Business
Hooker Furnishings Reports Improved Sequential Performance in Second Quarter
MARTINSVILLE, Va., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT) (the “Company” or “HFC”), a global leader in the
About this update from Hooker Furnishings Corporation
[{"type":"text","content":"MARTINSVILLE, Va., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT) (the “Company” or “HFC”), a global leader in the design, production, and marketing of home furnishings for 100 years, today reported its fiscal 2025 second quarter operating results for the period beginning April 29 and ending July 28, 2024. Fiscal 2025 Second Quarter overview and cost reduction details: Despite persistent, weak market conditions, sales in the second quarter, typically Hooker Furnishings’ slowest quarter, the Company outperformed the first quarter. The low-single-digit consolidated sales decrease in the second quarter versus the prior year period was a solid sequential improvement from last quarter’s double-digit sales reduction.Despite the losses in the second quarter, both operating and net losses improved compared to the first quarter’s losses of $5.2 million and $4.1 million, respectively. The Company reported a consolidated operating loss of $3.1 million, with a margin of (3.3%), driven by low sales volume and under-absorbed expenses. The consolidated net loss for the quarter was $2.0 million, or ($0.19) per diluted share.During the prolonged industry downturn, the Company continues to maintain a strong balance sheet and financial position by improving cash and cash equivalents to over $42 million, up $1.2 million from the first quarter ended in April 2024. In addition, the Company continues its 50-year-plus history of paying quarterly dividends.Hooker Furnishings reported consolidated net sales for the fiscal 2025 second quarter of $95.1 million, a decrease of $2.7 million, or 2.8%, compared to the same quarter last year, driven by ongoing sluggish demand in the home furnishings retail industry.During the fiscal 2025 six-month period, consolidated net sales decreased by $31.0 million, or 14.1%, compared to the same period last year, due to the persistent low demand for home furnishings driven by high interest rates and subdued housing activity. The absence of $11 million in revenue from the ACH product line, which the Company exited during fiscal 2024, accounted for approximately 35% of the consolidated sales decrease. The Company recorded a consolidated operating loss of $8.2 million and net loss of $6.0 million, or ($0.57) per diluted share. Management Commentary “Challenges in the macroeconomic and fur...