Higher prices help boost Hooker Furniture's profits
Larry Thomas -- Furniture Today, September 2, 2013
MARTINSVILLE, Va. - Hooker Furniture recorded double-digit gains in sales and profits in the quarter ended Aug. 4 as its upholstery and case goods segments saw higher average selling prices.
Net sales for the fiscal second quarter totaled $55.3 million, a 10.2% increase from $50.2 million in the same quarter a year ago. Net income totaled $1.69 million or 16 cents per share. That was up 14.5% from $1.47 million or 14 cents per share in the comparable quarter.
In addition to higher average selling prices, the company said its upholstery segment, which includes the Bradington-Young and Sam Moore brands, saw increased unit volume and lower discounting.
Gross margin was 24%, an increase of 1.5 percentage points from the same quarter last year.
"Given the current business environment, we're gratified to have achieved sales increases this quarter in both upholstery and case goods," said Paul Toms, chairman and CEO. "While we entered May with healthy demand momentum, we saw demand and retail business progressively slow as we moved through the summer."
He said the ability to achieve a sales increase despite softer demand "is a reflection of our solid inventory position on best-selling products, our increased upholstery manufacturing capacity and steady promotion of what we believe to be our strongest product line in several years." Results were similar for the first six months of Hooker's fiscal year.
Sales rose 9.5% to $111.6 million in the six months ended Aug. 4, while profits were up more than 50% to $3.81 million or 35 cents per share.
The six-month figures include after-tax startup costs of $657,000, or 6 cents per share, for its new H Contract and Homeware brands.
The H Contract brand is targeting retirement housing and senior living facilities, while Homeware is an onlineonly brand.
Toms said that while the housing market has slowed somewhat due to rising mortgage rates and housing prices, other economic indicators are generally positive.
"We believe we are well positioned to capitalize quickly on any upturn in business through our strong inventory position on best-sellers, our increased production capacity in upholstery, our salable core product line and new business initiatives to expand our market reach," he said.
Owns Bradington-Young, Sam Moore
Earnings per share are fully diluted.
13 weeks ended 8/4
Earnings per share (a)
26 weeks ended 8/4
Earnings per share (b)
|(a) Includes start-up costs of 3 cents per share for H Contract and Homeware brands in
2013. (b) Includes start-up costs of 6 cents per share for H Contract and Homeware brands
- May 2, 2013
- Apr 12, 2013