- Operating loss reduced by 31% year-over-year to $3.6 million for Hooker Furnishings (HOFT, Financial).
- Achieved $2.2 million in cost savings through restructuring efforts, targeting $25 million in annual savings by FY2027.
- Despite an 8.8% decline in consolidated net sales, significant improvement in legacy brand orders, up 33% year-over-year.
Hooker Furnishings (HOFT) has reported a notable improvement in its operating results for the first quarter of fiscal year 2026, despite ongoing industry challenges. The company successfully reduced its operating loss by 31% to $3.6 million compared to the same quarter last year. Operating expenses also saw a significant decrease of $2.2 million, attributed to a multi-phase cost reduction strategy, which aims to achieve $25 million in annual savings by fiscal year 2027.
Consolidated net sales for the quarter were reported at $85.3 million, reflecting an 8.8% decline from the prior year. However, the company's legacy brands demonstrated resilience, with Hooker Branded sales increasing by 0.8% and Domestic Upholstery experiencing a minor decrease of 3.7%. The Home Meridian segment was notably affected, with sales declining by 28.8% due to macroeconomic pressures, including import tariffs and decreased demand in the mid-price market segment.
A key highlight was the expansion of Hooker's Vietnam warehouse, which has successfully reduced lead times from six months to 4-6 weeks, thereby enhancing product flow and overall margin potential. Additionally, May orders for Hooker's legacy brands showed significant growth, with Hooker Branded orders rising by 40% and Domestic Upholstery up by 25% year-over-year, indicating potential stabilization in revenue for upcoming quarters.
Financially, Hooker Furnishings ended the quarter with $18 million in cash, up $11.7 million from year-end, reflecting improved liquidity and financial flexibility. The company continues to focus on disciplined capital allocation, maintaining a 50+ year track record of uninterrupted dividend payments, and expects to further strengthen its profitability through ongoing cost optimization and operational efficiencies.
