Hooker Furniture Reports Sales and Income for Fiscal Year, Fourth Quarter

About this update from Hooker Furnishings Corporation

[{"type":"text","content":"MARTINSVILLE, Va., April 14, 2020 (GLOBE NEWSWIRE) -- Hooker Furniture Corporation (NASDAQ-GS: HOFT) today reported consolidated net sales of $610.8 million and net income of $17.1 million, or $1.44 per diluted share, for its 2020 fiscal year ended February 2, 2020. Net sales decreased 10.6%, or $72.7 million, compared to last year, and net income decreased 57.2%, or $22.8 million. Earnings per diluted share decreased 57% to $1.44 from $3.38 a year ago. \n The Company continually monitors its reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. In the fourth quarter of fiscal 2020, the Company updated its reportable segments as follows: Domestic upholstery producers Bradington-Young, Sam Moore and Shenandoah Furniture were moved from All Other and aggregated into a new reportable segment called “Domestic Upholstery.” All Other now consists of H Contract and Lifestyle Brands. Lifestyle Brands is a business in its start-up phase targeted at the interior designer channel. The Hooker Branded and Home Meridian segments were unchanged. The fiscal 2020 sales decrease was impacted by a $47.2 million or 12.2% sales decrease in the Home Meridian (HMI) segment, and to a lesser extent by decreases in the Hooker Branded and Domestic Upholstery segments, partially offset by a net sales increase in All Other. Also contributing to the consolidated revenue decrease was one week less of sales compared to the previous fiscal year. Fiscal 2019 had 53 weeks, while fiscal 2020 had 52 weeks. The additional week in the prior year contributed approximately $13.4 million to consolidated net sales based on the average net sales per shipping day. “This was a very challenging year in which we faced the significant headwinds of 25% tariffs on finished goods and component parts imported from China and industry-wide weak retail demand,” said Paul B. Toms Jr., chairman and chief executive officer. “The tariffs created a chain reaction of higher product costs, higher selling prices to our customers and supply chain and inventory disruptions. We deployed significant management and financial resources to shift certain parts of our production to factories in non-tariff countries, and successfully reduced our reliance on Chinese factories by half during the y...

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