Hooker Furniture Reports Jump in Fiscal 2015 2nd-Quarter Earnings, Sales Fall 12 Percent
MARTINSVILLE, Va. (AP) — Furniture maker Hooker Furniture Corp. on Wednesday posted higher fiscal second-quarter earnings on improved profit margins and a decrease in selling, administrative and restructuring costs.
Due to a change in Hooker Furniture’s fiscal year, the company’s 2015 fiscal year began Jan. 29, 2014, and will end Feb. 2, 2015. The company is comparing its operating results for the thirteen weeks ended July 29, 2014, or fiscal 2015 second quarter, with the 2013 three-month third quarter that ended Aug. 31, 2013.
For the three months ended July 29, the company reported net income of $4.9 million, or 39 cents per share, compared with $1.2 million, or 10 cents per share, in the 2013 period.
Latest results include restructuring charges of $293,000, or 2 cents per share, associated with the March closing of its domestic wood manufacturing facility.
Revenue for the quarter fell 12 percent to $73.4 million from $83 million in the second quarter of fiscal 2014, on lower sales across all product lines, including wood, metal and leather upholstered furniture.
“While sales this quarter were negatively impacted by the industry-wide sales slump, much of the shortfall is the result of our exit from domestic wood manufacturing, which will have a smaller negative impact on both our top and bottom lines moving forward,” said Paul B. Toms Jr., chairman, president and chief executive, in a release.
Analysts polled by Thomson Financial, on average, estimated earnings per share of 35 cents on sales of $85.6 million.
The company reported an improvement in gross profit margin to 31 percent of net sales compared with 28 percent in the prior year quarter. This was a result a result of a higher proportion of imported wood and metal products sold and lower delivery cost of those products.
The company also reported a $3.5 million, or 19 percent, decline in selling and administrative costs, primarily as a result of reductions in warehousing and storage costs, and lower early retirement and employee stock ownership plan costs.
Hooker Furniture also reported a $2.4 million, or 88 percent, decrease in restructuring and asset impairment costs.
Shares fell $1.24, or 6.6 percent, to close at $17.43, but gained 14 cents in aftermarket trading to $17.57.
