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SEGMENT INFORMATION
 12 Months Ended
Jan. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

NOTE 16 – 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. (Fiscal 2020 results shown below have been recast based on the re-composition of our operating segments during the 2020 fourth quarter.) 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.

 

 

Fifty-Two Weeks Ended

  
 

January 30, 2022

        

January 31, 2021

        

February 2, 2020

        
       

% Net

        

% Net

        

% Net

  

Net Sales

      

Sales

        

Sales

        

Sales

  

   Hooker Branded

 $ 200,692     33.8 % $ 162,442     30.1 % $ 161,990     26.4 %

   Home Meridian

   278,902     47.0 %   282,423     52.3 %   340,630     55.8 %

   Domestic Upholstery

   102,283     17.2 %   83,678     15.5 %   95,670     15.7 %

   All Other

   11,735     2.0 %   11,538     2.1 %   12,534     2.1 %

Consolidated

 $ 593,612     100 % $ 540,081     100 % $ 610,824     100 %
                                     

Gross Profit

                                    

   Hooker Branded

 $ 63,146     31.5 % $ 51,832     31.9 % $ 51,462     31.8 %

   Home Meridian

   15,213     5.5 %   39,832     14.1 %   36,936     10.8 %

   Domestic Upholstery

   19,471     19.0 %   17,121     20.5 %   21,120     22.1 %

   All Other

   3,872     33.0 %   3,963     34.4 %   4,440     35.4 %

Consolidated

 $ 101,702     17.1 % $ 112,748     20.9 % $ 113,958     18.7 %
                                     

Operating Income/(Loss)

                                    

   Hooker Branded

 $ 30,667     15.3 % $ 22,827     14.1 % $ 21,512     13.3 %

   Home Meridian

   (21,260 )   -7.6 %   (26,071 )   -9.2 %   (7,169 )   -2.1 %

   Domestic Upholstery

   4,304     4.2 %   (12,418 )   -14.8 %   6,637     6.9 %

   All Other

   1,132     9.6 %   1,298     11.3 %   1,727     13.8 %

Consolidated

 $ 14,843     2.5 % $ (14,364 )   -2.7 % $ 22,707     3.7 %
                                     

Capital Expenditures

                                    

   Hooker Branded

 $ 558         $ 377         $ 690        

   Home Meridian

   4,829           347           496        

   Domestic Upholstery

   1,295           475           3,914        

   All Other

   10           11           29        

Consolidated

 $ 6,692         $ 1,210         $ 5,129        
                                     

Depreciation

   & Amortization

                                    

   Hooker Branded

 $ 2,530         $ 1,809         $ 1,930        

   Home Meridian

   2,594           2,160           2,218        

   Domestic Upholstery

   2,678           2,797           2,938        

   All Other

   12           12           14        

Consolidated

 $ 7,814         $ 6,778         $ 7,100        
                                     

 

   

As of January 30,

            

As of January 31,

                          
   

2022

    

%Total

    

2021

    

%Total

                  

Assets

          

Assets

            

Assets

                  

   Hooker Branded

   $ 170,968       48.8 %   $ 174,475       53.5 %       

   Home Meridian

     130,890       37.4 %     100,497       30.9 %         

   Domestic Upholstery

     47,232       13.5 %     49,370       15.2 %         

   All Other

     1,126       0.3 %     1,204       0.4 %         

Consolidated Assets

   $ 350,216       100 %   $ 325,546       100 %         

Consolidated Goodwill

and Intangibles

     24,343               26,727                   

Total Consolidated Assets

   $ 374,559             $ 352,273                   

 

Sales by product type are as follows:

 

   

Net Sales (in thousands)  

  
   

Fiscal  

  
   

2022

    

2021

    

2020

  
                                     

Casegoods

   $ 348,548   59 %   $ 329,906   61 %   $ 397,192   65 %

Upholstery

     245,064   41 %     210,175   39 %     213,632   35 %
    $ 593,612   100 %   $ 540,081   100 %   $ 610,824   100 %

 

No significant long-lived assets were held outside the United States at either January 30, 2022 or January 31, 2021. International customers accounted for 2.0% of consolidated invoiced sales in fiscal 2022 and 2021, and 1.6% in fiscal 2020. We define international sales as sales outside of the United States and Canada.