Stonegate Updates Coverage on Hooker Furniture Corporation (HOFT) Q4 FY25

Rhea-AI Summary

Hooker Furniture (NASDAQ: HOFT) reported Q4 FY25 results with revenue of $104.5M, representing a 7.9% year-over-year increase from $96.8M, slightly exceeding consensus estimates. Despite challenging macroeconomic conditions, the company achieved a consolidated gross profit margin of 23.3%, marking a 30 basis points increase quarter-over-quarter.

However, the company posted an operating loss of ($2.7M) and adjusted EPS of ($0.22), falling below analyst expectations. HOFT has successfully reduced fixed costs by 10% (approximately $10.0M) and targets an additional $10.0M in cost savings through the Savannah warehouse exit and other initiatives, with full realization expected by FY27. The company also reduced debt levels from $76.3M to $70.3M over FY25.

Positive

• Revenue increased 7.9% year-over-year to $104.5M
• Gross profit margin improved by 30 basis points to 23.3%
• Successfully achieved $10M fixed cost reduction target
• Reduced debt levels by $6M in FY25

Negative

• Operating loss of $2.7M vs expected operating income
• Negative adjusted EPS of ($0.22), missing analyst estimates
• Challenging macroeconomic and furniture retail environment

News Market Reaction

+3.62%

1 alert

+3.62% News Effect

On the day this news was published, HOFT gained 3.62%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Dallas, Texas--(Newsfile Corp. - April 21, 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 $104.5M, ($2.7)M, and ($0.22), respectively. This compares to our/consensus estimates of $101.6M/$101.2M, $3.5M/$2.6M, and $0.21/$0.16. It is noted that revenues were slightly above consensus estimates and posted a 7.9% y/y gain. The gain was primarily attributed to the increased operating days in 4Q25 compared to 4Q24. Despite the macro headwinds, HOFT reported consolidated GPM of 23.3%, an increase of 30bps q/q. The macroeconomic and furniture retail environment remains challenging, with varying interest rates, maintained housing shortage, and elevated home prices contributing to a prolonged downturn. Despite this, the company is focusing on controllable factors to position itself for future growth. As HOFT looks through the current market turbulence it has reached the goal of reducing fixed costs by 10%, or approximately $10.0M. Additionally, the Company has targeted an additional $10.0M in cost savings through the Savannah warehouse exit and additional initiatives. Full realization of these savings are expected by FY27.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Net sales for the quarter were $104.5M compared to $96.8M in the prior year quarter, an increase of 8%.
• HOFT reported consolidated GPM of 23.3%, an increase of 30bps q/q.
• Over FY25 the Company reduced debt levels from $76.3M to $70.3M.

Click image above to view full announcement.

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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/249166

FAQ

What were Hooker Furniture's (HOFT) Q4 FY25 revenue and earnings results?

HOFT reported Q4 FY25 revenue of $104.5M (up 7.9% YoY), operating loss of $2.7M, and adjusted EPS of ($0.22), with revenue exceeding consensus estimates but earnings falling below expectations.

How much cost reduction has HOFT achieved and what are their future savings targets?

HOFT has achieved its goal of reducing fixed costs by 10% ($10.0M) and targets an additional $10.0M in savings through the Savannah warehouse exit and other initiatives, with full realization expected by FY27.

What was Hooker Furniture's (HOFT) gross profit margin in Q4 FY25?

HOFT reported a consolidated gross profit margin of 23.3%, representing a 30 basis points increase quarter-over-quarter.

How much did HOFT reduce its debt in FY25?

HOFT reduced its debt levels from $76.3M to $70.3M during FY25.