Hooker sales up 0.9% in 4Q, 2.4% for year
Year's profits rise 12.8% despite $6.9M in restructuring charges
By Furniture Today Staff -- Furniture Today, February 9, 2007
MARTINSVILLE, Va. — Hooker Furniture said sales edged up 2.4% in its year ended Nov. 30, while net income rose 12.8% due to a variety of cost controls and lower interest expenses.
The case goods and leather upholstery manufacturer and importer said sales for the year totaled $350 million, up from $341.7 million in the previous year. Net income was $14.1 million, or $1.18 per share, compared with $12.5 million, or $1.06 per share, the year before.
Net income increased despite $6.9 million in one-time restructuring and asset impairment charges. Over half the charges are related to the upcoming shutdown of its last domestic case goods factory in Martinsville. The remainder stemmed from the July 2006 closing of its Roanoke, Va., factory.
“It was a year of positive momentum … as we performed better operationally, achieved record annual net sales and made significant progress toward our long-term strategic goal of transforming into a home furnishings design, marketing and logistics company with world-wide sourcing capabilities,” said Chairman, President and CEO Paul Toms Jr.
In the fourth quarter, sales inched up 0.9% to $91 million, and net income fell 13.3% to $3.5 million, or 29 cents per share. The quarter included $3.7 million in restructuring and asset impairment charges stemming from the Martinsville factory closing.
“We made good headway in bringing down our inventory item count and finished goods levels during the fourth quarter,” Toms said. “While we struggled with increased warehousing and distribution costs during 2006, we believe there is good potential to reduce those costs further as we refine our supply chain management and logistics.”
Hooker recently changed its fiscal year so that it will end in late January instead of late November. The new fiscal calendar began Jan. 29 and will end Feb. 3, 2008.
Toms said an earnings report covering the two-month transition period between the old and new fiscal years will be issued in early March.
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Hooker's earnings increase 12.8% in 2006
Mar 4, 2007
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