Hooker Furniture(HOFT) - 2025 Q4 - Annual Results

Financial Performance - Net sales for Q4 fiscal 2025 were $104.5 million, an increase of 8$96.8 million in the prior year quarter[5]. - Consolidated net loss for Q4 was $2.3 million, or ($0.22) per diluted share, compared to net income of $593,000, or$0.06 per diluted share in the prior year[5]. - For the full year fiscal 2025, consolidated net sales were $397.5 million, reflecting a decrease of$35.8 million, or 8.3%, compared to the previous fiscal year[5]. - Hooker Branded Q4 net sales rose $3.8 million, or 10.0$10.1 million, or 6.5%[7]. - Home Meridian Q4 net sales increased $6.3 million, or 21.7$2.0 million, or 7.0%, year-over-year, with fiscal 2025 net sales down $12.6 million, or 9.9$397.465 million, a decrease from $433.226 million in the prior year, representing a decline of approximately 8.2$146.470 million for the 53 weeks ended February 2, 2025, down from $156.590 million in the prior year, a decrease of approximately 6.8$0.8 to $1.0 million from the Savannah warehouse exit, with annualized savings of$4.0 to $5.7 million beginning in fiscal 2027[4]. - Total annualized cost savings from the Savannah exit and additional measures are expected to be between$18 million to $20 million, fully realized in fiscal 2027[9]. Cash Flow and Assets - Cash and cash equivalents stood at$6.3 million, a decrease of $36.9 million from the previous year-end, largely due to increased accounts receivable and planned inventory increases[11]. - Total assets decreased to$313.94 million as of February 2, 2025, down from $343.59 million as of January 28, 2024[24]. - Current liabilities decreased to$39.97 million as of February 2, 2025, compared to $41.41 million as of January 28, 2024[24]. - Cash used in operating activities was$23.016 million for the year, compared to cash provided by operating activities of $55.471 million in the previous year[27]. - Financing activities resulted in a net cash outflow of$11.149 million, compared to an outflow of $22.756 million in the previous year[28]. - The company paid cash dividends of$9.854 million during the year, slightly up from $9.682 million in the previous year[28]. Profitability and Loss - The company reported a net loss of$12.507 million for the 53 weeks ended February 2, 2025, compared to a net income of $9.865 million for the previous year[27]. - The gross profit margin for the consolidated segment was 22.3$2.33 million for the 14 weeks ended February 2, 2025, compared to a net income of $0.59 million for the same period last year[20]. - Basic and diluted loss per share for the 14 weeks ended February 2, 2025, was$0.22, compared to earnings per share of $0.06 for the same period last year[20]. - The company incurred a depreciation and amortization expense of$9.229 million for the 53 weeks ended February 2, 2025, compared to $8.956 million in the prior year[27]. Market Conditions and Risks - The company is focused on gaining market share and maximizing revenues through merchandising efforts and speed-to-market initiatives despite economic uncertainties[13]. - The company is facing risks related to macroeconomic uncertainties, including inflation and high interest rates, which could impact sales and operating costs[18]. - The restructuring of the Home Meridian segment is ongoing, with the goal of returning to consistent profitability[18]. - The company is planning to shift inventories to a new warehouse facility in Vietnam, which poses execution and working capital risks[18]. Inventory and Backlog - The order backlog as of February 2, 2025, was$52.636 million, a decrease from $71.824 million a year earlier, indicating a decline of approximately 26.7$622 thousand for the 53 weeks ended February 2, 2025, compared to $1.829 million in the previous year[27].