Tuesday, June 17, 2025
Hooker Furnishings Corporation has reported its operating results for the first quarter of fiscal 2026, ending May 4, 2025. The company reduced its operating loss by $1.6 million, or 31%, compared to the same period last year, bringing it down to $3.6 million. This improvement was attributed to “cost-saving initiatives launched in the second half of the previous year,” despite a decline in net sales during the quarter.
Additionally, Hooker reduced operating expenses by $2.2 million compared to the first quarter of the previous year. This decrease occurred despite the inclusion of $523,000 in restructuring costs, primarily for severance, in the fiscal 2026 first-quarter results. Hooker Furnishings is executing a multi-phase cost reduction strategy aimed at achieving approximately $25 million in annualized savings by next year (fiscal year 2027).
“Importantly, our cost reductions should not impact our strategic growth priorities, including our collected living merchandising platform, the Vietnam warehouse advantage, and our upcoming Margaritaville licensed collection,” Hoff said.
Overall, the company anticipates eliminating approximately $25 million, or about 25%, of its fixed costs. This includes around $11 million in warehousing and distribution expenses under cost of goods sold, and $14 million in selling and administrative expenses. In fiscal 2026, Hooker expects to achieve around $14 million in cost savings, after accounting for offsets and special charges. By fiscal 2027, the company projects $25 million in net annualized savings from these phased initiatives, boosting profitability, operational efficiency, and long-term shareholder value.
The company reported consolidated net sales of $85.3 million for the first quarter, reflecting a decline of $8.3 million, or 8.8%, compared to the same period last year. Sales for Hooker’s legacy brands remained stable, with Hooker Branded net sales rising modestly by 0.8%, driven by higher unit volume. Meanwhile, the Domestic Upholstery Segment experienced a slight 3.7% decrease in sales compared to the first quarter of the previous year.
The overall decrease in consolidated sales was primarily driven by a double-digit sales decrease at HMI, which is positioned in the mid-price segment where import tariffs have more sharply curtailed demand.
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