NASDAQ$HOFT

Hooker Furnishings Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Hooker Furnishings exceeded pre-pandemic growth pace with sales and profitability gains in the first quarter.

Hooker Furniture Corporation reported record-high sales and earnings for its fiscal 2022 first quarter, with net sales of $162.9 million and net income of $9.4 million, or $0.78 per diluted share. The company surpassed its goal to return to the growth trajectory it was on prior to the global pandemic, with sales up 20% compared to the first quarter two years ago.

  • Consolidated net sales increased by 56% compared to the year-ago period, reaching $162.9 million.
  • Net income for the first quarter was $9.4 million, or $0.78 per diluted share, representing record-high earnings for the company’s fiscal first quarter.
  • The Hooker Branded Segment led the way with an 89% sales increase, while the Home Meridian and Domestic Upholstery segments both reported 46% sales increases.
  • Consolidated operating income for the quarter was $12.2 million, a significant improvement compared to the prior year period's operating loss.

Headline financials

Total Revenue

$163M

Previous: $105M+55.7%
EPS (adj)

$0.78

Previous: -$0.09+966.7%
Capital Expenditures

-$2.19M

Previous: -$380K-475.8%
Free Cash Flow

$7.26M

Previous: -$35.2M+120.6%
Net Income

$9.44M

Previous: -$34.8M+127.1%
Operating Income

$12.2M

Previous: -$45.4M+126.9%
Gross Profit

$33.6M

Previous: $18.7M+80.0%
Cash & Equivalents

$61.6M

Previous: $51.2M+20.2%
Total Assets

$367M

Previous: $339M+8.2%
Stock-Based Comp

-$319K

Previous: $605K-152.7%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$163M

Q1 2022+55.7%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Hooker Furnishings · $69.5M total across 3 segments · Q1 2027

  • Hooker Branded
    $35.3M
  • Domestic Upholstery
    $28.4M
  • All Other
    $5.77M

Forward guidance

Hooker Furniture is cautiously optimistic given strong orders and backlogs, but acknowledges industry-wide supply chain, logistics, and raw materials shortages and inflation. They believe they have mitigated these dynamics as much as possible through surcharges and price increases, yet these supply-side factors are unpredictable and often involve unexpected changes occurring almost daily.

Tailwinds

  • Ongoing strong housing market.
  • Favorable demographics with the Millennial generation engaging in household formation and home furnishing purchases.
  • Consolidated orders and backlogs are more than double historical norms.
  • Expect demand for home furnishings will settle into a higher level of demand than pre-pandemic.
  • Company is strongly positioned to win in this environment.

Headwinds

  • Industry-wide supply chain shortages.
  • Industry-wide logistics shortages.
  • Industry-wide raw materials shortages.
  • Industry-wide inflation.
  • Increased competition for consumers’ discretionary income from industries such as travel, apparel, and in-person events as COVID-19 vaccinations continue to roll out.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

-0.6%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+23.1%

Q4 2017

Best reaction

-22.6%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+22.2%+23.3%
Q4 2026-13.5%-7.4%-9.7%
Q3 2026-4.4%+0.1%+8.3%
Q2 2026-1.1%-7.5%-18.5%
Q1 2026-1.0%+0.6%+3.8%
Q4 2025+14.8%+21.5%+28.8%
Q3 2025-7.4%-7.1%-25.3%
Q2 2025+1.2%+3.7%+8.1%
Q1 2025-14.9%-15.2%-24.0%
Q4 2024-10.7%-11.9%-11.1%
Q3 2024+15.7%+17.9%+20.1%
Q2 2024-12.1%-10.3%-11.5%
Q1 2024+3.6%+7.5%+12.0%
Q4 2023-5.5%-4.5%-2.2%
Q3 2023+3.7%+1.4%+11.5%
Q2 2023-1.0%-0.1%-14.1%
Q1 2023-5.0%-8.3%-7.8%
Q4 2022+0.8%-0.1%-6.3%
Q3 2022-7.6%-8.6%-9.9%
Q2 2022-9.9%-10.2%-13.1%
Q1 2022+7.4%+6.8%-7.9%
Q4 2021-6.7%-6.4%+3.0%
Q3 2021+1.4%+2.5%-1.9%
Q2 2021+6.8%+5.9%+1.7%
Q1 2021+1.6%+1.8%+7.7%
Q4 2020-11.2%-14.8%-17.2%
Q3 2020+1.2%+2.6%+5.4%
Q2 2020+4.7%+14.2%+16.7%
Q1 2020-22.6%-26.2%-20.7%
Q4 2019-5.2%-5.8%-4.6%
Q3 2019+1.5%+3.1%+3.1%
Q2 2019-10.3%-13.1%-27.9%
Q1 2019+21.3%+23.4%+27.0%
Q4 2018+5.9%+3.6%+0.8%
Q3 2018-14.0%-19.8%-21.3%
Q2 2018+10.3%+6.6%+19.0%
Q1 2018-7.5%-5.5%-8.0%
Q4 2017+23.1%+30.7%+45.3%
Q3 2017+9.5%+21.5%+27.9%
Q2 2017+6.8%+3.8%+2.7%
Q1 2017-6.7%-2.1%-12.8%
Q4 2016-19.9%
Q3 2016-5.5%
Q2 2016-3.9%
Q1 2016+3.9%
Q4 2015+14.1%
Q3 2015+4.6%
Q2 2015+0.3%
Q1 2015+18.2%
Q4 2014-0.7%
Q3 2014+0.6%
Q2 2014-3.6%
Q1 2014-6.9%
Q4 2013+3.7%
Q3 2013+2.0%
Q2 2013+4.1%
Q1 2013-0.1%
Q4 2012+5.0%
Q3 2012-0.3%
Q2 2012+4.9%
Q1 2011-5.7%
Q1 2012-3.5%
Q4 2011-8.2%
Q2 2011-8.2%
Q3 2011+1.1%
Q4 2010+1.1%

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