Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q1 FY26

Rhea-AI Summary

Hooker Furniture Corporation (NASDAQ: HOFT) reported Q1 FY26 results with revenue of $85.3M, representing an 8.8% year-over-year decline, falling short of consensus estimates of $88.9M. The company posted an operating loss of ($3.6M) and adjusted EPS of ($0.29), both below analyst expectations. Despite challenging macro conditions, HOFT showed improvement in gross profit margin, reaching 22.3% (up 173bps quarter-over-quarter). The company successfully achieved its cost reduction target of 25% (approximately $25M), with full benefits expected by FY27. The decline in revenue was primarily attributed to decreased volumes and tariff impacts in the HMI segment. The furniture retail environment remains challenging due to high interest rates, housing shortage, and elevated home prices.

Positive

• Gross profit margin improved to 22.3%, up 173 basis points quarter-over-quarter
• Successfully achieved 25% fixed cost reduction goal (approximately $25M savings)
• Cash position improved both sequentially and year-over-year
• Company making progress on controllable factors despite market challenges

Negative

• Revenue declined 8.8% year-over-year to $85.3M, missing consensus estimates
• Operating loss of $3.6M, worse than expected
• Adjusted EPS loss of $0.29, below analyst estimates
• Continued challenges from macro headwinds including high interest rates and housing market issues

Dallas, Texas--(Newsfile Corp. - June 13, 2025) - Hooker Furniture Corporation (NASDAQ: HOFT): Stonegate Capital Partners updates their coverage on Hooker Furniture Corporation (NASDAQ: HOFT). HOFT reported revenue, operating income, and adj EPS of $85.3M, ($3.6)M, and ($0.29), respectively. This compares to our/consensus estimates of $92.6M/$88.9M, ($2.5)M/($2.5)M, and ($0.16)/($0.15). It is noted that revenues were slightly below consensus estimates and posted a 8.8% y/y decrease. The decrease was primarily attributed to the decreased volumes and impacts of tariffs on the HMI segment. Despite the macro headwinds, HOFT reported consolidated GPM of 22.3%, an increase of 173bps 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 reached the goal of reducing fixed costs by 25%, or approximately $25.0M, with full realization expected by FY27.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Despite the macro headwinds, HOFT reported consolidated GPM of 22.3%, an increase of 173bps q/q.
• The Company reached its goal of reducing fixed costs by 25%, or approximately $25.0M, with full realization expected by FY27.
• The quarter end cash increased both sequentially and year over year as HOFT capitalized on accounts receivable.
  
  

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/255472

FAQ

What were Hooker Furniture's (HOFT) Q1 FY26 earnings results?

HOFT reported Q1 FY26 revenue of $85.3M, operating loss of $3.6M, and adjusted EPS loss of $0.29, all below consensus estimates.

How much did HOFT's revenue decline in Q1 FY26?

HOFT's revenue declined 8.8% year-over-year to $85.3M.

What is HOFT's cost reduction target and timeline?

HOFT achieved its goal of reducing fixed costs by 25% (approximately $25M), with full realization expected by FY27.

How did HOFT's gross profit margin perform in Q1 FY26?

HOFT's gross profit margin improved to 22.3%, increasing 173 basis points quarter-over-quarter.

What are the main challenges affecting Hooker Furniture's business?

The main challenges include varying interest rates, housing shortage, elevated home prices, and tariff impacts on the HMI segment.