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Nov 01, 2020
Hooker Furnishings Q3 2021 Earnings Report
Reported robust profitability driven by increased demand in the third quarter.
Key Takeaways
Hooker Furniture Corporation reported consolidated net sales of $149.7 million and net income of $10 million, or $0.84 per diluted share, for its fiscal 2021 third quarter ended November 1, 2020. Consolidated net sales decreased by 5.4%, while net income increased 157.5%.
Consolidated incoming orders were up 33.8% during the quarter, and consolidated backlog is up 87.5%, both compared to a year ago.
Two of the four segments achieved sales increases compared to the prior year.
Consolidated revenue increased by $19 million, or 15% compared to the second quarter.
Operating income increased by $8.0 million or 161.1% as compared to the prior year third quarter.
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
The company is optimistic and believes it has the backlog, order velocity and momentum to deliver strong results, despite the on-going challenges of the COVID-19 pandemic and its impact on the supply chain.
Positive Outlook
- Significant backlog and robust demand from all residential channels.
- Making progress with supply chain challenges.
- Overseas suppliers and own factories ramp up production to allow us to service this additional demand.
- Maintaining rigorous safety protocols in all workplaces and have had essentially no workplace spread in any location thus far.
- Employees who can work remotely continue to do so.
Challenges Ahead
- Concerned about the recent surge in COVID infections and hospitalizations.
- Supply chain issues will continue at least into the fiscal 2022 first quarter.
- Logistics challenges are slowing order fulfillment, particularly for Home Meridian.
- Home Meridian orders are programmed out and scheduled for delivery to its larger accounts further into the future than usual, which is also contributing to the increased backlog.
- Expect these headwinds will continue to impact us and our sales in Q4, with steady improvements beginning in mid-February 2021 after the new year holidays in China and Vietnam.
Revenue & Expenses
Visualization of income flow from segment revenue to net income