Yeah, hi there, John. Sorry, we're just going through this. It's a pretty long release that you usually end up seeing here.Uh we are It looks like RH is reporting n uh $2.93% adjusted. It's unclear if that is comparable to estimates, but the revenues of $899 million are shy of what the street was looking for, which was 95 million. Um and then when we are looking at the tariff impact here, they're going through fairly detailed um information in the outlook and they're calling out a $30 million hit.They're al ...

Company Performance - RH reported quarterly earnings of $2.93 per share, missing the analyst estimate of $3.20 [1] - Quarterly revenue was $899.15 million, falling short of the Street estimate of $904.64 million [1] - Revenue increased by 8.4% year-over-year, with demand rising by 13.7% despite challenging market conditions [2] Market Conditions - The company is facing tariff uncertainties and the worst housing market in nearly 50 years [2] - Strong brands like RH are expected to benefit from potential industry dislocation due to tariffs, while smaller companies may struggle [3] Future Outlook - RH has lowered its fiscal 2025 revenue outlook from a range of $3.49 billion to $3.59 billion to a new range of $3.46 billion to $3.53 billion, compared to the previous estimate of $3.52 billion [4] - The company is hopeful that the investigation into potential tariffs will consider a broad perspective from industry leaders [4] Stock Performance - Following the earnings report, RH stock dropped by 12.8%, trading at $198.91 in extended trading [5]

Luxury furniture company RH slumped in late trading after cutting its sales outlook for the full year https://t.co/xVD1kLzZZQ ...

Company Overview - Hooker Furniture Corporation (NASDAQ:HOFT) is a well-known furniture manufacturer and importer, offering a variety of home furnishings including case goods, leather furniture, and fabric-upholstered furniture. The company faces significant competition from other furniture brands such as La-Z-Boy and Ethan Allen [1] Financial Performance - On September 11, 2025, the company reported an earnings per share (EPS) of -$0.31, which was significantly below the estimated EPS of -$0.12, resulting in a negative surprise of 158.33% [2][6] - The company's revenue for the quarter was $82.15 million, missing the estimated revenue of $106.47 million by 9.89%, and representing a decline from $95.08 million reported in the same quarter the previous year [3][6] Financial Metrics - The company has a negative price-to-earnings (P/E) ratio of -8.49, indicating negative earnings, and a price-to-sales ratio of 0.25, meaning the stock is valued at 25 cents for every dollar of sales [4] - The enterprise value to sales ratio is 0.38, providing insight into the company's valuation relative to its revenue [4] - The enterprise value to operating cash flow ratio is -15.22, reflecting challenges in generating positive cash flow from operations. However, the company has a strong current ratio of 3.94, suggesting it can cover its short-term liabilities with its short-term assets [5][6] - The debt-to-equity ratio is 0.35, indicating a moderate level of debt relative to equity [5]

Group 1 - Lovesac's shares declined by 17% following a reduction in full-year earnings-per-share guidance from $1.08 to $0.75, despite a 2.5% sales growth in Q2, which met analysts' expectations [1] - The company's sales growth of 2.5% outperformed the broader furniture industry's decline of 4%, indicating significant market share gains [2][3] - The launch of the new Snugg line of sofas, designed to enhance online sales and simplify the purchasing process, has been successful according to management [4] Group 2 - The company is facing challenges such as lower consumer confidence, a stagnant housing market, and fluctuating tariffs, yet it achieved respectable growth in Q2 [3] - Lovesac's stock is trading at just 0.4 times sales, suggesting it is undervalued, and there is potential for a price increase if the Snugg line performs well and market share continues to grow [5][6]

Core Viewpoint - Flexsteel Industries (FLXS) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum for the stock [1][2]. Earnings Estimate Revisions - The rising trend in estimate revisions reflects growing analyst optimism regarding the earnings prospects of Flexsteel, which is expected to positively impact its stock price [2]. - For the current quarter, Flexsteel is projected to earn $0.78 per share, representing a +5.4% change from the previous year, with a 20% increase in the Zacks Consensus Estimate over the last 30 days [7]. - For the full year, the earnings estimate is $3.85 per share, indicating a -7.7% change from the prior year, but the consensus estimate has increased by 5.48% recently [8][9]. Zacks Rank and Performance - Flexsteel has achieved a Zacks Rank 2 (Buy), indicating promising estimate revisions that suggest potential for outperformance compared to the S&P 500 [10]. - Historically, Zacks 1 (Strong Buy) and 2 (Buy) ranked stocks have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][10]. Recent Stock Performance - Flexsteel's stock has risen by 36.2% over the past four weeks due to strong estimate revisions, suggesting further upside potential [11].

Financial Performance - The Lovesac Company reported an Earnings Per Share (EPS) of -$0.45, surpassing the anticipated EPS of -$0.72, indicating better-than-expected performance despite the negative EPS [2][5] - The company unveiled a revenue of approximately $160.53 million, slightly exceeding the projected revenue of $160.42 million, demonstrating alignment with market expectations [2][5] Valuation Metrics - The Price-to-Sales ratio is about 0.44, suggesting favorable market valuation of the company's revenue [2] - The Enterprise Value to Sales ratio is around 0.68, indicating a reasonable valuation in relation to its sales [3] - The Enterprise Value to Operating Cash Flow ratio is notably high at approximately 101.13, suggesting a potentially high valuation relative to cash flow from operations [3] Financial Health - The company's Debt-to-Equity ratio is approximately 0.95, showcasing a balanced level of leverage [4] - With a Current Ratio of around 1.60, the company demonstrates a strong capability to cover its short-term liabilities with its short-term assets, indicating robust financial health [4]

Company Overview - The Lovesac Company (NASDAQ:LOVE) is known for its innovative and customizable furniture products, including sactionals and foam beanbag chairs [1] - The company operates through various channels such as its website, showrooms, and pop-up shops across the United States, allowing it to reach a diverse customer base and adapt to market changes [1] Analyst Sentiment - The consensus price target for Lovesac has decreased from $34.5 to $24 over the past year, indicating a more cautious outlook from analysts regarding the company's stock performance [2] - Analyst Maria Ripps from Canaccord Genuity has set a higher price target of $45, reflecting a more optimistic perspective on the company's future [2] Market Conditions and Strategic Initiatives - Market conditions, including changes in consumer spending, significantly affect Lovesac's sales and profitability [3] - Strategic initiatives such as new product launches and marketing strategies are crucial in shaping analysts' expectations for the company [3] - Economic factors like inflation and supply chain issues also play a role in influencing the company's performance and stock price targets [3] - Evaluating stock picks like Lovesac requires consideration of value, growth, and momentum trends [3]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2026 were $82.1 million, down $13 million, or 13.6% year-over-year, primarily due to declines at Home Meridian [4] - Consolidated operating loss was $4.4 million compared to $3.1 million in the prior year quarter, reflecting lower sales volume and unfavorable customer mix [4] - Consolidated net loss was $3.3 million, or $0.31 per share, with a six-month net loss of $6.3 million, or $0.60 per diluted share [4][5] Business Line Data and Key Metrics Changes - Hooker branded net sales increased by 1.3% year-over-year, reaching breakeven compared to a $329,000 loss last year, despite $655,000 in restructuring costs [3][15] - Home Meridian net sales decreased by 44.5%, significantly impacted by tariff-related buying hesitancy and the loss of a major customer due to bankruptcy [3][16] - Domestic upholstery segment's net sales were flat, with a slight decline of 1.7% for the first six months, but gross profit rose by $659,000 in Q2 [17][18] Market Data and Key Metrics Changes - Incoming orders for Hooker branded and domestic upholstery increased by nearly 11% and 1.6% respectively during the quarter, indicating some positive momentum [21] - The home furnishings industry continues to face challenges from low existing home sales, elevated mortgage rates, and persistent inflation, affecting consumer confidence [21] Company Strategy and Development Direction - The company is focused on cost reduction efforts, aiming to eliminate approximately $25 million, or 25% of fixed costs, with significant savings expected by the end of Q3 2026 [13][14] - A new Margaritaville license collection is set to launch in October, which is anticipated to enhance growth opportunities [10][21] - The company is adapting to tariff impacts by evaluating pricing on a SKU-level basis and implementing mitigation strategies across segments [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to profitability through cost structure scaling and strategic growth initiatives, despite ongoing macroeconomic challenges [7][9] - The company expects HMI's performance to improve significantly by the end of the fiscal year, barring additional tariffs or disruptive events [8][21] Other Important Information - The company reported approximately $1.9 million in cash on hand and no outstanding amounts under its credit facility, with $67.9 million in available borrowing capacity [19] - The restructuring costs for the quarter totaled $2 million, with about two-thirds in cost of goods sold and one-third in selling and administrative expenses [30] Q&A Session Summary Question: What is driving the increased orders at Hooker branded and domestic upholstery? - Management noted subtle macro improvements at the retail level, with positive feedback from partners regarding Labor Day sales [26][27] Question: How does the company plan to return HMI to profitability? - Management indicated that achieving a 25% reduction in overall spending by the end of Q3 is crucial for short-term profitability, with a focus on customer relationships [28][29] Question: What is the breakdown of restructuring impacts on costs? - Approximately two-thirds of the restructuring costs were in cost of goods sold, and one-third in selling and administrative expenses [30] Question: Can you provide updates on the Margaritaville launch logistics and interest? - Management described the launch as a significant opportunity, with positive early indicators from partners and a substantial number of SKUs planned [37][38] Question: What are the expectations for price increases and their timing? - Management clarified that they have a clear understanding of the pricing strategy and are evaluating it on a SKU-by-SKU basis [39][41] Question: Will the additional $2 million in charges coincide with the Savannah warehouse exit? - Management confirmed that the additional charges are primarily related to the closing of the Savannah warehouse [42]

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2026 were $82.1 million, down $13 million, or 13.6% year-over-year, primarily driven by declines at Home Meridian [4][5] - Consolidated operating loss was $4.4 million compared to $3.1 million in the prior year quarter, reflecting lower sales volume and unfavorable customer mix [4] - Consolidated net loss was $3.3 million, or $0.31 per share, with a six-month net loss of $6.3 million, or $0.60 per diluted share [4][5] Business Line Data and Key Metrics Changes - Hooker branded net sales increased by 1.3% year-over-year, reaching breakeven compared to a $329,000 loss last year, despite $655,000 in restructuring costs [3][15] - Home Meridian's net sales decreased by 44.5%, with a significant portion attributed to the loss of a major customer and macroeconomic pressures [4][16] - Domestic upholstery's net sales were flat, with a 1.7% decline over six months, but operating losses were reduced by 68% in Q2 [17][18] Market Data and Key Metrics Changes - The home furnishings industry is facing challenges from low existing home sales, elevated mortgage rates, and persistent inflation, impacting consumer confidence and demand [21] - Incoming orders for Hooker branded and domestic upholstery increased by 24% year-over-year in July, indicating some positive momentum [21] Company Strategy and Development Direction - The company is focused on cost reduction efforts, aiming to eliminate approximately $25 million, or 25% of fixed costs, with significant savings expected by the end of Q3 2026 [13][14] - A new Margaritaville product line is set to launch in October, which is anticipated to create growth opportunities [10][21] - The company is adapting to tariff impacts by evaluating pricing on a SKU-level basis and implementing mitigation strategies [11][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to profitability through cost structure scaling and strategic growth initiatives [7][21] - The company expects HMI's performance to improve significantly by the end of the fiscal year, barring additional tariffs or disruptive events [8][21] Other Important Information - The company reported $1.9 million in cash on hand and no outstanding amounts under its credit facility, with $67.9 million in available borrowing capacity [19] - Restructuring costs for the quarter totaled $2 million, with two-thirds attributed to cost of goods sold and one-third to selling and administrative expenses [30] Q&A Session Summary Question: What is driving the increased orders at Hooker branded and domestic upholstery? - Management noted subtle macro improvements at the retail level, with positive feedback from partners regarding Labor Day sales [26][27] Question: How does the company plan to return HMI to profitability? - Management indicated that achieving a 25% reduction in overhead costs by the end of Q3 is crucial for short-term profitability [28][29] Question: What is the breakdown of restructuring costs for the quarter? - Approximately two-thirds of the restructuring costs were in cost of goods sold, and one-third in selling and administrative expenses [30] Question: Can you provide updates on the Margaritaville launch? - The launch is seen as a significant opportunity, with positive early indicators from partners and a substantial number of SKUs planned [37][38] Question: What are the expectations for price increases? - Management is evaluating pricing on a SKU-by-SKU basis and believes they have a clear understanding of the impact of the 20% tariff [39][41] Question: Will the additional $2 million in charges coincide with the Savannah warehouse exit? - Yes, the additional charges are expected to be related to the closing of the Savannah warehouse [42]