Hooker Furniture Stock Earnings Reports

Key points for investors: Hooker Furnishings reported a weak fiscal 2025 Q3 due to continued low demand in the home furnishings market and several one-time charges. Consolidated net sales were $104.0M (down 10.7% year-over-year) and the company recorded a Q3 operating loss of $7.3M and a consolidated net loss of $4.1M, or $0.39 per diluted share. Year-to-date (nine months) net sales were $293M (down 12.9%) with a net loss of $10.2M ($0.97 per share). Management recorded roughly $7.5M of special charges in Q3: ~$3.1M restructuring costs, $2.4M bad debt from a single large customer bankruptcy, and $2.0M of noncash trade-name impairments in the Home Meridian segment. Segment highlights: Hooker Branded sales fell ~10.7% (operating loss $1.7M), with unit volume roughly flat vs. prior year but higher discounting and a backlog that is 18% above pre-pandemic levels; Home Meridian sales declined ~11.8% (operating loss $3.7M) but showed the highest gross margin since acquisition (20.5%) and hospitality revenue growth; Domestic Upholstery sales fell ~10% with sequential improvement in operating loss (Q3 loss $0.28M) and continued strength at Sunset West. Management is actively executing a cost savings plan (target ~$10M annualized savings) and expects most savings to begin realizing in Q4 and to be distributed fairly evenly through fiscal 2026. The company materially increased Hooker Branded inventory (+$11M, ~40% QoQ) to support new casegoods collections and speed-to-market given anticipated demand and potential supply disruptions (extended Lunar New Year in Vietnam, possible East Coast port strike). Liquidity: cash and equivalents $20.4M, $28.3M available on revolver, and $29M in cash-surrender value of life insurance; management expects imminent refinancing to pay off term debt. Management’s outlook: cautiously optimistic — macro indicators (cooling inflation, interest-rate cuts, improving housing signals) should help demand; licensing deal with Margaritaville is intended to broaden addressable market across brands and channels. Key risks remain: continued weak end-market demand, customer bankruptcies, inventory/working capital pressure from the inventory build, and supply-chain timing uncertainties.