Hooker Furnishings to Report Q3 Earnings: What's in Store for the Stock?

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