MARTINSVILLE, Va.--Third-quarter net income for Hooker Furniture skyrocketed by more than 67 percent, to $5.9 million, in spite of a nearly 8 percent decrease in net sales.
The manufacturer's sales finished the quarter at $83.8 million, compared with about $91 million for the same period in 2006. However, Hooker recorded a vast improvement to its bottom line, thanks to its ability to slash both cost of goods sold (down 9.3 percent from the previous year) and selling and administrative expenses (down nearly 8 percent). In addition, the results from last year reflected a $3.7 million charge for restructuring and asset impairment, compared with a $419,000 charge for this year.
In a statement, Paul B. Toms Jr., chairman, president and chief executive officer of Hooker Furniture, said the company managed the bottom-line growth, operating margins of more than 10 percent for the second consecutive quarter and strong operating cash flow despite the furniture industry's "difficult environment."