Hooker Furniture Reports Mixed Q2 Results, Warns On Supply Headwinds

Hooker Furniture Corp HOFT reported second-quarter FY22 sales growth of 25% year-on-year, to $162.5 million, beating the analyst consensus of $159.1 million.
Net sales from Hooker Branded segment increased by 29% Y/Y, Home Meridian rose 23%, and Domestic Upholstery gained 28.7%.
The gross profit rose 17.5% Y/Y to $31.7 million, and the margin contracted 120 basis points to 19.5%.
The operating margin was 6%, and operating income for the quarter rose 29% to $9.7 million.
The company held $37.4 million in cash and equivalents as of August 1, 2021. Inventories at Q2 end stood at $103.6 million.
EPS of $0.62 missed the analyst consensus of $0.65.
"While industry-wide demand continues to be high, we're facing significant headwinds on the supply side that will impact us in the short term," said CEO Jeremy Hoff.
The company's quarterly cash dividend of $0.18 per share is payable on September 30, 2021, to shareholders of record on September 16, 2021.
Price Action: HOFT shares are trading lower by 3.82% at $29.70 on the last check Thursday.

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