XML 31 R21.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information
 6 Months Ended
Aug. 02, 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:

 

 

■

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 design 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:

 

   

Thirteen Weeks Ended

    

Twenty-Six Weeks Ended

  
   

August 2, 2020

            

August 4, 2019

            

August 2, 2020

            

August 4, 2019

          
           

% Net

            

% Net

            

% Net

            

% Net

  

Net Sales

          

Sales

            

Sales

            

Sales

            

Sales

  

   Hooker Branded

   $ 38,820       29.7 %   $ 39,405       25.9 %   $ 65,982       28.1 %   $ 79,004       27.5 %

   Home Meridian

     71,168       54.6 %     87,188       57.3 %     128,833       54.7 %     154,818       53.8 %

   Domestic Upholstery

     17,507       13.4 %     22,663       14.8 %     34,290       14.6 %     47,987       16.7 %

   All Other

     3,042       2.3 %     2,992       2.0 %     6,029       2.6 %     5,957       2.0 %

Consolidated

   $ 130,537       100.0 %   $ 152,248       100.0 %   $ 235,134       100.0 %   $ 287,766       100.0 %
                                                                 

Gross Profit

                                                                

   Hooker Branded

   $ 12,443       32.1 %   $ 11,820       30.0 %   $ 20,448       31.0 %   $ 24,376       30.9 %

   Home Meridian

     10,510       14.8 %     10,951       12.6 %     17,320       13.4 %     16,854       10.9 %

   Domestic Upholstery

     3,021       17.3 %     4,917       21.7 %     5,804       16.9 %     10,919       22.8 %

   All Other

     1,026       33.7 %     1,138       38.0 %     2,082       34.5 %     2,194       36.8 %

Consolidated

   $ 27,000       20.7 %   $ 28,826       18.9 %   $ 45,654       19.4 %   $ 54,343       18.9 %
                                                                 

Operating Income/(Loss)

                                                               

   Hooker Branded

   $ 6,090       15.7 %   $ 4,088       10.4 %   $ 7,423       11.2 %   $ 9,265       11.7 %

   Home Meridian

     1,083       1.5 %     (66 )     -0.1 %     (29,265 )     -22.7 %     (5,059 )     -3.3 %

   Domestic Upholstery

     (10 )     -0.1 %     1,260       5.6 %     (16,820 )     -49.1 %     3,552       7.4 %

   All Other

     349       11.5 %     486       16.3 %     736       12.2 %     915       15.4 %

Consolidated

   $ 7,512       5.8 %   $ 5,768       3.8 %   $ (37,926 )     -16.1 %   $ 8,673       3.0 %
                                                                 

Capital Expenditures

                                                                

   Hooker Branded

   $ 29             $ 386             $ 82             $ 511          

   Home Meridian

     20               57               108               173          

   Domestic Upholstery

     54               1,680               294               2,965          

   All Other

     -               10               -               10          

Consolidated

   $ 103             $ 2,133             $ 484             $ 3,659          
                                                                 

Depreciation & Amortization

                                                                

   Hooker Branded

   $ 445             $ 490             $ 894             $ 982          

   Home Meridian

     533               547               1,068               1,078          

   Domestic Upholstery

     700               715               1,397               1,404          

   All Other

     3               3               6               7          

Consolidated

   $ 1,681             $ 1,755             $ 3,365             $ 3,471          

 

   

As of August 2,

            

As of February 2,

          
   

2020

    

%Total

    

2020

    

%Total

  

Identifiable Assets

          

Assets

            

Assets

  

   Hooker Branded

   $ 189,816       57.6 %   $ 144,112       45.0 %

   Home Meridian

     93,216       28.3 %     138,313       43.2 %

   Domestic Upholstery

     45,485       13.7 %     36,085       11.3 %

   All Other

     1,242       0.4 %     1,769       0.5 %

Consolidated

   $ 329,759       100.0 %   $ 320,279       100.0 %

   Consolidated Goodwill and Intangibles

     27,919               73,429          

Total Consolidated Assets

   $ 357,678             $ 393,708          

 

Sales by product type are as follows:

 

   

Net Sales (in thousands)

  
   

Thirteen Weeks Ended

    

Twenty-Six Weeks Ended

  
   

August 2, 2020

    

%Total

    

August 4, 2019

    

%Total

    

August 2, 2020

    

%Total

    

August 4, 2019

    

%Total

  

Casegoods

   $ 79,181       61 %   $ 98,488       65 %   $ 142,373       61 %   $ 182,954       64 %

Upholstery

     51,356       39 %     53,760       35 %     92,761       39 %     104,812       36 %
    $ 130,537       100 %   $ 152,248       100 %   $ 235,134       100 %   $ 287,766       100 %