Fri, Jun 13, 7:03 PM (30 days ago)
**Hooker Furnishings Corporation (HOFT) Q1 2026 Financial Summary** **Financial Health and Performance:** - **Revenue:** $85.3 million, down 8.8% YoY due to macroeconomic pressures and tariff-related buying hesitancy, particularly in the Home Meridian segment. - **Gross Profit Margin:** 22.3%, up 1.8 percentage points YoY, driven by higher margins at Home Meridian and Domestic Upholstery. - **Operating Loss:** $3.6 million, improved by $1.6 million YoY due to cost reduction initiatives. - **Net Loss:** $3.1 million, or $0.29 per diluted share, an improvement from the prior year's $4.1 million net loss. - **Cash Flow:** Positive operating cash flow of $14.7 million, driven by improved collections and inventory optimization. **Segment Performance:** - **Hooker Branded:** Slight revenue increase (0.8%) and breakeven operating results. - **Home Meridian:** Significant revenue decrease (28.8%) due to reduced demand and loss of a major customer; however, gross margin improved by 200 bps. - **Domestic Upholstery:** Revenue decrease (3.7%) but improved gross margin by 260 bps. **Cost Reduction Initiatives:** - **Phase 1 (FY 2025):** Achieved over $3 million in savings and expects over $10 million annually in FY 2026. - **Phase 2 (FY 2026):** Expects $3.4 million in net savings, with $25 million in annualized savings by FY 2027. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $18.0 million as of May 4, 2025. - **Revolving Credit Facility:** $70 million commitment, with $40.7 million of availability based on the current borrowing base. - **Capital Expenditures:** Expects $2-$3 million for the remainder of FY 2026. **Future Outlook:** - **Macroeconomic Challenges:** Continued uncertainty in the housing market and consumer sentiment. - **Strategic Initiatives:** Focus on product innovation, cost optimization, and operational excellence, including the launch of the Margaritaville licensing program and a new international warehouse. **Uncertainties and Risks:** - **Economic Factors:** Fluctuations in interest rates, housing market volatility, and consumer spending patterns. - **Operational Risks:** Supply chain disruptions, tariffs, and geopolitical uncertainties. - **Financial Risks:** Exposure to interest rate changes and foreign currency exchange rate fluctuations. **Future Operations Impact:** - **Cost Savings:** Expected to realize approximately $25 million in net annualized savings by FY 2027. - **Growth Initiatives:** Continued investment in ERP systems, showroom renovations, and strategic acquisitions to drive long-term shareholder value.