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Hooker Furniture Corp. (HOFT)
NASDAQ:HOFT
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Hooker Furniture
(NASDAQ:HOFT)
47Neutral
Hooker Furniture (HOFT) vs. S&P 500 (SPY)
Market Cap
$98.11M
Dividend Yield10.04%
Average Volume (3M)73.64K
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth-16.67%
EPS Growth-24.91%
CountryUS
Employees1,203
SectorConsumer Cyclical
Sector Strength61
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.93
Shares Outstanding10,710,432
10 Day Avg. Volume87,298
30 Day Avg. Volume73,637
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.32
Price to Cash Flow (P/CF)N/A
P/FCF Ratio97.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Hooker Furniture Business Overview & Revenue Model
Company DescriptionHooker Furniture Corporation (HOFT) is a leading manufacturer and importer of residential furniture primarily targeting the upper-medium to high-end segments of the market. The company offers a wide range of home furnishings, including bedroom, dining room, living room, home office, and accent furniture. With a rich history dating back to 1924, Hooker Furniture is known for its high-quality craftsmanship and innovative design, providing stylish and functional furniture solutions to its customers.
How the Company Makes MoneyHooker Furniture Corporation generates revenue through the sale of its various furniture products. The company's revenue streams primarily include wholesale distribution to retailers and direct-to-consumer sales through its retail outlets and e-commerce platforms. Hooker Furniture collaborates with a network of independent furniture retailers, department stores, and specialty retailers to reach its target consumers. Additionally, the company may engage in strategic partnerships and licensing agreements to enhance its product offerings and brand presence. The combination of domestic manufacturing and global sourcing allows Hooker Furniture to efficiently manage costs and maintain competitive pricing, contributing to its overall profitability.
Hooker Furniture Financial Statement Overview
Summary
Hooker Furniture is struggling with profitability and cash flow, evidenced by declining revenue, negative profit margins, and challenges in cash generation. The balance sheet shows moderate leverage, but decreasing equity raises concerns about financial stability.Income Statement
The TTM shows a significant decline in total revenue and negative profitability metrics, with a gross profit margin of 22.45% and a net profit margin of -2.46%. This indicates challenges in maintaining profitability and cost management.45
Neutral
Balance Sheet
The company demonstrates moderate financial health with a debt-to-equity ratio of 0.35, suggesting manageable leverage. However, equity has decreased over time, indicating potential risks in financial stability.60
Neutral
Cash Flow
The TTM reflects negative operating cash flow and free cash flow, with a concerning free cash flow to net income ratio, indicating cash flow challenges. The negative trajectory in cash generation could impact future operations.40
Negative
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 389.78M | 433.23M | 583.10M | 593.61M | 540.08M | 610.82M | Gross Profit |
| 87.52M | 108.69M | 93.29M | 101.70M | 112.75M | 113.96M | EBIT |
| -15.24M | 12.36M | -5.62M | 14.84M | 30.29M | 22.71M | EBITDA |
| -2.67M | 22.97M | 3.20M | 23.03M | -7.25M | 30.27M | Net Income Common Stockholders |
| -9.58M | 9.87M | -4.31M | 11.72M | -10.43M | 17.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 20.46M | 43.16M | 19.00M | 69.37M | 65.84M | 36.03M | Total Assets |
| 153.84M | 343.59M | 381.72M | 374.56M | 352.27M | 393.71M | Total Debt |
| 0.00 | 76.25M | 95.34M | 54.04M | 36.09M | 70.22M | Net Debt |
| -20.46M | 33.09M | 76.34M | -15.33M | -29.75M | 34.19M | Total Liabilities |
| 26.11M | 117.61M | 145.69M | 113.43M | 94.77M | 119.59M | Stockholders Equity |
| 127.73M | 225.97M | 236.02M | 261.13M | 257.50M | 274.12M |
| Cash Flow | Free Cash Flow | ||||
| -9.39M | 48.66M | -25.92M | 12.52M | 67.05M | 36.30M | Operating Cash Flow |
| -5.63M | 55.47M | -21.72M | 19.21M | 68.26M | 41.43M | Investing Cash Flow |
| -2.64M | -8.56M | -29.96M | -6.86M | -476.00K | -4.25M | Financing Cash Flow |
| -11.12M | -22.76M | 1.32M | -8.82M | -37.98M | -12.58M |
Hooker Furniture Technical Analysis
Negative
9.16
Price Trends
12.06
Negative
13.78
Negative
14.41
Negative
Market Momentum
-0.58
Positive
20.08
Positive
6.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOFT, the sentiment is Negative. The current price of 9.16 is below the 20-day moving average (MA) of 11.11, below the 50-day MA of 12.06, and below the 200-day MA of 14.41, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 20.08 is Positive, neither overbought nor oversold. The STOCH value of 6.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOFT.
Hooker Furniture Risk Analysis
Hooker Furniture disclosed 18 risk factors in its most recent earnings report. Hooker Furniture reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hooker Furniture Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.52B | 12.62 | 12.40% | 2.25% | 1.81% | 8.09% | |
68 Neutral | $180.21M | 9.55 | 13.04% | 1.93% | 7.75% | 27.88% | |
66 Neutral | $17.15B | 15.80 | 53.91% | 1.60% | -0.50% | 24.11% | |
59 Neutral | $11.22B | 10.13 | -1.22% | 3.96% | 1.32% | -18.57% | |
56 Neutral | $132.48M | ― | -3.83% | 5.12% | -11.78% | -13.89% | |
52 Neutral | $1.98B | 14.68 | 17.42% | 3.13% | 3.80% | 182.70% | |
47 Neutral | $98.11M | ― | -4.47% | 10.04% | -16.67% | -24.91% |
* Consumer Cyclical Sector Average
Performance Comparison
HOFT
Hooker Furniture
9.16
-11.58
-55.83%
BSET
Bassett Furniture
15.22
2.05
15.57%
FLXS
Flexsteel
34.43
-3.85
-10.06%
HNI
HNI
42.22
-0.51
-1.19%
LZB
La-Z-Boy Incorporated
37.33
2.04
5.78%
WSM
Williams-Sonoma
141.68
-10.19
-6.71%
Hooker Furniture Earnings Call Summary
Earnings Call Date: Dec 5, 2024 | % Change Since: -47.20% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view, with significant challenges such as operating losses, decreased sales, and restructuring costs countered by positive developments in market conditions, successful product introductions, and strategic initiatives like the Margaritaville licensing agreement.Highlights
Sequential Improvement in Core Business Profitability
Despite macroeconomic challenges, the company is encouraged by the sequential quarterly improvement in core business profitability and results of cost reduction efforts, expected to be fully realized in the fourth quarter.
Positive Market Developments
Cooling inflation and recent interest rate cuts are expected to increase demand for furnishings, with macroeconomic indicators such as consumer sentiment and home sales showing positive trends.
Successful Product Introductions
October High Point Market introductions were well-received, with significant placements and accelerated market entry for Hooker Branded collections.
Strategic Inventory Build-Up
Increased inventory by $11 million or 40% compared to the previous quarter to prepare for anticipated demand.
Improved Gross Margin at Home Meridian
Achieved a gross margin of 20.5%, the highest level since the acquisition in 2016, due to restructuring efforts and exiting low-margin businesses.
Positive Impact of Margaritaville Licensing Agreement
The global licensing agreement with Margaritaville is expected to expand the addressable market and growth opportunities across multiple divisions.
Lowlights
Significant Operating and Net Losses
The company reported an operating loss of $7.3 million and a consolidated net loss of $4.1 million in the third quarter.
Decrease in Net Sales
Consolidated net sales were $104 million, a decrease of $12.5 million or 10.7% compared to the same quarter of the previous year.
Impact of Low Demand and Restructuring Costs
Ongoing low demand in the home furnishings industry and $7.5 million in charges, including restructuring costs, bad debt, and impairment charges, negatively impacted results.
Customer Bankruptcy and Bad Debt Expense
A major customer's bankruptcy resulted in a $2.4 million bad debt expense.
Decreased Sales in Multiple Segments
Net sales decreased across Hooker Branded, Home Meridian, and Domestic Upholstery segments, attributed to lower demand and loss of a major customer.
Company Guidance
During the Hooker Furnishings Corporation third quarter 2025 earnings call, the executives discussed significant financial challenges and strategic efforts to navigate the turbulent market. The company faced an operating loss of $7.3 million and a net loss of $4.1 million or $0.39 per diluted share, attributed to various charges totaling $7.5 million, including $3.1 million in restructuring costs and $2.4 million in bad debt due to a major customer's bankruptcy. Net sales for the quarter were reported at $104 million, reflecting a 10.7% decrease year-over-year, while the 9-month sales stood at $293 million, down 12.9% from the previous year. However, the executives highlighted positive developments, such as improvements in core business profitability, cooling inflation, and strategic inventory builds, particularly a 40% increase in Hooker Branded inventory. They also emphasized the potential growth opportunities from a new global licensing agreement with Margaritaville and expected demand increases due to favorable macroeconomic trends.Hooker Furniture Corporate Events
Executive/Board Changes
Hooker Furniture CFO Paul Huckfeldt to Retire in 2025
Neutral
Dec 10, 2024
Hooker Furnishings Corporation announced the retirement of CFO Paul A. Huckfeldt, effective February 2025, after over 20 years of service. Huckfeldt, known for his role in guiding the company through strategic acquisitions and the COVID crisis, will join the Board of Directors, expanding it from seven to eight members. His continued involvement is expected to benefit both the company and its shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.