Hooker 2Q Net Falls 10.4 Percent

       

       

MARTINSVILLE, Va.-Sliding sales cut into the bottom line for Hooker Furniture in the second quarter, which ended on July 29.

The furniture resource’s net income dropped 10.4 percent to $1.5 million, on a 9.7 percent decrease in net sales, which totaled $50.2 million. While citing Hooker’s sales declines since the beginning of the fiscal year, Paul B. Toms Jr., chairman and CEO, added that the company has achieved higher profitability on lower sales for both casegoods and upholstery.

“We’ve maintained profitability by improving our domestic upholstery manufacturing operations and by managing costs,” Toms said. “In addition, we believe we are now positioned to stabilize and grow sales again.”

Gross margin did, in fact, improve for Hooker in the quarter, rising 56 basis points to 22.5 percent. Selling, general and administrative expenses—while increasing 42 basis points as a percentage of sales to 17.8 percent—dropped 7.5 percent on a dollar basis.

Hooker’s outlook for the remainder of the fiscal year is clouded by the weak state of the housing market and consumer confidence, Toms said. “There’s been no significant upturn in the retail business yet,” he added, “but we are hopeful that demand will improve as we enter what is typically the strongest selling season of the year.”