Core Insights - Hooker Furnishings Corporation has announced a strategic divestiture of its value-priced home furnishings brands, Pulaski Furniture and Samuel Lawrence Furniture, to focus on higher-margin, design-led products and improve profitability [2][4] - The company reported a consolidated net sales decrease of 14.4% in Q3 2026, primarily due to a significant reduction in shipments from the discontinued operations [8][9] - A new shareholder return program has been introduced, including a share repurchase authorization of up to $5 million and a recalibrated dividend, reducing the annual dividend by 50% to $0.46 per share [14][15][16] Financial Performance - For the fiscal 2026 third quarter, net sales were $70.73 million, down from $82.67 million in the same period last year, with a gross profit of $18.09 million [28] - The company recorded a Q3 operating loss of $16.32 million, largely due to non-cash impairment charges of $15.58 million and restructuring costs [29] - Cash and cash equivalents decreased to $1.4 million, with inventory levels dropping from $66.2 million at year-end to $52.1 million at quarter-end [12][13] Cost Reduction Initiatives - Hooker Furnishings has implemented multi-phased cost reduction initiatives, achieving approximately $25–$26.5 million in annualized savings, which positions the company for profitability despite ongoing industry challenges [4][6] - The company has reduced its overall cost structure by 25% over the past 18 months, which is expected to continue into fiscal 2027 [4][8] Segment Performance - Hooker Branded segment experienced a 1.1% increase in net sales for both the third quarter and nine-month period, driven by higher average selling prices [9][10] - Domestic Upholstery net sales rose by 3.0% in Q3, with mixed performance across divisions, while the All Other category saw a significant decline due to macroeconomic pressures [10][11] Strategic Outlook - The launch of the Margaritaville licensed collection is anticipated to drive organic growth, supported by a new showroom experience and retailer commitments [4][19] - The company aims to transition from a cost reduction narrative to an organic growth story, focusing on its core expertise in better-to-best home furnishings [4][19]

MARTINSVILLE, Va., Dec. 01, 2025 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT) (“Hooker” or the “Company”), a global leader in home furnishings, today announced it has entered into a definitive agreement to sell its Pulaski Furniture and Samuel Lawrence Furniture casegoods brands to Magnussen Home Furnishings, Inc. (“Magnussen”). Pursuant to the terms of the asset purchase agreement, an estimated purchase price will be determined and paid at closing based upon the net book value of th ...