Hooker Furnishings Corporation (HOFT) Q3 2026 Financial Results Summary
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Hooker Furnishings (HOFT) Q3 2026 Financial Results Summary
MARTINSVILLE, Va., Dec. 11, 2025 — Hooker Furnishings Corporation (NASDAQ-GS: HOFT) reported its financial results for the fiscal 2026 third quarter, which ended on November 2, 2025.
Summary of Financial Results
- Revenue:
- Consolidated net sales were $70.7 million, down 14.5% from $82.7 million in Q3 2025.
- Hooker Branded segment sales increased 1.1% to $36.5 million from $36.1 million in the year-ago quarter.
- Domestic Upholstery segment sales rose 2.9% to $30.2 million compared to $29.3 million a year earlier.
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The “All Other” category recorded sales of $4.0 million, down 76.6% from $17.2 million in Q3 2025.
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Gross Profit:
- Total gross profit was $18.1 million, a decrease of 11.6% compared to $20.5 million in Q3 2025.
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The gross profit margin improved to 25.6% from 24.8%, reflecting better pricing in some segments.
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Operating Loss:
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The operating loss for the quarter was $16.3 million, compared to a loss of $5.1 million in Q3 2025.
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Net Loss:
- Net loss totaled $21.2 million, a considerable increase from a net loss of $4.1 million in the same quarter the previous year.
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Basic loss per share was $(1.99), which marks a significant decline from $(0.39) in Q3 2025.
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Cost Structure & Efficiency:
- The company achieved a cost reduction of 25% or approximately $25 million throughout the last 18 months, contributing to planned moves towards profitability despite prevailing market pressures.
Cash, Debt, and Inventory
- Cash Position:
- Cash and cash equivalents at quarter end stood at $1.4 million, down from $6.3 million at the year end.
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Cash generated from operations primarily funded $17.9 million in loan repayments, $7.5 million in dividends, and $2.4 million in capital expenditures.
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Debt and Financing:
- The company maintains a robust liquidity position with $63.8 million in available borrowing capacity as of the quarter-end.
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Long-term debt decreased to $3.8 million from $21.7 million as of February 2025.
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Dividends:
- Hooker Furnishings declared a quarterly cash dividend of $0.115 per share, payable on December 31, 2025, to shareholders of record on December 21, 2025.
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This represents a 50% reduction from the previous dividend of $0.23.
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Share Repurchase Program:
- The Board authorized a new share repurchase program, allowing up to $5 million worth of common shares to be bought back.
Strategic Initiatives and Outlook
- Divestiture:
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The company has executed a strategic divestiture of the Pulaski Furniture and Samuel Lawrence Furniture brands, which are classified as discontinued operations, enhancing its focus on higher-margin, core brands.
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Market and Growth Strategy:
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The Company launched a new Margaritaville licensed collection, which shows promise for organic growth with initial commitments exceeding previous product launches.
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Future Outlook:
- Incoming orders for branded segments have increased year-over-year for two consecutive quarters, suggesting potential for recovery despite macroeconomic challenges such as high inflation and tariffs.
Conclusion
Hooker Furnishings faced considerable challenges in Q3 of fiscal 2026, reflected in declining revenue and a higher net loss compared to the prior year. However, cost-reduction initiatives and strategic brand alignment are positioned to foster growth moving forward, alongside a maintained liquidity outlook that supports shareholder returns.
Here are the extracted tables from the press release:
Table I – CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| For the Thirteen Weeks Ended | For the Thirty-Nine Weeks Ended | |||
|---|---|---|---|---|
| November 2, 2025 | October 27, 2024 | November 2, 2025 | October 27, 2024 | |
| Net sales | $70,730 | $82,670 | $211,157 | $233,128 |
| Cost of sales | 52,642 | 62,206 | 158,421 | 177,447 |
| Gross profit | 18,088 | 20,464 | 52,736 | 55,681 |
| Selling and administrative expenses | 18,204 | 24,100 | 52,667 | 62,408 |
| Goodwill and trade name impairment charges | 15,576 | 781 | 15,576 | 781 |
| Intangible asset amortization | 623 | 687 | 1,911 | 2,073 |
| Operating (loss) / income | (16,315) | (5,104) | (17,418) | (9,581) |
| Other income, net | 263 | 612 | 480 | 2,575 |
| Interest expense, net | 86 | 319 | 634 | 886 |
| (Loss) / income from continuing operations before income taxes | (16,138) | (4,811) | (17,572) | (7,892) |
| Income tax (benefit) / expense | (3,604) | (1,230) | (3,924) | (2,017) |
| Net income / (loss) from continuing operations | (12,534) | (3,581) | (13,648) | (5,875) |
| Net income / (loss) from discontinued operations, net of taxes | (8,640) | (550) | (13,855) | (4,299) |
| Net (loss) / income | $(21,174) | $(4,131) | $(27,503) | $(10,174) |
| Basic: | ||||
| Loss from continuing operations per share | $(1.18) | $(0.34) | $(1.29) | $(0.56) |
| Loss from discontinued operations per share | (0.81) | (0.05) | (1.30) | (0.41) |
| Basic loss per share | $(1.99) | $(0.39) | $(2.59) | $(0.97) |
| Diluted: | ||||
| Loss from continuing operations per share | $(1.18) | $(0.34) | $(1.29) | $(0.56) |
| Loss from discontinued operations per share | (0.81) | (0.05) | (1.30) | (0.41) |
| Diluted loss per share | $(1.99) | $(0.39) | $(2.59) | $(0.97) |
| Weighted average shares outstanding: | ||||
| Basic | 10,624 | 10,541 | 10,600 | 10,519 |
| Diluted | 10,624 | 10,541 | 10,600 | 10,519 |
| Cash dividends declared per share | $0.23 | $0.23 | $0.69 | $0.69 |
Table II – CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| November 2, 2025 | February 2, 2025 | |
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | $1,354 | $6,295 |
| Trade accounts receivable, net | 31,737 | 45,487 |
| Inventories | 52,146 | 66,228 |
| Income tax recoverable | 74 | 521 |
| Prepaid expenses and other current assets | 6,830 | 5,080 |
| Current assets held for sale | 13,301 | 17,513 |
| Total current assets | 105,442 | 141,124 |
| Property, plant and equipment, net | 25,008 | 27,343 |
| Cash surrender value of life insurance policies | 30,188 | 29,238 |
| Deferred taxes | 24,914 | 16,057 |
| Operating leases right-of-use assets | 24,369 | 39,264 |
| Intangible assets, net | 13,539 | 17,998 |
| Goodwill | 574 | 15,037 |
| Non-current assets held for sale | – | 11,269 |
| Other assets | 16,203 | 16,612 |
| Total non-current assets | 134,795 | 172,818 |
| Total assets | $240,237 | $313,942 |
| Liabilities and Shareholders’ Equity | ||
| Current liabilities | ||
| Trade accounts payable | $12,448 | $16,376 |
| Accrued salaries, wages and benefits | 4,797 | 3,851 |
| Accrued income taxes | 35 | 49 |
| Customer deposits | 5,317 | 5,655 |
| Current portion of operating lease liabilities | 5,432 | 6,311 |
| Other accrued expenses | 2,335 | 2,916 |
| Current liabilities held for sale | 9,177 | 4,816 |
| Total current liabilities | 39,541 | 39,974 |
| Long term debt | 3,815 | 21,717 |
| Deferred compensation | 6,287 | 6,795 |
| Operating lease liabilities | 20,838 | 35,331 |
| Long-term liabilities held for sale | – | 5,742 |
| Total long-term liabilities | 30,940 | 69,585 |
| Total liabilities | 70,481 | 109,559 |
| Shareholders’ equity | ||
| Common stock, no par value, 20,000 shares authorized, 10,778 and 10,703 shares issued and outstanding on each date | 50,977 | 50,474 |
| Retained earnings | 118,308 | 153,336 |
| Accumulated other comprehensive income | 471 | 573 |
| Total shareholders’ equity | 169,756 | 204,383 |
| Total liabilities and shareholders’ equity | $240,237 | $313,942 |