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Top-Line Beat, Bottom-Line Miss, Inflationary Pressures: Hooker Furnishings' Mixed Q1 Results

Benzinga · 06/09/2022 10:15
  • Hooker Furnishings Corp (NASDAQ:HOFT) reported a first-quarter FY23 sales decline of 9.5% year-on-year to $147.3 million, beating the consensus of $145.35 million.
  • Net sales from Hooker Branded segment decreased by 17.7% Y/Y, Home Meridian declined 26.4%, and Domestic Upholstery gained 62.2%.
  • The gross profit rose 12.3% Y/Y to $29.5 million, and the margin contracted 60 basis points to 20%.
  • The operating margin was 2.7%, and operating income for the quarter declined 67.9% to $3.9 million.
  • The company held $10.1 million in cash and equivalents as of May 1, 2022. Inventories at Q1 end stood at $107.7 million.
  • EPS of $0.26 missed the consensus of $0.28.
  • "We are watching inflationary pressures in the economy and believe those are affecting consumers more at the lower price points than at the upper-medium and upper price points," said CEO Jeremy Hoff.
  • The company's quarterly cash dividend of $0.20 per share is payable on June 30, 2022, to shareholders of record on June 17, 2022.
  • On June 6, 2022, Hooker Furnishings Board authorized the repurchase of up to $20 million of common shares.
  • Price Action: HOFT shares are trading higher by 2.05% at $17.88 on the last check Thursday.