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May 02, 2021
Hooker Furnishings Q1 2022 Earnings Report
Hooker Furnishings exceeded pre-pandemic growth pace with sales and profitability gains in the first quarter.
Key Takeaways
Hooker Furniture Corporation reported record-high sales and earnings for its fiscal 2022 first quarter, with net sales of $162.9 million and net income of $9.4 million, or $0.78 per diluted share. The company surpassed its goal to return to the growth trajectory it was on prior to the global pandemic, with sales up 20% compared to the first quarter two years ago.
Consolidated net sales increased by 56% compared to the year-ago period, reaching $162.9 million.
Net income for the first quarter was $9.4 million, or $0.78 per diluted share, representing record-high earnings for the company’s fiscal first quarter.
The Hooker Branded Segment led the way with an 89% sales increase, while the Home Meridian and Domestic Upholstery segments both reported 46% sales increases.
Consolidated operating income for the quarter was $12.2 million, a significant improvement compared to the prior year period's operating loss.
Hooker Furnishings
Hooker Furnishings
Hooker Furnishings Revenue by Segment
Revenue by Segment
Home Meridian Revenue
CapyFin.com Forward Guidance
Hooker Furniture is cautiously optimistic given strong orders and backlogs, but acknowledges industry-wide supply chain, logistics, and raw materials shortages and inflation. They believe they have mitigated these dynamics as much as possible through surcharges and price increases, yet these supply-side factors are unpredictable and often involve unexpected changes occurring almost daily.
Positive Outlook
- Ongoing strong housing market.
- Favorable demographics with the Millennial generation engaging in household formation and home furnishing purchases.
- Consolidated orders and backlogs are more than double historical norms.
- Expect demand for home furnishings will settle into a higher level of demand than pre-pandemic.
- Company is strongly positioned to win in this environment.
Challenges Ahead
- Industry-wide supply chain shortages.
- Industry-wide logistics shortages.
- Industry-wide raw materials shortages.
- Industry-wide inflation.
- Increased competition for consumers’ discretionary income from industries such as travel, apparel, and in-person events as COVID-19 vaccinations continue to roll out.