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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.

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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' Q2 2026 Earnings Report: Mixed Results Amidst Restructuring Efforts

Hooker Furnishings reported a 13.6% decline in consolidated net sales to $82.1M for Q2 2026, resulting in an operating loss of $4.4M and a net loss of $3.3M, or $0.31 per share. The earnings per share (EPS) missed analyst estimates of -$0.12. For the first half of the year, sales dropped 11.2% to $161M, with a net loss of $6.3M, or $0.60 per share.

Publication Date: Sep -20

📋 Highlights
  • Hooker Branded Growth: 1.3% sales increase YoY, breakeven performance vs. $329K loss prior, despite $655K restructuring costs.
  • Home Meridian Decline: 44.5% sales drop driven by tariffs (35% impact), customer loss (25% impact), and hospitality project timing.
  • Consolidated Performance: Net sales fell 13.6% to $82.1M, operating loss $4.4M ($31/share), with year-to-date sales down 11.2% ($21M).
  • Restructuring Progress: $25M two-year plan achieved $3.7M savings in 2026, targeting 25% fixed cost reduction by Q3 2026.
  • Segment Margin Gains: Domestic Upholstery reduced operating losses by 68% to $408K; Hooker Branded breakeven with $782K restructuring costs.

Segment Performance

The Hooker Branded segment saw a 1.3% increase in net sales and broke even, despite $655K in restructuring costs. Domestic Upholstery sales were flat, but operating losses decreased by 70% to $408K. Home Meridian experienced a significant 44.5% sales decline due to tariffs, customer loss, and hospitality project timing, leading to a $3.9M operating loss.

Restructuring Efforts and Future Outlook

Management highlighted progress in cost reduction, with a $25M cost-reduction plan on track, having achieved $3.7M in savings in 2026. By Q3 2026, fixed costs are expected to be 25% lower. The company is also focusing on new product launches, such as the Margaritaville collection, and mitigating tariffs through its Vietnam warehouse.

Valuation Metrics

With a P/E Ratio of -8.83, P/B Ratio of 0.59, and an EV/EBITDA of -15.81, the market is pricing in significant challenges. The Dividend Yield stands at 8.64%, indicating a relatively attractive yield for income investors. The ROE and ROIC are negative, reflecting the current operational challenges.

3. NewsRoom

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Hooker Furnishings Announces Sale of Two Brands within Home Meridian Segment

Dec -01

Source: globenewswire.com

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5 Companies Investors Always Forget Under $10 With Huge Dividends

Oct -14

Source: 247wallst.com

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Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q2 FY26

Sep -12

Source: newsfilecorp.com

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Hooker Furnishings: Downside Isn't Over Yet

Sep -11

Source: seekingalpha.com

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Hooker Furnishings Corporation (HOFT) Q2 2026 Earnings Call Transcript

Sep -11

Source: seekingalpha.com

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Hooker Furniture (HOFT) Reports Q2 Loss, Lags Revenue Estimates

Sep -11

Source: zacks.com

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Hooker Furnishings Reports Fiscal 2026 Second Quarter Results

Sep -11

Source: globenewswire.com

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Hooker Furnishings Declares Quarterly Dividend

Sep -09

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

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A-Score: 3.6/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.55$

Current Price

11.55$

Potential

-0.00%

Expected Cash-Flows