NASDAQ$HOFT

Hooker Furnishings Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Hooker Furnishings experienced a challenging year but finished on a more positive note in the fourth quarter, with sales up over 4% and net income up nearly 80% compared to the third quarter.

Hooker Furniture reported consolidated net sales of $164.9 million and net income of $7.0 million, or $0.59 per diluted share, for the fourth quarter of fiscal 2020. Net sales decreased $35.6 million, or 17.8%, compared to last year’s record fourth quarter sales, due to lower sales across all reportable segments and essentially flat sales in All Other. Net income decreased 52.2% compared to the prior-year quarter.

  • Consolidated fourth quarter sales were up over 4% compared to the third quarter.
  • Net income was up nearly 80% compared to the third quarter.
  • Backlog was up over 9% compared to the previous year-end.
  • The company successfully executed tariff mitigation and resourcing strategies, reducing the amount of product imported from China by about half.

Headline financials

Total Revenue

$165M

Previous: $200M-17.8%
EPS (adj)

$0.59

Previous: $1.24-52.4%
Capital Expenditures

$384K

Previous: $2.75M-86.0%
Free Cash Flow

$14.4M

Previous: -$14M+203.1%
Net Income

$7M

Previous: $14.7M-52.4%
Operating Income

$9.04M

Previous: $19.2M-52.8%
Gross Profit

$31.2M

Previous: $43.5M-28.3%
Cash & Equivalents

$36M

Previous: $11.4M+214.8%
Total Assets

$40M

Previous: $370M-89.2%
Stock-Based Comp

$405K

Previous: $365K+11.0%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$165M

Q4 2020-17.8%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Hooker Furnishings · $29.7M total across 3 segments · Q4 2020

  • Hooker Branded
    $16.7M
  • Domestic Upholstery
    $10.9M
  • All Other
    $2.1M

Forward guidance

The COVID-19 pandemic presents an economic challenge of unprecedented proportions with an uncertain time frame, and the company is preparing for a significant downturn lasting anywhere from four to six months.

Tailwinds

  • Lower-fixed-cost, broad-distribution business model gives the company more flexibility to scale its business up or down.
  • Strong presence in e-commerce, since that channel is holding up during this crisis so far.

Headwinds

  • Erratic stock market and spike in unemployment claims.
  • Supply chain disruptions.
  • Cancellation of business, social, sporting, academic and religious gatherings, including High Point Premarket and the postponement of the Spring High Point Market.
  • Some customers have closed temporarily as many communities across the country are under stay-at-home orders from state and local authorities.
  • Spike in order cancellations over the last few weeks, which has blunted some of the strong backlog the company saw at year-end.

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 Q4 2020

Historical avgQ4 2020

-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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