[Fiscal 2026 First Quarter Financial & Operational Highlights](index=1&type=section&id=Fiscal%202026%20First%20Quarter%20Financial%20%26%20Operational%20Highlights) [Overall Performance](index=1&type=section&id=Overall%20Performance) The company reported lower sales but narrowed its operating and net losses through effective cost management and improved gross margins Q1 FY2026 Key Financial Results vs. Q1 FY2025 | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | **Consolidated Net Sales** | $85.3M | $93.6M | -8.8% | | **Gross Margin** | 22.3% | 20.5% | +180 bps | | **Operating Loss** | ($3.6M) | ($5.2M) | +31% | | **Net Loss** | ($3.1M) | ($4.1M) | +25.4% | | **Diluted EPS** | ($0.29) | ($0.39) | +$0.10 | - The company reduced its operating loss by **$1.6 million (31%)** and operating expenses by **$2.2 million** year-over-year, despite a sales decline and incurring $523,000 in restructuring costs[4](index=4&type=chunk) - The overall sales decrease was primarily driven by a double-digit decline at the **Home Meridian (HMI) segment**, while legacy brands remained relatively stable[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted steady progress with market share gains and a successful High Point Market despite a challenging industry environment - The company delivered its **eighth consecutive quarter of market share gains** within its legacy brands (Hooker Branded and Domestic Upholstery)[3](index=3&type=chunk) - Management attributes industry challenges to a soft housing market, higher mortgage rates, and declining consumer sentiment, with existing home sales well below pre-pandemic levels[3](index=3&type=chunk)[5](index=5&type=chunk) - The company's new "Living Your Way" modular upholstery program and new case goods collections were well-received at the Spring High Point Market[3](index=3&type=chunk) [Strategic Initiatives](index=2&type=section&id=Strategic%20Initiatives) [Multiphase Cost Reduction Plan](index=2&type=section&id=Multiphase%20Cost%20Reduction%20Plan) The company is executing a multi-phase cost reduction strategy targeting approximately $25 million in annualized savings by fiscal 2027 - The total cost reduction initiative aims to eliminate approximately **$25 million**, or 25% of fixed costs, by fiscal 2027[6](index=6&type=chunk)[8](index=8&type=chunk) - Phase 1 (FY2025) reduced fixed costs by over **$10 million** through downsizing and workforce reductions[7](index=7&type=chunk)[11](index=11&type=chunk) - Phase 2 (FY2026) involves exiting the Savannah warehouse and opening a new Vietnam warehouse, expected to generate net savings of **$3.4 million in FY2026** and over $14 million annually from FY2027[7](index=7&type=chunk)[11](index=11&type=chunk) - The new Vietnam warehouse, opened in May 2025, is expected to reduce lead times from approximately 6 months to **4-6 weeks**[11](index=11&type=chunk) [Adjusting to Import Tariffs](index=3&type=section&id=Adjusting%20to%20Import%20Tariffs) The company is navigating tariff uncertainty on Vietnamese imports by collaborating with factories and implementing a price increase - The company sources over **80% of its products from Vietnam** and is awaiting a final decision on tariffs, which was paused until July[15](index=15&type=chunk)[16](index=16&type=chunk) - To offset the current 10% tariff, the company has secured participation from its source factories and implemented a **5% price increase**[16](index=16&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) [Hooker Branded](index=2&type=section&id=Hooker%20Branded) The segment achieved stable sales and positive order momentum, though profitability was flat due to increased promotional activity Hooker Branded Q1 Performance | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $37.1M | $36.8M | +0.8% | | **Gross Profit** | $11.1M | $11.5M | -3.4% | | **Operating Income** | $27k | $179k | -84.9% | - Incoming orders grew by **2.4%** year-over-year, but the quarter-end backlog was 21.3% lower than the prior year due to faster shipments from improved inventory positions[18](index=18&type=chunk) [Home Meridian (HMI)](index=3&type=section&id=Home%20Meridian%20(HMI)) The segment saw a sharp sales decline due to a major customer bankruptcy but narrowed its operating loss through cost controls Home Meridian Q1 Performance | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $18.8M | $26.4M | -28.8% | | **Gross Profit** | $2.7M | $3.3M | -17.2% | | **Operating Loss** | ($2.8M) | ($3.4M) | +17.0% | - Approximately **30% of the sales decrease** was attributed to the loss of a major customer due to bankruptcy in the prior year[18](index=18&type=chunk) - The sales decline was partially offset by a **$1.7 million increase** in sales from the hospitality business[18](index=18&type=chunk) [Domestic Upholstery](index=3&type=section&id=Domestic%20Upholstery) The segment significantly narrowed its operating loss despite a modest sales dip, driven by cost reductions and growth in outdoor furnishings Domestic Upholstery Q1 Performance | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $28.9M | $30.0M | -3.7% | | **Gross Profit** | $5.3M | $4.7M | +12.8% | | **Operating Loss** | ($0.6M) | ($1.3M) | +54.5% | - The segment's operating loss was significantly reduced by **$713,000 (55%)** year-over-year[18](index=18&type=chunk) - The sales decrease was partially offset by a **12.7% sales increase** in the outdoor furnishings business, Sunset West, following its bicoastal expansion[18](index=18&type=chunk) [Financial Position and Capital Allocation](index=3&type=section&id=Financial%20Position%20and%20Capital%20Allocation) [Cash, Debt and Inventory](index=3&type=section&id=Cash%2C%20Debt%20and%20Inventory) The company strengthened its liquidity by increasing cash, reducing inventory, and paying down all revolving credit facility borrowings Balance Sheet Highlights (vs. FY2025 Year-End) | Metric | Q1 FY2026 End | FY2025 End | Change | | :--- | :--- | :--- | :--- | | **Cash & Cash Equivalents** | $18.0M | $6.3M | +$11.7M | | **Inventories** | $64.3M | $70.8M | -$6.5M | | **Trade Accounts Receivable** | $39.6M | $58.2M | -$18.6M | - Subsequent to the quarter-end, the company **paid down all outstanding borrowings** on its revolving credit facility[19](index=19&type=chunk) - As of June 11, 2025, the company had approximately **$3 million in cash** and **$63.3 million in available borrowing capacity**[19](index=19&type=chunk) [Capital Allocation](index=4&type=section&id=Capital%20Allocation) The company maintained its shareholder return commitment, extending its 50-year dividend track record while focusing on strategic growth - The company announced its regular quarterly dividend, continuing an over **50-year track record** of uninterrupted dividend payments[20](index=20&type=chunk) - During the first quarter, the company paid **$2.5 million in cash dividends** to shareholders[17](index=17&type=chunk) - Capital allocation priorities include enhancing long-term value through a combination of cost savings initiatives and strategic growth priorities[20](index=20&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) [Market Environment and Recent Trends](index=4&type=section&id=Market%20Environment%20and%20Recent%20Trends) The market remains challenged by a soft housing market, but the company saw a significant year-over-year uptick in legacy brand orders in May - Existing home sales remain subdued, operating at approximately **75% of typical pre-pandemic levels** for the third consecutive year[21](index=21&type=chunk) - Fiscal May orders for Hooker Legacy brands were the highest since February 2022, showing a nearly **33% increase** compared to the prior year's May[24](index=24&type=chunk) Fiscal May 2025 Year-over-Year Order Growth | Segment | YoY Order Growth | | :--- | :--- | | **Hooker Legacy (Total)** | +33% | | **Hooker Branded** | +40% | | **Domestic Upholstery** | +25% | [Key Growth Initiatives](index=4&type=section&id=Key%20Growth%20Initiatives) Future growth will be driven by a new licensing program, a redesigned website, and customizable product strategies to capture market recovery - Launch of a new **Margaritaville licensing program**[23](index=23&type=chunk) - A redesigned corporate website is set to launch in October to enhance digital experience, lead generation, and e-commerce[24](index=24&type=chunk)[26](index=26&type=chunk) - The new **"Live Your Way" strategy** in Domestic Upholstery will offer customizable, modular, and lifestyle-oriented solutions to meet evolving consumer preferences[24](index=24&type=chunk)[26](index=26&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss of $3.1 million on $85.3 million in sales, an improvement from the prior-year period's net loss of $4.1 million Consolidated Statements of Operations (in thousands) | | 13 Weeks Ended May 4, 2025 | 13 Weeks Ended April 28, 2024 | | :--- | :--- | :--- | | **Net sales** | $85,316 | $93,571 | | **Gross profit** | $19,002 | $19,221 | | **Operating (loss)** | $(3,564) | $(5,170) | | **Net (loss)** | $(3,052) | $(4,091) | | **Diluted (Loss) per share** | $(0.29) | $(0.39) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) Total assets stood at $299.7 million, down from $313.9 million at fiscal year-end, reflecting lower receivables and inventory levels Key Balance Sheet Items (in thousands) | As of | May 4, 2025 (Unaudited) | February 2, 2025 | | :--- | :--- | :--- | | **Total current assets** | $128,068 | $141,124 | | **Total assets** | $299,685 | $313,942 | | **Total current liabilities** | $32,508 | $39,974 | | **Total liabilities** | $100,528 | $109,559 | | **Total shareholders' equity** | $199,157 | $204,383 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated $14.7 million in net cash from operations, a significant improvement driven by strong accounts receivable collections Consolidated Cash Flow Summary (in thousands) | | 13 Weeks Ended May 4, 2025 | 13 Weeks Ended April 28, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $14,663 | $1,477 | | **Net cash used in investing activities** | $(967) | $(959) | | **Net cash used in financing activities** | $(1,980) | $(2,802) | | **Net increase / (decrease) in cash** | $11,716 | $(2,284) | | **Cash and cash equivalents - end of quarter** | $18,011 | $40,875 | [Order Backlog](index=11&type=section&id=Order%20Backlog) The consolidated order backlog decreased to $51.2 million from $85.8 million a year ago, primarily due to a decline in the HMI segment Order Backlog by Segment (in thousands) | Reporting Segment | May 4, 2025 | April 28, 2024 | | :--- | :--- | :--- | | Hooker Branded | $13,479 | $17,129 | | Home Meridian | $18,069 | $49,396 | | Domestic Upholstery | $19,401 | $19,236 | | **Consolidated** | **$51,203** | **$85,761** |

Core Insights - Hooker Furnishings Corporation reported its fiscal 2026 first quarter results, highlighting stable legacy sales and ongoing cost-saving initiatives as key drivers for performance [1][2][3] Financial Performance - The company reported consolidated net sales of $85.3 million, a decrease of $8.3 million or 8.8% compared to the prior year [4] - Operating loss was reduced by $1.6 million, or 31%, to $3.6 million, attributed to cost-saving initiatives despite lower net sales [4] - Gross margin improved by 180 basis points, maintaining overall gross profit levels despite lower net sales [4] - The net loss for the quarter was $3.1 million, or ($0.29) per diluted share, an improvement from a $4.1 million loss, or ($0.39) per diluted share in the prior year [4][33] Cost Reduction Initiatives - The company is executing a multi-phase cost reduction strategy aimed at achieving approximately $25 million in annualized savings by fiscal year 2027 [6][8] - Initial cost reductions have already resulted in $2.2 million in savings, with expectations of $14 million in cost savings net of offsets and special charges for fiscal 2026 [5][8] - The strategic shift to a new warehouse in Vietnam is expected to enhance supply chain efficiency and reduce lead times from about 6 months to 4–6 weeks [11][12] Segment Performance - Hooker Branded segment net sales increased slightly by 0.8%, while Domestic Upholstery segment saw a decrease of 3.7% [4][12] - Home Meridian segment net sales decreased by $7.6 million, or 28.8%, primarily due to the loss of a major customer and reduced sales from import tariff-related hesitancy [19] - Despite sales decreases, Domestic Upholstery significantly narrowed operating losses by 55% [19] Market Conditions - The home furnishings industry is facing challenges due to persistent softness in the housing market, higher mortgage rates, and declining consumer sentiment [3][21] - Existing home sales remain well below pre-pandemic levels, impacting furniture demand [3][21] - Consumer confidence has dropped to near historic lows, leading many households to pull back on discretionary spending [3][21] Strategic Outlook - The company is focused on product innovation, cost optimization, and operational excellence to navigate ongoing economic challenges [22] - Key initiatives include the launch of the Margaritaville licensing program and the Collected Living merchandising approach, which received positive feedback at the April High Point Market [23][24] - The company anticipates that improvements in macroeconomic conditions will enhance its position for growth and shareholder value [5][22]

Group 1 - The decision to downgrade Hooker Furnishings Corporation from a Hold to a Sell was made in March of this year, indicating a negative outlook for the company [1] - The investment service focuses on cash flow and companies that generate it, highlighting the importance of value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers have access to a stock model account with over 50 stocks, providing in-depth cash flow analyses of exploration and production firms [2] - The service includes live chat discussions about the oil and gas sector, fostering community engagement among subscribers [2] - A two-week free trial is offered to new subscribers, encouraging them to explore the investment service [3]

Core Viewpoint - The market anticipates Hooker Furniture (HOFT) to report a year-over-year increase in earnings despite lower revenues for the quarter ending April 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Hooker Furniture is expected to report a quarterly loss of $0.16 per share, reflecting a year-over-year change of +59%, while revenues are projected to be $88.87 million, down 5% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 140% lower in the last 30 days, indicating a significant reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Hooker Furniture is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.23%. However, the stock has a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Hooker Furniture was expected to post earnings of $0.16 per share but only achieved $0.01, resulting in a surprise of -93.75%. The company has not beaten consensus EPS estimates in the last four quarters [13][14]. Conclusion - While Hooker Furniture does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of its earnings release [17].

Company Overview - Hooker Furnishings Corporation is in its 101st year of business, specializing in the design, marketing, and import 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 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, primarily sold under the Hooker Furniture brand [4] Product Lines - Hooker's residential upholstered seating includes brands such as Bradington-Young, HF Custom, Hooker Upholstery, and Shenandoah Furniture, targeting the upper-medium price range [4] - The H Contract product line supplies upholstered seating and casegoods to upscale senior living facilities [4] - Home Meridian division offers moderate price points and includes brands like Pulaski Furniture and Samuel Lawrence Furniture, focusing on value-conscious offerings [4] Financial Information - Hooker Furnishings Corporation will present its fiscal 2026 first quarter financial results on June 12, 2025, at 9:00 AM Eastern Time [1] - The first quarter of fiscal 2026 began on February 3, 2025, and ended on May 4, 2025 [3] Communication and Access - A live webcast of the financial results call will be available on the company's Investor Relations page, with an option for phone access through a registration link [2]

Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q4 FY25 Click image above to view full announcement. About Stonegate Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies. Source: Stonegate, Inc. April 21, 2025 9:30 AM ...

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]

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. ...

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]

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]