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Hooker Sales, Earnings Rise

Larry Thomas -- Furniture Today, September 16, 2011

MARTINSVILLE, Va. - Hooker Furniture said sales for the quarter ended July 31 were 4.1% ahead of the same quarter last year as demand remained relatively strong for its case goods and upholstery products.
     It marked the fifth consecutive quarter of year-over-year sales growth.
     Profits, meanwhile, grew even faster due to a variety of cost-control measures implemented in recent years.
     Net income totaled $1.65 million or 15 cents per share, up nearly 40% from the $1.18 million or 11 cents per share earned in the same quarter in 2010.
     Sales for the period - the second quarter of Hooker's fiscal year - totaled $55.6 million, up from $53.4 million a year earlier.
     "Given the environment we're operating in and the softer sales we typically experience during the summer months, we're quite pleased to have grown revenues this quarter, even though growth moderated compared to last quarter," said Paul Toms Jr., chairman and CEO.
     "While business has been more challenging since mid-April, we have continued to post positive year-over-year comps in quarterly net sales in two of our three businesses, Hooker case goods and Sam Moore fabric upholstery," he added. "At Bradington-Young, we have struggled with a combination of reduced demand for leather and motion furniture and significant increases in raw material costs."
     Sales for the first half of the fiscal year rose 8.8% to $114 million.
     First-half net income totaled $2.17 million or 20 cents per share. That was down from $2.25 million or 21 cents per share in the first half of the previous fiscal year.
     Cash and cash equivalents jumped to $30.4 million on July 31 from $16.6 million on Jan. 30, due largely to Hooker's efforts to reduce inventories.
     "Since late last year, we've reduced our finished goods inventory nearly 30% while maintaining our service levels to our customers and converting most of the reduced inventory to cash," Toms said. "We are now close to our targeted inventory levels and believe we have the right mix of product to service the fall selling season."
     Toms said that, while he expects the fall season to be better than summer, he believes the industry will continue to endure "a prolonged period of economic challenges," including stock market volatility, depressed real estate values and high unemployment.
     "However, I'm confident we have the right business model, the right product line, the right people and the right distribution to be as successful as possible given the environment," he added.

Hooker Furniture
Owns Bradington-Young, Sam Moore Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
13 weeks ended 7/31	2011	2010	Change
Sales	$55,574,000	$53,377,000	4.1%
Operating income	2,494,000	1,569,000	59.0%
Net income	1,646,000	1,178,000	39.7%
Earnings per share	0.15	0.11	36.4%
26 weeks ended 7/31	2011	2010	Change
Sales	$113,967,000	$104,730,000	8.8%
Operating income	3,241,000	3,775,000	(14.1%)
Net income (a)	2,169,000	2,252,000	(3.7%)
Earnings per share	0.20	0.21	(4.8%)
(a) Includes casualty loss of $500,000 in 2010.

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Hooker Furniture earnings jump 40% on 4.1% sales growth

Sep 7, 2011

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