NASDAQ$HOFT

Hooker Furnishings Corporation · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Improved sequential performance in the second quarter.

Hooker Furnishings reported its fiscal 2025 second quarter operating results. Net sales increased in Home Meridian segment, driven by strong performance in its hospitality division. The company expects to realize 10% savings in fixed costs beginning in the second half of this fiscal year, for a total of a $10 million reduction.

  • Hooker Branded segment net sales decreased by 4.5% due to lower average selling prices, but unit volume exceeded the prior year by 11.6%.
  • Home Meridian segment net sales increased by 5.6%, driven by strong performance in its hospitality division.
  • Domestic Upholstery segment net sales decreased by 7.6% due to lower unit volume at Bradington-Young and HF Custom.
  • Cash and cash equivalents were $42.1 million, and inventory levels decreased by $4.7 million from year-end.

Headline financials

Total Revenue

$95.1M

Previous: $97.8M-2.8%
EPS

-$0.19

Previous: $0.07-371.4%
Gross Margin

22.0%

No prior period
Operating Margin

-3.3%

No prior period
Capital Expenditures

-$1.42M

Previous: -$807K-76.1%
Free Cash Flow

-$3.37M

Previous: -$22K-15227.3%
Net Income

-$1.95M

Previous: $785K-348.5%
Operating Income

-$3.15M

Previous: $1.27M-347.4%
Gross Profit

$20.9M

Previous: $23.3M-10.4%
Cash & Equivalents

$42.1M

Previous: $50M-15.9%
Total Assets

$332M

Previous: $350M-5.1%
Stock-Based Comp

$220K

Previous: $672K-67.3%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$95.1M

Q2 2025-2.8%vs Q2 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

The company anticipates that a potential interest rate cut by the Federal Reserve could accelerate housing activity. They are focused on maximizing efficiencies with planned cost reductions and investing in expansion strategies for improved profitability and revenue growth when demand returns.

Tailwinds

  • Inflation hit its lowest post-pandemic level in July, with the Consumer Price Index cooling to 2.9%, setting up a possible interest rate cut in September
  • There’s been a recent surge in mortgage refinancing in August, which is another positive indicator
  • Overall retail sales rose about 3% during the same period
  • The University of Michigan Consumer Sentiment Index rose in August for the first time since March
  • Existing-home sales grew in July ending a four-month sales decline

Headwinds

  • Challenges in the macroeconomic and furniture retail environment have extended well beyond expectations
  • High interest rates, a housing shortage and elevated home prices have created a sustained housing downturn for over two years
  • Most furniture retail is not doing well
  • The U.S. Department of Commerce reported its 17th consecutive month of lower home furnishings retail sales in July
  • Industry weakness continues to affect order rates and backlog levels, leading to reduced production at Bradington-Young and HF Custom during the quarter

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 2025

Historical avgQ2 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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