Download PDF

1. Company Snapshot

1.a. Company Description

Hooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture.The company's Hooker Branded segment offers design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand; and imported upholstered furniture under the Hooker Upholstery brand.Its Home Meridian segment provides home furnishings under the Accentrics Home brand; a range of bedroom, dining room, accent, display cabinet, home office, and youth furnishings under the Pulaski Furniture and Samuel Lawrence Furniture brands; and imported leather motion upholstery under the Prime Resources International brand.


This segment also designs and supplies hotel furnishings for four and five-star hotels under the Samuel Lawrence Hospitality brand name; and ready-to-assemble furniture under the HMidea brand.The company's Domestic Upholstery segment offers motion and stationary leather furniture under the Bradington-Young brand; occasional chairs, settees, sofas, and sectional seating under the Sam Moore Furniture brand; and upholstered furniture, such as private label sectionals, modulars, sofas, chairs, ottomans, benches, beds, and dining chairs for lifestyle specialty retailers under the Shenandoah Furniture brand.It also supplies upholstered seating and casegoods to upscale senior living and assisted living facilities through designers, design firms, industry dealers, and distributors under the H Contract brand; and interior designer products under the Lifestyle Brands name.


The company sells home furnishing products through retailers, including independent furniture stores, department stores, mass merchants, national chains, catalog merchants, interior designers, e-commerce retailers, and warehouse clubs primarily in North America.Hooker Furnishings Corporation was incorporated in 1924 and is headquartered in Martinsville, Virginia.

Show Full description

1.b. Last Insights on HOFT

Hooker Furnishings Corporation's recent performance was driven by improved sales and cost-cutting initiatives. The company reported revenue of $85.3M and operating income of $3.6M in Q1 FY26, with a net loss of $0.29 per share. Despite flat underlying sales, management's efforts to reduce costs and build inventory are prudent given tariff risks. The company's quarterly dividend of $0.23 per share, declared on June 3, 2025, also supports its positive outlook.

1.c. Company Highlights

2. Hooker Furnishings' Q3 2026 Earnings: Navigating Challenges

Hooker Furnishings Corp. reported consolidated net sales from continuing operations of $70.7 million, a 14.4% decrease compared to the prior year period, primarily due to the timing of shipments in its hospitality business. Despite this decline, Domestic Upholstery sales rose 3% and Hooker Branded sales increased 1.1%. Gross margin improved to 25.6% from 24.8% last year. The company recorded a net loss from continuing operations of $12.5 million or $1.18 per diluted share, largely due to a $22.1 million noncash impairment charge. Earnings per share (EPS) came in at -$1.18, significantly worse than the estimated -$0.15, while revenue fell short of expectations, with analysts estimating a -16.4% revenue growth for the next year.

Publication Date: Dec -20

📋 Highlights
  • Net Sales Decline:: Q3 consolidated net sales fell to $70.7M (-14.4% YoY), driven by hospitality shipment timing shifts.
  • Gross Margin Improvement:: Gross margin rose to 25.6% (+70 bps YoY), despite a $2.4M gross profit decline.
  • Impairment Charges:: $22.1M noncash impairment charge recorded, including $14.5M to Sunset West goodwill.
  • Cost Reduction Success:: $25M+ annualized savings achieved through restructuring, with $63.8M borrowing capacity remaining.
  • Share Repurchase Plan:: $5M authorized for share buybacks, alongside a 50% dividend cut to $0.46/share annually.

Segment Performance

Hooker Branded net sales increased 1.1% in the third quarter, driven by higher average selling prices, resulting in a 300 basis point margin improvement. Domestic Upholstery net sales rose $870,000 or 3% in the third quarter. The company's focus on cost reduction measures has yielded over $25 million in annualized savings, with Jeremy Hoff stating, "We've spent the past 2 years taking disciplined actions to reshape Hooker Furnishings into a higher margin design-driven company."

Valuation and Outlook

With a P/E Ratio of -3.92, P/B Ratio of 0.69, and an EV/EBITDA of -7.23, the market appears to have priced in significant challenges for the company. However, the Dividend Yield stands at 7.31%, which may attract income-focused investors. The company's return to historical operating margins is plausible when the market improves, as suggested by Earl Armstrong. The new share repurchase authorization and recalibrated dividend may enhance long-term shareholder value.

Operational Highlights and Future Prospects

The company is encouraged by commitments to its new Margaritaville license collection, which represents a significant organic growth opportunity. With a stronger balance sheet and $63.8 million of available borrowing capacity, Hooker Furnishings is poised to weather the current market challenges. The divestiture of certain brands is expected to create additional opportunities for savings, and the company is confident in its expense structure.

Management's Confidence and Strategies

Jeremy Hoff expressed cautious optimism, stating that the company is "better positioned to improve profitability even in a prolonged downturn." The focus on core expertise in better to best home furnishings and the completion of cost reduction initiatives are expected to drive profitable growth. The company's operating margins were historically in the high single digits, and a return to this level is anticipated when the market recovers.

3. NewsRoom

Card image cap

Hooker Furnishings to Appoint New Independent Director with Industry Expertise

Jan -02

Source: globenewswire.com

Card image cap

Stock Market Live January 2: S&P 500 (VOO) Rises on Last Day of Week, First Trading Day of 2026

Jan -02

Source: 247wallst.com

Card image cap

Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q3 FY26

Dec -22

Source: newsfilecorp.com

Card image cap

Hooker Furnishings Completes Sale of Pulaski Furniture and Samuel Lawrence Furniture for Approximately $6.1 Million

Dec -15

Source: globenewswire.com

Card image cap

Hooker Furnishings: Aggressive Cost Savings Offset Sales Pressure

Dec -12

Source: seekingalpha.com

Card image cap

Hooker Furnishings Corporation (HOFT) Q3 2026 Earnings Call Transcript

Dec -11

Source: seekingalpha.com

Card image cap

Hooker Furniture (HOFT) Beats Q3 Earnings Estimates

Dec -11

Source: zacks.com

Card image cap

Hooker Furnishings Announces Sale of Two Brands within Home Meridian Segment

Dec -01

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Hooker Branded

Expected Growth: 4.83%

Hooker Branded's 4.83% growth is driven by increasing demand for home furnishings, particularly in the e-commerce channel. The brand's focus on quality, style, and affordability resonates with consumers. Additionally, strategic partnerships, effective marketing, and a strong distribution network contribute to its growth momentum.

Home Meridian

Expected Growth: 4.83%

Home Meridian's 4.83% growth is driven by increasing demand for affordable, stylish furniture, particularly among millennials and Gen Z. The segment benefits from Hooker Furnishings' strong brand recognition, efficient supply chain, and strategic partnerships with online retailers. Additionally, the company's focus on e-commerce and digital marketing has enhanced its online presence, contributing to the segment's growth.

Domestic Upholstery

Expected Growth: 4.83%

Hooker Furnishings' Domestic Upholstery segment growth of 4.83% is driven by increasing demand for home furnishings, rising consumer spending, and a shift towards online shopping. Additionally, the company's focus on product innovation, quality, and customer service has contributed to its market share gain.

All Other

Expected Growth: 4.83%

Hooker Furnishings' 4.83% growth in All Other segment is driven by increasing demand for home office and accent furniture, strategic acquisitions, and expansion into e-commerce channels. Additionally, the company's focus on product innovation, quality, and customer service has contributed to its growth momentum.

7. Detailed Products

Casegoods

Hooker Furnishings Corporation's casegoods segment offers a wide range of stylish and functional furniture pieces, including bedroom, dining, and living room furniture.

Upholstery

The upholstery segment offers a diverse selection of stylish and comfortable sofas, loveseats, chairs, and sectionals, designed to fit various lifestyles and decor.

Home Office

Hooker Furnishings Corporation's home office segment provides a range of functional and stylish furniture pieces, including desks, chairs, and bookshelves, designed to create a productive workspace.

Accents

The accents segment offers a variety of decorative and functional pieces, including rugs, lighting, and wall decor, designed to add a finishing touch to any room.

Imported Upholstery

Hooker Furnishings Corporation's imported upholstery segment offers a selection of stylish and affordable furniture pieces, sourced from around the world.

8. Hooker Furnishings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Hooker Furnishings Corporation is medium due to the presence of alternative furniture manufacturers and retailers. While the company has a strong brand reputation, customers may still opt for substitutes if they offer similar quality and pricing.

Bargaining Power Of Customers

The bargaining power of customers for Hooker Furnishings Corporation is low due to the company's strong brand reputation and wide distribution network. Customers have limited bargaining power as they are dependent on the company's products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Hooker Furnishings Corporation is medium due to the presence of multiple suppliers and the company's dependence on them for raw materials. However, the company's strong relationships with suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants for Hooker Furnishings Corporation is low due to the high barriers to entry in the furniture manufacturing industry. New entrants would require significant investments in manufacturing facilities, marketing, and distribution networks.

Intensity Of Rivalry

The intensity of rivalry for Hooker Furnishings Corporation is high due to the presence of established competitors in the furniture manufacturing industry. The company faces intense competition in terms of pricing, quality, and innovation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.66%
Debt Cost 3.95%
Equity Weight 88.34%
Equity Cost 9.69%
WACC 9.02%
Leverage 13.20%

11. Quality Control: Hooker Furnishings Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bassett Furniture

A-Score: 5.1/10

Value: 5.8

Growth: 1.3

Quality: 4.2

Yield: 9.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Hooker Furnishings

A-Score: 5.0/10

Value: 9.6

Growth: 1.0

Quality: 4.8

Yield: 9.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Flexsteel

A-Score: 4.8/10

Value: 8.1

Growth: 7.1

Quality: 6.0

Yield: 4.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
American Woodmark

A-Score: 4.1/10

Value: 7.9

Growth: 6.0

Quality: 4.8

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Virco Mfg

A-Score: 3.9/10

Value: 5.1

Growth: 8.2

Quality: 3.6

Yield: 2.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
MasterBrand

A-Score: 3.7/10

Value: 7.4

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.19$

Current Price

14.19$

Potential

-0.00%

Expected Cash-Flows