Overview

* Hooker Furnishings ( HOFT ) fiscal Q2 net sales fall 13.6% YoY, missing analyst expectations

* Company reports $3.3 mln net loss, driven by Home Meridian's 44.5% sales drop

* Achieved $3.7 mln in cost savings in H1 FY26, focusing on restructuring

Outlook

* Company expects $15 mln in cost savings for fiscal 2026

* Hooker Furnishings ( HOFT ) aims for $25 mln annualized savings by fiscal 2027

* Company preparing for Margaritaville collection launch in October

* Hooker leveraging Vietnam warehouse to improve logistics

Result Drivers

* COST REDUCTION INITIATIVES - Implemented multi-phase strategy aiming for $25 mln in annualized savings by fiscal 2027, with $3.7 mln saved in 1H despite $1.7 mln in restructuring costs

* DEMAND CHALLENGES - Weak housing market and tariff hesitancy impacted HMI sales, which decreased by 44.5% YoY, contributing to a $3.3 mln net loss

* ORDER MOMENTUM - Q2 orders increased by 11% at Hooker Branded and 2% at Domestic Upholstery, with a 7% YoY increase in backlog

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $82.15 $91.20

mln mln (2

Analysts

)

Q2 EPS -$0.31

Q2 Net -$3.28

Income mln

Q2 Gross $16.84

Profit mln

Q2 -$4.40

Operatin mln

g Income

Q2 -$4.48

Pretax mln

Profit

Analyst Coverage

* Wall Street's median 12-month price target for Hooker Furnishings Corp ( HOFT ) is $17.00, about 35.4% above its September 10 closing price of $10.98

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)