Hooker Furnishings 2026 Q3 Earnings Net Loss Widens 412.6% Amid Strategic Shifts

Hooker Furnishings (HOFT) reported Q3 2026 results that fell short of expectations, with GAAP EPS of -$1.18 missing by $1.04 and revenue of $70.73M missing by $14.77M. The company announced a dividend cut and the sale of two brands, reflecting ongoing industry challenges. CEO Jeremy Hoff outlined cost savings and a focus on core brands, though guidance for fiscal 2027 remains qualitative.

Revenue

The total revenue of Hooker Furnishings declined by 14.4% to $70.73 million in 2026 Q3, a sharp drop from $82.67 million in the same period the prior year. This contraction reflects broader macroeconomic headwinds, including elevated housing prices, inflation, and tariffs, which have weighed on consumer demand across the furniture sector.

Earnings/Net Income

Hooker’s losses deepened significantly, with a per-share loss widening to $1.99 from $0.39 year-over-year, representing a 410.3% increase in negative earnings. Net loss expanded to $-21.17 million in 2026 Q3, a 412.6% deterioration compared to the $-4.13 million loss in 2025 Q3. The EPS shortfall and net loss underscore the company’s struggle to navigate industry downturns and structural challenges. The deteriorating profitability highlights a concerning trend for investors.

Price Action

The stock price of Hooker Furnishings has edged up 1.99% during the latest trading day, has edged up 0.66% during the most recent full trading week, and has jumped 8.64% month-to-date.

Post-Earnings Price Action Review

The strategy of buying HOFT when earnings beat and holding for 30 days resulted in a -38.30% return, significantly underperforming the benchmark, which returned 138.45%. The strategy had a maximum drawdown of 0.00%, a Sharpe ratio of -0.18, and a volatility of 44.03%.

CEO Commentary

Jeremy Hoff, CEO, emphasized disciplined strategic actions to reshape Hooker into a higher-margin, design-driven company by exiting low-margin, tariff-sensitive categories and focusing on core brands. He highlighted $25 million in annualized cost savings from structural improvements, enabling profitability in sustained downturns, and underscored optimism about the Margaritaville collection’s potential to drive “meaningful incremental revenue” and profitability, calling it a “whole new business.” He acknowledged macroeconomic challenges—elevated housing prices, inflation, and tariffs—but expressed confidence in the company’s leaner cost structure and sharper portfolio to improve profitability. Hoff’s tone balanced cautious optimism, noting momentum in product-driven growth for Hooker Branded and Domestic Upholstery while acknowledging prolonged industry headwinds.

Guidance

Jeremy Hoff outlined expectations for fiscal 2027, including continued cost savings from completed initiatives and warehousing strategy shifts, though specific targets were deferred. He highlighted the Margaritaville collection’s anticipated shipment in late 2026, expecting it to drive “incremental revenue” without cannibalizing existing sales. The company aims to close the divestiture of Pulaski and Samuel Lawrence Furniture “later this month,” reducing tariff exposure and operational drag. Qualitative guidance emphasized a shift from cost reduction to organic growth via core brands, with Earl Armstrong noting $63.8 million in available borrowing capacity and a $5 million share repurchase program to balance capital returns and liquidity.

Additional News

Hooker Furnishings slashed its dividend by 50%, reducing the quarterly payout to 11.5 cents from 23 cents, as it navigates a prolonged industry downturn marked by declining sales and a $21 million net loss. The company also announced the sale of its Pulaski Furniture and Samuel Lawrence Furniture brands, part of a broader strategy to exit low-margin segments and reduce tariff exposure. Complementing these moves, Hooker approved a $5 million share repurchase program to balance capital returns with liquidity needs, signaling a renewed focus on shareholder value amid operational restructuring.