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Hooker Furniture Corp. (HOFT)
NASDAQ:HOFT
US Market
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Hooker Furniture (HOFT) AI Stock Analysis

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HOFT

Hooker Furniture

(NASDAQ:HOFT)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
$11.00
▼(-2.40% Downside)
Hooker Furniture's overall stock score reflects significant financial challenges, with some positive technical indicators and strategic initiatives. The high dividend yield offers some valuation support, but ongoing operational difficulties and market pressures weigh heavily on the score.

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 furniture products to retailers, wholesalers, and directly to consumers through various channels. The company's revenue model is built on multiple key streams including the sale of casegoods, upholstery, and home office furniture. Significant partnerships with a network of retailers enhance distribution, while ongoing relationships with overseas manufacturers help manage production costs and supply chain efficiency. Additionally, the company benefits from seasonal promotions and marketing strategies that drive consumer demand, contributing to its overall earnings.

Hooker Furniture Earnings Call Summary

Earnings Call Date:Sep 11, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Dec 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. The company showed resilience with cost reduction efforts and improvements in Hooker Branded and Domestic Upholstery segments. However, significant challenges remain, particularly within the Home Meridian segment due to a substantial sales decline and macroeconomic pressures.
Q2-2026 Updates
Positive Updates
Hooker Branded Achieves Breakeven
The Hooker Branded segment broke even this quarter despite $655,000 in restructuring charges, compared to a $329,000 loss in the same quarter last year.
Reduction in Operating Losses
Domestic upholstery reduced its operating loss nearly 70%, and Hooker Branded and Domestic Upholstery had a $1,200,000 improvement in operational results, despite $800,000 in restructuring costs.
Cost Reduction Achievements
The company is on track to achieve $25,000,000 in annualized cost savings beginning in fiscal 2027, with a significant portion of savings in warehousing, distribution, and administrative expenses.
Increase in Incoming Orders
Incoming orders grew by nearly 11% during the quarter for Hooker Branded, and Domestic Upholstery orders were up by 1.6%.
Positive Outlook on New Initiatives
The upcoming Margaritaville launch and the new Vietnam fulfillment warehouse are expected to provide strategic growth opportunities and improve logistics.
Negative Updates
Significant Sales Decline in Home Meridian
Home Meridian net sales were down 44.5% compared to the prior year second quarter, with a 25% sales decrease attributed to the loss of a major customer due to bankruptcy.
Consolidated Net Sales Decline
Consolidated net sales for the second quarter were $82,100,000, down $13,000,000 or 13.6% from the same period last year, primarily driven by declines at Home Meridian.
Increased Consolidated Operating Loss
Consolidated operating loss was $4,400,000 compared to $3,100,000 in the prior year quarter.
Impact of Tariffs and Macroeconomic Challenges
The home furnishings industry faced headwinds from low existing home sales, elevated mortgage rates, and persistent inflation, with additional challenges from a 20% tariff rate on imports from Vietnam.
Company Guidance
During Hooker Furnishings Corporation's second quarter fiscal 2026 earnings call, the company provided detailed guidance and insights into its restructuring and cost reduction strategies. The fiscal 2026 second quarter ended with consolidated net sales of $82.1 million, a 13.6% decline from the previous year, largely due to a 44.5% drop in Home Meridian net sales. The overall operating loss was $4.4 million, with a net loss of $3.3 million or 31¢ per share. Despite these challenges, the Hooker Branded segment achieved breakeven, and domestic upholstery significantly reduced its operating loss by 68%. The company has embarked on a multiphase plan to cut $25 million in annual fixed costs, targeting a 25% reduction by the end of the fiscal 2026 third quarter. Additionally, the company is launching a Margaritaville collection and adjusting to a new 20% tariff on imports from Vietnam, which impacts component sourcing for domestic upholstery. The company is optimistic about its cost-saving measures and strategic growth initiatives, which are expected to enhance performance by the end of the fiscal year.

Hooker Furniture Financial Statement Overview

Summary
Hooker Furniture is facing financial difficulties with declining revenue, negative net income, and cash flow issues. The income statement and cash flow scores are particularly low, indicating challenges in profitability and liquidity. The balance sheet is relatively stable but shows a decline in stockholders' equity.
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 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 Price11.27
Price Trends
50DMA
10.11
Positive
100DMA
10.05
Positive
200DMA
10.78
Positive
Market Momentum
MACD
0.25
Negative
RSI
65.33
Neutral
STOCH
70.96
Neutral
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 11.27 is above the 20-day moving average (MA) of 10.45, above the 50-day MA of 10.11, and above the 200-day MA of 10.78, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 65.33 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 is Neutral, 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 20 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$743.66M14.5210.70%6.56%-4.89%-19.26%
64
Neutral
$1.43B15.949.01%2.53%2.18%-22.35%
55
Neutral
$137.30M55.561.48%5.06%-7.22%
52
Neutral
$121.15M-6.33%8.16%-6.46%-1110.82%
46
Neutral
$165.09M-3.998.62%-14.40%-2.14%
45
Neutral
$1.23B-32.22-2.89%4.17%1.14%-149.26%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HOFT
Hooker Furniture
11.27
-5.49
-32.76%
BSET
Bassett Furniture
15.77
2.03
14.77%
ETD
Ethan Allen
29.23
-0.73
-2.44%
MLKN
MillerKnoll
17.82
-6.06
-25.38%
LZB
La-Z-Boy Incorporated
34.54
-7.48
-17.80%
SNBR
Sleep Number
7.12
-11.20
-61.14%

Hooker Furniture Corporate Events

Dividends
Hooker Furniture Announces Quarterly Cash Dividend
Positive
Sep 9, 2025

On September 9, 2025, Hooker Furnishings Corporation announced a quarterly cash dividend of $0.23 per share, payable on September 30, 2025, to shareholders of record on September 19, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment and market positioning.

The most recent analyst rating on (HOFT) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Hooker Furniture stock, see the HOFT Stock Forecast page.

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: Sep 19, 2025