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Jan 29, 2023
Hooker Furnishings Q4 2023 Earnings Report
Reported a net loss due to an inventory write-down.
Key Takeaways
Hooker Furnishings Corporation reported a decrease in consolidated net sales for the fiscal year and fourth quarter. A net loss was reported for the fourth quarter, attributed to an inventory write-down. The company is focusing on restructuring efforts and strategic initiatives to improve profitability.
Consolidated net sales decreased by 2.6% in Q4 due to a decrease in the Home Meridian segment, offset by increases in Hooker Branded and Domestic Upholstery.
Reported a net loss of $17.9 million or $1.60 per diluted share in Q4, attributed to an inventory write-down.
Hooker Branded segment achieved a 15% sales increase in Q4.
Domestic Upholstery segment continued a positive trajectory with double-digit sales gains for the second consecutive year.
Revenue by Segment
Forward Guidance
The company anticipates an exciting and well-attended furniture market with the opening of new showrooms. They expect product commitments from customers to positively affect the current fiscal year, helping Home Meridian achieve profitability. However, they are concerned about possible instability in global banking, interest rates, and the stock market.
Positive Outlook
- Stabilization of global supply chain dynamics.
- Some moderation of inflation.
- Continuing strength in employment levels.
- Previously astronomical ocean freight rates have declined and appear to have stabilized.
- New High Point and Las Vegas showrooms and plans to show at the Atlanta market this summer are giving opportunity to get our brands in front of more customers and prospects.
Challenges Ahead
- Possible instability in global banking.
- Possible instability in interest rates.
- Possible instability in the stock market.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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