monitor macroeconomic conditions and adjust its strategies accordingly to mitigate risks associated with consumer spending patterns[24]. Assets and Liabilities - Total assets decreased from $313,942 million in February 2025 to $240,237 million in November 2025, a decline of approximately 23.4%[32]. - Long-term debt increased significantly from $21,717 million in February 2025 to $3,815 million in November 2025, indicating a reduction in leverage[33]. - Total current liabilities remained relatively stable at $39,541 million in November 2025 compared to $39,974 million in February 2025[33].