Business
Hooker Furniture Reports Third Quarter Sales, Earnings and Increased Dividend
MARTINSVILLE, Va., Dec. 06, 2019 (GLOBE NEWSWIRE) -- Hooker Furniture Corporation (NASDAQ-GS: HOFT) today reported consolidated net sales of $158.2 million
About this update from Hooker Furnishings Corporation
[{"type":"text","content":"MARTINSVILLE, Va., Dec. 06, 2019 (GLOBE NEWSWIRE) -- Hooker Furniture Corporation (NASDAQ-GS: HOFT) today reported consolidated net sales of $158.2 million and net income of $3.9 million, or $0.33 per diluted share, for its 2020 fiscal year third quarter ended November 3, 2019.\n Net sales decreased 7.8%, or $13.3 million, compared to the prior year quarterly period, and net income decreased 58.0%, or $5.4 million. Earnings per diluted share for the quarter decreased 58.2% from $0.79 a year ago. For the fiscal 2020 first nine months, consolidated net sales were $445.9 million, with net income of $10.1 million, or $0.85 per diluted share. Net sales decreased 7.7%, or $37.1 million compared to last year’s first nine months. Earnings per diluted share decreased 60.1% to $0.85 from $2.13 in the prior year first nine months. “Our lower third quarter sales and earnings were impacted by significantly higher chargebacks and reduced volume from a single large retail customer at Home Meridian (‘HMI’),” said Paul B. Toms Jr., chairman and chief executive officer. “The lingering effects of 25% tariffs on finished goods and component parts imported from China, along with spotty retail demand that has continued through the first nine months of the year, also negatively affected our performance,” he said. The sales decline with the same single major customer represented 70% or $6.4 million of a $9 million volume reduction at the Home Meridian segment, and approximately $3 million in excess chargebacks from the same retailer, drove a $4.0 million operating loss for the quarter in the segment. That compares to operating income of about $5 million at Home Meridian in the same quarter a year ago. While sales in Hooker Branded and All Other were down 6% and 4.3%, respectively, gross profits and operating income as a percentage of net sales improved compared to prior year third quarter. “In total, given the challenging retail environment and the continued impact of tariffs, we were gratified to improve profitability performance in the Hooker Branded segment and All Other,” Toms said. Specifically, Toms noted that “Our Hooker Branded Segment achieved a 190-basis-point improvement in operating income margin, and All Other achieved a 390-basis-point improvement compared to prior year third quarter.” He continued, “In addition to improving operating inc...