Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $104.4 million, a decrease of $12.5 million or 10.7% year-over-year, primarily due to macro-economic challenges and customer bankruptcy[4]. - The company reported an operating loss of $7.3 million and a consolidated net loss of $4.1 million, or ($0.39) per diluted share for the third quarter[3]. - For the nine-month period, consolidated net sales were $293.0 million, a decrease of $43.4 million or 12.9% compared to the same period last year[7]. - Net sales for the thirteen weeks ended October 27, 2024, were $104.352 million, a decrease from $116.831 million for the same period in 2023, representing a decline of approximately 10.6%[32]. - Gross profit for the thirteen weeks ended October 27, 2024, was $24.025 million, down from $33.710 million in the prior year, indicating a decrease of about 28.9%[32]. - The company reported a net loss of $4.131 million for the thirteen weeks ended October 27, 2024, compared to a net income of $7.038 million for the same period in 2023[32]. - Basic loss per share for the thirteen weeks ended October 27, 2024, was $(0.39), compared to earnings per share of $0.66 in the same period last year[32]. - The operating loss for the consolidated segment was $(7,260) million, compared to an operating income of $8,770 million in the same quarter last year, indicating a significant decline[39]. - The Hooker Branded segment reported net sales of $34,940 million, down 10.4% from $39,122 million in the prior year[39]. - Home Meridian segment net sales decreased to $38,553 million, down from $43,692 million, reflecting a decline of 11.6%[39]. Cash and Liquidity - Cash and cash equivalents were $20.4 million at the end of Q3, a decrease of $22.7 million from year-end in January[20]. - Cash and cash equivalents decreased to $20.410 million as of October 27, 2024, from $43.159 million as of October 29, 2023, reflecting a decrease of approximately 52.7%[36]. - Cash dividends paid increased to $7,378 million from $7,228 million year-over-year[38]. - Net cash used in operating activities was $(12,334) million for the quarter ending October 27, 2024, compared to $48,770 million for the same period last year[38]. Inventory and Backlog - Inventory levels increased by $4.7 million from year-end, driven by a $6.2 million increase in Hooker Branded inventories[20]. - The order backlog for Hooker Branded as of October 27, 2024, was $13,049 million, down from $18,646 million a year earlier[40]. - The company is aggressively building inventory to support new major casegoods collections and best-selling SKUs, anticipating increased demand[22]. Cost Management and Restructuring - The company plans to realize over $10 million in annualized cost savings in fiscal 2026 as a result of ongoing restructuring efforts[5]. - The company plans to complete the restructuring of the HMI segment by fiscal 2025, aiming to return it to consistent profitability[31]. Market Conditions and Risks - The company anticipates a 10% increase in home sales for 2025, supported by recent interest rate cuts and improving consumer sentiment[25][26]. - The company is facing risks related to inflation and high interest rates, which may impact sales and operating costs[31]. Impairment and Provisions - Trade name impairment charges amounted to $1.953 million for the thirteen weeks ended October 27, 2024, with no charges reported in the same period last year[32]. - The company incurred a trade name impairment of $1,953 million during the quarter[38]. - The provision for doubtful accounts and sales allowances was $272 million, compared to $(270) million in the same quarter last year[38]. Assets and Liabilities - Total current liabilities increased to $68.319 million as of October 27, 2024, compared to $41.409 million as of October 29, 2023[36]. - The total assets of the company decreased to $326.864 million as of October 27, 2024, down from $343.586 million as of October 29, 2023[36].

Core Insights - Hooker Furnishings Corporation reported a consolidated net loss of $4.1 million or ($0.39) per diluted share for the third quarter of fiscal 2025, driven by macro-economic challenges and a significant customer bankruptcy [2][26] - Consolidated net sales decreased by $12.5 million, or 10.7%, to $104.4 million compared to the same quarter of the previous year, primarily due to low demand in the home furnishings industry [2][26] - The company anticipates achieving over $10 million in annualized cost savings by fiscal 2026 as it begins to see improved efficiencies from cost reduction efforts [2][3] Fiscal 2025 Third Quarter Overview - The third quarter operating results were impacted by $7.5 million in charges, including restructuring costs, bad debt expense from a customer bankruptcy, and non-cash trade-name impairment charges [2] - The operating loss for the quarter was $7.3 million, with a nine-month consolidated net sales total of $293.0 million, a decrease of $43.4 million or 12.9% compared to the same period last year [2][26] - Home Meridian achieved a gross margin of 20.5%, its highest since acquisition in 2016, despite a decrease in net sales [2][10] Management Commentary - The CEO expressed optimism about sequential quarterly improvement in core business profitability and the effectiveness of cost reduction efforts, which are expected to be more fully realized in the fourth quarter [3] - The company is investing in initiatives such as a global licensing agreement with Margaritaville, which is anticipated to benefit the company when demand normalizes [3] Market Conditions - Positive macro-economic developments include cooling inflation and recent interest rate cuts, which are expected to boost demand for furnishings as mortgage rates decrease [4][20] - Consumer sentiment rose to 71.8 in November, the highest since April, indicating potential for increased consumer spending [20] Segment Reporting - The Hooker Branded segment reported a net sales decrease of $4.2 million, or 10.7%, primarily due to lower average selling prices and increased discounting [6][8] - Home Meridian's net sales decreased by $5.1 million, or 11.8%, with over 40% of the decline attributed to the loss of a major customer due to bankruptcy [9][11] - Domestic Upholstery segment net sales decreased by $3.2 million, or 9.9%, with a modest increase in sales at Sunset West partially offsetting the decline [12][14] Cash, Debt, and Inventory - Cash and cash equivalents were $20.4 million at the end of the third quarter, a decrease of $22.7 million from the year-end in January [15] - Inventory levels increased by $4.7 million, driven by a $6.2 million increase in Hooker Branded inventories [15][17] Capital Allocation - The company is building inventory to support new major casegoods collections and best-selling SKUs, anticipating a longer than typical lunar new year holiday in Vietnam [17] - Plans to refinance the credit facility and pay off term debt are underway, alongside the announcement of regular quarterly dividends [18] Outlook - Key economic indicators impacting furniture sales are trending positively, with expectations of a 10% increase in home sales for 2025 as mortgage rates stabilize [20][21] - The company aims to maximize efficiencies while investing in expansion strategies to position itself for growth when demand returns [21]

Core Viewpoint - Hooker Furnishings Corporation (HOFT) is expected to report disappointing third-quarter fiscal 2025 earnings, with significant declines in both earnings per share and net sales compared to the previous year [1][3][4]. Financial Performance - In the last reported quarter, HOFT's earnings missed the Zacks Consensus Estimate by 46.2% and decreased by over 370% year-over-year [2] - The estimated earnings per share (EPS) for the upcoming quarter has dropped to 2 cents from 9 cents over the past 60 days, indicating a 96.9% decline from the year-ago EPS of 65 cents [3] - The consensus estimate for net sales is $99.9 million, reflecting a year-over-year decline of 14.5% [4] Factors Influencing Performance - HOFT's performance is expected to be negatively impacted by weak demand trends, higher product costs, and under-absorbed indirect costs, primarily due to high interest rates and subdued housing activity [5] - The company's Hooker Branded and Domestic Upholstery segments are likely to show soft performance, compounded by the absence of the Accentrics Home product line, which contributed approximately 35% of consolidated sales in fiscal 2024 [6] Strategic Initiatives - Despite the challenges, the company is making strategic investments in sales channels, personnel, systems, and products to partially support its performance [7] - HOFT is focusing on strengthening its balance sheet and variable cost business model to navigate current economic volatility until consumer confidence improves [7][8] - The company aims to manage its financial position through strategic inventory management, reasonable capital expenditures, and careful expense management [8] Earnings Prediction - The current model does not predict an earnings beat for HOFT, as it has an Earnings ESP of 0.00% and a Zacks Rank of 5 (Strong Sell) [9][10]

Company Overview - Hooker Furnishings Corporation is celebrating its 100th year in business and operates as a designer, marketer, and importer of various furniture types including casegoods, leather, and fabric-upholstered furniture, as well as lighting and home décor for residential, hospitality, and contract markets [4] - The company also manufactures premium residential custom leather and fabric-upholstered furniture domestically, along with outdoor furniture [4] - Major product categories include home entertainment, home office, accent, dining, and bedroom furniture sold under the Hooker Furniture brand, with a focus on upper-medium price points [4] Product Lines - Hooker's residential upholstered seating includes brands such as Bradington-Young, HF Custom, Hooker Upholstery, and Shenandoah Furniture, targeting various segments within the upper-medium price range [4] - The H Contract product line supplies upholstered seating and casegoods to upscale senior living facilities, while the Home Meridian division addresses more moderate price points with brands like Pulaski Furniture and Samuel Lawrence Furniture [4] - Sunset West division specializes in designing and manufacturing high-quality outdoor furniture [4] Financial Reporting - Hooker Furnishings Corporation will present its fiscal 2025 third quarter financial results on December 5, 2024, at 9:00 AM Eastern Time [1] - The fiscal 2025 third quarter period began on July 29, 2024, and ended on October 27, 2024 [3]

Hooker Furnishings Corporation (HOFT) has collaborated with the global lifestyle brand, Margaritaville, to launch an extensive line of home furnishings. This partnership will help the company leverage the renowned brand position of Margaritaville in the international market and expand its market reach to a new customer base. HOFT stock lost 1.1% during trading hours on Monday post the announcement. HOFT's Partnership in Detail The anticipated product offerings from the announced partnership will include a r ...

AleksandarGeorgiev/E+ via Getty Images Thesis In June 2023, I initiated coverage of Hooker Furnishings (NASDAQ: NASDAQ:HOFT), examining its risks and potential, noting how it demonstrated some strengths by showing the ability to keep a lid on inventory, recover in its hospitality business, and move forward with expansion plans, along with significant challenges created by a precipitous loss of sales, softening demand, operational inefficiencies, and questions over the safety of the dividend. The company was ...

. Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q2 FY25 September 06, 2024 9:20 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - September 6, 2024) - Hooker Furniture Corporation (NASDAQ: HOFT): Stonegate Capital Partners updates their coverage on Hooker Furniture Corporation (NASDAQ: HOFT) To view the full announcement, including downloadable images, bios, and more, click here. Key Takeaways: Margins remain above 20% Strong dividend yield of 6.0% Backlog increased ~8.4 ...

dre 194 H NEW i NJ AlpamayoPhoto Hooker Furnishings Corporation (NASDAQ:HOFT) is a manufacturer and importer of residential household and contract fumiture for sale that we have covered often over the years. The company has struggled over the last few quarters with the housing market slowdown and from softer demand, in large part due to higher rates for consumers to borrow money or utilize their credit. To combat demand issues and help preserve profitability, the company has made strategic moves to offload ...

Hooker Furniture (HOFT) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -46.15%. A quarter ago, it was expected that this home furnishings company would post a loss of $0.03 per share when it actually produced a loss of $0.39, delivering a surprise of -1,200%. Over the last four quarters ...

MARTINSVILLE, Va., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQGS: HOFT) (the "Company" or "HFC"), a global leader in the design, production, and marketing of home furnishings for 100 years, today reported its fiscal 2025 second quarter operating results for the period beginning April 29 and ending July 28, 2024. Fiscal 2025 Second Quarter overview and cost reduction details: Despite persistent, weak market conditions, sales in the second quarter, typically Hooker Furnishings' s ...