Hooker Furniture (HOFT) Reports Q3 EPS of $0.33

Hooker Furniture (NASDAQ: HOFT) reported Q3 EPS of $0.33, versus $0.79 reported last year. Revenue for the quarter came in at $158.2 million, versus $171.5 million reported last year.

Outlook

“Compared to the second quarter, consolidated orders increased by about $8 million or 5% in the third quarter,” said Toms. “However, compared to the same period a year ago, consolidated orders dipped approximately $15 million, or 8%. “The decline in orders from the one large Home Meridian customer is about half of that reduction, along with the subdued demand from increased prices due to tariffs. While some retail segments like large national chains, club stores, international sales and full-line furniture independent retailers are sluggish, sales performance in other channels such as e-commerce, hospitality, contract furniture and interior design is up.

“On a consolidated basis, we expect earnings to improve on a sequential basis next quarter. We believe the earnings performance momentum we have in the Hooker Branded segment and All Other will continue, and for the Home Meridian segment earnings to improve significantly despite the reduced volume from the single large customer,” Toms said.

“There are two calendar dynamics to point out that will impact our performance next quarter,” he added. “First, last year was a 53-week fiscal year, so Company-wide we will have one less week of shipments this year. In addition to this lost week of shipping, the Chinese New Year and Vietnamese New Year holiday vacations are earlier, which will result in five to ten fewer shipping days this fiscal year for our container direct customers.”

“Regarding the overall business climate, we believe housing and demographic trends bode well for us and for the furniture industry in general,” Toms said. “In the last four months, we’ve seen housing starts, housing sales, household formations and affordability all trend positive. Demographically, Millennials are finding jobs, leaving home, getting married, creating households and starting families. Generation X consumers are reaching peak earnings years and we’re seeing housing turnover from Baby Boomers as they retire, relocate or downsize. We expect to be well positioned strategically, financially and with the right product lines and talent to capitalize on all these trends.”

For earnings history and earnings-related data on Hooker Furniture (HOFT) click here.

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