Hooker Furniture Records Double-Digit Sales, Profit Hikes

September 7, 2017  by Larry Thomas in Economic News, Industry   

The company said sales increased 14.8% to $156.3 million, while net income leaped 46% to $7.78 million or 67 cents per share.

The company didn't release sales and profit totals for its individual reporting segments, but said Home Meridian sales jumped 20% and operating income more than doubled in the quarter.

"The increase in sales and profits is due to several factors, most important of which is the continued focus on large, fast-growing customers in emerging channels," said George Revington, chief operating officer at Hooker Furniture. "Based on demand, we feel the sales momentum will continue, as year-over-year backlog at quarter end was up 23%, and year-to-date orders were up 24%."

Sales at Hooker Casegoods were up 4% in the quarter, while Hooker Upholstery had a double-digit sales increase, the company said.

"We're very pleased to have achieved an almost 15% increase in consolidated sales this quarter, with sales up in all segments and in 8 of our 10 business units," said Paul Toms Jr., chairman and CEO. "The strong performance was particularly gratifying considering the second quarter is traditionally the softest of the year in the home furnishings industry. Our sales and income gains validate our strategy of focusing on emerging and winning channels of distribution.

"Our channel-focused strategy to grow sales is producing significant revenue momentum in our Home Meridian segment, and beginning to have a positive impact on our legacy business as well."

Toms said it was especially rewarding to see casegoods shipments growing again, noting that orders and backlogs are outpacing shipments.

"We're realizing the benefits of successful product introductions for casegoods the last two furniture markets," added Mike Delgatti, president of Hooker Legacy Brands. "In addition, our focus on emerging channels is beginning to positively impact casegoods sales, along with our emphasis on key accounts, which are best-in-class retailers within the traditional furniture store channel," he said.

Toms said he has some concern about recent reports of slow retail business and lower housing starts, but said he's encouraged  by the company's momentum going into the busy fall selling season.

"The positives outweigh the negatives, with a generally positive macro environment, a healthy stock market, strong employment and consumer confidence at historically high levels," Toms said. "Our expectation for the fall selling season and the balance of the year is optimistic."

For the six months ended July 30, net sales were up 11.9% to $287 million. First-half profits jumped 59% to $12.5 million or $1.08 per share.