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Hooker Furnishings
🇺🇸 NASDAQ:HOFT
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•
Jan 30, 2022

Hooker Furnishings Q4 2022 Earnings Report

Reported a decrease in sales and net loss for the fourth quarter of fiscal year 2022, impacted by Asian factory shutdowns and rising costs.

Key Takeaways

Hooker Furnishings reported a 13.2% decrease in consolidated sales for the fourth quarter, resulting in a net loss of $4.0 million. The decline was primarily driven by lower sales in the Home Meridian and Hooker Branded segments, offset slightly by growth in Domestic Upholstery. Asian factory shutdowns and rising costs contributed to the negative results.

Consolidated sales decreased by 13.2% in the fourth quarter to $134.8 million.

Net loss for the fourth quarter was $4.0 million, or ($0.33) per diluted share.

Home Meridian segment sales decreased by 23.7%, while Hooker Branded sales declined by 11.8%.

Domestic Upholstery segment sales increased by 13.5%.

Total Revenue
$135M
Previous year: $155M
-13.2%
EPS
-$0.33
Previous year: $0.71
-146.5%
Gross Profit
$16.4M
Previous year: $33.6M
-51.2%
Cash and Equivalents
$69.4M
Previous year: $65.8M
+5.4%
Free Cash Flow
$14.2M
Previous year: $88K
+16001.1%
Total Assets
$375M
Previous year: $352M
+6.3%

Hooker Furnishings

Hooker Furnishings

Hooker Furnishings Revenue by Segment

Forward Guidance

The company anticipates improved production capacity from Asian suppliers but remains concerned about global logistics constraints and economic headwinds impacting consumer demand. Long-term trends are expected to be beneficial, and the acquisition of Sunset West is expected to drive faster growth.

Positive Outlook

  • Incoming orders and backlogs continue to be strong in most divisions.
  • Asian suppliers' production capacity is expected to improve significantly.
  • Long-term trends are expected to be beneficial, such as demand for housing.
  • The company is encouraged by the recent Spring High Point market attendance and reception of new products.
  • The acquisition of Sunset West is expected to drive faster growth.

Challenges Ahead

  • Ongoing global logistics constraints could impact short-term demand.
  • Economic headwinds affecting the consumer, such as inflation and high gas prices, could impact short-term demand.
  • The war in Ukraine could impact short-term demand.
  • Full financial impact of improved inventory readiness won’t be felt until the second quarter.
  • Inventories are still not at optimum levels due to service demand and backlogs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Hooker Furnishings