Q2 2025 Hooker Furnishings Corp Earnings Call Transcript
Key Points
- Sales in the second quarter outperformed the first quarter despite weak market conditions.
- Home Meridian segment saw a 5.6% increase in net sales, driven by strong performance in the hospitality division.
- The company has initiated a cost reduction plan aimed at reducing fixed costs by 10%, with expectations to exceed this target.
- The order backlog remains 20% higher than pre-pandemic levels, indicating strong future demand.
- The company has a strong balance sheet with $42.1 million in cash and cash equivalents and plans to pay off $22 million in term debt.
- Consolidated net sales decreased by $2.7 million or 2.8% compared to the previous year's second quarter.
- The company recorded a consolidated operating loss of $3.1 million and a net loss of $2 million for the second quarter.
- Net sales in the Domestic Upholstery segment decreased by $2.3 million or 7.6%, primarily due to lower unit volumes.
- Persistent low demand for home furnishings driven by macroeconomic uncertainties continues to impact sales.
- The company expects to record $3 million of severance expenses in the fiscal '25 third quarter due to workforce reductions.
Good day and thank you for standing by. Welcome to the Hooker Furnishings Corp second quarter 2025 earnings webcast. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Paul Huckfeldt, Chief Financial Officer. Please go ahead.
Thank you, Dave. Good morning and welcome to our quarterly conference call to review financial results for the fiscal 2025 second quarter, which began April 29 and ended July 28, 2024. Joining me this morning is Jeremy Hoff, our Chief Financial Officer. We appreciate your participation I mean our Chief Executive Officer, -- I'm sorry.
We appreciate your participation today. During our call, we may make forward-looking statements, which are subject to risks and uncertainties. A discussion of factors that could cause our actual results to differ materially from management's expectations is contained in our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
