Business
Hooker Furnishings Reports First Quarter Sales and Earnings; Additional Share Repurchase Authorization
MARTINSVILLE, Va., June 08, 2023 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT), a global leader in the design, production, and
About this update from Hooker Furnishings Corporation
[{"type":"text","content":"MARTINSVILLE, Va., June 08, 2023 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT), a global leader in the design, production, and marketing of home furnishings for nearly a century, today reported operating results for its fiscal 2024 first quarter ended April 30, 2023. Fiscal 2024 First Quarter overview: Consolidated net sales for the quarter were $121.8 million, a $25.5 million, or 17.3%, decrease compared to a year ago. An expected revenue reduction was driven by a 32.5% sales decrease in the Home Meridian (HMI) segment and, to a lesser extent, a 14.8% decrease in first quarter year-over-year Domestic Upholstery sales. Net sales in the Hooker Branded segment remained relatively unchanged. Consolidated net income was $1.5 million, or $0.13 per diluted share for the quarter, compared to $3.2 million, or $0.26 per diluted share, in the prior year period. Consolidated operating income for the quarter was $2 million compared to $3.9 million in the same quarter a year ago. The Company strengthened its financial position during the quarter by generating $22.4 million in cash from operating activities and funded $4.5 million in capital expenditures and the continued development of our ERP system, $4.3 million in share repurchases, and $2.4 million in cash dividends. Inventory levels decreased by $23 million during the quarter, well on the way toward a goal of reducing inventories by $30 million before fiscal year-end. The Hooker Branded and Domestic Upholstery segments and All Other were profitable for the quarter. Home Meridian’s operating loss of $2.1 million, resulting from lower sales volume, improved by $1 million compared to the same period a year ago. The grand opening of a nearly 120,000-square-foot new Hooker Legacy Showroom in the Showplace Building at the Spring High Point Market generated a 93% increase in year-over-year retailer traffic, with successful product launches across all brands. Management Commentary “Considering the softer retail environment, economic uncertainties and our recent exit from the Accentrics Home (ACH) line, we’re pleased to have exceeded internal and external expectations for sales and earnings this quarter,” said Jeremy Hoff, chief executive officer and director of Hooker Furnishings. “Our liquidation of ACH inventories and other obsolete inventories at HMI is about 80% compl...