Fri, Sep 6, 7:09 PM (105 days ago)
For the second quarter ended July 28, 2024, Hooker Furnishings Corporation reported a consolidated net sales decrease of $2.7 million (2.8%) year-over-year, totaling $95.1 million, attributed to weak demand in the home furnishings market. The Domestic Upholstery and Hooker Branded segments experienced declines, while Home Meridian saw a $1.6 million increase, driven by hospitality sales. Gross profit fell to $20.9 million, with a margin of 22%, down from 23.9% in the prior year, reflecting higher costs and reduced sales volumes. The company recorded an operating loss of $3.1 million compared to a profit of $1.3 million last year, leading to a net loss of $2.0 million or ($0.19) per diluted share. For the first half of 2025, net sales dropped 14.1% to $188.7 million, with all segments reporting declines. The consolidated operating loss was $8.2 million versus a profit of $3.2 million last year. Cash and cash equivalents stood at $42.1 million, with significant cash outflows for dividends and ERP system development. Notably, the company obtained waivers for covenant breaches but plans to refinance its credit facility and expects to return to profitability as market conditions improve.