NASDAQ$HOFT

Hooker Furnishings Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a net loss due to an inventory write-down.

Hooker Furnishings Corporation reported a decrease in consolidated net sales for the fiscal year and fourth quarter. A net loss was reported for the fourth quarter, attributed to an inventory write-down. The company is focusing on restructuring efforts and strategic initiatives to improve profitability.

  • Consolidated net sales decreased by 2.6% in Q4 due to a decrease in the Home Meridian segment, offset by increases in Hooker Branded and Domestic Upholstery.
  • Reported a net loss of $17.9 million or $1.60 per diluted share in Q4, attributed to an inventory write-down.
  • Hooker Branded segment achieved a 15% sales increase in Q4.
  • Domestic Upholstery segment continued a positive trajectory with double-digit sales gains for the second consecutive year.

Headline financials

Total Revenue

$131M

Previous: $135M-2.7%
EPS (adj)

-$1.60

Previous: -$0.33-384.8%
Capital Expenditures

$730K

Previous: $66K+1006.1%
Free Cash Flow

$18.7M

Previous: $14.2M+32.0%
Net Income

-$17.9M

Previous: -$4M-347.5%
Operating Income

-$6M

Previous: -$5.3M-13.2%
Gross Profit

$0.00

Previous: $16.4M-100.0%
Cash & Equivalents

$19M

Previous: $69.4M-72.6%
Total Assets

$382M

Previous: $375M+1.9%
Stock-Based Comp

-$79K

Previous: -$395K+80.0%

Revenue & EPS history

Hooker Furnishings · Revenue · Quarterly

$131M

Q4 2023-2.7%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Hooker Furnishings · $74M total across 2 segments · Q4 2023

  • Hooker Branded
    $48.4M
  • Domestic Upholstery
    $25.7M+701.6%

Forward guidance

The company anticipates an exciting and well-attended furniture market with the opening of new showrooms. They expect product commitments from customers to positively affect the current fiscal year, helping Home Meridian achieve profitability. However, they are concerned about possible instability in global banking, interest rates, and the stock market.

Tailwinds

  • Stabilization of global supply chain dynamics.
  • Some moderation of inflation.
  • Continuing strength in employment levels.
  • Previously astronomical ocean freight rates have declined and appear to have stabilized.
  • New High Point and Las Vegas showrooms and plans to show at the Atlanta market this summer are giving opportunity to get our brands in front of more customers and prospects.

Headwinds

  • Possible instability in global banking.
  • Possible instability in interest rates.
  • Possible instability in the stock market.
  • Retailers delaying shipments due to temporarily high inventory levels.
  • Regulatory uncertainty with respect to anti-tipping standards on bedroom storage furniture.

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 2023

Historical avgQ4 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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