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May 01, 2022
Hooker Furnishings Q1 2023 Earnings Report
Reported a decrease in net sales and net income compared to the previous year, but sales improved compared to the last quarter.
Key Takeaways
Hooker Furnishings reported a decrease in consolidated net sales and net income for the first quarter of fiscal 2023 compared to the prior year, primarily due to COVID-related factory shutdowns in Asia. However, sales improved by 9% over the fourth quarter of fiscal 2022, and operating income improved compared to the operating loss last quarter. The company is optimistic about improving conditions as casegoods production in Asia has reached full capacity.
Consolidated net sales decreased by 9.5% compared to a year ago.
Consolidated net income decreased to $3.2 million, or $0.26 per diluted share, compared to $9.4 million, or $0.78 per diluted share in the prior year period.
Sales improved by 9% over the fourth quarter of fiscal 2022.
Asian casegoods production reached full capacity in April, expected to improve results.
Hooker Furnishings
Hooker Furnishings
Forward Guidance
The company expects to be in a near-optimum shipping position throughout the second quarter and will feel the full benefit of Asian production levels being at 100% capacity.
Positive Outlook
- Expect to be in a near-optimum shipping position throughout the second quarter.
- Will feel the full benefit of Asian production levels being at 100% capacity.
- Optimistic about the housing market.
- Strong levels of employment.
- Two largest generation groups in prime household formation and furniture purchasing years.
Challenges Ahead
- Seeing a leveling off of demand.
- Incoming orders are down from the meteoric levels experienced in the last 18 months.
- Watching inflationary pressures in the economy.
- Inflation affecting consumers more at the lower price points.
- Continued supply chain disruptions and high transit costs.