Dallas, Texas--(Newsfile Corp. - September 12, 2025) - Hooker Furniture Corporation (NASDAQ: HOFT): Stonegate Capital Partners updates their coverage on Hooker Furniture Corporation (NASDAQ: HOFT). HOFT reported revenue, operating income, and adj EPS of $82.1M, ($4.4)M, and ($0.31), respectively. This compares to our/consensus estimates of $93.7M/$91.2M, ($0.8)M/($1.5)M, and ($0.08)/($0.16). Revenues came in below expectations, declining 13.6% y/y, driven primarily by a 44.5% y/y decline at HMI from weak demand, tariff-driven buying hesitancy, and the impact of a major customer bankruptcy. In contrast, Hooker Branded net sales grew 1.3% y/y and Domestic Upholstery was flat, underscoring continued resilience in the Legacy brands. Despite soft sales, consolidated gross margin of 20.5% showed sequential stability supported by cost savings and improved labor efficiency. However, mix headwinds and restructuring costs pressured overall profitability. Management reaffirmed its focus on navigating macro headwinds such as housing market weakness, high mortgage rates, and subdued consumer demand, while positioning the company to return to profitability.
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Key Takeaways:
- Despite a 13.6% y/y sales decline, HOFT maintained a consolidated gross margin of 20.5%, supported by labor efficiency and cost savings.
- HOFT achieved $3.7M in expense savings in 1H26, advancing toward its goal of $25M in annualized savings by FY27.
- HOFT repaid $16.5M of debt YTD and reduced inventory to $58.5M, enhancing liquidity while transitioning to its new Vietnam warehouse.
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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
Contacts:
Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com
Source: Stonegate, Inc.
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