Hooker Has Profitable 3Q

December 6, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on December 7, 2010

Hooker Furniture (NASDAQ-GS: HOFT) reported Tuesday that sales rose 6 percent to $55.7 million for fiscal third quarter 2011.

Net income for the period ended Oct. 31 increased $213,000 to $1.2 million, or $0.11 per share, compared to net income of $957,000, or $0.09 per share, for the comparable period last year.

Through fiscal 2010's first nine months of the fiscal year, Martinsville, Va.-based Hooker's net sales increased 6.5 percent to $9.8 million; and the Company reported net income for the first nine months of $3.4 million or $0.32 per share, compared with net income of $38,000, or less than one cent per share, in the fiscal 2010 nine-month period.

"Given  weaker than expected consumer demand during the summer and early fall, we're gratified to have achieved our second consecutive quarter of year-over-year sales increases and to have remained consistently profitable throughout the year," said Paul B. Toms Jr., chairman and chief executive officer. "We were successful this quarter in focusing our inventory mix on those best-selling products that drive our business. Consequently, as we've seen demand pick up since early November, we are well-positioned from an inventory availability standpoint to ship customer orders for in-line merchandise immediately."

Hooker credited increased third-quarter sales to higher unit volume across all divisions as the company continued to make progress in shipping an order backlog elevated during the first half of the year from production delays and shipping bottlenecks.

During the quarter, wood furniture sales increased nearly 4 percent, while upholstery sales increased approximately 11 percent. Imported upholstery sales increased nearly 50 percent compared with the prior-year quarter, while domestic upholstery sales were essentially flat for the same period.

Looking ahead, Toms noted that Hooker has developed products and programs to stimulate business and engage the consumer, reduced costs, improved quality and kept best-selling products in-stock.

"We had a solid market in October, and more importantly, the products we have introduced over the last few markets are in the pipeline and performing well at retail," Toms said. "All along, we've said that all we needed to turn the corner was a little help from the economy. We've been encouraged by what we've heard  and seen in the last 30 days about improved business as we have visited retailers around the country. As orders trend in a positive direction, we are well-positioned to leverage the current uptick in consumer demand, as well as any sustainable improvement that may materialize."