NASDAQ$HOFT

Hooker Furnishings Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Hooker Furnishings reported second quarter sales and earnings, navigating a tough business climate and focusing on strategic growth initiatives.

Hooker Furnishings reported its fiscal 2024 second quarter results, highlighting progress in strengthening the balance sheet, reducing overhead, and focusing on strategic growth initiatives despite a tough business climate and the liquidation of excess inventories.

  • Incoming orders have trended higher each month through the summer compared to the prior year, with consolidated orders up by double-digits versus a year ago.
  • The company has prioritized strengthening its financial position and strategically deploying capital, while investing in new showrooms and systems.
  • The transformation of the Home Meridian segment to a sustainably profitable business model is well underway.
  • Hooker Furnishings completed the acquisition of Atlanta-based BOBO Intriguing Objects, broadening its product diversity.

Headline financials

Total Revenue

$97.8M

Previous: $153M-36.0%
EPS (adj)

$0.07

Previous: $0.46-84.8%
Capital Expenditures

-$807K

Previous: -$1.12M+27.8%
Free Cash Flow

-$22K

Previous: $4.43M-100.5%
Net Income

$785K

Previous: $5.54M-85.8%
Operating Income

$1.27M

Previous: $7.29M-82.5%
Gross Profit

$23.3M

Previous: $31.1M-24.8%
Cash & Equivalents

$50M

Previous: $11.7M+328.9%
Total Assets

$350M

Previous: $413M-15.2%
Stock-Based Comp

$672K

Previous: $519K+29.5%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$97.8M

Q2 2024-36%vs Q2 2023
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 that the first half of the year was difficult as the industry worked through bloated inventories and consumers’ spending habits changed, but expects demand and business to pick up in the second half.

Tailwinds

  • Consolidated orders are up in mid-double-digits over this time a year ago, with orders trending up in each segment for the past few months.
  • A significant portion of Hooker Branded’s backlog consists of orders for new products launched at the High Point market, and are expected to ship in the second half of this year.
  • Home Meridian expects to ship to over a thousand retail floors in what we believe to be the largest number of new product placements in its history.
  • The company is focused on reducing overhead costs and keeping its balance sheet strong.
  • The company has continued to invest significantly in initiatives that promote higher visibility amongst potential customers and future growth.

Headwinds

  • A housing shortage and the over 20-year high on fixed mortgage rates has slowed down housing activity.
  • The continued rise in interest rates has suppressed consumer confidence.
  • The industry worked through bloated inventories.
  • Consumers’ spending habits changed.
  • There are conflicting signals in the economy.

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 2024

Historical avgQ2 2024

-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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