Hooker's third-quarter sales down 17.8%
By Furniture Today Staff -- Furniture Today, October 7, 2001
Martinsville, Va. — Case goods, occasional and home office manufacturer and importer Hooker Furniture reported a 17.8% drop in third-quarter sales to $50.6 million.
Net income for the three months ended Aug. 31 plunged 96% to $167,000 compared to $4.1 million in last year's comparable quarter.
Year to date, sales of $162.1 million are off 12.2%, and net income of $4 million is down 65.8% from $11.7 million in the first nine months of 2000.
A one-time restructuring charge of $881,000 in severance and early retirement paid to terminated employees, and a special common stock repurchase of $321,000 by Hooker's Employee Stock Ownership Plan affected third-quarter net income.
Reductions in production costs and selling and administrative expenses weren't enough to offset the impact of lower volume on operating margins, the company said.
Fourth-quarter business is hard to predict, said Paul Toms, Hooker's chairman and chief executive officer, in the wake of the terrorist attacks and their effect on consumer confidence and financial markets, as well as the prospect of military action.
Toms cited some positives, however.
"We saw business strengthen during August, culminating in a very strong Labor Day weekend sales period, with sales remaining strong until the attacks Sept. 11," he said.
"For 10 days after the attacks, business was down sharply as peoples' minds were rightly focused elsewhere. However, beginning the week of September 21, we've seen incoming orders begin to increase again."
Hooker reduced inventories by $2.4 million in the third quarter, and all manufacturing employees at its six remaining plants returned to 40-hour work weeks in September after working 35-hour weeks since January.
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Hooker's earnings drop
Sep 14, 2008 -
Stanley 3Q profits plunge 45.5%
Oct 21, 2007 -
Hooker 3Q sales flat, net income soars 80%
Oct 22, 2006 -
Hooker sales up 12%
Jun 30, 2002 -
Hooker 2Q sales up 14.2%; profits more than double
Jul 18, 2004
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