by The company attributed the increase in net income to a $17.5 million reduction in fixed operating costs last year
MARTINSVILLE — Despite ongoing challenges related to the housing market and low consumer confidence, Hooker Furnishings reported $1.1 million in net income for its first quarter ended May 3, resulting primarily from aggressive cost-cutting measures last year.
Net income totaled $1.1 million, or 10 cents per share compared with a net loss of $3.1 million, or 29 cents per share last year.
Sales for the quarter totaled $69.6 million, down 2.4% from $71.2 million the same period last year.
Operating income totaled $1.6 million, compared to an operating loss of $498,000 the same period last year, an improvement of $2.1 million.
Gross profit totaled $20.6 million, or 29.6% of sales compared with $17.9 million, or 25.2% of sales last year. SG&A expenses totaled $18.5 million, or 26.6% of sales, up 4% from $17.8 million, or 25% of sales last year.
“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.”
He said that the improvements were largely attributed to the company’s $17.5 million reduction in fixed continuing operations costs achieved last year.
“Hooker Branded performed exceptionally well despite lower sales compared to the prior year,” he said. “Domestic Upholstery’s performance was driven largely by lower sales volume but was bolstered by operational efficiencies implemented last fiscal year. 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.”
He added that the company also is encouraged by positive retailer response and commitments to products introduced at the April High Point Market.
“During the market, we introduced Hooker Custom Upholstery, bringing together the Sam Moore and Bradington-Young brands under a unified platform,” he said. “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.”
For the company’s full detailed first quarter results by segment, click here.
