Hooker Furnishings 2026 Q2 Earnings Wider Losses as Net Income Deteriorates 68%

Hooker Furnishings reported disappointing fiscal 2026 Q2 results, with the company posting a wider net loss and declining revenue. The earnings miss expectations as it failed to meet profitability benchmarks, reflecting ongoing industry challenges and operational pressures. The firm, however, provided forward-looking guidance indicating cost reductions and restructuring initiatives aimed at restoring profitability in the coming quarters.

Revenue
Q2 total revenue declined 13.6% year-over-year to $82.15 million, driven by softness across multiple business lines. Hooker Branded generated $36.25 million, while Domestic Upholstery brought in $28.68 million. Home Meridian reported $16.93 million, and the All Other category contributed $290,000. Collectively, these segments reflect a broad-based revenue contraction, underscoring the challenges facing the furniture sector.

Earnings/Net Income
The company’s net loss widened to $3.28 million in 2026 Q2, a 68.0% increase from $1.95 million in the prior year. On a per-share basis, the loss expanded to $0.31 from $0.19, marking a 63.2% deterioration in earnings performance. The results highlight continued profitability struggles amid higher costs and market pressures.

Price Action
Following the earnings report, HOFT’s stock edged down 2.64% during the latest trading day and fell 5.31% for the week, though it managed a 7.93% gain month-to-date.

Post-Earnings Price Action Review
Despite the earnings shortfall, CEO Jeremy Hoff emphasized progress in key segments, noting that Hooker Branded achieved breakeven performance amid $655,000 in restructuring costs, and Domestic Upholstery reduced its operating loss by nearly 70%. The company remains focused on cost reductions, aiming to scale fixed costs by 25% by Q3 2026, and is positioning itself for future scalability. Hoff also highlighted the Margaritaville collection launch and the new Vietnam warehouse as strategic growth drivers, projecting resilience amid macroeconomic uncertainties.

CEO Commentary
Jeremy Hoff stated that by the end of Q3 2026, the company expects to have its new expense structure largely in place, supporting a path to profitability even at current revenue levels. He mentioned that HMI’s performance is expected to improve significantly by year-end, barring additional tariffs or disruptive events. Earl Armstrong added that the company anticipates achieving $25 million in annualized cost savings beginning in fiscal 2027, primarily driven by the ongoing cost-reduction initiatives.

Guidance
The company anticipates continued cost discipline and operational efficiency improvements, with a focus on restructuring and scaling efforts to support long-term profitability.

Additional News
On July 18, 2025, an attempt to access the latest stock news page for Hooker Furnishings was denied, indicating limited public disclosure at that time. No significant non-earnings related news, including mergers and acquisitions, C-level changes, or shareholder returns, was available within the specified timeframe. Investors remain focused on the company’s restructuring efforts and cost-saving initiatives as key drivers of potential value recovery.