Hooker Furnishings Q3 2022 Earnings Report
Key Takeaways
Hooker Furnishings reported a decrease in consolidated net sales by 11% to $133.4 million for the third quarter of fiscal year 2022, with a net loss of $1.2 million, or $0.10 per diluted share. The decline was primarily due to COVID-related factory closures in Vietnam and Malaysia, which significantly reduced shipments in the Home Meridian segment. The company faced challenges from ongoing supply chain disruptions and industry-wide inflationary pressures.
Consolidated net sales decreased by 11% compared to the prior year period due to COVID-related factory closures.
The Home Meridian segment experienced a significant sales decrease due to factory closures in Vietnam and Malaysia.
Hooker Branded and Domestic Upholstery segments reported double-digit sales increases.
Consolidated operating loss was $1.7 million, compared to $13 million of operating income in the prior year period.
Hooker Furnishings
Hooker Furnishings
Hooker Furnishings Revenue by Segment
Forward Guidance
The company anticipates continued supply chain turbulence and cost inflation to impact net sales and income in the short term, but expects Hooker Branded and Domestic Upholstery to be less challenged than Home Meridian. They are focusing on new product development, operational improvements, cost management, and strategic growth initiatives.
Positive Outlook
- Consumer and retail demand remain historically strong.
- Consolidated backlogs are nearly triple compared to pre-pandemic levels.
- Expected efficiencies and cost savings from HMI’s new Savannah facility.
- Focus on developing relevant new products to meet consumer needs.
- Company remains optimistic as they manage through a challenging environment.
Challenges Ahead
- Continued supply chain turbulence is expected.
- Product and raw materials cost inflation is expected to impact net sales and income.
- Home Meridian is expected to be more challenged due to its reliance on direct container business.
- Higher freight costs have a greater impact on lower price points for HMI.
- Uncertainty regarding the pace of factory capacity increases in Vietnam and Malaysia.
Revenue & Expenses
Visualization of income flow from segment revenue to net income