NASDAQ$HOFT

Hooker Furnishings Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a decrease in net sales and a net loss due to COVID-related factory closures and unusual charges.

Hooker Furnishings reported a decrease in consolidated net sales by 11% to $133.4 million for the third quarter of fiscal year 2022, with a net loss of $1.2 million, or $0.10 per diluted share. The decline was primarily due to COVID-related factory closures in Vietnam and Malaysia, which significantly reduced shipments in the Home Meridian segment. The company faced challenges from ongoing supply chain disruptions and industry-wide inflationary pressures.

  • Consolidated net sales decreased by 11% compared to the prior year period due to COVID-related factory closures.
  • The Home Meridian segment experienced a significant sales decrease due to factory closures in Vietnam and Malaysia.
  • Hooker Branded and Domestic Upholstery segments reported double-digit sales increases.
  • Consolidated operating loss was $1.7 million, compared to $13 million of operating income in the prior year period.

Headline financials

Total Revenue

$133M

Previous: $150M-10.9%
EPS (adj)

-$0.10

Previous: $0.84-111.9%
Capital Expenditures

-$3.16M

Previous: -$169K-1770.4%
Free Cash Flow

-$4.38M

Previous: $9.92M-144.1%
Net Income

-$1.22M

Previous: $10.1M-112.1%
Operating Income

-$1.73M

Previous: $13M-113.3%
Gross Profit

$20M

Previous: $33.5M-40.2%
Cash & Equivalents

$57.2M

Previous: $93.9M-39.1%
Total Assets

$367M

Previous: $369M-0.5%
Stock-Based Comp

$217K

Previous: $427K-49.2%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$133M

Q3 2022-10.9%vs Q3 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Hooker Furnishings · $86.6M total across 3 segments · Q3 2022

  • Hooker Branded
    $55.6M+16.6%
  • Domestic Upholstery
    $27.8M+10.2%
  • All Other
    $3.21M-89.3%

Forward guidance

The company anticipates continued supply chain turbulence and cost inflation to impact net sales and income in the short term, but expects Hooker Branded and Domestic Upholstery to be less challenged than Home Meridian. They are focusing on new product development, operational improvements, cost management, and strategic growth initiatives.

Tailwinds

  • Consumer and retail demand remain historically strong.
  • Consolidated backlogs are nearly triple compared to pre-pandemic levels.
  • Expected efficiencies and cost savings from HMI’s new Savannah facility.
  • Focus on developing relevant new products to meet consumer needs.
  • Company remains optimistic as they manage through a challenging environment.

Headwinds

  • Continued supply chain turbulence is expected.
  • Product and raw materials cost inflation is expected to impact net sales and income.
  • Home Meridian is expected to be more challenged due to its reliance on direct container business.
  • Higher freight costs have a greater impact on lower price points for HMI.
  • Uncertainty regarding the pace of factory capacity increases in Vietnam and Malaysia.

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 Q3 2022

Historical avgQ3 2022

-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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