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Segment Information
9 Months Ended
Nov. 01, 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

   

Thirty-Nine Weeks Ended

 
   

November 1, 2020

           

November 3, 2019

           

November 1, 2020

           

November 3, 2019

         
           

% Net

           

% Net

           

% Net

           

% Net

 

Net Sales

         

Sales

           

Sales

           

Sales

           

Sales

 

   Hooker Branded

  $ 47,287       31.6 %   $ 43,703       27.6 %   $ 113,268       29.4 %   $ 122,707       27.5 %

   Home Meridian

    73,727       49.3 %     85,776       54.2 %     202,560       52.6 %     240,594       54.0 %

   Domestic Upholstery

    25,350       16.9 %     25,029       15.9 %     59,640       15.6 %     73,016       16.3 %

   All Other

    3,323       2.2 %     3,668       2.3 %     9,353       2.4 %     9,625       2.2 %

Consolidated

  $ 149,687       100.0 %   $ 158,176       100.0 %   $ 384,821       100.0 %   $ 445,942       100.0 %
                                                                 

Gross Profit

                                                               

   Hooker Branded

  $ 15,446       32.7 %   $ 13,947       31.9 %   $ 35,894       31.7 %   $ 38,323       31.2 %

   Home Meridian

    11,169       15.1 %     7,286       8.5 %     28,489       14.1 %     24,139       10.0 %

   Domestic Upholstery

    5,751       22.7 %     5,847       23.4 %     11,555       19.4 %     16,766       23.0 %

   All Other

    1,117       33.6 %     1,319       36.0 %     3,199       34.2 %     3,513       36.5 %

Consolidated

  $ 33,483       22.4 %   $ 28,399       18.0 %   $ 79,137       20.6 %   $ 82,741       18.6 %
                                                                 

Operating Income/(Loss)

                                                               

   Hooker Branded

  $ 7,686       16.3 %   $ 6,188       14.2 %   $ 15,108       13.3 %   $ 15,453       12.6 %

   Home Meridian

    2,510       3.4 %     (3,955 )     -4.6 %     (26,754 )     -13.2 %     (9,013 )     -3.7 %

   Domestic Upholstery

    2,421       9.6 %     2,278       9.1 %     (14,399 )     -24.1 %     5,830       8.0 %

   All Other

    420       12.6 %     482       13.2 %     1,156       12.4 %     1,397       14.5 %

Consolidated

  $ 13,037       8.7 %   $ 4,993       3.2 %   $ (24,889 )     -6.5 %   $ 13,667       3.1 %
                                                                 

Capital Expenditures

                                                               

   Hooker Branded

  $ 60             $ 89             $ 173             $ 600          

   Home Meridian

    27               126               137               300          

   Domestic Upholstery

    82               871               332               3,835          

   All Other

    -               -               -               10          

Consolidated

  $ 169             $ 1,086             $ 642             $ 4,745          
                                                                 

Depreciation

   & Amortization

                                                               

   Hooker Branded

  $ 444             $ 471             $ 1,338             $ 1,453          

   Home Meridian

    540               549               1,608               1,627          

   Domestic Upholstery

    700               765               2,097               2,170          

   All Other

    3               3               9               10          

Consolidated

  $ 1,687             $ 1,788             $ 5,052             $ 5,260          

 

   

As of November 1,

           

As of February 2,

         
   

2020

   

%Total

   

2020

   

%Total

 

Identifiable Assets

         

Assets

           

Assets

 

   Hooker Branded

  $ 201,158       58.8 %   $ 144,112       45.0 %

   Home Meridian

    91,547       26.8 %     138,313       43.2 %

   Domestic Upholstery

    47,775       14.0 %     36,085       11.3 %

   All Other

    1,454       0.4 %     1,769       0.5 %

Consolidated

  $ 341,934       100.0 %   $ 320,279       100.0 %

   Consolidated Goodwill and Intangibles

    27,323               73,429          

Total Consolidated Assets

  $ 369,257             $ 393,708          

 

Sales by product type are as follows:

 

   

Net Sales (in thousands)

 
   

Thirteen Weeks Ended

   

Thirty-Nine Weeks Ended

 
   

November 1, 2020

   

%Total

   

November 3, 2019

   

%Total

   

November 1, 2020

   

%Total

   

November 3, 2019

   

%Total

 

Casegoods

  $ 91,457       61 %   $ 105,018       66 %   $ 234,905       61 %   $ 288,470       65 %

Upholstery

    58,230       39 %     53,158       34 %     149,916       39 %     157,472       35 %
    $ 149,687       100 %   $ 158,176       100 %   $ 384,821       100 %   $ 445,942       100 %