Hooker Furniture Stock Earnings Reports

Hooker Furnishings reported Q2 fiscal 2026 consolidated net sales of $82.1M, down 13.6% year‑over‑year, driven primarily by a 44.5% sales decline at Home Meridian (HMI) due to tariff‑related buying hesitancy, macro weakness in its value customer base, timing in hospitality projects and the loss of a large customer to bankruptcy. Consolidated operating loss was $4.4M and net loss was $3.3M (‑$0.31/share). The company is executing a multi‑phase cost reduction plan to remove $25M (25%) of fixed costs—$11M from warehousing/distribution (COGS) and $14M from SG&A—aiming to have most of the new expense structure in place by the end of Q3 FY26 and fully realized as annualized savings beginning FY27. Hooker Branded reached breakeven in the quarter despite $655k of restructuring charges and incoming orders grew ~11%; Domestic Upholstery showed margin improvement and cut its operating loss by ~68%. HMI remains the primary drag with substantial gross margin contraction and operating losses. Management highlighted mitigation efforts for the new 20% Vietnam tariff (sourcing, remerchandising, SKU‑level pricing) and expects the new Vietnam fulfillment warehouse to shorten lead times (from months to weeks) and reduce global inventory. Liquidity: ~$1.9M cash, no borrowings under the credit facility, and ~$67.9M available capacity (net of letters of credit). Management’s near‑term thesis: complete cost restructuring by end of Q3, drive profitability even at current revenue levels, and position for growth when demand recovers (including an October brand launch and hospitality/outdoor channel focus).