Hooker Furnishings Reports Operating Results for First Quarter

June 11, 2026  by Karen Parrish in Business Strategy, Industry   

Key Results for the Fiscal 2027 First Quarter:

The Company generated operating income of $1.6 million in the first quarter of fiscal 2027, compared to an operating loss of $498,000 in the prior-year period, a $2.1 million improvement.

Consolidated net sales decreased $1.7 million, or 2.4%, but consolidated gross profit increased $2.7 million, and gross margin improved 440 basis points.

Hooker Branded drove profitability improvement, with gross profit increasing $2.9 million, and gross margin improving 960 basis points, contributing $1.2 million of operating income despite a 4.8% decrease in net sales.

All Other net sales increased $605,000, or 11.7%, and the segment generated $1.1 million of operating income.

The Company reported consolidated net income of $1.1 million, or $0.10 per share, reflecting improved gross margin, results from prior cost-reduction actions and progress toward a leaner, higher-margin operating model focused on core businesses.

Executive Commentary

“We are encouraged to report $1.1 million in consolidated net income for the quarter, a $4.1 million improvement over the prior-year first quarter,” said Jeremy Hoff, chief executive officer. “These improvements were achieved despite a challenging demand environment characterized by depressed housing activity and low consumer confidence.”

“These improvements were primarily attributable to the $17.5 million reduction in fixed costs related to the continuing operations achieved in the prior year. Hooker Branded performed exceptionally well despite lower sales compared to the prior year. Domestic Upholstery’s performance was driven largely by lower sales volume but was bolstered by operational efficiencies implemented last fiscal year,” he continued. “Looking forward, retailer commitments to Margaritaville products, galleries, and free-standing stores continue to exceed our expectations, with meaningful shipments expected to begin in the second half of fiscal 2027.”

“We are also encouraged by the positive retailer response and commitments to products debuted at the April 2026 High Point Market. During the Market, we introduced Hooker Custom Upholstery, bringing together the Sam Moore and Bradington-Young brands under a unified platform. This updated market approach combines these upscale product lines under a unified premium Hooker Custom Upholstery identity, supported by a refreshed showroom presentation, enhanced marketing efforts, and a mix of new introductions and established products. The initiative is further supported by the capabilities of our new website launched in February 2026. Once market conditions improve, we believe this strategy will ultimately drive higher sales by creating a more cohesive brand narrative and presenting all offerings under the Hooker name, which carries the strongest brand recognition across our portfolio.”

Import Tariffs

In February 2026, during the Company’s fiscal first quarter, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act were not authorized by statute. In March 2026, the U.S. Court of International Trade directed U.S. Customs and Border Protection to implement a refund process for previously collected duties. The order remains subject to appeal and further litigation.

Due to uncertainty regarding the ultimate recoverability timing and amount of any refunds, the Company did not recognize a receivable or any reduction of cost of sales or inventory related to these claims in its unaudited condensed consolidated financial statements for the first quarter of fiscal 2027. Under U.S. GAAP, the Company is applying a gain contingency model to evaluate potential tariff refunds, recognizing such amounts only when recovery is realized or realizable.

Outlook

“Consolidated incoming orders increased 8% in May compared to the prior-year period, while backlog was up 14% year-over-year. The improvement was primarily driven by Margaritaville orders, which had its initial shipment in May,” Hoff added.

“However, housing activity remains pressured, and recent consumer confidence readings continue to reflect a very cautious consumer environment. The Department of Commerce’s April advance monthly estimates showed retail sales for furniture and home furnishings stores declined 2.0% from March and 3.6% from the prior year,” Hoff said.

“Additionally, we continue to monitor tariff developments. Based on currently available information, we expect certain tariffs to be levied on our imported goods later this fiscal year, which will replace, at least in part, the tariffs overturned by the U.S. Supreme Court earlier this year.”

“Our outlook for the fiscal 2027 second quarter is cautious, given the current macro-economic pressures. While we do not expect meaningful near-term improvement in market conditions, our more efficient cost structure and streamlined portfolio should help position us to deliver improved results versus the prior-year period, even if current conditions persist,” he continued.

“Our advantage is a sharper focus on our core businesses, a more disciplined operating model, and an organization aligned around profitable growth,” Hoff said. “While macroeconomic conditions remain challenging and tariff uncertainty persists, we believe the actions taken over the past year have positioned the Company to generate improved and more consistent earnings as market conditions improve.”

“Retailer commitments to Margaritaville products, galleries, and free-standing stores continue to exceed our expectations, with commitments to 100 in-store galleries and 10-free standing retail stores to-date, as compared with about half those numbers when we reported in December. Meaningful shipments are expected to begin in the second half of fiscal 2027 and are expected to build through the end of the current fiscal year and beyond. Combined with continued momentum in incoming orders across our core businesses, we believe we are well positioned to capitalize on opportunities as demand recovers,” Hoff concluded.

Conference Call Details

Hooker Furnishings will present its fiscal 2027 first quarter financial results via teleconference and live internet webcast on Thursday morning, June 11th, 2026 at 9:00 AM Eastern Time.

A live webcast of the call will be available on the Investor Relations page of the Company’s website at https://investors.hookerfurnishings.com/events and archived for replay.