Hooker Furnishings Q4 2020 Earnings Report
Key Takeaways
Hooker Furniture reported consolidated net sales of $164.9 million and net income of $7.0 million, or $0.59 per diluted share, for the fourth quarter of fiscal 2020. Net sales decreased $35.6 million, or 17.8%, compared to last year’s record fourth quarter sales, due to lower sales across all reportable segments and essentially flat sales in All Other. Net income decreased 52.2% compared to the prior-year quarter.
Consolidated fourth quarter sales were up over 4% compared to the third quarter.
Net income was up nearly 80% compared to the third quarter.
Backlog was up over 9% compared to the previous year-end.
The company successfully executed tariff mitigation and resourcing strategies, reducing the amount of product imported from China by about half.
Hooker Furnishings
Hooker Furnishings
Hooker Furnishings Revenue by Segment
Forward Guidance
The COVID-19 pandemic presents an economic challenge of unprecedented proportions with an uncertain time frame, and the company is preparing for a significant downturn lasting anywhere from four to six months.
Positive Outlook
- Lower-fixed-cost, broad-distribution business model gives the company more flexibility to scale its business up or down.
- Strong presence in e-commerce, since that channel is holding up during this crisis so far.
Challenges Ahead
- Erratic stock market and spike in unemployment claims.
- Supply chain disruptions.
- Cancellation of business, social, sporting, academic and religious gatherings, including High Point Premarket and the postponement of the Spring High Point Market.
- Some customers have closed temporarily as many communities across the country are under stay-at-home orders from state and local authorities.
- Spike in order cancellations over the last few weeks, which has blunted some of the strong backlog the company saw at year-end.
Revenue & Expenses
Visualization of income flow from segment revenue to net income