Hooker Furniture Q2 Sales up 4.1%

September 6, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on September 7, 2011

Hooker Furniture (NASDAQ-GS: HOFT) reported fiscal 2012 second-quarter net sales of $55.6 million, a 4.1 percent increase over the prior-year period.

The period ended July 31 marked the fifth consecutive quarter of year-over-year quarterly sales increases for Martinsville, Va.-based Hooker as unit volume grew across all divisions. Through six months of fiscal 2012, sales increased 8.8 percent to $114 million, compared with the first half of fiscal 2011.

Net income for the fiscal 2012 second quarter increased $468,000 to $1.6 million, or $0.15 per share, compared with net income of $1.2 million, or $0.11 per share, for the comparable period last year. The company reported net income for the 2012 first half of $2.2 million, or $0.20 per share, compared with net income of $2.3 million, or $0.21 per share, in the fiscal 2011 six-month period.

"Given the environment we're operating in and the softer sales we typically experience during the summer months, we're quite pleased to have grown revenues this quarter, even though growth moderated compared to last quarter," said Paul B. Toms Jr., chairman and CEO in an announcement of Hooker Furniture performance. "While business has been more challenging since mid-April, we have continued to post positive year-over-year comps in quarterly net sales in two of our three businesses, Hooker casegoods and Sam Moore fabric upholstery. At Bradington-Young, we have struggled with a combination of reduced demand for leather and motion furniture and significant increases in raw material costs."

Looking ahead, Toms expects improved business in the fall, but a prolonged period of economic challenges.

"The issues impacting consumer confidence, such as stock market volatility, depressed real estate values and ongoing high unemployment, are not likely to be quickly resolved," he said. "However, I'm confident we have the right business model, the right product line, the right people and the right distribution to be as successful as possible given the environment. While we know we are in for tough times, we expect to do better than most, and I'm bullish on our prospects versus overall industry prospects."