NASDAQ$HOFT

Hooker Furnishings Corporation · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Hooker Furnishings reported first quarter operating results and cost reduction plan.

Hooker Furnishings reported a challenging first quarter due to weak demand in the furniture industry, resulting in an operating loss. Sales decreased across all segments, but the company is implementing cost reduction plans and remains confident in returning to profitability as demand rebounds. The company is focusing on strategic initiatives and investments to gain market share.

  • Net sales decreased in all segments: Hooker Branded by 18.6%, Home Meridian by 37%, and Domestic Upholstery by 14.5%.
  • Incoming orders increased by 11% compared to the previous quarter, with orders up across every segment.
  • Cash and cash equivalents stood at $40.9 million at the end of the first quarter.
  • The company plans a 10% reduction in overall fixed costs through operational realignment.

Headline financials

Total Revenue

$93.6M

Previous: $122M-23.2%
EPS

-$0.39

Previous: $0.13-400.0%
Gross Margin

20.5%

No prior period
Operating Margin

-5.5%

No prior period
Capital Expenditures

-$843K

Previous: -$3.16M+73.3%
Free Cash Flow

-$4.93M

Previous: -$1.71M-188.9%
Net Income

-$4.09M

Previous: $1.45M-382.1%
Operating Income

-$5.17M

Previous: $1.98M-361.8%
Gross Profit

$19.2M

Previous: $27.9M-31.1%
Cash & Equivalents

$40.9M

Previous: $31M+32.0%
Total Assets

$336M

Previous: $364M-7.8%
Stock-Based Comp

$205K

Previous: $371K-44.7%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$93.6M

Q1 2025-23.2%vs Q1 2024
Beat estimate in 6 of 15 quarters(40%)
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 Furnishings anticipates continued macroeconomic uncertainty and subdued home furnishings demand due to high interest rates. The company is implementing cost reduction measures and focusing on strategic initiatives to improve profitability and gain market share, expecting to be profitable in the current fiscal year and beyond.

Tailwinds

  • Expanded showroom footprints have led to a nearly 400% increase in traffic and visibility.
  • The company is focused on strategic initiatives to drive market share gains.
  • Investments and process improvements are expected to improve sales and profitability.
  • Consolidated backlog is up approximately 19% through the first quarter compared to the fiscal year-end.
  • Consolidated orders increased by 11%, with orders up across every segment, compared to the previous quarter.

Headwinds

  • Economic indicators remain mixed, with consumer sentiment declining.
  • Existing home sales decreased year-over-year in March and April.
  • High interest rates are expected to keep the housing industry and home furnishings demand subdued.
  • The company expects some short-term volatility in earnings until the industry-wide downturn ends.
  • Weak demand is adversely impacting the furniture industry, making the first quarter challenging.

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 2025

Historical avgQ1 2025

-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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