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Segment Information
 9 Months Ended
Oct. 30, 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

    

Thirty-Nine Weeks Ended

  
   

October 30,

            

October 31,

            

October 30,

            

October 31,

          
   

2022

            

2021

            

2022

            

2021

          
           

% Net

            

% Net

            

% Net

            

% Net

  

Net Sales

          

Sales

            

Sales

            

Sales

            

Sales

  

Hooker Branded

   $ 54,696       36.1 %   $ 56,037       42.0 %   $ 149,743       33.1 %   $ 157,304       34.3 %

Home Meridian

     50,588       33.3 %     46,230       34.6 %     171,721       38.1 %     217,964       47.5 %

Domestic Upholstery

     43,436       28.7 %     29,302       22.0 %     122,982       27.2 %     78,387       17.1 %

All Other

     2,860       1.9 %     1,859       1.4 %     7,357       1.6 %     5,152       1.1 %

Consolidated

   $ 151,580       100 %   $ 133,428       100 %   $ 451,803       100 %   $ 458,807       100 %
                                                                 

Gross Profit/(Loss)

                                                                

Hooker Branded

   $ 15,510       28.4 %   $ 15,366       27.4 %   $ 44,348       29.6 %   $ 49,639       31.6 %

Home Meridian

     5,431       10.7 %     (1,807 )     -3.9 %     19,057       11.1 %     17,935       8.2 %

Domestic Upholstery

     9,918       22.8 %     5,782       19.7 %     26,400       21.5 %     15,936       20.3 %

All Other

     1,149       40.2 %     666       35.8 %     2,717       36.9 %     1,796       34.9 %

Consolidated

   $ 32,008       21.1 %   $ 20,007       15.0 %   $ 92,522       20.5 %   $ 85,306       18.6 %
                                                                 

Operating Income/(Loss)

                                                                

Hooker Branded

   $ 5,217       9.5 %   $ 6,669       11.9 %   $ 15,431       10.3 %   $ 25,040       15.9 %

Home Meridian

     (3,205 )     -6.3 %     (10,181 )     -22.0 %     (7,290 )     -4.2 %     (9,274 )     -4.3 %

Domestic Upholstery

     3,823       8.8 %     1,589       5.4 %     8,288       6.7 %     3,890       5.0 %

All Other

     583       20.4 %     195       10.5 %     1,204       16.4 %     519       10.1 %

Consolidated

   $ 6,418       4.2 %   $ (1,728 )     -1.3 %   $ 17,633       3.9 %   $ 20,175       4.4 %
                                                                 

Capital Expenditures (net of disposals)

                                                                

Hooker Branded

   $ 589             $ 306             $ 1,295             $ 427          

Home Meridian

     589               2,501               1,221               4,956          

Domestic Upholstery

     344               344               953               1,233          

All Other

     -               10               -               10          

Consolidated

   $ 1,522             $ 3,161             $ 3,469             $ 6,626          
                                                                 

Depreciation

& Amortization

                                                                

Hooker Branded

   $ 479             $ 645             $ 1,600             $ 1,844          

Home Meridian

     724               710               2,110               1,779          

Domestic Upholstery

     963               682               2,860               1,991          

All Other

     3               3               8               9          

Consolidated

   $ 2,169             $ 2,040             $ 6,578             $ 5,623          

 

   

As of October 30,

            

As of January 30,

                                          
   

2022

    

%Total

    

2022

    

%Total

                                  

Identifiable Assets

          

Assets

            

Assets

                                  

Hooker Branded

   $ 155,965       44.2 %   $ 170,968       48.8 %                                

Home Meridian

     129,984       36.9 %     130,890       37.4 %                                

Domestic Upholstery

     64,884       18.4 %     47,232       13.5 %                                

All Other

     1,797       0.5 %     1,126       0.3 %                                

Consolidated

   $ 352,630       100 %   $ 350,216       100 %                                

Consolidated Goodwill and Intangibles

     47,621               24,343                                          

Total Consolidated Assets

   $ 400,251             $ 374,559                                          

 

Sales by product type are as follows:

 

   

Net Sales (in thousands)

  
   

Thirteen Weeks Ended

    

Thirty-Nine Weeks Ended

  
   

October 30, 2022

    

%Total

    

October 31, 2021

    

%Total

    

October 30, 2022

    

%Total

    

October 31, 2021

    

%Total

  

Casegoods

   $ 86,717       57 %   $ 75,982       57 %   $ 253,748       56 %   $ 271,421       59 %

Upholstery

     64,863       43 %     57,446       43 %     198,055       44 %     187,386       41 %
    $ 151,580       100 %   $ 133,428       100 %   $ 451,803       100 %   $ 458,807       100 %