Hooker Furnishings Corporation (HOFT) Q2 2026 Earnings Call Transcript
Hooker Branded net sales Up 1.3% year-over-year. Higher average selling prices drove the increase, partly offset by higher discounting.
Domestic Upholstery net sales Consistent with the prior year second quarter. Reflects soft demand and supply chain disruptions in Vietnam and China.
Home Meridian net sales Down 44.5% year-over-year. Decline due to tariff-related buying hesitancy, macroeconomic pressures, and the loss of a major customer due to bankruptcy.
Consolidated net sales $82.1 million, down $13 million or 13.6% year-over-year. Driven primarily by sales declines at Home Meridian.
Consolidated operating loss $4.4 million compared to $3.1 million in the prior year quarter. Reflects lower sales volume, unfavorable customer mix at Home Meridian, and $2 million in restructuring costs.
Consolidated net loss $3.3 million or $0.31 per share. Reflects lower sales and restructuring costs.
First 6 months consolidated net sales Declined by $21 million or 11.2% year-over-year. Driven by lower sales at Home Meridian and a modest 1.7% decline in Domestic Upholstery.
First 6 months consolidated operating loss $8 million, consistent with the prior year period. Reflects improvements on the legacy Hooker side despite significant sales volume decline and $2.5 million in restructuring costs.
First 6 months net loss $6.3 million or $0.60 per diluted share. Reflects sales volume decline and restructuring costs.
Hooker Branded gross profit Declined $167,000 in the second quarter with gross margins down 80 basis points. Due to lower margins on discounted items and tariff-related product costs.
Home Meridian gross profit Decreased $4.9 million in the second quarter. Driven by lower net sales, unfavorable customer and product mix, and higher warehousing consolidation expenses.
Domestic Upholstery gross profit Rose $659,000 in the second quarter with margins expanding by 220 basis points. Supported by steady direct material costs and decreased labor and indirect costs.
Domestic Upholstery operating losses Reduced by $877,000 or 68% in the second quarter. Reflects improved labor-to-revenue ratios and stronger factory performance metrics.
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- Cooperation Agreement: Hooker Furnishings has signed a cooperation agreement with GVIC, under which both parties will work together to identify an independent director with industry expertise within 45 days, aiming to enhance the board's professionalism and strategic direction.
- Board Expansion: The addition of the new independent director will increase the board size from eight to nine members, a change expected to improve corporate governance and further drive the goal of long-term profitable growth.
- Shareholder Support: GVIC has agreed to vote in favor of Hooker's nominees at the 2026 and 2027 annual meetings, demonstrating confidence in the company's future and helping to stabilize shareholder relations.
- Chairman's Retirement: Board Chair Chris Beeler plans to retire at the 2026 annual meeting; although his decision is not due to any disagreement with the company, his extensive experience will continue to influence the company's strategic development.
- Cooperation Agreement: Hooker Furnishings has signed a cooperation agreement with GVIC, under which both parties will work together to identify an independent director with industry expertise within 45 days, aiming to enhance the board's professionalism and drive long-term profitable growth.
- Board Expansion: The addition of the new independent director will increase the board size from eight to nine members, which not only enhances the diversity of the company's governance structure but also helps attract more investor attention to the company's growth potential.
- Chairman's Retirement Plan: Board Chair W. Christopher Beeler has announced his intention to retire at the 2026 annual meeting, and while his decision is not due to any disagreement with the company, his extensive leadership experience will have a lasting impact on the company's future development.
- Shareholder Voting Commitment: Under the agreement, GVIC has committed to vote in favor of Hooker's nominees at the 2026 and 2027 annual meetings, ensuring stability in corporate governance and maximizing shareholder interests, thereby further enhancing the company's competitiveness in the market.

- Transaction Completion: Hooker Furnishings has finalized the sale of the Pulaski and Samuel Lawrence furniture brands for approximately $6.1 million, marking a significant milestone in the company's journey towards enhanced profitability.
- Financial Optimization: The transaction allows Hooker to shed around $4.8 million in HMI showroom lease liabilities, as Magnussen assumes the lease of HMI's High Point showroom, thereby optimizing the company's financial structure.
- Sales Growth: Following the completion of the sale, Hooker reported a modest improvement in sales and margins during the fiscal third quarter, indicating positive momentum in brand focus and market opportunities.
- Shareholder Value Enhancement: The company plans to create shareholder value through a new share repurchase program, reflecting confidence in future growth opportunities, particularly regarding the potential of the Margaritaville licensed collection.
- Transaction Completion: Hooker Furnishings has completed the sale of the Pulaski and Samuel Lawrence furniture brands to Magnussen Home Furnishings for approximately $6.1 million, marking a significant milestone in the company's journey toward enhanced profitability.
- Financial Impact: This transaction allows Hooker to shed about $4.8 million in HMI showroom lease liabilities, as Magnussen assumes the lease of HMI's High Point showroom, thereby optimizing the company's financial structure.
- Sales Improvement: Following the completion of the transaction, Hooker reported a modest improvement in sales and margins within its branded and domestic upholstery segments, indicating positive momentum in the market.
- Future Outlook: CEO Jeremy Hoff expressed optimism about creating value through the new Margaritaville licensed collection and plans for opportunistic share repurchases under the new buyback program to enhance shareholder returns.








