Hooker Furniture Lowers 2nd-Quarter Sales Forecast, Cites Energy Prices

MARTINSVILLE, Va. (AP) —
Hooker Furniture Corp. said it expects lower fiscal second-quarter sales than it previously forecast, sending shares down in after-hours trading.

The company — which sells furniture — said it expects sales for the quarter ending May 31 to be flat to down 2 percent for the period. Previously, Hooker was expecting a revenue gain of 3 percent to 7 percent from the year-ago quarter’s sales of $88.7 million.

“A softening in business at retail has dampened our expectations for the current quarter,” said Paul B. Toms Jr., chairman and chief executive, in a statement. “We believe this decline has been precipitated by rising energy prices and a decrease in housing activity.”

He added that new products “should help spur an upturn in business heading into the fourth quarter.”

Shares slipped 99 cents, or 5 percent, to $18.01 in after-hours trading. The stock closed down 14 cents at $19 on the Nasdaq.