# Hooker Furnishings (HOFT) Q2 2026 Financial Results Summary
Hooker Furnishings Corporation (NASDAQ-GS: HOFT) released its financial results for the second quarter of fiscal year 2026 on September 11, 2025, summarizing their operating performance for the period ending August 3, 2025.
## Key Financial Highlights
– **Net Sales**:
– Q2 2026: **$82.1 million**
– Q2 2025: **$95.1 million**
– **Decrease of 13.7%** year-over-year.
– **Gross Profit**:
– Q2 2026: **$16.8 million** (20.5% margin)
– Q2 2025: **$20.9 million** (22.0% margin)
– **Decrease of 19.4%** compared to the prior year.
– **Operating Loss**:
– Q2 2026: **($4.4 million)**
– Q2 2025: **($3.1 million)**
– **Increase in loss by 40%** year-over-year.
– **Net Loss**:
– Q2 2026: **($3.3 million)**
– Q2 2025: **($2.0 million)**
– **Increase in loss by 66.8%** year-over-year.
– **Earnings Per Share (EPS)**:
– Basic:
– Q2 2026: **($0.31)**
– Q2 2025: **($0.19)**
– **Decrease in EPS by 63.2%** year-over-year.
## Dividend Information
– Hooker Furnishings declared a dividend of **$0.23 per share**, maintaining the same amount as the previous year.
## Cash and Debt
– **Cash and Cash Equivalents**:
– Decreased to **$821,000**, down from **$6.3 million** at the end of fiscal 2025.
– **Inventory Levels**:
– Decreased to **$58.5 million**, from **$70.8 million** year-end fiscal 2025.
– **Debt Management**:
– The company repaid **$16.5 million** of term loan during the quarter.
## Cost Reduction Initiatives
– Implemented a multi-phase cost reduction strategy aimed at achieving **$25 million** in annualized savings by fiscal 2027.
– Achieved **$3.7 million** in cost reductions in the first half of fiscal 2026, despite incurring **$1.7 million** in restructuring costs.
## Segment Performance
– **Hooker Branded**:
– Q2 2026: **$36.3 million** in sales, accounting for **44.1%** of total sales.
– Year-over-year sales increased by **1.3%**.
– **Home Meridian (HMI)**:
– Q2 2026: **$16.9 million** in sales, down **44.5%** from the previous year’s **$30.5 million**.
– **Domestic Upholstery**:
– Q2 2026: Sales of **$28.7 million**, showing a slight **0.4% increase** from the prior year.
## Additional Remarks from Management
– CEO Jeremy Hoff expressed commitment to returning to profitability through strategic cost reductions and growth initiatives.
– Acknowledged challenges from weak demand due to unfavorable market conditions, including **low housing sales** and **tariffs**.
– The upcoming **Margaritaville collection** is expected to boost sales potential heading into FY 2027.
## Market Conditions
– The overall home furnishings industry faced challenges from **elevated mortgage rates** and **persistent inflation**, affecting consumer spending and demand.
## Outlook
– The company aims to continue optimizing its cost structure while preparing for growth opportunities, particularly with the launch of new product lines.
– Anticipates that performance in core segments will improve as market conditions recover.
In summary, while Hooker Furnishings faced significant financial challenges in the second quarter of fiscal 2026, the company’s strategic measures and focus on profitability could position it for eventual recovery as market conditions improve.
| For the | Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||
|---|---|---|---|---|
| August 3, 2025 | July 28, 2024 | August 3, 2025 | July 28, 2024 | |
| Net sales | $82,149 | $95,081 | $167,465 | $188,652 |
| Cost of sales | $65,312 | $74,159 | $131,627 | $148,358 |
| Gross profit | $16,837 | $20,922 | $35,838 | $40,294 |
| Selling and administrative expenses | $20,366 | $23,147 | $42,018 | $46,614 |
| Intangible asset amortization | $872 | $924 | $1,785 | $1,849 |
| Operating (loss) / income | $-4,401 | $-3,149 | $-7,965 | $-8,169 |
| Other income, net | $92 | $1,486 | $218 | $1,963 |
| Interest expense, net | $171 | $203 | $549 | $567 |
| (Loss) / Income before income taxes | $-4,480 | $-1,866 | $-8,296 | $-6,773 |
| Income tax (benefit) / expense | $-1,203 | $85 | $-1,967 | $-731 |
| Net (loss) / income | $-3,277 | $-1,951 | $-6,329 | $-6,042 |
| (Loss) / Earnings per share | ||||
| Basic | $-0.31 | $-0.19 | $-0.60 | $-0.57 |
| Diluted | $-0.31 | $-0.19 | $-0.60 | $-0.57 |
| Weighted average shares outstanding: | ||||
| Basic | 10,612 | 10,521 | 10,587 | 10,509 |
| Diluted | 10,612 | 10,521 | 10,587 | 10,509 |
| Cash dividends declared per share | $0.23 | $0.23 | $0.46 | $0.46 |
| Assets | August 3, 2025 | February 2, 2025 | |
|---|---|---|---|
| Current assets | |||
| Cash and cash equivalents | $821 | $6,295 | |
| Trade accounts receivable, net | $41,316 | $58,198 | |
| Inventories | $58,532 | $70,755 | |
| Income tax recoverable | $39 | $521 | |
| Prepaid expenses and other current assets | $7,434 | $5,355 | |
| Total current assets | $108,142 | $141,124 | |
| Property, plant and equipment, net | $28,222 | $28,195 | |
| Cash surrender value of life insurance policies | $30,157 | $29,238 | |
| Deferred taxes | $18,068 | $16,057 | |
| Operating leases right-of-use assets | $41,797 | $45,575 | |
| Intangible assets, net | $20,321 | $22,104 | |
| Goodwill | $15,036 | $15,036 | |
| Other assets | $16,300 | $16,613 | |
| Total non-current assets | $169,901 | $172,818 | |
| Total assets | $278,043 | $313,942 | |
| Liabilities and Shareholders’ Equity | |||
| Current liabilities | |||
| Trade accounts payable | $14,116 | $20,001 | |
| Accrued salaries, wages and benefits | $4,465 | $3,851 | |
| Accrued income taxes | $34 | $49 | |
| Customer deposits | $6,781 | $5,655 | |
| Current portion of operating lease liabilities | $7,798 | $7,502 | |
| Other accrued expenses | $2,947 | $2,916 | |
| Total current liabilities | $36,141 | $39,974 | |
| Long term debt | $5,225 | $21,717 | |
| Deferred compensation | $6,454 | $6,795 | |
| Operating lease liabilities | $37,103 | $41,073 | |
| Total long-term liabilities | $48,782 | $69,585 | |
| Total liabilities | $84,923 | $109,559 | |
| Shareholders’ equity | |||
| Common stock, no par value, 20,000 shares authorized, 10,750 and 10,703 shares issued and outstanding on each date | $50,619 | $50,474 | |
| Retained earnings | $141,996 | $153,336 | |
| Accumulated other comprehensive income | $505 | $573 | |
| Total shareholders’ equity | $193,120 | $204,383 | |
| Total liabilities and shareholders’ equity | $278,043 | $313,942 |
