Management Commentary "The ongoing weak demand that's adversely impacting the furniture industry made our first quarter challenging," said Jeremy Hoff, Chief Executive Officer. "However, we remain confident that the strategies we are pursuing in operations, marketing and merchandising are transformative. Times like these present an opportunity to recalibrate and even reinvent aspects of our business," he said. EXHIBIT 99.1 Hooker Furnishings Reports First Quarter Operating Results and Cost Reduction Plan MA ...

MARTINSVILLE, Va., June 06, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ- GS: 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 first quarter operating results for the period beginning January 29 and ending April 28, 2024. Fiscal 2025 first quarter overview and expected cost reductions: Management Commentary "The ongoing weak demand that's adversely impacting the furniture industry mad ...

Hooker Furnishings Corporation, in its 100th year of business, is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories, and home décor for the residential, hospitality and contract markets. The Company also domestically manufactures premium residential custom leather and custom fabric-upholstered furniture and outdoor furniture. Major casegoods product categories include home entertainment, home office, accent, di ...

Hooker Furnishings Corporation, in its 100th year of business, is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories, and home décor for the residential, hospitality and contract markets. The Company also domestically manufactures premium residential custom leather and custom fabric-upholstered furniture and outdoor furniture. Major casegoods product categories include home entertainment, home office, accent, di ...

Hooker Furnishings Corporation (HOFT) is slated to report its first-quarter fiscal 2025 (ended on Apr 28, 2024) earnings on Jun 6, before market open. In the last reported quarter, the company's earnings missed the Zacks Consensus Estimate by 40% but improved from a loss of $1.60 per share in the year-ago quarter. Net sales missed the consensus mark by 2.9% and declined 26.3% from the prior-year's level. Trend in Estimate Revision The Zacks Consensus Estimate is pegged at a loss of 3 cents per share. In the ...

MARTINSVILLE, Va., May 22, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (Nasdaq-GS: HOFT) will present its fiscal 2025 first quarter financial results via teleconference and live internet web cast on Thursday morning, June 6, 2024 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 (reg ...

MARTINSVILLE, Va., May 22, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (Nasdaq-GS: HOFT) will present its fiscal 2025 first quarter financial results via teleconference and live internet web cast on Thursday morning, June 6, 2024 at 9:00 AM Eastern Time. Hooker's fiscal 2025 first quarter began on January 29, 2024 and ended on April 28, 2024. Hooker Furnishings Corporation, in its 100th year of business, is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furn ...

```markdown [Part I](index=7&type=section&id=Part%20I) [ITEM 1. BUSINESS](index=7&type=section&id=ITEM%201.%20BUSINESS) Hooker Furnishings designs, markets, and imports furniture and home decor, operating through three main segments - Hooker Furnishings Corporation is a designer, marketer, and importer of various furniture and home decor products for residential, hospitality, and contract markets, also engaging in domestic manufacturing of premium custom furniture[23](index=23&type=chunk) - The company is organized into three reportable segments: Hooker Branded, Home Meridian, and Domestic Upholstery, with other businesses aggregated into "**All Other**"[24](index=24&type=chunk) Imported Products Sourcing as % of Net Sales | Fiscal Year | % of Net Sales | | :---------- | :------------- | | **2024** | **70%** | | **2023** | **72%** | | **2022** | **82%** | - In fiscal **2024**, **imported products** sourced from Vietnam accounted for **88%** of **import purchases**, with the top five suppliers in Vietnam accounting for **60%** of these **purchases**[55](index=55&type=chunk) - The company's top five customers accounted for approximately **22%** of its fiscal **2024 consolidated sales**, with no single customer exceeding **6%**[32](index=32&type=chunk) Order Backlog (in thousands) | Reporting Segment | January 28, 2024 (Dollars) | January 28, 2024 (Weeks) | January 29, 2023 (Dollars) | January 29, 2023 (Weeks) | | :---------------- | :------------------------- | :----------------------- | :------------------------- | :----------------------- | | Hooker Branded | **$15,416** | **5.1** | **$20,567** | **5.2** | | Home Meridian | **$36,013** | **13.0** | **$43,052** | **10.3** | | Domestic Upholstery | **$18,920** | **7.8** | **$29,696** | **9.9** | | All Other | **$1,475** | **12.2** | **$2,071** | **26.2** | | Consolidated | **$71,824** | **8.6** | **$95,386** | **8.5** | - The company completed a corporate-wide **inventory** of **2022-2023 Greenhouse Gas Emissions (GHG)** and is establishing a baseline to measure future **carbon footprint reduction initiatives**. It has invested in **renewable energy**, with Sunset West operating on **100% renewable resources**, HF Custom on **50%** (aiming for **100%** in **2024**), and the Savannah distribution center on **30%**[45](index=45&type=chunk) - As of **January 28, 2024**, the company had **1,203 full-time employees**, with **1,030** in the United States and **173** in Asia. None are represented by a labor union[46](index=46&type=chunk) [ITEM 1A. RISK FACTORS](index=13&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces **economic**, **operational**, and **supply chain risks**, including **ERP system implementation** challenges and high reliance on offshore **sourcing** - **Economic downturns**, including persistent **inflation**, higher **interest rates**, and a slow housing market, could **decrease sales**, **earnings**, and **liquidity**, as home furnishings are considered postponable **purchases**[53](index=53&type=chunk) - The **implementation** of a new **Enterprise Resource Planning (ERP) system**, which went live in legacy Hooker divisions in **September 2023** and is expected for Home Meridian in fiscal **2026**, poses **risks** of significant **costs**, **business disruptions**, and potential negative impacts on **sales** and **profitability**[54](index=54&type=chunk)[57](index=57&type=chunk) - High reliance on offshore **sourcing**, particularly from Vietnam (**88%** of **import purchases** in fiscal **2024**), creates **risks** of **supply chain disruptions**, **increased transportation costs**, **tariffs**, and adverse effects from **currency fluctuations**[55](index=55&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk) - **Concentration** of **sales** and **accounts receivable** in a few major customers (top five accounted for **22%** of fiscal **2024 sales** and **16%** of **accounts receivable**) poses a significant **risk** if any of these customers are lost or become uncollectible[71](index=71&type=chunk) - **Labor shortages** and rising **labor costs**, particularly for skilled workers in domestic upholstery plants and warehouses, could disrupt **operations**, **increase training costs**, and negatively affect **production schedules** and **shipping capabilities**[73](index=73&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=19&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reported no unresolved staff comments from the SEC - There are no unresolved staff comments[80](index=80&type=chunk) [ITEM 1C. CYBERSECURITY](index=19&type=section&id=ITEM%201C.%20CYBERSECURITY) **Cybersecurity risk management** is integrated into the overall framework, overseen by the Board, with no **material impact** from past attacks - The company's **cybersecurity risk management program** is integrated into its overall **risk management framework**, designed to protect **information systems** and aligned with **industry best practices** and **regulatory requirements**[81](index=81&type=chunk) - The **Board of Directors** oversees **cybersecurity risks** through the **Audit Committee**, which reviews and discusses related matters with **management** and **independent auditors**. The **Chief Information Officer** leads the overall **cybersecurity strategy**[83](index=83&type=chunk)[84](index=84&type=chunk) - The company has experienced actual or attempted **cyber-attacks**, but none have had a **material impact** on its **operations** or **financial condition**[82](index=82&type=chunk) [ITEM 2. PROPERTIES](index=20&type=section&id=ITEM%202.%20PROPERTIES) The company operates approximately **3.3 million** square feet of owned or leased properties for various functions, with upholstery plants at **60% capacity** - As of **April 12, 2024**, the company operates approximately **3.3 million square feet** of owned or leased space across various locations[85](index=85&type=chunk) - Upholstery plants operated at approximately **60%** of **capacity** on a one-shift basis during fiscal **2024**[85](index=85&type=chunk) Principal Properties as of April 12, 2024 | Location | Segment Use | Primary Use | Approximate Size (in Square Feet) | Owned or Leased | | :------------------ | :----------------- | :------------------------------------------- | :-------------------------------- | :-------------- | | Martinsville, VA | All segments | Corporate Headquarters, Distribution, Manufacturing and Warehousing | **1,489,766** | Owned / Leased | | High Point, N.C. | All segments | Office and Showrooms | **238,359** | Leased | | Atlanta, GA | All segments | Showrooms and warehousing | **72,813** | Leased | | Midway, GA | HM, DU | Warehouse | **590,240** | Leased | | Bedford, VA | DU | Manufacturing and Offices | **327,000** | Owned | | Hickory, N.C. | DU | Manufacturing and Offices | **166,000** | Owned | | Mt. Airy, N.C. | DU | Manufacturing and warehousing | **104,150** | Leased | | Valdese, N.C. | DU | Manufacturing and warehousing | **102,905** | Leased | | Cherryville, N.C. | DU | Manufacturing Supply Plant | **53,000** | Owned | | Vista, CA | DU | Manufacturing and Offices | **43,813** | Leased | | Las Vegas, NV | HB, DU, AO | Showrooms | **14,428** | Leased | | Ho Chi Minh City, VN | HB, HM | Office, Warehouse and Distribution | **106,157** | Leased | | Dongguan, China | HB, HM | Office | **957** | Leased | [ITEM 3. LEGAL PROCEEDINGS](index=20&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The company reported no **material legal proceedings** - There are no **material legal proceedings**[87](index=87&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=20&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) The company reported no **mine safety disclosures** - There are no **mine safety disclosures**[88](index=88&type=chunk) [Information about our Executive Officers](index=21&type=section&id=Information%20about%20our%20Executive%20Officers) This section lists Hooker Furnishings' **executive officers**, their ages, positions, and tenure with the company Executive Officers as of April 12, 2024 | Name | Age | Position | Year Joined Company | | :-------------- | :-- | :--------------------------------------------- | :------------------ | | Jeremy R. Hoff | **50** | Chief Executive Officer and Director | **2017** | | Paul A. Huckfeldt | **66** | Chief Financial Officer and Senior Vice President - Finance and Accounting | **2004** | | Anne J. Smith | **62** | Chief Administration Officer and President - Domestic Upholstery | **2008** | | Tod R. Phelps | **55** | Senior Vice President - Operations and Chief Information Officer | **2017** | [Part II](index=22&type=section&id=Part%20II) [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=22&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Hooker Furnishings' **common stock** trades on NASDAQ, with approximately **7,500** **shareholders** and expected continued quarterly **dividends** - Hooker Furnishings' **common stock** trades on the NASDAQ Global Select Market under the symbol "**HOFT**"[3](index=3&type=chunk) - As of **January 28, 2024**, the company had approximately **7,500 beneficial shareholders**[96](index=96&type=chunk) - The company expects to continue declaring and paying regular quarterly **dividends** in March, June, September, and December, subject to **Board approval** based on **financial condition** and **capital requirements**[96](index=96&type=chunk) [ITEM 6. SELECTED FINANCIAL DATA](index=23&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) This section presents **selected financial data** for the last five **fiscal years**, offering a historical overview of the company's **performance** Selected Financial Data (in thousands, except per share data) | Statement of Operations Data: | January 28, 2024 | January 29, 2023 | January 30, 2022 | January 31, 2021 | February 2, 2020 | | :---------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | **Net sales** | **$433,226** | **$583,102** | **$593,612** | **$540,081** | **$610,824** | | **Cost of sales** | **322,705** | **461,056** | **488,508** | **426,810** | **494,365** | | **Inventory valuation expense** | **1,829** | **28,752** | **3,402** | **523** | **2,501** | | **Gross profit** | **108,692** | **93,294** | **101,702** | **112,748** | **113,958** | | **Selling and administrative expenses** | **92,678** | **95,815** | **84,475** | **80,410** | **88,867** | | **Goodwill impairment** | - | - | - | **39,568** | - | | **Trade names impairment** | - | **13** | - | **4,750** | - | | **Intangible asset amortization** | **3,656** | **3,512** | **2,384** | **2,384** | **2,384** | | **Operating income/(loss)** | **12,358** | (**6,046**) | **14,843** | (**14,364**) | **22,707** | | **Other income, net** | **1,653** | **416** | **373** | **336** | **458** | | **Interest Expense, net** | **1,573** | **519** | **110** | **540** | **1,238** | | **Income/(loss) before income taxes** | **12,438** | (**6,149**) | **15,106** | (**14,568**) | **21,927** | | **Income tax expense/(benefit)** | **2,573** | (**1,837**) | **3,388** | (**4,142**) | **4,844** | | **Net income/(loss)** | **9,865** | (**4,312**) | **11,718** | (**10,426**) | **17,083** | | Per Share Data: | | | | | | | **Basic earnings/(loss) per share** | **$0.91** | **$(0.37)** | **$0.99** | **$(0.88)** | **$1.44** | | **Diluted earnings/(loss) per share** | **0.91** | (**0.37**) | **0.97** | (**0.88**) | **1.44** | | **Cash dividends per share** | **0.89** | **0.82** | **0.74** | **0.66** | **0.61** | | **Net book value per share** | **21.54** | **21.33** | **22.01** | **21.76** | **23.25** | | **Weighted average number of shares outstanding (basic)** | **10,838** | **11,593** | **11,852** | **11,822** | **11,784** | | Balance Sheet Data: | | | | | | | **Cash and cash equivalents** | **$43,159** | **$19,002** | **$69,366** | **$65,841** | **$36,031** | | **Trade accounts receivable** | **51,280** | **62,129** | **73,727** | **83,290** | **87,653** | | **Inventories** | **61,815** | **96,675** | **75,023** | **70,159** | **92,813** | | **Working capital** | **123,389** | **137,265** | **170,777** | **169,612** | **171,838** | | **Total assets** | **343,586** | **381,716** | **374,559** | **352,273** | **393,708** | | **Long-term debt (including current maturities)** | **22,874** | **24,266** | - | - | **30,138** | | **Shareholders' equity** | **225,975** | **236,021** | **261,128** | **257,503** | **274,121** | [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=24&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section reviews fiscal **2024 financial performance**, highlighting improved **profitability** and **balance sheet** strength despite **decreased net sales** - Fiscal **2024 consolidated net sales decreased** by **$149.9 million** (**25.7%**) to **$433.2 million**, primarily due to **industry-wide soft demand** and the exit of unprofitable product lines in the Home Meridian segment[105](index=105&type=chunk) - Despite the **sales decline**, **consolidated gross profit increased** by **$15.4 million**, and **gross margin improved** by **910 basis points**, mainly due to the absence of a one-time **$24.4 million inventory write-down** in fiscal **2023** at Home Meridian and **increased gross margin** at Hooker Branded[105](index=105&type=chunk) - The company reported a **consolidated operating income** of **$12.4 million** in fiscal **2024**, a significant improvement from an **operating loss** of **$6.0 million** in the prior fiscal year[105](index=105&type=chunk) - **Consolidated net income** was **$9.9 million**, or **$0.91 per diluted share**, compared to a **net loss** of **$4.3 million**, or (**$0.37**) **per diluted share**, in the prior fiscal year[105](index=105&type=chunk) - The company strengthened its **balance sheet**, with **cash increasing** by **$24.2 million** to **$43.2 million** and **inventory levels reduced** by **$34.9 million** (**36%**) to better align with current **demand**[111](index=111&type=chunk) - The **$25 million share repurchase program** was completed in fiscal **2024**, with approximately **1.4 million shares repurchased**. The quarterly **dividend was increased** to **$0.23 per share**, marking the eighth consecutive annual **dividend increase**[112](index=112&type=chunk)[147](index=147&type=chunk) [Overview](index=24&type=section&id=Overview) [Review](index=25&type=section&id=Review) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) [Net Sales](index=27&type=section&id=Net%20Sales) Consolidated Net Sales by Segment (in thousands) | Segment | January 28, 2024 | % Net Sales | January 29, 2023 | % Net Sales | $ Change | % Change | | :------------------ | :--------------- | :---------- | :--------------- | :---------- | :--------- | :------- | | Hooker Branded | **$156,590** | **36.2%** | **$205,935** | **35.3%** | **$(49,345)** | **-24.0%** | | Home Meridian | **143,538** | **33.1%** | **216,338** | **37.1%** | (**72,800**) | **-33.7%** | | Domestic Upholstery | **126,827** | **29.3%** | **156,717** | **26.9%** | (**29,890**) | **-19.1%** | | All Other | **6,271** | **1.4%** | **4,112** | **0.7%** | **2,159** | **52.5%** | | Consolidated | **$433,226** | **100%** | **$583,102** | **100%** | **$(149,876)** | **-25.7%** | Unit Volume and Average Selling Price (ASP) Changes vs. FY23 | Segment | Unit Volume % Increase / (Decrease) | Average Selling Price % Increase / (Decrease) | | :------------------ | :---------------------------------- | :-------------------------------------------- | | Hooker Branded | **-21.6%** | **-0.1%** | | Home Meridian | **-23.0%** | **-13.2%** | | Domestic Upholstery | **-24.2%** | **7.7%** | | All Other | **0.2%** | **-6.9%** | | Consolidated | **-22.7%** | **-2.6%** | - Hooker Branded segment's **net sales decreased** by **24.0%** due to soft **demand**, with **ASP** remaining stable. **Price decreases** and **promotions** were implemented from **August 2023** to align with lower **ocean freight costs** and **market discounting**[116](index=116&type=chunk) - Home Meridian segment's **net sales decreased** by **33.7%** due to reduced **unit volume** and **ASP**, with **26%** of the **decrease** attributed to the exit of unprofitable businesses. SLH **net sales increased** by **38%** due to **hospitality industry recovery**[116](index=116&type=chunk) - Domestic Upholstery's **net sales decreased** by **19.1%** from an all-time high in the prior year, driven by reduced **unit volume**, despite **increased ASP** from prior-year **price increases**[116](index=116&type=chunk) [Gross Profit/(Loss) and Margin](index=28&type=section&id=Gross%20Profit%2F%28Loss%29%20and%20Margin) Consolidated Gross Profit by Segment (in thousands) | Segment | January 28, 2024 | % Segment Net Sales | January 29, 2023 | % Segment Net Sales | $ Change | % Change | | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | :--------- | :--------- | | Hooker Branded | **$57,671** | **36.8%** | **$60,871** | **29.6%** | **$(3,200)** | **-5.3%** | | Home Meridian | **24,367** | **17.0%** | (**2,620**) | **-1.2%** | **26,987** | **1030.0%** | | Domestic Upholstery | **24,048** | **19.0%** | **32,633** | **20.8%** | (**8,585**) | **-26.3%** | | All Other | **2,606** | **41.5%** | **2,410** | **58.6%** | **196** | **8.1%** | | Consolidated | **$108,692** | **25.1%** | **$93,294** | **16.0%** | **$15,398** | **16.5%** | - **Consolidated gross profit** and **margin increased** due to the absence of a **$24 million inventory write-down** at Home Meridian in the prior year and lower **product costs** from reduced **ocean freight expenses** in Hooker Branded[118](index=118&type=chunk)[121](index=121&type=chunk) - Domestic Upholstery's **gross profit** and **margin decreased** due to lower **sales** and **under-absorbed overhead**, with **indirect costs 360 bps higher**, partially offset by a **270 bps decrease** in **direct material costs**[121](index=121&type=chunk) [Selling and Administrative Expenses ("S&A")](index=28&type=section&id=Selling%20and%20Administrative%20Expenses%20%28%22S%26A%22%29) Consolidated Selling and Administrative Expenses by Segment (in thousands) | Segment | January 28, 2024 | % Segment Net Sales | January 29, 2023 | % Segment Net Sales | $ Change | % Change | | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | :--------- | :------- | | Hooker Branded | **$40,829** | **26.1%** | **$38,840** | **18.9%** | **$1,989** | **5.1%** | | Home Meridian | **28,575** | **19.9%** | **33,215** | **15.4%** | (**4,640**) | **-14.0%** | | Domestic Upholstery | **20,582** | **16.2%** | **21,584** | **13.8%** | (**1,002**) | **-4.6%** | | All Other | **2,692** | **42.9%** | **2,176** | **52.9%** | **516** | **23.7%** | | Consolidated | **$92,678** | **21.4%** | **$95,815** | **16.4%** | **$(3,137)** | **-3.3%** | - **Consolidated S&A expenses decreased** in absolute terms but **increased** as a **percentage of net sales** due to lower **net sales**[122](index=122&type=chunk) - Hooker Branded's **S&A expenses increased** due to **investments** in new showrooms, **ERP system implementation**, **increased headcount**, and **wage inflation**, partially offset by lower **commissions** and **executive bonuses**[126](index=126&type=chunk) - Home Meridian's **S&A expenses decreased** due to **organizational restructuring**, **personnel changes**, and **cost savings** from **business repositioning**, including lower **insurance** and **depreciation costs**[126](index=126&type=chunk) [Intangible Asset Amortization](index=29&type=section&id=Intangible%20Asset%20Amortization) Intangible Asset Amortization (in thousands) | Item | January 28, 2024 | % Net Sales | January 29, 2023 | % Net Sales | $ Change | % Change | | :-------------------------- | :--------------- | :---------- | :--------------- | :---------- | :------- | :------- | | **Intangible asset amortization** | **$3,656** | **0.8%** | **$3,512** | **0.6%** | **$144** | **4.1%** | - **Intangible asset amortization expense** was higher in fiscal **2024** due to the reassessment and **amortization** of the Sam Moore **trade name**[124](index=124&type=chunk) [Operating Profit / (Loss) and Margin](index=29&type=section&id=Operating%20Profit%20%2F%20%28Loss%29%20and%20Margin) Consolidated Operating Income/(Loss) by Segment (in thousands) | Segment | January 28, 2024 | % Segment Net Sales | January 29, 2023 | % Segment Net Sales | $ Change | % Change | | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | :--------- | :------- | | Hooker Branded | **$16,844** | **10.8%** | **$22,030** | **10.7%** | **$(5,186)** | **-23.5%** | | Home Meridian | (**5,530**) | **-3.9%** | (**37,181**) | **-17.2%** | **31,651** | **85.1%** | | Domestic Upholstery | **1,131** | **0.9%** | **8,871** | **5.7%** | (**7,740**) | **-87.3%** | | All Other | (**87**) | **-1.4%** | **234** | **5.7%** | (**321**) | **-137.2%** | | Consolidated | **$12,358** | **2.9%** | **$(6,046)** | **-1.0%** | **$18,404** | **304.4%** | - **Consolidated operating profitability increased** significantly in fiscal **2024**, both in absolute terms and as a **percentage of net sales**, primarily driven by the Home Meridian segment's improved **performance** due to the absence of prior-year **inventory write-downs**[126](index=126&type=chunk) [Interest Expense, net](index=30&type=section&id=Interest%20Expense%2C%20net) Interest Expense, net (in thousands) | Item | January 28, 2024 | % Net Sales | January 29, 2023 | % Net Sales | $ Change | % Change | | :------------------ | :--------------- | :---------- | :--------------- | :---------- | :------- | :------- | | **Interest expense, net** | **$1,573** | **0.4%** | **$519** | **0.1%** | **$1,054** | **203.1%** | - **Consolidated interest expense increased** by **203.1%** in fiscal **2024** due to **interest incurred** for the entire year on **term loans** entered in **July 2022** and higher **interest rates**[128](index=128&type=chunk) [Income Taxes](index=30&type=section&id=Income%20Taxes) Consolidated Income Tax Expense/(Benefit) (in thousands) | Item | January 28, 2024 | % Net Sales | January 29, 2023 | % Net Sales | $ Change | % Change | | :---------------------------------- | :--------------- | :---------- | :--------------- | :---------- | :------- | :------- | | **Consolidated income tax expense / (benefit)** | **$2,573** | **0.6%** | **$(1,837)** | **-0.3%** | **$4,410** | **240.1%** | | **Effective Tax Rate** | **20.7%** | | **29.9%** | | | | - The company recorded an **income tax expense** of **$2.6 million** in fiscal **2024**, compared to an **income tax benefit** of **$1.8 million** in fiscal **2023**. The **effective tax rate decreased** from **29.9%** in fiscal **2023** to **20.7%** in fiscal **2024**[130](index=130&type=chunk) [Net Income / (Loss) and Earnings (Loss) Per Share](index=30&type=section&id=Net%20Income%20%2F%20%28Loss%29%20and%20Earnings%20%28Loss%29%20Per%20Share) Consolidated Net Income/(Loss) and EPS (in thousands, except per share data) | Item | January 28, 2024 | % Net Sales | January 29, 2023 | % Net Sales | $ Change | % Change | | :------------------------------ | :--------------- | :---------- | :--------------- | :---------- | :------- | :------- | | **Net income / (loss) Consolidated** | **$9,865** | **2.3%** | **$(4,312)** | **-0.7%** | **$14,177** | **328.8%** | | **Diluted earnings / (loss) per share** | **$0.91** | | **$(0.37)** | | | | - **Consolidated net income** significantly improved to **$9.9 million** (**$0.91 diluted EPS**) in fiscal **2024** from a **net loss** of **$4.3 million** ((**$0.37**) **diluted EPS**) in fiscal **2023**[132](index=132&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=30&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) [Summary Cash Flow Information](index=30&type=section&id=Summary%20Cash%20Flow%20Information) Summary Cash Flow Information (in thousands) | Activity | January 28, 2024 | January 29, 2023 | January 30, 2022 | | :---------------------------------------- | :--------------- | :--------------- | :--------------- | | **Net cash provided by/(used in) operating activities** | **$55,471** | **$(21,718)** | **$19,209** | | **Net cash used in investing activities** | (**8,558**) | (**29,965**) | (**6,862**) | | **Net cash (used in)/provided by financing activities** | (**22,756**) | **1,319** | (**8,822**) | | **Net increase/(decrease) in cash and cash equivalents** | **$24,157** | **$(50,364)** | **$3,525** | - In fiscal **2024**, the company generated **$55.5 million** in **cash** from **operations**, used **$8.6 million** in **investing activities**, and **$22.8 million** in **financing activities**, resulting in a **net increase** of **$24.2 million** in **cash and cash equivalents**[133](index=133&type=chunk)[134](index=134&type=chunk) [Liquidity, Financial Resources and Capital Expenditures](index=31&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Expenditures) - The company's **liquidity sources** include **available cash and cash equivalents**, expected **cash flow** from **operations**, **available lines of credit**, and **cash surrender value** of **Company-owned life insurance**[137](index=137&type=chunk) - **Short-term cash requirements** primarily fund **operations**, quarterly **dividend payments**, and **capital expenditures** for **ERP**, **showroom renovations**, and **system upgrades**. **Long-term needs** relate to **debt repayment** and **lease payments**[138](index=138&type=chunk) [Loan Agreements and Revolving Credit Facility](index=31&type=section&id=Loan%20Agreements%20and%20Revolving%20Credit%20Facility) - The company has a **$35 million Unsecured Revolving Credit Facility** with Bank of America, extended to **July 26, 2027**, bearing **interest** at **BSBY plus 1.00%**[139](index=139&type=chunk) - Two **term loans** were entered into on **July 26, 2022**: an **$18 million Secured Term Loan (BSBY + 0.90%)** and a **$7 million Unsecured Term Loan (BSBY + 1.40%)**, both due **July 26, 2027**[139](index=139&type=chunk) - As of **January 28, 2024**, **$4.9 million** was **outstanding** under the **Unsecured Term Loan** and **$18 million** under the **Secured Term Loan**[141](index=141&type=chunk) - The company was in compliance with all **financial covenants** (**funded debt** to **EBITDA ratio**, **fixed charge coverage ratio**, **capital expenditure limits**) as of **January 28, 2024**[142](index=142&type=chunk)[143](index=143&type=chunk) - As of **January 28, 2024**, **$28.3 million** was available under the **$35 million Existing Revolver**, with **$6.7 million** in **standby letters of credit outstanding**[144](index=144&type=chunk) [Share Repurchase Authorization](index=32&type=section&id=Share%20Repurchase%20Authorization) - The company completed its **$25 million share repurchase program** during fiscal **2024**, repurchasing approximately **1.4 million shares** of **common stock**[112](index=112&type=chunk)[147](index=147&type=chunk) [Capital Expenditures](index=33&type=section&id=Capital%20Expenditures) - The company expects to spend between **$3 million** to **$4 million** in **capital expenditures** in fiscal **2025** for **operating systems** and **facilities maintenance** and **enhancement**[148](index=148&type=chunk) [Enterprise Resource Planning](index=33&type=section&id=Enterprise%20Resource%20Planning) - The **ERP system** went live in legacy Hooker divisions in **September 2023** and is expected for Home Meridian in fiscal **2026**. The company anticipates spending approximately **$4.0 million** in fiscal **2025** on **ERP implementation**[149](index=149&type=chunk) [Material Capital Commitments](index=33&type=section&id=Material%20Capital%20Commitments) Contractual Term-Loan and Interest Payments (in millions) | Fiscal Year | Amount | | :---------- | :----- | | **2025** | **$2.8** | | **2026** | **$2.7** | | **2027** | **$2.6** | | **2028** | **$19.3** | Future Minimum Annual Lease Commitments (in millions) | Fiscal Year | Amount | | :---------- | :----- | | **2025** | **$9.5** | | **2026** | **$9.6** | | **2027** | **$9.4** | | **2028** | **$7.8** | | **2029** | **$7.3** | [Dividends](index=33&type=section&id=Dividends) - The company declared and paid **dividends** of **$0.89 per share** (**$9.7 million total**) in fiscal **2024**, an **8.5% increase** from fiscal **2023**. A quarterly **cash dividend** of **$0.23 per share** was declared on **March 4, 2024**[152](index=152&type=chunk) [Outlook](index=34&type=section&id=Outlook) [Critical Accounting Policies and Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) [Revenue Recognition](index=34&type=section&id=Revenue%20Recognition) - **Revenue** is recognized when **control of goods transfers** to the customer, typically at **shipment**, with the **transaction price** reflecting expected consideration net of **discounts** and **allowances**[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [Inventory](index=35&type=section&id=Inventory) - **Inventories** are valued at the lower of **cost** or **market**, using the **last-in, first-out (LIFO) method**. An **allowance for slow-moving** and **obsolete inventory** is recorded based on **historical experience** and **sales trends**[162](index=162&type=chunk)[163](index=163&type=chunk) [Concentrations of Sourcing Risk](index=35&type=section&id=Concentrations%20of%20Sourcing%20Risk) [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=36&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces **market risks** from **interest rate** changes, **raw material price** fluctuations, and **foreign currency exchange rates**, particularly with Vietnam **sourcing** - The company is exposed to **interest rate risk** from its **variable-rate debt (Existing Revolver, Secured Term Loan, Unsecured Term Loan)** tied to **BSBY**. A **1% increase** in **BSBY** would raise annual **interest expenses** on **term loans** by approximately **$223,000**[167](index=167&type=chunk) - **Raw materials price risk** affects domestic upholstery manufacturing, particularly for wood, fabric, and foam products, with **costs sensitive** to **home construction activity** and **crude oil prices**[168](index=168&type=chunk) - **Currency risk** is managed by negotiating firm pricing in **U.S. Dollars** with foreign suppliers, predominantly from Vietnam. A **decline** in the **U.S. Dollar's value** could **increase imported product prices**, potentially impacting **sales volume** or **profit margins**[169](index=169&type=chunk)[170](index=170&type=chunk) [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=36&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section incorporates the company's **consolidated financial statements** by reference, starting on page F-6 - The **consolidated financial statements** are incorporated by reference and begin on page F-6 of this report[171](index=171&type=chunk) [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=36&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reported no changes in or disagreements with accountants on **accounting** and **financial disclosure** - There were no changes in or disagreements with accountants on **accounting** and **financial disclosure**[172](index=172&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES](index=37&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management and KPMG LLP affirmed the effectiveness of **disclosure controls** and **internal control over financial reporting** as of **January 28, 2024** - **Management concluded** that **disclosure controls** and **procedures** were effective as of **January 28, 2024**, providing reasonable assurance for timely and accurate **financial reporting**[173](index=173&type=chunk) - **Management assessed** and **concluded** that the company's **internal control over financial reporting** was effective as of **January 28, 2024**, based on the **COSO framework**[174](index=174&type=chunk) - KPMG LLP issued an **unqualified opinion** on the effectiveness of the company's **internal control over financial reporting**[175](index=175&type=chunk) - Changes in **internal control over financial reporting** included integrating Sunset West and implementing a new **Enterprise Resource Planning (ERP) system** in legacy Hooker divisions during the third quarter of fiscal **2024**[176](index=176&type=chunk)[177](index=177&type=chunk) [ITEM 9B. OTHER INFORMATION](index=37&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) No director or officer adopted, terminated, or modified **Rule 10b5-1** or non-**Rule 10b5-1 trading arrangement** during the fourth quarter of fiscal **2024** - No director or officer adopted, terminated, or modified a **Rule 10b5-1** or non-**Rule 10b5-1 trading arrangement** during the fourth quarter of fiscal **2024**[179](index=179&type=chunk) [ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](index=37&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS) This item is not applicable to the company - This item is not applicable[180](index=180&type=chunk) [Part III](index=38&type=section&id=Part%20III) [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](index=38&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Information on **directors**, **executive officers**, and **corporate governance** is incorporated by reference from the **2024 Proxy Statement** - Information on **directors**, **executive officers**, **corporate governance**, **Section 16(a) compliance**, **code of ethics**, and **Audit Committee composition** is incorporated by reference from the **2024 Proxy Statement**[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) [ITEM 11. EXECUTIVE COMPENSATION](index=38&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Information on **executive** and **director compensation** is incorporated by reference from the **2024 Proxy Statement** - Information relating to **executive** and **director compensation** is incorporated by reference from the **2024 Proxy Statement**[188](index=188&type=chunk) [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS](index=38&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20SHAREHOLDER%20MATTERS) Information on **security ownership** and **equity compensation plans** is incorporated by reference from the **2024 Proxy Statement** - Information on **security ownership** of certain **beneficial owners** and **management**, and **equity compensation plan information**, is incorporated by reference from the **2024 Proxy Statement**[189](index=189&type=chunk) [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=38&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Information on certain relationships, **related transactions**, and **director independence** is incorporated by reference from the **2024 Proxy Statement** - Information regarding certain relationships, **related transactions**, and **director independence** is incorporated by reference from the **2024 Proxy Statement**[190](index=190&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES](index=38&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Information on **principal accounting fees and services** is incorporated by reference from the **2024 Proxy Statement** - Information on **principal accounting fees and services** is incorporated by reference from the **2024 Proxy Statement**[191](index=191&type=chunk) [Part IV](index=39&type=section&id=Part%20IV) [ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](index=39&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists **exhibits** and **financial statement schedules**, including **consolidated financial statements** and **independent auditor reports** - The report includes **consolidated financial statements**, **reports** of **independent registered public accounting firm**, and various **exhibits**[193](index=193&type=chunk) - **Financial statement schedules** have been omitted because the required information is separately disclosed in the **consolidated financial statements** or related notes[193](index=193&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=41&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY) The company reported no **Form 10-K Summary** - There is no **Form 10-K Summary**[199](index=199&type=chunk) [Signatures](index=42&type=section&id=Signatures) This section contains the **signatures** of the registrant's authorized **officers** and **directors**, certifying the report's submission - The report is signed by the **Chief Executive Officer** and **Director**, Jeremy R. Hoff, and the **Senior Vice President - Finance and Accounting** and **Chief Financial Officer**, Paul A. Huckfeldt, along with other **directors**[203](index=203&type=chunk)[204](index=204&type=chunk) [Index to Consolidated Financial Statements](index=43&type=section&id=Index%20to%20Consolidated%20Financial%20Statements) [Management's Report on Internal Control Over Financial Reporting](index=44&type=section&id=Management%27s%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) Management affirmed the effectiveness of **internal control over financial reporting** as of **January 28, 2024**, audited by KPMG LLP - **Management concluded** that the company's **internal control over financial reporting** was effective as of **January 28, 2024**, based on the **COSO framework**[207](index=207&type=chunk) - The effectiveness of **internal control over financial reporting** was audited by KPMG LLP[208](index=208&type=chunk) [Reports of Independent Registered Public Accounting Firm](index=45&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued unqualified opinions on **financial statements** and **internal control**, noting a critical audit matter regarding **ERP system implementation** - KPMG LLP issued an **unqualified opinion** on the **consolidated financial statements** for the three-year period ended **January 28, 2024**, stating they are presented fairly in all **material respects** in conformity with **U.S. GAAP**[211](index=211&type=chunk) - KPMG LLP also issued an **unqualified opinion** on the effectiveness of the company's **internal control over financial reporting** as of **January 28, 2024**[212](index=212&type=chunk)[222](index=222&type=chunk) - A **critical audit matter** was identified regarding the sufficiency of **audit evidence** over the **implementation** of a **cloud-based Enterprise Resource Planning (ERP) system**, which impacted a high **volume of transactions** and **financial statement balances**[215](index=215&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) [Consolidated Balance Sheets](index=48&type=section&id=Consolidated%20Balance%20Sheets) The **consolidated balance sheets** present the **financial position**, showing **increased cash**, **decreased receivables** and **inventories**, and **reduced liabilities** Consolidated Balance Sheets (in thousands) | Assets | January 28, 2024 | January 29, 2023 | | :---------------------------------------- | :--------------- | :--------------- | | **Cash and cash equivalents** | **$43,159** | **$19,002** | | **Trade accounts receivable, net** | **51,280** | **62,129** | | **Inventories** | **61,815** | **96,675** | | **Total current assets** | **164,798** | **187,303** | | **Property, plant and equipment, net** | **29,142** | **27,010** | | **Total non-current assets** | **178,788** | **194,413** | | **Total assets** | **$343,586** | **$381,716** | | Liabilities and Shareholders' Equity | | | | **Current portion of long-term debt** | **$1,393** | **$1,393** | | **Trade accounts payable** | **16,470** | **16,090** | | **Total current liabilities** | **41,409** | **50,038** | | **Long term debt** | **21,481** | **22,874** | | **Total long-term liabilities** | **76,202** | **95,657** | | **Total liabilities** | **117,611** | **145,695** | | **Total shareholders' equity** | **225,975** | **236,021** | | **Total liabilities and shareholders' equity** | **$343,586** | **$381,716** | - **Cash and cash equivalents increased** by **$24.157 million** from **$19.002 million** in FY23 to **$43.159 million** in FY24[230](index=230&type=chunk) - **Inventories decreased** by **$34.86 million** from **$96.675 million** in FY23 to **$61.815 million** in FY24[230](index=230&type=chunk) - **Total liabilities decreased** by **$28.084 million** from **$145.695 million** in FY23 to **$117.611 million** in FY24[230](index=230&type=chunk) [Consolidated Statements of Operations](index=49&type=section&id=Consolidated%20Statements%20of%20Operations) The **consolidated statements of operations** detail **financial performance**, showing a return to **net income** in fiscal **2024** despite **decreased net sales** Consolidated Statements of Operations (in thousands, except per share data) | Item | 2024 | 2023 | 2022 | | :---------------------------- | :--------- | :--------- | :--------- | | **Net sales** | **$433,226** | **$583,102** | **$593,612** | | **Cost of sales** | **322,705** | **461,056** | **488,508** | | **Inventory write downs** | **1,829** | **28,752** | **3,402** | | **Gross profit** | **108,692** | **93,294** | **101,702** | | **Selling and administrative expenses** | **92,678** | **95,815** | **84,475** | | **Trade name impairment charges** | - | **13** | - | | **Intangible asset amortization** | **3,656** | **3,512** | **2,384** | | **Operating income / (loss)** | **12,358** | (**6,046**) | **14,843** | | **Other income, net** | **1,653** | **416** | **373** | | **Interest expense, net** | **1,573** | **519** | **110** | | **Income / (Loss) before income taxes** | **12,438** | (**6,149**) | **15,106** | | **Income tax expense / (benefit)** | **2,573** | (**1,837**) | **3,388** | | **Net income / (loss)** | **$9,865** | **$(4,312)** | **$11,718** | | **Earnings / (Loss) per share:** | | | | | **Basic** | **$0.91** | **$(0.37)** | **$0.99** | | **Diluted** | **$0.91** | **$(0.37)** | **$0.97** | | **Weighted average shares outstanding:** | | | | | **Basic** | **10,684** | **11,593** | **11,852** | | **Diluted** | **10,838** | **11,593** | **11,970** | | **Cash dividends declared per share** | **$0.89** | **$0.82** | **$0.74** | - **Net sales decreased** by **25.7%** from **$583.102 million** in **2023** to **$433.226 million** in **2024**[231](index=231&type=chunk) - **Gross profit increased** by **16.5%** from **$93.294 million** in **2023** to **$108.692 million** in **2024**, primarily due to lower **inventory write-downs**[231](index=231&type=chunk) - The company returned to a **net income** of **$9.865 million** in **2024**, compared to a **net loss** of **$4.312 million** in **2023**[231](index=231&type=chunk) [Consolidated Statements of Comprehensive Income/(Loss)](index=50&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%2F%28Loss%29) The **consolidated statements of comprehensive income/(loss)** show a significant improvement to **$9.734 million** in fiscal **2024** Consolidated Statements of Comprehensive Income/(Loss) (in thousands) | Item | 2024 | 2023 | 2022 | | :---------------------------------- | :------- | :-------- | :-------- | | **Net Income/(Loss)** | **$9,865** | **$(4,312)** | **$11,718** | | **Other comprehensive income:** | | | | | **Actuarial adjustments** | (**172**) | **1,204** | **994** | | **Income tax effect on adjustments** | **41** | (**288**) | (**237**) | | **Adjustments to net periodic benefit cost** | (**131**) | **916** | **757** | | **Total Comprehensive Income/(Loss)** | **$9,734** | **$(3,396)** | **$12,475** | - **Total comprehensive income** for fiscal **2024** was **$9.734 million**, a substantial **increase** from a **comprehensive loss** of **$3.396 million** in fiscal **2023**[233](index=233&type=chunk) [Consolidated Statements of Cash Flows](index=51&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The **consolidated statements of cash flows** show significant **cash generation** from **operations** in fiscal **2024**, increasing **cash and cash equivalents** Consolidated Statements of Cash Flows (in thousands) | Activity | 2024 | 2023 | 2022 | | :---------------------------------------- | :--------- | :--------- | :--------- | | **Operating Activities:** | | | | | **Net cash provided by/(used in) operating activities** | **$55,471** | **$(21,718)** | **$19,209** | | **Investing Activities:** | | | | | **Net cash used in investing activities** | (**8,558**) | (**29,965**) | (**6,862**) | | **Financing Activities:** | | | | | **Net cash (used in)/provided by financing activities** | (**22,756**) | **1,319** | (**8,822**) | | **Net increase/(decrease) in cash and cash equivalents** | **$24,157** | **$(50,364)** | **$3,525** | | **Cash and cash equivalents at the beginning of year** | **19,002** | **69,366** | **65,841** | | **Cash and cash equivalents at the end of year** | **$43,159** | **$19,002** | **$69,366** | - **Net cash provided by operating activities** significantly improved to **$55.471 million** in fiscal **2024** from a **net cash used** of **$21.718 million** in fiscal **2023**[236](index=236&type=chunk) - **Net cash used in investing activities decreased** to **$8.558 million** in fiscal **2024** from **$29.965 million** in fiscal **2023**, primarily due to lower **acquisition spending**[236](index=236&type=chunk) - **Net cash used in financing activities** was **$22.756 million** in fiscal **2024**, mainly for **share repurchases** and **cash dividends**[236](index=236&type=chunk) [Consolidated Statements of Shareholders' Equity](index=52&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) The **consolidated statements of shareholders' equity** show a **decrease** in **total equity** in fiscal **2024** due to **dividends** and **share repurchases** Consolidated Statements of Shareholders' Equity (in thousands, except per share data) | Item | January 31, 2021 | January 30, 2022 | January 29, 2023 | January 28, 2024 | | :---------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | **Total Shareholders' Equity** | **$257,503** | **$261,128** | **$236,021** | **$225,975** | | **Net income/(loss)** | | **$11,718** | **$(4,312)** | **$9,865** | | **Cash dividends paid and accrued** | | (**8,822**) | (**9,602**) | (**9,682**) | | **Purchase and retirement of common stock** | | | (**13,354**) | (**11,804**) | - **Total shareholders' equity decreased** from **$236.021 million** in FY23 to **$225.975 million** in FY24, primarily due to **cash dividends paid** and **common stock repurchases**[238](index=238&type=chunk) [

Key PointsFurniture companies are attractive investments for their cash flow and capital returns. The Lovesac Company is still in its growth phase but on track for substantial capital return over time. Hooker Furnishings is a high-yield in the furniture industry on track to pivot back to growth this fiscal year. 5 stocks we like better than LovesacFurniture stocks The Lovesac Company NASDAQ: LOVE and Hooker Furnishings NASDAQ: HOFT are lower following their Q4 reports opening a buy-the-dip opportunity. Near ...

Financial Data and Key Metrics Changes - For fiscal 2024 fourth quarter, consolidated net sales decreased by $34 million or 26% to $96.8 million due to sales decreases in all segments driven by soft demand for home furnishings [3][19] - Net income for the fourth quarter was $593,000 or $0.06 per diluted share, compared to a net loss of $17 million or $1.60 per diluted share in the prior year [3] - Consolidated net sales for fiscal 2024 were $433 million, a decrease of $150 million or 25.7% compared to the previous year [92] Business Line Data and Key Metrics Changes - The Hooker Branded segment's net sales decreased by $49 million or 24% compared to the prior fiscal year, primarily due to soft demand for home furnishings [21] - Home Meridian segment sales decreased by $73 million or 34% compared to the prior fiscal year, with the exit of unprofitable businesses accounting for about 26% of the sales decrease [39] - Domestic Upholstery segment's net sales decreased by $30 million or 19% compared to the all-time record sales achieved in the prior fiscal year [40] Market Data and Key Metrics Changes - Year-end backlog was 16% lower than the previous year-end but increased by 30% compared to the fiscal 2024 third quarter end [11] - Year-to-date consolidated orders are down in the mid-single digits compared to the same prior year period [26] - The backlog at the end of the fourth quarter was $72 million, with orders for the quarter at $94 million, up from $88 million in the prior year [79] Company Strategy and Development Direction - The company is focusing on strategic investments to expand its addressable market and has consolidated merchandising for legacy brands to drive creative excellence [7][5] - The company aims to position itself as a whole home consumer-centric resource, driving synergies among brands to increase sales and earnings when demand returns [97] - Capital allocation priorities include investing in organic growth and maintaining a strong balance sheet while continuing to pay dividends [25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism due to recent strong growth in building permits and single-family housing starts, despite soft demand in the home furnishings industry [14][26] - The company is encouraged by improvements in order rates and backlog growth, indicating potential for future revenue increases [56][104] - Economic indicators are mixed, leading to a cautiously optimistic outlook for the upcoming fiscal year [26] Other Important Information - The company increased cash by $24 million to over $43 million at year-end and reduced inventory levels by $35 million or 36% [6][12] - The company completed a share repurchase program, spending a total of $25 million to purchase and retire 1.4 million shares [102] - The company is celebrating its 100th anniversary with various activities, including a philanthropic program called "100 Acts of Kindness" [28][44] Q&A Session Summary Question: Can you discuss the fourth quarter performance and the balance sheet? - Management acknowledged the challenging environment but highlighted improvements in the balance sheet and strategic investments made [29] Question: What are the expectations for revenue in the first quarter? - Management indicated a conservative view on revenue due to lower backlogs but expressed encouragement from increased order rates [56] Question: Can you elaborate on the recent management changes in merchandising? - Management clarified that the changes were made to invest in the most profitable areas of the business and to align different brands for better growth [58][65] Question: What is the outlook for inventory management going forward? - Management stated that inventory management processes have improved, and any future inventory build would be modest [68][70] Question: What are the ideal acquisition targets for the company? - Management emphasized a focus on internal growth and treating existing businesses as new acquisitions to drive synergy and growth [76]