Hooker Furnishings Q1: Mixed Results, New $5M Share Buyback & More

Hooker Furnishings Corp HOFT reported a Q1 FY24 sales decline of 17.3% Y/Y to $121.82 million, missing the consensus of $121.92 million.

Net sales from the Hooker Branded segment decreased by 0.8% Y/Y, Home Meridian declined by 32.5% Y/Y, and Domestic Upholstery fell by 14.8% Y/Y.

Operating income stood at $2 million vs. $3.9 million a year ago.

EPS of $0.13, which halved from the prior year, topped the analyst consensus of $0.11.

Operating cash flow came in at $22.4 million in the quarter. The company held $31.0 million in cash and equivalents as of April 30, 2023. 

Inventories at Q1 end stood at $73.2 million. The company bought back shares worth $4.3 million and paid dividends of $2.4 million in the quarter.

Repurchase: The company's board recently approved an additional $5 million authorization. 

Since the repurchase program's announcement last year, HOFT returned around $20 million shares to the stockholders and retired 1.2 million shares.

This week, the company's Board of Directors declared a quarterly cash dividend of $0.22 per share, payable on June 30, 2023, to shareholders of record as of June 16, 2023. 

"At HMI, we expect the previously announced inventory liquidations to be substantially completed by the end of the fiscal 2024 second quarter. While we expect some short-term volatility in sales and earnings at HMI, we continue to expect the segment to achieve profitability by the end of the 2024 fiscal year. The HMI team has rallied around the new level of focus on our core competencies, as we direct our support and resources behind our key businesses while reducing costs," said Jeremy Hoff, CEO and director. 

Price Action: HOFT shares are trading higher by 3.58% at $17.65 premarket on the last check Thursday.