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Segment Information
 3 Months Ended
May 03, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

13.      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:


 

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better understand our performance;

 

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better assess our prospects for future net cash flows; and

 

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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:


 

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

 

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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;

 

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

 

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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:


   

Thirteen Weeks Ended

  
   

May 3, 2020

            

May 5, 2019

          
           

% Net

            

% Net

  

Net Sales

          

Sales

            

Sales

  

   Hooker Branded

   $ 27,162       26.0 %   $ 39,600       29.2 %

   Home Meridian

     57,665       55.1 %     67,630       49.9 %

   Domestic Upholstery

     16,783       16.0 %     25,324       18.7 %

   All Other

     2,987       2.9 %     2,964       2.2 %

Consolidated

   $ 104,597       100.0 %   $ 135,518       100.0 %
                                 

Gross Profit

                                

   Hooker Branded

   $ 8,005       29.5 %   $ 12,556       31.7 %

   Home Meridian

     6,809       11.8 %     5,903       8.7 %

   Domestic Upholstery

     2,783       16.6 %     6,002       23.7 %

   All Other

     1,056       35.4 %     1,056       35.6 %

Consolidated

   $ 18,653       17.8 %   $ 25,517       18.8 %
                                 

Operating (loss)/Income

                               

   Hooker Branded

   $ 1,333       4.9 %   $ 5,177       13.1 %

   Home Meridian

     (30,348 )     -52.6 %     (4,993 )     -7.4 %

   Domestic Upholstery

     (16,810 )  

 

 -100.2 %     2,292       9.1 %

   All Other

     387       12.9 %     429       14.5 %

Consolidated

   $ (45,438 )     -43.4 %   $ 2,905       2.1 %
                                 

Capital Expenditures

                                

   Hooker Branded

   $ 53             $ 125          

   Home Meridian

     89               117          

   Domestic Upholstery

     238               1,285          

   All Other

     -               -          

Consolidated

   $ 380             $ 1,527          
                                 

Depreciation

                               

   & Amortization

                                

   Hooker Branded

   $ 455             $ 492          

   Home Meridian

     528               531          

   Domestic Upholstery

     699               690          

   All Other

     3               3          

Consolidated

   $ 1,685             $ 1,716          

   

As of May 3,

            

As of February 2,

          
   

2020

    

%Total

    

2020

    

%Total

  

Identifiable Assets

          

Assets

            

Assets

  

   Hooker Branded

   $ 153,298       49.3 %   $ 144,112       45.0 %

   Home Meridian

     111,905       36.0 %     138,313       43.2 %

   Domestic Upholstery

     43,840       14.1 %     36,085       11.3 %

   All Other

     1,924       0.6 %     1,769       0.5 %

Consolidated

   $ 310,967       100.0 %   $ 320,279       100.0 %

   Consolidated Goodwill and Intangibles

     28,515               73,429          

Total Consolidated Assets

   $ 339,482             $ 393,708          

Sales by product type are as follows:


   

Net Sales (in thousands)

  
   

Thirteen Weeks Ended

  
   

May 3, 2020

    

%Total

    

May 5, 2019

    

%Total

  

Casegoods

   $ 63,602       61 %   $ 84,464       62 %

Upholstery

     40,995       39 %     51,054       38 %
    $ 104,597       100 %   $ 135,518       100 %