Hooker Furnishings Reports Q3 Revenue of $70.7M, Implements New Share Repurchase Plan

Reports Q3 revenue $70.7M vs. $82.7M last year. "Over the past two years, we've executed bold, disciplined actions to reposition Hooker Furnishings as a focused, higher-margin, design-led company by exiting low-margin, tariff-sensitive categories and doubling down on our strongest brands," said Jeremy Hoff, CEO "Amid one of the most persistent industry downturns, we've implemented a multi-phase cost-reduction program that achieved approximately $25-$26.5 million in annualized savings, putting us on a track toward profitability even as industry challenges continue. With our strengthened balance sheet and $63.8 million available borrowing capacity at quarter-end, we're enhancing shareholder returns through a new share repurchase authorization and a recalibrated dividend that preserves near-term flexibility while driving long-term shareholder value. This decision also considers direct feedback from shareholders on the dividend and our broader capital allocation approach. We delivered modest sales and margin improvements this quarter in Hooker Branded and Domestic Upholstery and are encouraged by commitments to our new Margaritaville licensed collection at the recent Fall High Point Market. Margaritaville represents a significant organic growth opportunity, supported by the immersive 14,000-square-foot showroom experience we debuted at Market and the 55 committed retail galleries across the U.S., which reflect retailer and dealer commitments to build dedicated Margaritaville spaces in their stores. The excitement for this launch and the initial purchase commitments we have received are beyond historic levels for any Hooker product line. We believe this will drive meaningful incremental revenue across the business, especially moving into the second half of next year when we are fully in market without cannibalizing existing placements. We believe the launch of Margaritaville, together with the recently announced sale of Pulaski and Samuel Lawrence Furniture enables us to realign our portfolio around our strongest brands and position Hooker Furnishings to consistently drive future revenue growth. Additionally, we have reduced our overall cost structure by 25%, or $25 million over the past 18 months and are positioned to provide continued savings in fiscal 2027. Together with the major shift in our warehousing strategy, we have also been able to combat tariff exposure and better serve customers by allowing collections from our various suppliers to be mixable in single containers and providing 6-10-week fulfillment to our customers' door. We are more confident that Hooker now has the potential to shift from a cost reduction story to an organic growth story, and we see a clear path to profitable growth by focusing on our core expertise of better-to-best home furnishings."