Fri, Jun 7, 9:03 PM (92 days ago)
Hooker Furnishings Corporation reported a challenging fiscal Q1 2025, with consolidated net sales declining by 23.2% to $93.6 million due to lower demand in the home furnishings industry. The company experienced a consolidated net loss of $4.1 million, or ($0.39) per diluted share, compared to a net income of $1.5 million in the same quarter last year. Gross profit decreased by 31.1% to $19.2 million, with the gross margin falling from 22.9% to 20.5%. Operating loss was $5.2 million, driven by unfavorable customer and product mix, and under-absorbed costs in the Domestic Upholstery segment. Cash and cash equivalents decreased to $40.9 million, with $1.5 million generated from operating activities. The company obtained a covenant waiver from Bank of America due to non-compliance with financial covenants, classifying all debt as current. Future actions include a 10% reduction in fixed costs and further cost management to navigate the subdued demand environment.