What's Going On With Furniture Company Hooker Furnishings Stock Today?

Shares of Hooker Furnishings Corp HOFT were trading lower in premarket on Thursday after the fourth-quarter FY25 earnings.

The company reported fourth-quarter FY25 sales growth of 8% year-on-year to $104.46 million, beating the analyst consensus estimate of $101.16 million.

The additional week in the current period drove the increase, contributing approximately $7.7 million to consolidated net sales.

Segment Revenue: Hooker Branded segment sales climbed 31%, Home Meridian improved 21.7%, and Domestic Upholstery decreased 7%.

EPS of $(0.22) missed the consensus estimate of $0.16.

Gross margin contracted by 60 basis points Y/Y to 23.9%. Selling and administrative expenses increased 12% Y/Y to $25.2 million. The company reported an operating loss of $2.7 million in the quarter compared to an operating income of $340,000.

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The company held $6.3 million in cash and equivalents as of February 2. Net cash used in operating activities for FY25 totaled $23 million.

Cost Savings: Hooker expects fiscal 2026 cost savings, net of associated transition costs, of at least between $0.8 to $1.0 million from the Savannah warehouse exit announced in March 2025.

In addition to the $10 million in annualized cost savings announced in fiscal 2025, the company expects additional annualized cost savings of between $8 to $10 million.

Total annualized savings of these two cost-saving plans which will be realized in FY27 is $18 million – $20 million.

“While macroeconomic headwinds—including a weak housing market, lower consumer confidence and tariff uncertainty—persist, we remain focused on what we can control. We’ve accelerated cost reduction initiatives which we believe will improve operating income and cash flow,” said CEO Jeremy R. Hoff.

“We are currently evaluating a range of strategies to mitigate the current economic environment, including a 50-year low in existing home sales, and the possible impact of additional reciprocal tariffs on our operations and profitability. Tariffs add tremendous complexity and uncertainty that require us to look at our cost structure more aggressively, particularly on the lower margin, direct container side of our business.”

Price Action: HOFT shares traded lower by 0.92% at $7.5 in premarket at last check Thursday.

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