NASDAQ$HOFT

Hooker Furnishings Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a decrease in net sales and net income compared to the previous year, but sales improved compared to the last quarter.

Hooker Furnishings reported a decrease in consolidated net sales and net income for the first quarter of fiscal 2023 compared to the prior year, primarily due to COVID-related factory shutdowns in Asia. However, sales improved by 9% over the fourth quarter of fiscal 2022, and operating income improved compared to the operating loss last quarter. The company is optimistic about improving conditions as casegoods production in Asia has reached full capacity.

  • Consolidated net sales decreased by 9.5% compared to a year ago.
  • Consolidated net income decreased to $3.2 million, or $0.26 per diluted share, compared to $9.4 million, or $0.78 per diluted share in the prior year period.
  • Sales improved by 9% over the fourth quarter of fiscal 2022.
  • Asian casegoods production reached full capacity in April, expected to improve results.

Headline financials

Total Revenue

$147M

Previous: $163M-9.5%
EPS (adj)

$0.26

Previous: $0.78-66.7%
Capital Expenditures

-$830K

Previous: -$2.19M+62.1%
Free Cash Flow

$2.35M

Previous: $7.26M-67.6%
Net Income

$3.18M

Previous: $9.44M-66.3%
Operating Income

$3.92M

Previous: $12.2M-68.0%
Gross Profit

$29.5M

Previous: $33.6M-12.3%
Cash & Equivalents

$10.1M

Previous: $61.6M-83.6%
Total Assets

$387M

Previous: $367M+5.4%
Stock-Based Comp

$354K

Previous: -$319K+211.0%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$147M

Q1 2023-9.5%vs Q1 2022
Beat estimate in 8 of 16 quarters(50%)
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

The company expects to be in a near-optimum shipping position throughout the second quarter and will feel the full benefit of Asian production levels being at 100% capacity.

Tailwinds

  • Expect to be in a near-optimum shipping position throughout the second quarter.
  • Will feel the full benefit of Asian production levels being at 100% capacity.
  • Optimistic about the housing market.
  • Strong levels of employment.
  • Two largest generation groups in prime household formation and furniture purchasing years.

Headwinds

  • Seeing a leveling off of demand.
  • Incoming orders are down from the meteoric levels experienced in the last 18 months.
  • Watching inflationary pressures in the economy.
  • Inflation affecting consumers more at the lower price points.
  • Continued supply chain disruptions and high transit costs.

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 2023

Historical avgQ1 2023

-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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