fiscal 2027 second quarter
Filed Sep 11, 2026AlphAI · Earnings readHOFT · fiscal 2027 second quarter · ended August 2, 2026
Hooker Furnishings Reports Profitable Quarter and First Half
→Mixed quarter
The Company returned to profitability and expanded gross margin despite an 8.7% net-sales decline, aided materially by $7.9 million of tariff recoveries. Demand remains weak, particularly in hospitality, while the outlook does not anticipate meaningful near-term market improvement.
Revenue
$63,250 (In thousands)
decreased by $6.0 million, or 8.7% y/y
Hooker Branded
$34,620 (In thousands)
decreased by $1.6 million, or 4.5% y/y
Gross margin · GAAP
31.8%
EPS · GAAP
$0.15
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, 13 Weeks EndedGAAP | $63,250 (In thousands) | – | decreased by $6.0 million, or 8.7% |
| Net sales, 26 Weeks EndedGAAP | $132,702 (In thousands) | – | decreased by $7.7 million, or 5.5% |
| Gross profit, 13 Weeks EndedGAAP | $20,099 (In thousands) | – | – |
| Gross margin, 13 Weeks EndedGAAP | 31.8% | – | – |
| Gross profit, 26 Weeks EndedGAAP | $40,691 (In thousands) | – | – |
| Gross margin, 26 Weeks EndedGAAP | 30.7% | – | – |
| Selling and administrative expenses, 13 Weeks EndedGAAP | $18,272 (In thousands) | – | – |
| Selling and administrative expenses, 26 Weeks EndedGAAP | $36,741 (In thousands) | – | – |
| Operating income / (loss), 13 Weeks EndedGAAP | $1,283 (In thousands) | – | – |
| Operating margin, 13 Weeks EndedGAAP | 2.0% | – | – |
| Operating income / (loss), 26 Weeks EndedGAAP | $2,861 (In thousands) | – | – |
| Operating margin, 26 Weeks EndedGAAP | 2.2% | – | – |
| Net income / (loss) from continuing operations, 13 Weeks EndedGAAP | $1,205 (In thousands) | – | – |
| Net income / (loss) from discontinued operations, net of taxes, 13 Weeks EndedGAAP | $465 (In thousands) | – | – |
| Net income / (loss), 13 Weeks EndedGAAP | $1,670 (In thousands) | – | $4.9 million improvement over the prior-year second quarter |
| Net income / (loss) from continuing operations, 26 Weeks EndedGAAP | $2,309 (In thousands) | – | – |
| Net income / (loss) from discontinued operations, net of taxes, 26 Weeks EndedGAAP | $422 (In thousands) | – | – |
| Net income / (loss), 26 Weeks EndedGAAP | $2,731 (In thousands) | – | – |
| Diluted earnings / (loss) per share, 13 Weeks EndedGAAP | $0.15 | – | – |
| Diluted earnings / (loss) from continuing operations per share, 13 Weeks EndedGAAP | $0.11 | – | – |
| Basic earnings / (loss) per share, 13 Weeks EndedGAAP | $0.16 | – | – |
| Diluted earnings / (loss) per share, 26 Weeks EndedGAAP | $0.25 | – | – |
| Basic earnings / (loss) per share, 26 Weeks EndedGAAP | $0.25 | – | – |
| Net cash provided by operating activities, 26 Weeks EndedGAAP | $24,037 (In thousands) | – | – |
| Cash and cash equivalentsGAAP | $18,660 (In thousands) | – | – |
| InventoriesGAAP | $43,414 (In thousands) | – | – |
| Long term debtGAAP | - (In thousands) | – | – |
| Consolidated order backlogother | $42,416 (In thousands) | increased by 8.4% from the end of the first quarter | increased by 6.2% from the prior-year second-quarter end |
| Tariff recoveries received during the quarterother | $7.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Hooker BrandedLower unit volume, higher promotional discounts, and key SKU out-of-stocks due to significantly longer lead times out of Asia were partially offset by higher average selling prices. | $34,620 (In thousands) | – | decreased by $1.6 million, or 4.5% |
| Domestic UpholsteryLower sales of upscale leather and custom fabric upholstery were partially offset by double-digit growth in private-label and outdoor furnishings. | $27,152 (In thousands) | – | decreased by $1.5 million, or 5.3% |
| All OtherHospitality sales declined primarily due to project timing, with approximately 80% of first-half shipments occurring during the first quarter. | $1,478 (In thousands) | – | decreased by $2.8 million, or 65.8% |
second half of fiscal 2027 outlook
- NoteThe Company does not expect meaningful near-term improvement in market conditions.
- NoteRetailer commitments to Margaritaville products include approximately 100 in-store galleries and 10 free-standing retail stores to date.
- NoteMargaritaville shipments began in the second quarter and are expected to build through the second half of fiscal 2027 and into fiscal 2028.
- NoteThe Company does not expect to receive material additional tariff recoveries.
Capital returns
- $2.5 million in cash dividends was distributed from cash generated from operations.
- $1.3 million was provided for share repurchases under the previously authorized $5 million share repurchase program.
- Through the fiscal 2027 second quarter, the Company repurchased 92,357 shares of common shares at an average price of $13.68 per share.
- Approximately $3.7 million remained available for future purchases under the authorization.
- Cash dividends declared per share were $0.115 for the 13 Weeks Ended August 2, 2026 and $0.230 for the 26 Weeks Ended August 2, 2026.
What drove it
- Continuing operations recognized approximately $4.3 million of tariff recoveries as a reduction of cost of sales and $0.2 million of related interest income, partially offset by approximately $0.5 million of customer credits recorded as a reduction of revenue.
- Approximately $1.8 million of tariff recoveries was recorded as a reduction in inventory carrying values at quarter end.
- More than $17.5 million in annualized cost reductions implemented across continuing operations in prior fiscal years supported selling and administrative expense discipline.
- Hooker Branded gross profit increased by $3.2 million and gross margin expanded by 1,050 basis points, primarily due to tariff recoveries and higher selling prices.
- Domestic Upholstery gross profit increased by $928,000 and gross margin improved by 450 basis points, supported by tariff recoveries on imported materials, lower imported-material costs, and improved overhead absorption.
- Consolidated backlog increased by 6.2% from the prior-year second-quarter end and by 8.4% from the end of the first quarter, led by Hooker Branded and Domestic Upholstery.
Concerns
- Consolidated net sales decreased by $6.0 million, or 8.7%, in the second quarter.
- Consumer spending is selective, while housing turnover and big-ticket discretionary demand remain weak.
- Seasonally softer summer shipments to brick-and-mortar retailers increased the mix of e-commerce sales, and targeted promotional activity pressured Hooker Branded margins.
- All Other Hospitality business net sales decreased by $2.8 million, or 65.8%, due primarily to project timing.
- The Company stated that it does not expect meaningful near-term improvement in market conditions.
- The Company does not expect to receive material additional tariff recoveries.
What to watch
- Whether improved incoming orders and the $42,416 (In thousands) consolidated backlog convert into sales during the second half of fiscal 2027.
- Normalization of promotional activity during the second half of the fiscal year.
- The scale of Margaritaville shipments through the second half of fiscal 2027 and into fiscal 2028.
- Sustained profitability absent tariff recoveries, which contributed materially to second-quarter gross profit and operating results.
- Hospitality shipment timing and demand conditions in the All Other business.
Balance sheet and cash flow
- Cash and cash equivalents were $18,660 (In thousands) as of August 2, 2026, compared with $1,112 (In thousands) as of February 1, 2026.
- Net cash provided by operating activities was $24,037 (In thousands) for the 26 Weeks Ended August 2, 2026, compared with $20,924 (In thousands) for the 26 Weeks Ended August 3, 2025.
- Purchases of property and equipment were $(1,094) (In thousands) for the 26 Weeks Ended August 2, 2026.
- Long term debt was - (In thousands) as of August 2, 2026, compared with $3,223 (In thousands) as of February 1, 2026.
- The Company had $51.8 million in available borrowing capacity under its Amended and Restated Loan Agreement as of fiscal quarter-end, net of standby letters of credit, and no outstanding balance on the credit facility.
- Inventories were $43,414 (In thousands) as of August 2, 2026, compared with $48,684 (In thousands) as of February 1, 2026.
Analysis
Hooker Furnishings recorded a profitable fiscal 2027 second quarter despite lower revenue. Net sales were $63,250 (In thousands), down from $69,243 (In thousands), while operating income was $1,283 (In thousands), compared with an operating loss of $(510) (In thousands). Net income was $1,670 (In thousands), compared with a net loss of $(3,277) (In thousands), and diluted earnings per share were $0.15 compared with a loss of $(0.31). The first half also returned to profitability, with operating income of $2,861 (In thousands) and net income of $2,731 (In thousands).
Management, verbatim
We are encouraged to report $1.7 million in consolidated net income for the quarter, marking our third consecutive quarter of profitability and a $4.9 million improvement over the prior-year second quarter.
Jeremy Hoff, Chief Executive Officer
We expect promotional activity to normalize during the second half of the fiscal year.
Jeremy Hoff, Chief Executive Officer
Through the fiscal 2027 second quarter, we have repurchased 92,357 shares of our common shares at an average price of $13.68 per share, with approximately $3.7 million remaining available for future purchases under the authorization.
Earl Armstrong, Senior Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Non-GAAP revenue, earnings, margins, operating income, net income, or EPS were not reported.
- A formal quantitative financial outlook for revenue, gross margin, operating expenses, tax rate, operating income, net income, or EPS was not provided.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- A reported income tax rate was not provided.
- Prior-quarter figures were not reported for the income statement metrics.
- Basic and diluted EPS from discontinued operations for the 26 Weeks Ended were reported, but are not separately included in key_metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.