EL7.AI
StocksMediumUpdated•Originally published 11 September 2026•Updated 11 September 2026•
2 min read

Hooker Furnishings Swings to $1.3 Million Operating Profit Despite 8.7% Sales Drop

Key Facts

1Sales were $63.25 million, down 8.7% year over year.
2The company posted $1.3 million of operating income versus a $0.5 million loss a year earlier.
3Diluted EPS from continuing operations was $0.11, while total diluted EPS was $0.15.
4The company received $7.9 million of tariff recoveries, with $4.3 million reducing continuing-operations cost of sales.
5Cash was $18.7 million, with $51.8 million of borrowing capacity available.

Hooker Furnishings reported $1.3 million of operating income for its fiscal 2027 second quarter, reversing a $0.5 million operating loss a year earlier. Net sales were $63.25 million, down 8.7%, for the quarter ended August 2, 2026.

Diluted EPS from continuing operations was $0.11, compared with a $0.06 loss per share a year earlier. Total GAAP diluted EPS was $0.15, including $0.04 from discontinued operations, while net income was $1.67 million versus a $3.28 million loss.

Using the consensus series published by GuruFocus, continuing-operations EPS of $0.11 exceeded a negative $0.02 estimate by $0.13. Sales of $63.25 million were $0.51 million below the $63.76 million estimate.

The profit improvement did not reflect underlying operations alone. Hooker received $7.9 million of tariff recoveries during the quarter; continuing operations recognized $4.3 million as a reduction in cost of sales and $0.2 million as interest income, while $0.5 million of customer credits reduced revenue. Another $1.8 million remained in inventory carrying values at quarter-end.

Results also benefited from more than $17.5 million of annualized fixed-cost reductions implemented in prior fiscal years. Gross profit rose to $20.10 million from $17.24 million, showing that tariff recoveries and the restructured cost base—not sales growth—were the main drivers of the operating improvement.

Demand remained uneven across the business. Hooker Branded sales fell 4.5%, Domestic Upholstery sales declined 5.3%, and hospitality sales dropped 65.8% because of project timing. Consolidated backlog, however, rose 6.2% from the prior-year quarter-end and 8.4% from the first-quarter close.

Cash increased to $18.7 million at quarter-end from $10.6 million at the end of the first quarter and $1.1 million at fiscal 2026 year-end. The company had no outstanding term-loan or credit-facility balance and had $51.8 million of borrowing capacity available after letters of credit.

HOFT closed at $12.57 on September 10, 2026, after trading between $12.40 and $12.79 during the session, according to EL7.AI data. Those figures provide a pre-results price reference without presuming how investors interpreted the move.

Management does not expect material additional tariff recoveries and sees no meaningful near-term improvement in market conditions. The test for the second half of fiscal 2027 will be converting stronger backlog into sales while Margaritaville shipments, which began in the second quarter, scale into fiscal 2028.