Hooker Furnishings Corp. reported third‑quarter 2026 revenue of $70.73 million, a 14.4% decline from the $82.15 million earned in the same period last year. The drop is largely attributable to delayed hospitality shipments and a weaker Home Meridian segment, which together reduced sales by more than $10 million compared with the prior year.
GAAP net loss for the quarter was $12.5 million, or $1.99 per share, driven by a $15.6 million intangible impairment charge and $597,000 in restructuring costs. After excluding the impairment, the operating loss narrowed to $2.4 million, but the company still recorded a $2.6 million expense related to the exit of its Georgia warehouse. The adjusted operating loss of $2.4 million reflects the impact of the company’s $25 million annualized cost‑reduction program, which is largely in place by Q3 FY26.
Segment results show that Hooker Branded net sales grew 1.1% to $28.3 million, while Domestic Upholstery sales increased 2.3% to $18.7 million, indicating resilience in core product lines. The Home Meridian segment, however, posted a $3.9 million operating loss, a reversal from the $1.5 million loss reported in the comparable period a year earlier, largely due to a 52.3% decline in sales driven by a major customer bankruptcy and tariff uncertainty.
The company’s cost‑cutting strategy continues to deliver benefits. The Georgia warehouse exit and the planned divestiture of Pulaski and Samuel Lawrence brands are expected to eliminate $4–5.7 million in annualized losses starting FY27, improving the consolidated margin profile. Management highlighted that the $25 million annualized savings plan is largely in place, with additional savings anticipated in the next fiscal year.
Hooker Furnishings maintained its quarterly dividend at $0.23 per share, citing that the dividend is funded by cash flow generated from the cost‑reduction initiatives and working‑capital conversions. The company also noted that a $0.115 dividend was declared for December 31 2025, indicating a potential adjustment to the payout policy as the company balances liquidity and shareholder returns.
Guidance for the remainder of fiscal 2026 remains unchanged, with management emphasizing continued focus on cost discipline and working‑capital improvements. The company reiterated its commitment to the $25 million annualized savings plan and the strategic divestiture of underperforming brands, signaling confidence in its ability to improve profitability despite the current revenue decline.
Investors reacted to the results with a focus on the revenue miss and GAAP loss, while noting the company’s margin improvement and progress on its cost‑cutting program. The dividend maintenance and the planned divestitures were viewed as positive steps toward a more sustainable financial profile.
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