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Segment Information
 3 Months Ended
May 01, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

14.       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.

 

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;
 

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

■

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

 

Changes to segment reporting for the fiscal 2023 first quarter

 

We regularly monitor our reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary.

 

Before the fiscal 2023 first quarter, H Contract’s results included sales of seating products sourced from Sam Moore. Due to a change in the way management internally evaluates operating performance, beginning with fiscal 2023 first quarter Sam Moore’s results now include sales of seating products formerly included in H Contract’s results. Fiscal 2022 results discussed below have been recast to reflect this change. The Hooker Branded and Home Meridian segments are unchanged.

 

As discussed in Note 3 above, we acquired substantially all the assets of Sunset West on the first day of the 2023 fiscal year. Based on our analysis and the requirements of ASC 280: Segment Reporting, Sunset West’s results are included in the Domestic Upholstery segment.

 

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

 

   

Thirteen Weeks Ended

  
   

May 1,

            

May 2,

          
   

2022

            

2021

          
           

% Net

            

% Net

  

Net Sales

          

Sales

            

Sales

  

Hooker Branded

   $ 42,230       28.7 %   $ 51,339       31.5 %

Home Meridian

     62,085       42.1 %     84,411       51.8 %

Domestic Upholstery

     41,220       28.0 %     25,420       15.7 %

All Other

     1,779       1.2 %     1,691       1.0 %

Consolidated

   $ 147,314       100 %   $ 162,861       100.0 %
                                 

Gross Profit

                                

Hooker Branded

   $ 13,240       31.4 %   $ 17,212       33.5 %

Home Meridian

     6,305       10.2 %     10,135       12.0 %

Domestic Upholstery

     9,354       22.7 %     5,638       22.2 %

All Other

     560       31.5 %     597       35.3 %

Consolidated

   $ 29,459       20.0 %   $ 33,582       20.6 %
                                 

Operating Income/(Loss)

                                

Hooker Branded

   $ 4,142       9.8 %   $ 9,442       18.4 %

Home Meridian

     (3,095 )     -5.0 %     866       1.0 %

Domestic Upholstery

     2,752       6.7 %     1,731       6.8 %

All Other

     124       7.0 %     204       12.1 %

Consolidated

   $ 3,923       2.7 %   $ 12,243       7.5 %
                                 

Capital Expenditures

                                

Hooker Branded

   $ 468             $ 83          

Home Meridian

     40               1,346          

Domestic Upholstery

     322               759          

All Other

     -               -          

Consolidated

   $ 830             $ 2,188          
                                 

Depreciation

  & Amortization

                                

Hooker Branded

   $ 684             $ 449          

Home Meridian

     662               501          

Domestic Upholstery

     938               761          

All Other

     3               3          

Consolidated

   $ 2,287             $ 1,714          

 

   

As of May 1,

            

As of January 30,

          
   

2022

    

%Total

    

2022

    

%Total

  

Identifiable Assets

          

Assets

            

Assets

  

Hooker Branded

   $ 129,403       38.3 %   $ 170,968       48.8 %

Home Meridian

     143,872       42.5 %     130,890       37.4 %

Domestic Upholstery

     62,306       18.7 %     47,232       13.5 %

All Other

     1,548       0.5 %     1,126       0.3 %

Consolidated

   $ 337,129       100 %   $ 350,216       100 %

Consolidated Goodwill and Intangibles

     49,942               24,343          

Total Consolidated Assets

   $ 387,071             $ 374,559          

 

Sales by product type are as follows:

 

   

Net Sales (in thousands)

  
   

Thirteen Weeks Ended

  
   

May 1, 2022

    

%Total

    

May 2, 2021

    

%Total

  

Casegoods

   $ 74,192       50 %   $ 97,959       60 %

Upholstery

     73,122       50 %     64,902       40 %
    $ 147,314       100 %   $ 162,861       100 %