Hooker Furnishings Reports $397.5 Million in Sales, 8.3% Decline Amid Economic Challenges

Hooker Furnishings Corporation reported a consolidated net sales figure of $397.5 million for the fiscal year ending February 2, 2025, marking a decrease of $35.8 million, or 8.3%, compared to the previous fiscal year. The decline in revenue was attributed to weak demand across all three reportable segments—Hooker Branded, Home Meridian, and Domestic Upholstery—amid a challenging housing market and broader macroeconomic uncertainties. The company also faced an operating loss of $18.1 million, primarily due to lower sales volumes, restructuring costs of $4.9 million, a $3.1 million bad debt expense from a major customer's bankruptcy, and a $2.8 million non-cash impairment charge related to trade names.

In terms of segment performance, the Hooker Branded segment saw a revenue decline of $10.1 million, or 6.5%, driven by a 5.7% decrease in average selling price (ASP), although unit volume increased by 2.9%. The Home Meridian segment experienced a more significant drop, with sales down by $12.7 million, or 8.9%, largely due to a 29.9% decrease in unit volume, exacerbated by the loss of a major customer. Conversely, the Domestic Upholstery segment's sales fell by $12.6 million, or 9.9%, with some offset from a 6.8% increase in sales at Sunset West, which benefited from its East Coast expansion.

Operationally, Hooker Furnishings reported a consolidated order backlog of $52.6 million as of February 2, 2025, a decrease of 27% from the previous year, primarily due to reduced demand in the home furnishings market. The company also announced plans to exit its Savannah, Georgia warehouse, which is expected to yield annualized savings of between $4.0 million to $5.7 million starting in fiscal 2027. As of the end of the fiscal year, Hooker Furnishings employed 1,034 full-time employees, with a significant portion engaged in its Domestic Upholstery segment.

Looking ahead, the company faces significant economic uncertainty, particularly with low consumer sentiment and existing home sales. However, management remains focused on strategies to mitigate these challenges, including consolidating operations and investing in high-growth areas. The company has also secured a new credit agreement to ensure sufficient financial resources for ongoing operations and growth initiatives. Despite the current market conditions, Hooker Furnishings aims to leverage its merchandising efforts and maintain an in-stock position on top-selling products to capture market share.