Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q3 FY26
Rhea-AI Summary
Hooker Furniture (NASDAQ: HOFT) reported Q3 FY26 results with revenue $70.7M, operating loss $16.3M, and adjusted EPS ($1.99), missing Stonegate/consensus estimates. Revenue declined 32.2% year-over-year following the sale of most of the HMI business segment, while Hooker Branded net sales rose 4.4% y/y and Domestic Upholstery rose 3.0% y/y. Consolidated gross profit margin improved to 25.6% after exiting lower-margin HMI operations. Profitability was pressured by one-time trade name impairment charges related to the HMI transaction. Management emphasized navigating housing-market weakness, high mortgage rates, and subdued consumer demand while working to return to profitability.
Positive
- Hooker Branded net sales +4.4% y/y
- Domestic Upholstery sales +3.0% y/y
- Consolidated gross margin 25.6% after HMI sale
Negative
- Revenue $70.7M, down 32.2% y/y
- Adjusted EPS ($1.99) vs est ($0.15)/($0.14)
- Operating loss ($16.3M) vs est ($2.2M)
- One-time trade name impairment charges related to HMI sale
News Market Reaction
On the day this news was published, HOFT gained 0.36%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
While HOFT was up 3.09% pre-news, key peers like NVFY, IRBT, PRPL, VIRC, and KEQU were all negative on the day, suggesting stock-specific strength rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 15 | Brand sale completion | Positive | -2.2% | Completed Pulaski and Samuel Lawrence sale and highlighted share repurchase focus. |
| Dec 11 | Q3 FY26 results | Negative | -3.3% | Q3 sales decline, operating loss, large non-cash impairments, dividend cut. |
| Dec 01 | Brand sale agreement | Positive | +4.8% | Definitive agreement to sell two HMI brands and transfer lease liabilities. |
| Sep 12 | Q2 coverage update | Negative | -3.3% | Q2 revenue miss, operating loss, significant HMI weakness offset by cost controls. |
| Sep 11 | Q2 FY26 results | Negative | -2.3% | Q2 net sales decline and net loss alongside cost-reduction and tariff management. |
News-driven moves have mostly aligned with sentiment; strategic divestiture/completion updates saw one notable divergence where shares weakened despite seemingly constructive developments.
Over the last few months, HOFT has focused on restructuring its Home Meridian (HMI) exposure and cutting fixed costs. Announcements on Dec 1 and Dec 15 detailed agreements and completion of the Pulaski and Samuel Lawrence brand sales, with lease liabilities transferred and a share repurchase program introduced. Q2 and Q3 FY26 results on Sep 11–12 and Dec 11 highlighted revenue declines, operating losses, and sizeable non-cash impairments, partly offset by gross margin resilience and cost-reduction targets. Today’s Stonegate update comments directly on these Q3 dynamics and the HMI divestiture.
Market Pulse Summary
This announcement reviews Q3 FY26 results and strategy post-HMI divestiture. It notes revenue of $70.7M, a 32.2% y/y decline tied to selling most of HMI, but also emphasizes resilience with 4.4% Hooker Branded and 3.0% Domestic Upholstery growth. Consolidated gross margin improved to 25.6%, while profitability was pressured by one-time impairment charges. Investors may track progress on returning to profitability amid housing weakness and consumer softness.
Key Terms
impairment charges financial
AI-generated analysis. Not financial advice.
Dallas, Texas--(Newsfile Corp. - December 22, 2025) - Hooker Furniture Corporation (NASDAQ: HOFT): Stonegate Capital Partners updates their coverage on Hooker Furniture Corporation (NASDAQ: HOFT). HOFT reported revenue, operating income, and adj EPS of
To view the full announcement, including downloadable images, bios, and more, click here.
Key Takeaways:
- Transformative sale of two HMI Brands
- Consolidated GPM grew to
25.6% - Impressive buzz around the upcoming Margaritaville launch
Click image above to view full announcement.
About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
Contacts:
Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com
Source: Stonegate, Inc.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278825
FAQ
What were Hooker Furniture (HOFT) Q3 FY26 revenue and EPS on December 22, 2025?
Why did HOFT revenue decline 32.2% year-over-year in Q3 FY26?
How did Hooker Branded and Domestic Upholstery perform in Q3 FY26 for HOFT?
What margin impact did the HMI sale have on HOFT in Q3 FY26?
Did HOFT report any one-time charges in Q3 FY26 and why?
What risks did Hooker management highlight on December 22, 2025 for HOFT investors?
