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

Hooker Furnishings Posts $1.3 Million Operating Profit as Q2 Sales Fall 8.7%

Key Facts

1Operating income was $1.3 million in the second quarter and $2.9 million in the first half, versus prior-year losses of $0.5 million and $1.0 million.
2Quarterly sales fell 8.7% to $63.250 million and first-half sales declined 5.5% to $132.702 million.
3The company received $7.9 million of tariff recoveries but does not expect material additional recoveries.
4HOFT closed at $12.57 on September 10, 2026 within a range of $12.40 to $12.79.

Hooker Furnishings generated fiscal 2027 second-quarter operating income of $1.3 million for the period ended August 2, 2026, reversing a $0.5 million operating loss a year earlier. First-half operating income was $2.9 million versus a $1.0 million loss, while quarterly sales fell 8.7% to $63.250 million and first-half sales declined 5.5% to $132.702 million.

The results benefited from $7.9 million of tariff recoveries received during the quarter. Continuing operations recognized about $4.3 million as a reduction in cost of sales and $0.2 million as interest income, partly offset by about $0.5 million of customer credits deducted from revenue. The company said it does not expect material additional recoveries.

Consolidated net income was $1.670 million, or $0.15 per diluted share, compared with a loss of $3.277 million, or $0.31 per share, in the year-earlier quarter. First-half net income was $2.731 million, or $0.25 per diluted share, versus a loss of $6.329 million, or $0.60 per share.

Hooker Branded sales fell 4.5% in the quarter, but the unit generated operating income of $0.870 million compared with roughly breakeven results a year earlier. Domestic Upholstery sales declined 5.3%, while the unit swung to operating income of $0.833 million from a $0.408 million loss.

Consolidated backlog increased 6.2% from the prior-year second-quarter end and 8.4% from the end of the first quarter. The company also said retailer commitments for Margaritaville products had reached about 100 in-store galleries and 10 freestanding stores, with shipments expected to build through the second half of fiscal 2027 and into fiscal 2028.

Cash and equivalents rose 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, with no term-loan balance outstanding. Inventory declined to $43.4 million from $48.7 million, while available borrowing capacity stood at $51.8 million with nothing drawn on the credit facility.

Management does not expect meaningful near-term improvement in market conditions during the second half of fiscal 2027, but expects results to improve from the prior-year period as cost reductions and portfolio changes take effect. That outlook remains exposed to weak housing activity, soft big-ticket discretionary demand and further tariff developments.

HOFT closed at $12.57 on September 10, 2026 after trading between $12.40 and $12.79. Because part of the earnings improvement came from tariff recoveries that the company does not expect to recur materially, the durability of the turnaround will depend on sales, margins and operating discipline in coming quarters.