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Aug 02, 2020

Hooker Furnishings Q2 2021 Earnings Report

Hooker Furnishings experienced increased earnings and rebounded orders during the second quarter.

Key Takeaways

Hooker Furniture Corporation reported consolidated net sales of $130.5 million and net income of $5.8 million, or $0.48 per diluted share, for its fiscal 2021 second quarter ended August 2, 2020. Net sales decreased by 14.3%, or $21.7 million, compared to the prior year period, while net income increased 38.8%, or $1.6 million. Earnings per diluted share for the quarter increased 37.1% from $0.35 a year ago.

Consolidated net sales were $130.5 million, a decrease of 14.3% compared to the prior year period.

Net income increased 38.8% to $5.8 million, or $0.48 per diluted share.

Incoming orders for July were up 34% compared to the previous year, and backlogs increased by 35%.

The company believes furniture is an advantaged sector due to pent-up demand, a robust housing market, and less competition from other discretionary spending.

Total Revenue
$131M
Previous year: $152M
-14.3%
EPS
$0.48
Previous year: $0.35
+37.1%
Gross Profit
$27M
Previous year: $28.8M
-6.3%
Cash and Equivalents
$82.2M
Previous year: $13.3M
+518.6%
Free Cash Flow
$34.1M
Previous year: -$11.4M
-399.3%
Total Assets
$358M
Previous year: $401M
-10.7%

Hooker Furnishings

Hooker Furnishings

Hooker Furnishings Revenue by Segment

Forward Guidance

Hooker Furnishings enters the fall with optimism, citing a robust housing market, strong demand, and increased order backlogs.

Positive Outlook

  • Robust housing market.
  • Strong demand since mid-May.
  • Order backlogs up 35% at the end of the second quarter.
  • Improved efficiencies and effectiveness in business.
  • Focusing efforts and resources on key business drivers.

Challenges Ahead

  • Concerns about the human and economic toll of COVID-19.
  • Possibility of additional surges of the virus that may delay re-openings.
  • Potential adverse effects in certain regions or states.
  • Uncertain future due to the pandemic.
  • Possible material and adverse effect on sales, earnings and liquidity.

Revenue & Expenses

Visualization of income flow from segment revenue to net income