Business
Hooker Furnishings Reports Third Quarter Results Impacted By Multiple Charges
MARTINSVILLE, Va., Dec. 05, 2024 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT) (the “Company” or “HFC”), a global leader in the design,
About this update from Hooker Furnishings Corporation
[{"type":"text","content":"MARTINSVILLE, Va., Dec. 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 third quarter operating results for the period beginning July 29 and ending October 27, 2024. Fiscal 2025 Third Quarter Overview Results for the third quarter were driven by continued macro-economic and industry-wide headwinds which resulted in low demand and $7.5 million in charges ($4.4 million net of tax based on the effective tax rate in the third quarter), including restructuring costs related to the Company’s previously announced cost savings plan ($3.1 million of mostly severance), the bankruptcy of a significant customer ($2.4 million of bad debt expense) and non-cash trade-name impairment charges ($2.0 million related to Home Meridian (HMI) segment trade names.) These factors led to an operating loss of $7.3 million and a consolidated net loss of $4.1 million or ($0.39) per diluted share for the third quarter.Consolidated net sales were $104.4 million, a decrease of $12.5 million, or 10.7%, compared to the same quarter of the previous year, primarily due to ongoing macro-economic and related challenges in the home furnishings industry, loss of sales due to a customer bankruptcy and higher discounting to adjust inventory mix and levels.The Company is starting to see improved efficiencies from the cost reductions and expects to realize and exceed its goal of 10% or $10 million in annualized cost savings in fiscal 2026.The restructuring efforts at HMI in recent years are showing meaningful results and continued progress as HMI reinforce the Company’s belief that the segment is now on a sustainable path of profitability which will gain momentum as demand normalizes in the industry. In the third quarter, Home Meridian achieved a gross margin of 20.5%, its highest level since the business was acquired in 2016.For the nine-month period of fiscal 2025, consolidated net sales were $293.0 million, a decrease of $43.4 million or 12.9% compared to the same period of the previous year. This decrease was also due to persistent low demand affecting the home furnishings industry, and the absence of $11 million in liquidation sales from the unprofitable ACH product line which the Company ex...