Hooker Furnishings (HOFT) investor relations material

Executive summary

• Achieved net income of $1.1 million ($0.10 per share) for the quarter, a $4.1 million improvement year-over-year, despite a 2.4% sales decline and weak housing and retail demand.

• Operating income reached $1.6 million, reversing a prior year operating loss, driven by cost reduction initiatives and a leaner operating model.

• Gross profit increased by $2.7 million, with gross margin up 440 basis points year-over-year.

Financial highlights

• Consolidated net sales were $69.5 million, down $1.7 million or 2.4% year-over-year.

• Gross profit was $20.6 million (29.6% margin), up from $17.9 million (25.2% margin) last year.

• Earnings per diluted share were $0.10, up from -$0.29 year-over-year.

• Cash and cash equivalents at quarter-end were $10.6 million, up $9.5 million from prior year-end.

• No debt outstanding; $54.2 million in available borrowing capacity.

Outlook and guidance

• Retailer commitments to Margaritaville products and new galleries exceed expectations, with significant shipments expected in the second half of fiscal 2027.

• Incoming orders increased 8% in May year-over-year, and backlog rose over 14%.

• Cautious outlook for Q2 due to ongoing macroeconomic pressures and tariff uncertainty, but improved cost structure expected to support better results versus prior year.