Loading...
•
May 04
Hooker Furnishings Q1 2026 Earnings Report
Hooker Furnishings reported a narrowed net loss and improved margins in Q1 2026 despite a decline in revenue.
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
Revenue by Segment
Hooker Branded Revenue
CapyFin.comHome Meridian Revenue
CapyFin.comDomestic Upholstery Revenue
CapyFin.comAll Other Revenue
CapyFin.com 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