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Segment Information
 6 Months Ended
Jul. 31, 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;
 

■

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 fiscal 2023

 

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 on a prospective basis.

 

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

    

Twenty-Six Weeks Ended

  
   

July 31,

            

August 1,

            

July 31,

            

August 1,

          
   

2022

            

2021

            

2022

            

2021

          
           

% Net

            

% Net

            

% Net

            

% Net

  

Net Sales

          

Sales

            

Sales

            

Sales

            

Sales

  

   Hooker Branded

   $ 52,817       34.5 %   $ 49,929       30.7 %   $ 95,047       31.7 %   $ 101,268       31.1 %

   Home Meridian

     59,048       38.6 %     87,323       53.7 %     121,133       40.3 %     171,732       52.8 %

   Domestic Upholstery

     38,326       25.1 %     23,665       14.6 %     79,546       26.5 %     49,086       15.1 %

   All Other

     2,717       1.8 %     1,602       1.0 %     4,497       1.5 %     3,293       1.0 %

Consolidated

   $ 152,908       100 %   $ 162,519       100.0 %   $ 300,223       100.0 %   $ 325,379       100.0 %
                                                                 

Gross Profit

                                                                

   Hooker Branded

   $ 15,598       29.5 %   $ 17,060       34.2 %   $ 28,837       30.3 %   $ 34,273       33.8 %

   Home Meridian

     7,321       12.4 %     9,607       11.0 %     13,626       11.2 %     19,742       11.5 %

   Domestic Upholstery

     7,128       18.6 %     4,517       19.1 %     16,483       20.7 %     10,154       20.7 %

   All Other

     1,008       37.1 %     533       33.3 %     1,568       34.9 %     1,130       34.3 %

Consolidated

   $ 31,055       20.3 %   $ 31,717       19.5 %   $ 60,514       20.2 %   $ 65,299       20.1 %
                                                                 

Operating Income/(Loss)

                                                                

   Hooker Branded

   $ 6,072       11.5 %   $ 8,929       17.9 %   $ 10,214       10.7 %   $ 18,371       18.1 %

   Home Meridian

     (991 )     -1.7 %     43       0.0 %     (4,085 )     -3.4 %     908       0.5 %

   Domestic Upholstery

     1,713       4.5 %     569       2.4 %     4,465       5.6 %     2,300       4.7 %

   All Other

     497       18.3 %     120       7.5 %     621       13.8 %     324       9.8 %

Consolidated

   $ 7,291       4.8 %   $ 9,661       5.9 %   $ 11,215       3.7 %   $ 21,903       6.7 %
                                                                 

Capital Expenditures

                                                          

   Hooker Branded

   $ 239             $ 38             $ 706             $ 121          

   Home Meridian

     592               1,109               632               2,455          

   Domestic Upholstery

     286               130               609               889          

   All Other

     -               -               -               -          

Consolidated

   $ 1,117             $ 1,277             $ 1,947             $ 3,465          
                                                                 

Depreciation

   & Amortization

                                                                

   Hooker Branded

   $ 437             $ 750             $ 1,122             $ 1,200          

   Home Meridian

     725               567               1,386               1,068          

   Domestic Upholstery

     957               549               1,896               1,309          

   All Other

     3               2               5               6          

Consolidated

   $ 2,122             $ 1,868             $ 4,409             $ 3,583          
                                                                 

 

   

As of July 31,

            

As of January 30,

                                          
   

2022

    

%Total

    

2022

    

%Total

                                  

Identifiable Assets

          

Assets

            

Assets

                                  

   Hooker Branded

   $ 151,444       41.7 %   $ 170,968       48.8 %               

   Home Meridian

     144,674       39.8 %     130,890       37.4 %                                

   Domestic Upholstery

     64,554       17.7 %     47,232       13.5 %                   

   All Other

     2,821       0.8 %     1,126       0.3 %                                

Consolidated

   $ 363,493       100 %   $ 350,216       100 %                   

   Consolidated Goodwill and Intangibles

     49,138               24,343                                          

Total Consolidated Assets

   $ 412,631             $ 374,559                             

 

Sales by product type are as follows:

 

   

Net Sales (in thousands)

  
   

Thirteen Weeks Ended

    

Twenty-Six Weeks Ended

  
   

July 31, 2022

    

 %Total

    

August 1, 2021

    

%Total

    

July 31, 2022

    

 %Total

    

August 1, 2021

    

%Total

  

Casegoods

   $ 92,869       61 %   $ 96,494       59 %   $ 167,313       56 %   $ 193,590       59 %

Upholstery

     60,039       39 %     66,025       41 %     132,910       44 %     131,789       41 %
    $ 152,908       100 %   $ 162,519       100 %   $ 300,223       100 %   $ 325,379       100 %