tiprankstipranks
Trending News
More News >
Hooker Furniture Corp. (HOFT)
NASDAQ:HOFT
US Market
Advertisement

Hooker Furniture (HOFT) AI Stock Analysis

Compare
222 Followers

Top Page

HOFT

Hooker Furniture

(NASDAQ:HOFT)

Rating:49Neutral
Price Target:
$11.00
▼(-4.10%Downside)
Hooker Furniture's stock score is primarily impacted by its financial difficulties, reflected in declining revenue and negative cash flow. Technical analysis and earnings call insights provide some positive aspects, particularly in cost management and potential improvements in operational efficiency. The attractive dividend yield offers some value to investors, but the stock remains under pressure from broader financial challenges.

Hooker Furniture (HOFT) vs. SPDR S&P 500 ETF (SPY)

Hooker Furniture Business Overview & Revenue Model

Company DescriptionHooker Furnishings Corporation designs, manufactures, imports, and markets residential household, hospitality, and contract furniture. The company's Hooker Branded segment offers design categories, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture brand; and imported upholstered furniture under the Hooker Upholstery brand. Its Home Meridian segment provides home furnishings under the Accentrics Home brand; a range of bedroom, dining room, accent, display cabinet, home office, and youth furnishings under the Pulaski Furniture and Samuel Lawrence Furniture brands; and imported leather motion upholstery under the Prime Resources International brand. This segment also designs and supplies hotel furnishings for four and five-star hotels under the Samuel Lawrence Hospitality brand name; and ready-to-assemble furniture under the HMidea brand. The company's Domestic Upholstery segment offers motion and stationary leather furniture under the Bradington-Young brand; occasional chairs, settees, sofas, and sectional seating under the Sam Moore Furniture brand; and upholstered furniture, such as private label sectionals, modulars, sofas, chairs, ottomans, benches, beds, and dining chairs for lifestyle specialty retailers under the Shenandoah Furniture brand. It also supplies upholstered seating and casegoods to upscale senior living and assisted living facilities through designers, design firms, industry dealers, and distributors under the H Contract brand; and interior designer products under the Lifestyle Brands name. The company sells home furnishing products through retailers, including independent furniture stores, department stores, mass merchants, national chains, catalog merchants, interior designers, e-commerce retailers, and warehouse clubs primarily in North America. Hooker Furnishings Corporation was incorporated in 1924 and is headquartered in Martinsville, Virginia.
How the Company Makes MoneyHooker Furniture generates revenue primarily through the sale of its home furnishing products. The company's revenue streams are derived from the wholesale distribution of its case goods and upholstered furniture to a variety of retail outlets. Hooker Furniture also benefits from its strategic partnerships and licensing agreements, which allow it to expand its product offerings and reach a broader customer base. The company's earnings are further supported by its focus on product innovation and design, which helps maintain its competitive edge in the furniture market. Additionally, Hooker Furniture's international operations contribute to its revenue, as it sources products from global suppliers to optimize cost efficiency and supply chain management.

Hooker Furniture Earnings Call Summary

Earnings Call Date:Jun 12, 2025
(Q1-2026)
|
% Change Since: 3.33%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant cost reductions and operational improvements highlighting the positives. However, these were balanced by notable sales declines and challenges due to import tariffs, especially impacting Home Meridian.
Q1-2026 Updates
Positive Updates
Cost Reduction Achievements
Reduced operating expenses by $2.2 million and operating loss by $16 million, reflecting a 31% reduction. Implemented strategies aimed at $25 million annual savings by next fiscal year.
Vietnam Warehouse Initiative
Opened a new Vietnam warehouse to enhance supply chain efficiency, reducing lead times from six months to four to six weeks, potentially improving sales.
Legacy Brand Performance
Hooker's legacy brands achieved consecutive market share gains, with Hooker branded orders up nearly 40% and domestic upholstery orders up 25% in May compared to the previous year.
Gross Margin Improvement
Improved gross margins by 190 basis points, driven by better margins in Home Meridian and domestic upholstery.
Increased Cash Position
Cash and cash equivalents increased by $11.7 million from year-end, maintaining financial flexibility with $40 million in available borrowing capacity.
Negative Updates
Sales Decline
Consolidated net sales decreased by $8.3 million or 8.8% compared to last year, driven by a double-digit sales decrease at HMI.
Impact of Import Tariffs
Tariff uncertainties negatively impacting consumer confidence and demand, particularly affecting HMI positioned in the mid-price segment.
Home Meridian Challenges
Home Meridian's net sales decreased by $7.6 million or 29% due to significant reduction in unit volume and loss of a major customer due to its bankruptcy.
Domestic Upholstery Sales Decrease
Domestic upholstery segment experienced a net sales decrease of about $1 million or 3.7%, attributed to reduced demand for indoor residential home furnishings.
Company Guidance
During the first quarter of fiscal 2026, Hooker Furnishings Corporation reported consolidated net sales of $85.3 million, marking an 8.8% decrease compared to the same period last year. Despite this decline, the company successfully reduced its operating loss by 31% to $3.6 million, attributed to cost-reduction strategies that lowered operating expenses by $2.2 million. Hooker Branded achieved breakeven, while Domestic Upholstery and Home Meridian significantly reduced their operating losses by 55% and 17%, respectively. The company’s gross margins improved by 190 basis points, aided by better margins in Home Meridian and domestic upholstery. The net loss was reduced to $3.1 million, or $0.29 per diluted share, from the previous year’s $4.1 million, or $0.39 per diluted share. A significant part of the strategy includes a multipronged cost reduction initiative aimed at achieving $25 million in annualized savings by the next fiscal year, with a notable development being the opening of a new Vietnam warehouse to enhance supply chain efficiency. Additionally, the company remains cautious of ongoing challenges in the home furnishings market, such as high mortgage rates and import tariff uncertainties, and is positioned to act responsibly in response to potential tariff changes expected in July.

Hooker Furniture Financial Statement Overview

Summary
Hooker Furniture is experiencing financial difficulties with declining revenue and negative net income. The company also faces cash flow challenges, with negative operating cash flow and significant liquidity pressures. While some balance sheet metrics like the debt-to-equity ratio are stable, overall financial health is concerning.
Income Statement
40
Negative
Hooker Furniture's income statement shows significant challenges. The TTM data reflects a decline in revenue compared to previous years, with a negative net income indicating losses. Gross profit margins have also decreased, highlighting cost pressures. The EBIT and EBITDA margins are negative, suggesting issues in operational efficiency. Overall, the company is facing difficulties in maintaining profitability and revenue growth.
Balance Sheet
55
Neutral
The balance sheet presents a mixed picture. The debt-to-equity ratio is relatively stable, indicating a manageable level of debt compared to equity. However, there has been a decline in stockholders' equity over time. The equity ratio remains healthy, suggesting the company still has a solid asset base. Despite these strengths, the decrease in total assets and stockholders' equity may pose risks if the trend continues.
Cash Flow
30
Negative
Cash flow analysis reveals concerning trends. The operating cash flow is negative, indicating insufficient cash generated from operations to cover expenses. Free cash flow has also declined significantly, leading to liquidity pressures. The free cash flow to net income ratio is unfavorable, highlighting cash generation issues. These factors suggest challenges in sustaining operations without external financing.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue389.21M397.46M433.23M583.10M593.61M540.08M
Gross Profit88.28M88.65M108.69M93.29M101.70M112.75M
EBITDA-4.90M-5.92M22.97M3.20M23.03M-7.25M
Net Income-11.47M-12.51M9.87M-4.31M11.72M-10.43M
Balance Sheet
Total Assets299.69M313.94M343.59M381.72M374.56M352.27M
Cash, Cash Equivalents and Short-Term Investments18.01M6.29M43.16M19.00M69.37M65.84M
Total Debt69.02M70.29M76.25M95.34M54.04M36.09M
Total Liabilities100.53M109.56M117.61M145.69M113.43M94.77M
Stockholders Equity199.16M204.38M225.97M236.02M261.13M257.50M
Cash Flow
Free Cash Flow-13.08M-26.26M48.66M-25.92M12.52M67.05M
Operating Cash Flow-9.83M-23.02M55.47M-21.72M19.21M68.26M
Investing Cash Flow-2.71M-2.70M-8.56M-29.96M-6.86M-476.00K
Financing Cash Flow-10.33M-11.15M-22.76M1.32M-8.82M-37.98M

Hooker Furniture Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.47
Price Trends
50DMA
10.44
Positive
100DMA
10.13
Positive
200DMA
12.37
Negative
Market Momentum
MACD
0.18
Negative
RSI
59.30
Neutral
STOCH
80.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOFT, the sentiment is Positive. The current price of 11.47 is above the 20-day moving average (MA) of 11.06, above the 50-day MA of 10.44, and below the 200-day MA of 12.37, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 80.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$752.73M13.3112.09%6.56%-6.32%-18.35%
70
Outperform
$1.56B16.669.84%2.24%3.04%-16.49%
64
Neutral
£1.74B10.516.12%256.36%0.55%-33.64%
58
Neutral
$158.41M65.261.46%4.39%-7.22%
55
Neutral
$1.34B45.68-2.77%3.80%1.14%-149.26%
49
Neutral
$120.02M-5.55%8.02%-3.89%-391.05%
44
Neutral
$190.35M9.10%-12.36%37.69%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HOFT
Hooker Furniture
11.47
-2.55
-18.19%
BSET
Bassett Furniture
17.43
4.76
37.57%
ETD
Ethan Allen
29.86
1.09
3.79%
MLKN
MillerKnoll
20.17
-8.91
-30.64%
LZB
La-Z-Boy Incorporated
38.39
-4.55
-10.60%
SNBR
Sleep Number
8.28
-2.50
-23.19%

Hooker Furniture Corporate Events

Executive/Board ChangesShareholder Meetings
Hooker Furniture Shareholders Elect Directors and Approve Auditor
Neutral
Jun 9, 2025

At the Annual Meeting of Shareholders held on June 3, 2025, Hooker Furnishings Corporation’s shareholders elected eight directors to serve a one-year term on the Board of Directors. Additionally, shareholders ratified KPMG LLP as the independent registered public accounting firm for the fiscal year ending February 1, 2026, and approved the compensation of the company’s executive officers.

Dividends
Hooker Furniture Declares Quarterly Cash Dividend
Positive
Jun 4, 2025

On June 3, 2025, Hooker Furnishings Corporation’s board of directors declared a quarterly cash dividend of $0.23 per share, payable on June 30, 2025, to shareholders of record on June 16, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor confidence in the company’s financial health and stability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 23, 2025