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Hooker Furnishings Corporation (HOFT) has submitted its 10-Q filing for the quarterly period ended October 27, 2024.
The filing reports a decrease in consolidated net sales to $104.4 million, down 10.7% from $116.8 million in the same quarter the previous year. The company attributes this decline to ongoing challenging conditions in the home furnishings market.
The Hooker Branded segment saw a 10.7% decrease in net sales, with a reduction in average selling price and unit volume. The Home Meridian segment experienced an 11.8% decrease in net sales, primarily due to the loss of a significant customer and reduced sales in major furniture chains.
Domestic Upholstery segment sales decreased by 9.9%, with lower demand affecting divisions such as Shenandoah, Bradington-Young, and HF Custom. Sunset West, however, reported a 9.1% increase in sales.
Consolidated gross profit for the quarter was $24.0 million, down from $33.7 million the previous year, with a gross margin decrease from 28.9% to 23.0%. This was due to lower sales and increased ocean freight costs.
Operating losses were reported at $7.3 million for the quarter, compared to an operating income of $8.8 million in the previous year. The loss was impacted by $3.1 million in restructuring costs, a $2.4 million bad debt expense, and a $2.0 million intangible asset impairment.
Net loss for the quarter was $4.1 million, compared to a net income of $7.0 million in the previous year. The diluted loss per share was $0.39, compared to earnings of $0.65 per share in the previous year.
The filing notes that the company was not in compliance with certain financial covenants under its loan agreement but obtained waivers from Bank of America. A new credit facility is expected to ensure compliance in future quarters.
The company declared a quarterly cash dividend of $0.23 per share, payable on December 30, 2024, to shareholders of record on December 13, 2024.
Hooker Furnishings continues to focus on cost reduction initiatives and strategic growth investments to navigate the challenging market conditions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Hooker Furnishings Corporation quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.