Hooker Furniture 3Q Income Up 44.5%

December 10, 2015  by in Financial Reports, Industry   

Third quarter net sales were $65.3 million, a 3.4 percent increase from net sales of $63.2 million in the third quarter last year.

In the first nine months, net sales climbed 3.9 percent to $186.4 million from $179.4 million in the nine-month period last year. The company’s net income for the first nine months was $12 million, up from $8.3 million in the same period last year.

"Our ability to leverage modest sales growth into a 45% improvement in net income this quarter is gratifying," said Paul Toms, chairman and CEO.

The company said case goods profitability was bolstered by  higher sales, less discounting, favorable freight rates and lower quality related costs.

Upholstery sales were down slightly from last year, but the segment increased operating income by about 50 percent in the third quarter and nearly doubled operating income in the nine-month period. Toms said “continued improvements in manufacturing efficiencies, stable costs and a return on some of our investments in people, equipment and systems” bolstered the operating income.

"Overall profitability also benefitted from a positive contribution from the H Contract line of senior living furnishings, which achieved operating profitability for the fiscal 2016 third quarter and first nine months, as well as reduced operating losses in the Homeware division,” Toms said. “In addition to generating good operating profitability, H Contract's net sales are growing faster than projected. Homeware has been slower to gain traction; however, we expect to see positive impacts of a recent strategy change at Homeware next year."

The company’s complete earnings release is available online.