Hooker Furnishings misses Q2 sales estimates on weak demand

Hooker Furnishings

11/09/2025 11:12

Overview

Hooker Furnishings fiscal Q2 net sales fall 13.6% YoY, missing analyst expectations

Company reports $3.3 mln net loss, driven by Home Meridian's 44.5% sales drop

Achieved $3.7 mln in cost savings in H1 FY26, focusing on restructuring

Outlook

Company expects $15 mln in cost savings for fiscal 2026

Hooker Furnishings aims for $25 mln annualized savings by fiscal 2027

Company preparing for Margaritaville collection launch in October

Hooker leveraging Vietnam warehouse to improve logistics

Result Drivers

COST REDUCTION INITIATIVES - Implemented multi-phase strategy aiming for $25 mln in annualized savings by fiscal 2027, with $3.7 mln saved in 1H despite $1.7 mln in restructuring costs

DEMAND CHALLENGES - Weak housing market and tariff hesitancy impacted HMI sales, which decreased by 44.5% YoY, contributing to a $3.3 mln net loss

ORDER MOMENTUM - Q2 orders increased by 11% at Hooker Branded and 2% at Domestic Upholstery, with a 7% YoY increase in backlog

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$82.15 mln
$91.20 mln (2 Analysts)
Q2 EPS
-$0.31
Q2 Net Income
-$3.28 mln
Q2 Gross Profit
$16.84 mln
Q2 Operating Income
-$4.40 mln
Q2 Pretax Profit
-$4.48 mln


Analyst Coverage

Wall Street's median 12-month price target for Hooker Furnishings Corp is $17.00, about 35.4% above its September 10 closing price of $10.98

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX8snjPp

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)