Hooker Furnishings Q1 2026 Earnings Report
Key Takeaways
The company reduced its operating loss by 31% and improved gross margins, even as revenue declined 8.8% year-over-year. Strategic cost-saving initiatives and a new warehouse in Vietnam contributed to operational improvements.
Revenue declined to $85.3 million due to reduced demand and customer loss in the Home Meridian segment.
Net loss narrowed to $3.1 million, compared to $4.1 million the previous year.
Gross margin improved by 180 basis points despite lower sales volume.
Cost-saving programs contributed $2.2 million in reduced operating expenses.
Hooker Furnishings
Hooker Furnishings
Hooker Furnishings Revenue by Segment
Forward Guidance
Hooker expects to realize $14M in net cost savings in FY26 and achieve $25M in annualized savings by FY27, while continuing to face challenges from the housing market and consumer sentiment.
Positive Outlook
- Vietnam warehouse expected to cut lead times to 4–6 weeks.
- Cost reduction initiatives targeting $25M annual savings by FY27.
- Collected Living and Margaritaville collections gaining market traction.
- Legacy brand orders rose 33% in May YoY.
- No impact to strategic growth priorities despite restructuring.
Challenges Ahead
- Housing market remains weak, suppressing furniture demand.
- High mortgage rates and low mobility hurt customer purchasing.
- Consumer confidence near historic lows.
- Tariff uncertainty on Vietnam imports remains unresolved.
- Order backlogs declined from prior year, especially in HMI.
Revenue & Expenses
Visualization of income flow from segment revenue to net income