XML 41 R26.htm IDEA: XBRL DOCUMENT v3.20.1
SEGMENT INFORMATION
 12 Months Ended
Feb. 02, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

NOTE 18 – SEGMENT INFORMATION


As a public entity, we are required to present disaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The management approach requires segment information to be reported based on how management internally evaluates the operating performance of the company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting as outlined in ASC 280 Segments (“ASC 280”), which are to allow the users of our financial statements to:


 

■

better understand our performance;

 

■

better assess our prospects for future net cash flows; and

 

■

make more informed judgments about us as a whole.

We define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income, as determined by the information regularly reviewed by the CODM.


We continually monitor our reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. In the fourth quarter of fiscal 2020, we updated our reportable segments as follows: Domestic upholstery producers Bradington-Young, Sam Moore and Shenandoah Furniture were moved from All other and aggregated into a new reportable segment called “Domestic Upholstery.” All Other now consists of H Contract and Lifestyle Brands. Lifestyle Brands is a business in its start-up phase targeted at the interior designer channel. The Hooker Branded and Home Meridian segments were unchanged. Therefore, for financial reporting purposes, we are organized into three reportable segments and “All Other”, which includes the remainder of our businesses:


 

■

Hooker Branded, consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery businesses; 

 

■

Home Meridian, a business acquired at the beginning of fiscal 2017, is a stand-alone, mostly autonomous business that serves a different type or class of customer than do our other operating segments and at much lower margins;

 

■

Domestic Upholstery, which includes the domestic upholstery manufacturing operations of Bradington-Young, Sam Moore and Shenandoah Furniture; and

 

■

All Other, consisting of H Contract and Lifestyle Brands, a new business started in late fiscal 2019. Neither of these operating segments were individually reportable; therefore, we combined them in “All Other” in accordance with ASC 280.

The following table presents segment information for the periods, and as of the dates, indicated. Prior-year information has been recast to reflect the changes in segments discussed above.


   

Fifty-Two Weeks Ended

            

Fifty-Three Weeks Ended

            

Fifty-Two

Weeks Ended

          
   

February 2, 2020

            

February 3, 2019

            

January 28, 2018

          
           

% Net

            

% Net

            

% Net

  

Net Sales

          

Sales

            

Sales

            

Sales

  

   Hooker Branded

   $ 161,990       26.4 %   $ 178,710       26.2 %   $ 166,754       26.9 %

   Home Meridian

     340,630       55.8 %     387,825       56.7 %     365,472       58.9 %

   Domestic Upholstery

     95,670       15.7 %     106,580       15.6 %     78,392       12.6 %

   All Other

     12,534       2.1 %     10,386       1.5 %     10,014       1.6 %

Consolidated

   $ 610,824       100 %   $ 683,501       100 %   $ 620,632       100 %
                                                 

Gross Profit

                                                

   Hooker Branded

   $ 51,462       31.8 %   $ 58,122       32.5 %   $ 53,007       31.8 %

   Home Meridian

     36,936       10.8 %     62,850       16.2 %     62,325       17.1 %

   Domestic Upholstery

     21,120       22.1 %     22,503       21.1 %     16,228       20.7 %

   All Other

     4,440       35.4 %     3,512       33.8 %     3,257       32.5 %

Consolidated

   $ 113,958       18.7 %   $ 146,987       21.5 %   $ 134,817       21.7 %
                                                 

Operating Income

                                                

   Hooker Branded

   $ 21,512       13.3 %   $ 25,269       14.1 %   $ 22,139       13.3 %

   Home Meridian

     (7,169 )     -2.1 %     18,828       4.9 %     17,828       4.9 %

   Domestic Upholstery

     6,637       6.9 %     7,607       7.1 %     4,463       5.7 %

   All Other

     1,727       13.8 %     971       9.4 %     1,024       10.2 %

Consolidated

   $ 22,707       3.7 %   $ 52,675       7.7 %   $ 45,454       7.3 %
                                                 

Capital Expenditures

                                                

   Hooker Branded

   $ 690             $ 843             $ 1,372          

   Home Meridian

     496               534               1,098          

   Domestic Upholstery

     3,914               3,807               696          

   All Other

     29               30               -          

Consolidated

   $ 5,129             $ 5,214             $ 3,166          
                                                 

Depreciation

   & Amortization

                                                

   Hooker Branded

   $ 1,930             $ 1,979             $ 1,956          

   Home Meridian

     2,218               2,407               2,716          

   Domestic Upholstery

     2,938               3,049               1,968          

   All Other

     14               7               7          

Consolidated

   $ 7,100             $ 7,442             $ 6,647          
                                                 

   

As of

February 2,

            

As of

February 3,

                          
   

2020

    

%Total

    

2019

    

%Total

                  

Assets

          

Assets

            

Assets

                  

   Hooker Branded

   $ 144,112       45.0 %   $ 109,702       37.3 %                

   Home Meridian

     138,313       43.2 %     144,277       49.1 %                

   Domestic Upholstery

     36,085       11.3 %     38,467       13.1 %                

   All Other

     1,769       0.6 %     1,457       0.5 %                

Consolidated Assets

   $ 320,279       100 %   $ 293,903       100 %                

Consolidated Goodwill

and Intangibles

     73,429               75,813                          

Total Consolidated Assets

   $ 393,708             $ 369,716                          

Sales by product type are as follows:


   

Net Sales (in thousands)

   

Fiscal

   

2020

            

2019

            

2018

          
                                                 

Casegoods

   $ 397,192       65 %   $ 417,677       61 %   $ 404,808       65 %

Upholstery

     213,632       35 %     265,824       39 %     215,824       35 %
    $ 610,824             $ 683,501             $ 620,632          

No significant long-lived assets were held outside the United States at either February 2, 2020 or February 3, 2019. International customers accounted for 1.6% of consolidated invoiced sales in fiscal 2020, 1.2% fiscal 2019 and 2.5% of consolidated invoiced sales in fiscal 2018. We define international sales as sales outside of the United States and Canada.