Overview

• US home furnishings maker's fiscal Q1 net sales fell 2.4% year-over-year

• Gross profit and operating income improved on higher margins and cost reductions

• Company repurchased 7,615 shares for about $96,000 in Q1 under new buyback program

Outlook

• Company expects cautious fiscal Q2 outlook due to ongoing macroeconomic pressures

• Company expects certain tariffs to be levied on imported goods later this fiscal year

Result Drivers

• COST REDUCTION ACTIONS - Co said improved profitability was primarily due to $17.5 mln reduction in fixed costs from prior year and progress toward a leaner, higher-margin operating model

• HIGHER GROSS MARGINS - Gross margin improved 440 basis points year-over-year, driven by price increases and operational efficiencies, especially in Hooker Branded segment

• SOFT DEMAND - Co said demand remained weak due to depressed housing activity and low consumer confidence

Company press release: ID:nGNX9b9ZD

Key Details

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