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 ...

Hooker Furnishings Corporation (HOFT) is set to report its second-quarter fiscal 2025 (ended July 28, 2024) results on Sep. 5, before market open. In the last reported quarter, the company's earnings missed the Zacks Consensus Estimate by 1,200% while the net sales surpassed the same by 3.3%. HOFT's Trend in Estimate Revision The Zacks Consensus Estimate for fiscal second-quarter loss per share has remained unchanged at 5 cents over the past 60 days. The estimated figure indicates a 171.4% decline from the ...

Hooker Furnishings Corp. (HOFT) continues to focus on execution during this sustained downturn in the furniture industry. This Zacks Rank #5 (Strong Sell) is expected to see a big decrease in earnings in fiscal 2025. Hooker Furnishings also sells online. On June 6, 2024, Hooker Furnishings reported its fiscal 2025 first quarter results and missed on the Zacks Consensus by $0.36. Earnings were a loss of $0.39 versus the consensus of a loss of $0.03. Hooker Furnishings is celebrating its 100th year of busines ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements show a significant decline in performance, a net loss, and a debt covenant breach [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and shareholders' equity declined, with long-term debt reclassified to current due to a covenant breach Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 28, 2024 | January 28, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $156,936 | $164,798 | | **Total Assets** | $335,530 | $343,586 | | **Total Current Liabilities** | $62,912 | $41,409 | | **Long term debt** | $0 | $21,481 | | **Total Liabilities** | $115,938 | $117,611 | | **Total Shareholders' Equity** | $219,592 | $225,975 | - Long-term debt of **$21.5 million** was reclassified to the current portion of long-term debt, which increased to $22.5 million[8](index=8&type=chunk)[40](index=40&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net loss of $4.1 million for the quarter, driven by a 23.2% decline in net sales and lower gross margin Q1 Fiscal 2025 vs Q1 Fiscal 2024 Performance (in thousands, except per share data) | Metric | Thirteen Weeks Ended April 28, 2024 | Thirteen Weeks Ended April 30, 2023 | | :--- | :--- | :--- | | Net sales | $93,571 | $121,815 | | Gross profit | $19,221 | $27,906 | | Operating (loss) / income | $(5,170) | $1,975 | | Net (loss) / income | $(4,091) | $1,450 | | Diluted (loss) / earnings per share | $(0.39) | $0.13 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased significantly to $1.5 million from $22.4 million in the prior-year period Cash Flow Summary (in thousands) | Activity | Thirteen Weeks Ended April 28, 2024 | Thirteen Weeks Ended April 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,477 | $22,350 | | Net cash used in investing activities | $(959) | $(3,265) | | Net cash used in financing activities | $(2,802) | $(7,111) | | **Net (decrease) / increase in cash** | **$(2,284)** | **$11,974** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the ERP system implementation, debt covenant non-compliance, and sales declines across all three reportable segments - The company is implementing a new ERP system, with capitalized implementation costs totaling **$15.0 million** as of April 28, 2024[27](index=27&type=chunk)[28](index=28&type=chunk) - Due to first quarter results, the company was not in compliance with its basic fixed charge ratio covenant and obtained a waiver[40](index=40&type=chunk) Segment Net Sales (in thousands) | Segment | Q1 FY2025 | Q1 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Hooker Branded | $35,353 | $43,432 | -18.6% | | Home Meridian | $26,424 | $41,921 | -37.0% | | Domestic Upholstery | $30,027 | $35,104 | -14.5% | | All Other | $1,767 | $1,358 | +30.1% | | **Consolidated** | **$93,571** | **$121,815** | **-23.2%** | - On June 4, 2024, the board of directors declared a quarterly cash dividend of **$0.23 per share**[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 23.2% sales decrease, operating loss, and strategic initiatives amid lower industry-wide demand [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Consolidated net sales fell across all segments, compressing gross margin and resulting in a $5.2 million operating loss - The Home Meridian segment's sales decline of $15.5 million was impacted by the absence of **$7.5 million** in sales from the exited ACH product line[74](index=74&type=chunk)[77](index=77&type=chunk) - The Domestic Upholstery segment's sales decline was partially offset by **20% sales growth** at Sunset West[78](index=78&type=chunk)[84](index=84&type=chunk) Operating (Loss) / Profit by Segment (in thousands) | Segment | Q1 FY2025 | Q1 FY2024 | $ Change | | :--- | :--- | :--- | :--- | | Hooker Branded | $7 | $2,718 | $(2,711) | | Home Meridian | $(3,423) | $(2,119) | $(1,304) | | Domestic Upholstery | $(1,308) | $1,328 | $(2,636) | | **Consolidated** | **$(5,170)** | **$1,975** | **$(7,145)** | [Outlook](index=25&type=section&id=Outlook) Management expects subdued demand to continue but is implementing a cost reduction plan and anticipates future profitability - The company is planning a major cost reduction initiative, aiming for a **10% cut in overall fixed costs**[95](index=95&type=chunk) - Management is encouraged by a **19% increase in consolidated backlog** and an **11% increase in consolidated orders** during the first quarter[98](index=98&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=25&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity despite a covenant violation for which a waiver was obtained - The company was not in compliance with its fixed charge ratio covenant but obtained a waiver from BofA after the quarter ended[109](index=109&type=chunk) - As of April 28, 2024, the company had **$40.9 million in cash**, **$28.3 million available** under its revolver, and **$22.5 million outstanding** under its term loans[79](index=79&type=chunk)[110](index=110&type=chunk)[116](index=116&type=chunk) - The company anticipates spending approximately **$3.0 million** in fiscal 2025 to continue its new ERP system implementation[112](index=112&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from interest rates, raw material prices, and foreign currency fluctuations - The company is exposed to interest rate risk on its **$22.5 million** in outstanding variable-rate term loans[116](index=116&type=chunk) - The company faces raw materials price risk for wood, fabric, and petroleum-based foam products in its domestic manufacturing[117](index=117&type=chunk) - Currency risk is present as most imports are from Vietnam and China, though purchases are transacted in U.S. Dollars[118](index=118&type=chunk)[119](index=119&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures are effective[120](index=120&type=chunk) - The company is implementing its internal control structure at the newly acquired BOBO business, expected to be completed in fiscal 2025[121](index=121&type=chunk) PART II. OTHER INFORMATION [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) This section notes the covenant waiver obtained from Bank of America and the absence of new Rule 10b5-1 trading plans - The company entered into a covenant waiver with Bank of America on June 5, 2024, related to its loan agreement[125](index=125&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and the covenant waiver letter - Lists the exhibits filed with the quarterly report, including the Covenant Waiver Letter (Exhibit 10.2) and officer certifications[126](index=126&type=chunk)

Core Insights - Stonegate Capital Partners has updated its coverage on Hooker Furniture Corporation (NASDAQ: HOFT) for Q1 FY25, indicating a positive outlook for the company [5]. Financial Performance - Hooker Furniture Corporation maintains margins above 20% [3]. - The company has a strong dividend yield of 5.4% [3]. - The backlog for Hooker Furniture increased approximately 18.4% sequentially [3].

Hooker Furniture (HOFT) came out with a quarterly loss of $0.39 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates just once. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the ...