Hooker Furnishings swings to Q2 profit as tariff recoveries boost margins

Hooker Furnishings

11/09/2026 11:12

Overview
US home furnishings designer's fiscal Q2 net sales fell 8.7% yr/yr amid weak demand
EPS for fiscal Q2 turned positive, reflecting improved profitability versus prior-year loss
Company benefited from $7.9 mln tariff recoveries, supporting gross margin expansion

Outlook
Company does not expect meaningful near-term improvement in market conditions
Hooker Furnishings expects cost structure changes to deliver improved results versus prior-year period
Retailer commitments to Margaritaville products expected to drive shipments through H2 fiscal 2027 and into fiscal 2028

Result Drivers
TARIFF RECOVERIES - Co said Q2 results benefited from $7.9 mln in tariff recoveries, which reduced cost of sales and supported gross margin expansion
LOWER VOLUME AND PROMOTIONS - Hooker Branded sales declined due to lower unit volume and higher promotional discounts, which more than offset higher average selling prices
OPERATIONAL EFFICIENCIES - Domestic Upholstery gross margin improved, supported by tariff recoveries, lower imported-material costs, and improved overhead absorption

Company press release: ID:nGNXbLd3Yr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
$63.25 mln
$63.76 mln (2 Analysts)
Q2 EPS
Beat
$0.15
-$0.02 (2 Analysts)
Q2 Gross Profit
 
$20.10 mln
 
Q2 Operating Income
 
$1.28 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
Wall Street's median 12-month price target for Hooker Furnishings Corp is $17.00, about 35.3% above its September 10 closing price of $12.57
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

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Sept 10 - Furniture maker Lovesac Q2 sales miss estimates despite showroom expansion
Sept 9 - Footwear retailer Caleres' Q2 sales beat estimates on gains across brands
Sept 10 - White House copper tariff plan stalls amid affordability concerns, sources say

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)