Hooker Net Skyrockets for Q4, Fiscal Year

       

       

MARTINSVILLE, Va.-Rising sales and margins, plus a return to profitability in its upholstery segment, carried Hooker Furniture to huge gains in net income for both its fourth quarter and fiscal year.

For the quarter ending on Feb. 3, Hooker’s net jumped 489 percent to $3.7 million. For the year, net income rose 70.6 percent to finish at $8.6 million.

Net sales in the quarter increased 9.7 percent to $59.6 million, while for the year net sales were down 1.9 percent to $218.4 million. The upholstery segment turned in sales gains of 10.4 percent for the quarter and 3.6 percent for the year, and reported an operating profit for the first time since the second quarter of fiscal year 2009.

Higher average selling prices and reduced sales discounting also proved critical to Hooker’s improved bottom-line health for both the quarter and the year. These factors helped bolster gross margin in the quarter by 438 basis points, to 28.2 percent. Selling, general and administrative expenses somewhat offset these gains, increasing 10.6 percent in dollars and 15 basis points as a percentage of sales, to 19.3 percent.

Paul Toms Jr., Hooker’s chairman and CEO, said, “After some challenges at the beginning of the year, we finished the second half with considerable momentum. By year end, we had solid performances by all of our operating units, healthy orders, good inventory availability, increased efficiencies and a strong product lineup.”

Toms added that the quarter’s performance “points to sustainable improvements in orders, shipments, inventory availability, manufacturing efficiency and retail business climate.”