Hooker Furniture (HOFT) AI Stock Analysis

• Market Cap: $153.37M
• Dividend Yield: 7.2%
• Average Volume (3M): 36.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -12.09%
• EPS Growth: -204.66%
• Country: US
• Employees: 1,034
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.18
• Shares Outstanding: 10,777,720
• 10 Day Avg. Volume: 61,259
• 30 Day Avg. Volume: 36,321
• PEG Ratio: 0.04
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -4.87
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 2.32
• Enterprise Value/Ebitda: -9.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $14.50 ▲(34.26% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is held back primarily by weak financial performance (declining revenue and TTM losses), despite low leverage and still-positive free cash flow. Technicals are a relative positive with price above major moving averages and moderate momentum, while valuation is mixed due to a high dividend but negative P/E. Earnings-call commentary and recent events add some support via cost cuts, restructuring/divestitures, and growth initiatives, but near-term operating losses remain the key risk.

Positive Factors

Conservative balance sheet

Low leverage (debt-to-equity ~0.18) and materially reduced debt provide Hooker with lasting financial flexibility. A conservative capital structure lowers refinancing risk, supports continued cost restructuring, and enables capital allocation choices (dividends, buybacks, strategic investment) over the medium term.

Positive cash generation

Operating and free cash flow remain positive despite accounting losses, indicating resilient working-capital management. Sustained cash generation provides a durable liquidity buffer to fund restructuring, new product launches and shareholder returns while management works to restore operating profitability.

Product launch & cost cuts

The Margaritaville licensed collection, with strong initial retailer commitments and dedicated showroom support, paired with over $25M in annualized savings, represents structural improvement. Together they can sustainably lift gross margins and drive organic revenue as distribution scales over the next several quarters.

Negative Factors

Declining sales

Material, ongoing revenue declines weaken operating leverage and make fixed costs harder to absorb. Sustained lower volumes can erode bargaining power with suppliers, slow recovery of margins, and raise the horizon for returning to consistent operating profitability absent durable demand improvement.

Large impairments

Significant noncash write‑downs shrink the asset base and signal that past investments underperformed expected returns. Impairments can constrain future ROIC, reduce book equity cushions, and indicate structural issues in acquired brands or segments that require time and capital to remediate.

Weakening FCF momentum

Although FCF is positive, sharply slowing free cash flow growth undermines the durability of cash-financed initiatives. If the company cannot reaccelerate FCF, funding of product launches, buybacks, dividends or further restructuring will be more constrained, increasing reliance on operational recovery.

Hooker Furniture Business Overview & Revenue Model

Company Description

Hooker Furniture Corporation (HOFT) is a leading manufacturer and importer of quality home furnishings, specializing in a diverse range of products including bedroom, dining room, and living room furniture. Founded in 1924, the company operates primarily within the residential furniture sector and offers a wide array of styles, from traditional to contemporary. Hooker Furniture markets its products through various channels including retailers, e-commerce platforms, and showrooms, with a focus on delivering innovative designs and exceptional craftsmanship.

How the Company Makes Money

Hooker Furniture generates revenue primarily through the sale of its furniture products. The company has a multi-channel distribution model that includes partnerships with independent retailers, national chains, and direct-to-consumer sales through its own website. Key revenue streams include wholesale sales to retailers, direct sales to consumers, and international sales through exporting its products. Additionally, Hooker Furniture benefits from strategic partnerships with various design brands and manufacturers, which enhances its product offerings and market reach. The company's ability to adapt to changing consumer preferences and trends also plays a critical role in sustaining its earnings.

Hooker Furniture Financial Statement Overview

Summary

Fundamentals are pressured: TTM revenue fell ~8.9% and the company is operating and net-loss making (net margin ~-8.7%), driving negative returns. Offsets include a conservative balance sheet (debt-to-equity ~0.18 with debt down) and still-positive TTM operating cash flow (~$12.2M) and free cash flow (~$9.1M), though free cash flow growth has weakened sharply.

Income Statement

TTM (Trailing-Twelve-Months) results are weak, with revenue down about 8.9% and the company posting operating and net losses (net margin ~-8.7%). Profitability has deteriorated versus prior profitable years (e.g., 2022 and 2024), and margins have swung negative, signaling meaningful pressure from lower volume and/or cost deleverage. The main positive is that gross margin in TTM (~22.8%) is still reasonably in line with recent years, but it is not translating into positive earnings.

Balance Sheet

The balance sheet looks relatively conservative: TTM debt-to-equity is ~0.18, with debt down materially versus recent annual levels, which improves financial flexibility. Equity remains sizable relative to assets, limiting leverage risk. The key weakness is returns: TTM return on equity is meaningfully negative due to losses, so while the capital structure is solid, current profitability is not generating acceptable shareholder returns.

Cash Flow

Cash generation is a bright spot in TTM (Trailing-Twelve-Months): operating cash flow (~$12.2M) and free cash flow (~$9.1M) are positive despite a net loss, indicating working-capital and cash management are helping support liquidity. However, cash flow momentum is a concern—free cash flow growth is sharply negative versus the prior period, and operating cash flow is modest relative to revenue, suggesting cash performance may be volatile if conditions soften further.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	342.65M	397.46M	433.23M	583.10M	593.61M	540.08M
Gross Profit	78.26M	88.65M	108.69M	93.29M	101.70M	112.75M
EBITDA	-18.43M	-5.92M	22.97M	3.20M	23.03M	-7.25M
Net Income	-29.84M	-12.51M	9.87M	-4.31M	11.72M	-10.43M
Balance Sheet
Total Assets	240.24M	313.94M	343.59M	381.72M	374.56M	352.27M
Cash, Cash Equivalents and Short-Term Investments	1.35M	6.29M	43.16M	19.00M	69.37M	65.84M
Total Debt	30.09M	70.29M	76.25M	95.34M	54.04M	36.09M
Total Liabilities	70.48M	109.56M	117.61M	145.69M	113.43M	94.77M
Stockholders Equity	169.76M	204.38M	225.97M	236.02M	261.13M	257.50M
Cash Flow
Free Cash Flow	9.12M	-26.26M	48.66M	-25.92M	12.52M	67.05M
Operating Cash Flow	12.22M	-23.02M	55.47M	-21.72M	19.21M	68.26M
Investing Cash Flow	-3.46M	-2.70M	-8.56M	-29.96M	-6.86M	-476.00K
Financing Cash Flow	-28.35M	-11.15M	-22.76M	1.32M	-8.82M	-37.98M

Hooker Furniture Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.8 is below the 20-day moving average (MA) of 14.32, below the 50-day MA of 12.62, and above the 200-day MA of 10.56, indicating a bullish trend. The MACD of 0.57 indicates Positive momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HOFT.

Hooker Furniture Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLXS	71 Outperform	$291.68M	14.89	14.28%	1.77%	6.00%	64.58%
ETD	70 Outperform	$595.95M	13.62	9.21%	7.86%	-4.26%	―
LZB	65 Neutral	$1.45B	17.64	8.11%	2.39%	1.78%	-25.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BSET	57 Neutral	$129.47M	21.32	4.70%	4.59%	-2.74%	―
HOFT	54 Neutral	$153.37M	-5.18	-11.27%	7.20%	-12.09%	-204.66%
LOVE	45 Neutral	$199.38M	60.57	3.77%	―	0.13%	-14.51%

Hooker Furniture Corporate Events

Hooker Furnishings Extends Cooperation Agreement on Board Appointment

On February 17, 2026, Hooker Furnishings Corporation amended a cooperation agreement with shareholder group Global Value Investment Corporation to extend their timeline for appointing a new independent director. The director is intended to bring relevant industry experience to the board, and the deadline for completing this search was pushed from February 15, 2026, to no later than February 28, 2027, reflecting an ongoing governance dialogue with the investor group.

The extension signals the company’s and GVIC’s commitment to a deliberate selection process, potentially affecting board composition and strategic oversight. For shareholders and other stakeholders, the move underscores continued engagement with an active investor and suggests that governance and industry expertise remain key priorities in the company’s long‑term positioning.

The most recent analyst rating on (HOFT) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Hooker Furniture stock, see the HOFT Stock Forecast page.

Hooker Furnishings Reaches Cooperation Pact With Activist Investor

On January 1, 2026, Hooker Furnishings entered into a cooperation agreement with shareholder Global Value Investment Corporation under which the two parties will, within 45 days, identify a mutually acceptable independent director with relevant industry expertise, expand the board from eight to nine seats to appoint that director, and nominate the newcomer for election at the company’s 2026 and 2027 annual meetings, while GVIC commits to support Hooker’s board nominees and abide by customary standstill and voting provisions through a defined term ending ahead of the 2028 proxy cycle. The accord, announced publicly on January 2, 2026, reinforces a collaborative relationship with an activist investor and is designed to stabilize governance and align shareholder support as the company pursues long-term growth, while the concurrent disclosure that long-serving board chair W. Christopher Beeler Jr. will retire and not stand for re-election at the 2026 annual meeting signals an orderly leadership transition after 33 years of service, without any underlying disagreement over the company’s direction.

The most recent analyst rating on (HOFT) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Hooker Furniture stock, see the HOFT Stock Forecast page.

Hooker Furnishings divests casegoods brands to Magnussen Home

On December 12, 2025, Hooker Furnishings completed the sale of its Pulaski Furniture and Samuel Lawrence Furniture casegoods brands, along with related assets and liabilities, to Magnussen Home Furnishings for approximately $6.1 million, subject to customary post-closing adjustments, with about $5.5 million received at closing and roughly 10% of the price held back for 210 days for indemnification and final pricing true-ups. The deal, announced in a December 15, 2025 press release, allows Hooker to retain its Samuel Lawrence Hospitality line under an exclusive, royalty-free license to continue using the brand name while securing a three-year non-compete from Magnussen in the U.S. hospitality market, and it also removes about $4.8 million in showroom lease liabilities as Magnussen assumes the High Point showroom lease, positioning Hooker for improved profitability and a more focused portfolio as it pursues shareholder value initiatives and growth in its remaining businesses.

The most recent analyst rating on (HOFT) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Hooker Furniture stock, see the HOFT Stock Forecast page.

Hooker Furniture Sells Brands to Magnussen Home

On December 1, 2025, Hooker Furnishings Corporation announced an agreement to sell its Pulaski Furniture and Samuel Lawrence Furniture brands to Magnussen Home Furnishings, Inc. for an estimated $4.8 million, subject to adjustments. This move is part of Hooker’s strategy to streamline its portfolio and focus on more profitable brands. The sale will also relieve Hooker of $4.8 million in showroom lease liabilities as Magnussen takes over the lease of the High Point showroom. The transaction is expected to close by mid-December 2025, with Hooker retaining the Samuel Lawrence Hospitality brand for its hospitality business. This strategic decision is aimed at enhancing shareholder value and improving profitability.

The most recent analyst rating on (HOFT) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Hooker Furniture stock, see the HOFT Stock Forecast page.