Hooker Furnishings Plunges 16.71% on Q3 Earnings

On April 22, 2025, Hooker Furnishings experienced a significant drop of 16.71% in pre-market trading, reflecting a notable decline in investor sentiment.

Stonegate Capital Partners recently updated their coverage on Hooker Furniture Corporation, highlighting the company's financial performance for the third quarter of fiscal year 2025. The company reported revenue of $104.5 million, operating income of ($2.7) million, and adjusted earnings per share of ($0.22). Despite facing macroeconomic challenges, including varying interest rates and elevated home prices, Hooker Furnishings managed to increase its gross profit margin by 30 basis points quarter-over-quarter to 23.3%. The company has also made strides in reducing fixed costs by 10%, or approximately $10.0 million, and has targeted an additional $10.0 million in cost savings through various initiatives, with full realization expected by fiscal year 2027.

Despite the challenging retail environment, Hooker Furnishings has shown resilience by focusing on controllable factors to position itself for future growth. The company's efforts to reduce debt levels from $76.3 million to $70.3 million over fiscal year 2025 demonstrate its commitment to financial stability and long-term success.