Although Hooker Furniture experienced declines in sales and earnings in Q4, the company’s profits increased by over 28 percent for the fiscal year ending January 28. As Furniture Today reports, sales for the 52-week fiscal year totaled $247 million, up 1.1 percent from $244.4 million the previous fiscal year.
“Our ability to improve profitability in all divisions despite a sluggish demand environment was the highlight of the year,” Paul Toms Jr., Hooker Furniture chairman and CEO, told the publication. “While challenged with a soft incoming order rate over the last six months, we were able to improve multiple facets of the business and generate strong cash flow.”
For this fiscal year, Hooker Furniture’s net income totaled $16.2 million ($1.49 per share), which is an increase from $12.6 million ($1.16 per share) the prior fiscal year.
Sales in the fourth quarter dropped 6.7 percent, to $60.6 million, while net income dropped 3.6 percent to $4.15 million (38 cents per share).
The fourth-quarter performance was impacted by a drop in case goods and upholstery sales and discounts across all of the company’s segments.
Hooker Furniture concluded the fiscal year with $53.9 million in cash and cash equivalents and zero long-term debt.
“We did a good job of managing inventories throughout the year despite the downturn in order rates during the second half,” Toms said. “Currently, our inventories are near target in terms of size and composition of best sellers.”
