NASDAQ$HOFT

Hooker Furnishings Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Hooker Furnishings reported a decrease in net sales and net income compared to the prior year period, but experienced growth in the Hooker Branded and Domestic Upholstery segments.

Hooker Furnishings reported consolidated net sales of $152.9 million for its fiscal 2023 second quarter, a 5.9% decrease compared to the previous year. Net income was $5.5 million, or $0.46 per diluted share, down from $7.5 million, or $0.62 per diluted share in the prior year period. The company saw sales increases in two of its three segments and anticipates growth in all three segments in the second half of the year.

  • Consolidated net sales decreased by 5.9% to $152.9 million compared to the prior year.
  • Consolidated net income decreased to $5.5 million, or $0.46 per diluted share, from $7.5 million, or $0.62 per diluted share in the prior year.
  • Hooker Branded segment net sales increased by 5.8% due to increased inventory receipts and order fulfillment.
  • Domestic Upholstery segment achieved a 62% increase in net revenues, driven by organic sales growth and the addition of Sunset West's results.

Headline financials

Total Revenue

$153M

Previous: $163M-5.9%
EPS (adj)

$0.46

Previous: $0.62-25.8%
Capital Expenditures

-$1.12M

Previous: -$1.28M+12.5%
Free Cash Flow

$4.43M

Previous: $6.19M-28.5%
Net Income

$5.54M

Previous: $7.47M-25.8%
Operating Income

$7.29M

Previous: $9.66M-24.5%
Gross Profit

$31.1M

Previous: $31.7M-2.1%
Cash & Equivalents

$11.7M

Previous: $37.4M-68.8%
Total Assets

$413M

Previous: $368M+12.1%
Stock-Based Comp

$519K

Previous: $469K+10.7%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$153M

Q2 2023-5.9%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Hooker Furnishings · $91.3M total across 2 segments · Q2 2023

  • Hooker Branded
    $52.9M+7.3%
  • Domestic Upholstery
    $38.4M+72.0%

Forward guidance

Hooker Furnishings is closely monitoring economic disrupters but sees reasons for optimism, anticipating a strong second half of the year with increased sales in all three segments.

Tailwinds

  • The U.S. enjoys strong levels of employment.
  • Household incomes are rising.
  • Consumer spending shows continuing strength.
  • Another sizeable generation enters into their prime furniture purchasing years.
  • Strategic initiatives are expected to buoy organic growth.

Headwinds

  • Economic disrupters like inflation are being closely monitored.
  • Rising interest rates are a concern.
  • A slowing housing market is being monitored.
  • Incoming orders are down.
  • Reduction of incoming orders from retailers is a result of right-sizing their inventories.

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 Q2 2023

Historical avgQ2 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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