Stonegate Updates Coverage on Hooker Furniture Corporation (NASDAQ: HOFT) Q3 FY25

Stonegate Updates Coverage on Hooker Furniture Corporation HOFT Q3 FY25

DALLAS, TX -- December 6th, 2024 --Hooker Furniture Corporation HOFT: Stonegate Capital Partners updates their coverage on Hooker Furniture Corporation HOFT. HOFT reported revenue, operating income, and adj EPS of $104.4M, ($7.3)M, and ($0.39), respectively. This compares to our/consensus estimates of $102.8M/$101.4M, $6.8M/$3.3M, and $0.53/$0.28. It is noted that revenues were slightly above consensus estimates this quarter, despite consolidated revenues decreasing 10.7% from 3Q24. The declines were due to the current headwinds seen in the macro environment leading to decreased volumes along with a bankruptcy filing by a major HMI customer. Despite the headwinds, HOFT reported consolidated GPM of 23.0%, an increase of 100bps q/q. The macroeconomic and furniture retail environment remains challenging, with varying interest rates, maintained housing shortage, and elevated home prices contributing to a prolonged downturn. Despite this, the company is focusing on controllable factors to position itself for future growth. As HOFT looks through the current market turbulence it has retained the goal of reducing fixed costs by 10%, or approximately $10.0M in FY26 and is still on pace to reach this goal. Lastly, the Company announced a global licensing agreement with Margaritaville, which is expected to boost revenues as demand normalizes. This strategic partnership aligns well with HOFT's growth initiatives.

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Source: Stonegate, Inc.

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