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SEGMENT INFORMATION | 12 Months Ended
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Jan. 29, 2023
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | NOTE 18 – 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, HF Custom (formerly Sam Moore), Shenandoah Furniture and newly acquired Sunset West; 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.
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 HF Custom. Due to a change in the way management internally evaluates operating performance, beginning with fiscal 2023 first quarter HF Custom’s results now include sales of seating products formerly included in H Contract’s results. Fiscal 2022 and fiscal 2021 results discussed below have been recast to reflect this change. The Hooker Branded and Home Meridian segments are unchanged. As discussed in Note 4 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 changes in segments discussed above.
|  | Fifty-Two Weeks Ended |
|  | January 29, 2023 |  |  |  |  |  |  | January 30, 2022 |  |  |  |  |  |  | January 31, 2021 |  |  |  |  |
|  |  |  |  |  | % Net |  |  |  |  |  |  | % Net |  |  |  |  |  |  | % Net |
Net Sales |  |  |  |  |  | Sales |  |  |  |  |  |  | Sales |  |  |  |  |  |  | Sales |
Hooker Branded |  | $ | 199,602 |  |  |  | 34.2 | % |  | $ | 200,692 |  |  |  | 33.8 | % |  | $ | 162,442 |  |  |  | 26.4 | %
Home Meridian |  |  | 216,338 |  |  |  | 37.1 | % |  |  | 278,902 |  |  |  | 47.0 | % |  |  | 282,423 |  |  |  | 52.3 | %
Domestic Upholstery |  |  | 156,717 |  |  |  | 26.9 | % |  |  | 106,827 |  |  |  | 18.0 | % |  |  | 88,600 |  |  |  | 16.4 | %
All Other |  |  | 10,445 |  |  |  | 1.8 | % |  |  | 7,191 |  |  |  | 1.2 | % |  |  | 6,616 |  |  |  | 1.2 | %
Consolidated |  | $ | 583,102 |  |  |  | 100 | % |  | $ | 593,612 |  |  |  | 100 | % |  | $ | 540,081 |  |  |  | 96 | %
Gross Profit/(Loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hooker Branded |  | $ | 59,344 |  |  |  | 29.7 | % |  | $ | 63,146 |  |  |  | 31.5 | % |  | $ | 51,832 |  |  |  | 31.9 | %
Home Meridian |  |  | (2,620 | ) |  |  | -1.2 | % |  |  | 15,213 |  |  |  | 5.5 | % |  |  | 39,832 |  |  |  | 14.1 | %
Domestic Upholstery |  |  | 32,633 |  |  |  | 20.8 | % |  |  | 20,860 |  |  |  | 19.5 | % |  |  | 18,897 |  |  |  | 21.3 | %
All Other |  |  | 3,937 |  |  |  | 37.7 | % |  |  | 2,483 |  |  |  | 34.5 | % |  |  | 2,187 |  |  |  | 33.1 | %
Consolidated |  | $ | 93,294 |  |  |  | 16.0 | % |  | $ | 101,702 |  |  |  | 17.1 | % |  | $ | 112,748 |  |  |  | 20.9 | %
Operating (Loss)/Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hooker Branded |  | $ | 20,529 |  |  |  | 10.3 | % |  | $ | 30,667 |  |  |  | 15.3 | % |  | $ | 22,827 |  |  |  | 14.1 | %
Home Meridian |  |  | (37,181 | ) |  |  | -17.2 | % |  |  | (21,260 | ) |  |  | -7.6 | % |  |  | (26,071 | ) |  |  | -9.2 | %
Domestic Upholstery |  |  | 8,871 |  |  |  | 5.7 | % |  |  | 4,675 |  |  |  | 4.4 | % |  |  | (11,683 | ) |  |  | -13.2 | %
All Other |  |  | 1,735 |  |  |  | 16.6 | % |  |  | 761 |  |  |  | 10.6 | % |  |  | 563 |  |  |  | 8.5 | %
Consolidated |  | $ | (6,046 | ) |  |  | -1.0 | % |  | $ | 14,843 |  |  |  | 2.5 | % |  | $ | (14,364 | ) |  |  | -2.7 | %
Capital Expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hooker Branded |  | $ | 1,813 |  |  |  |  |  |  | $ | 558 |  |  |  |  |  |  | $ | 377 |  |  |  |  |
Home Meridian |  |  | 1,280 |  |  |  |  |  |  |  | 4,829 |  |  |  |  |  |  |  | 347 |  |  |  |  |
Domestic Upholstery |  |  | 1,106 |  |  |  |  |  |  |  | 1,295 |  |  |  |  |  |  |  | 475 |  |  |  |  |
All Other |  |  | - |  |  |  |  |  |  |  | 10 |  |  |  |  |  |  |  | 11 |  |  |  |  |
Consolidated |  | $ | 4,199 |  |  |  |  |  |  | $ | 6,692 |  |  |  |  |  |  | $ | 1,210 |  |  |  |  |
Depreciation & Amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hooker Branded |  | $ | 2,092 |  |  |  |  |  |  | $ | 2,530 |  |  |  |  |  |  | $ | 1,809 |  |  |  |  |
Home Meridian |  |  | 2,899 |  |  |  |  |  |  |  | 2,594 |  |  |  |  |  |  |  | 2,160 |  |  |  |  |
Domestic Upholstery |  |  | 3,827 |  |  |  |  |  |  |  | 2,678 |  |  |  |  |  |  |  | 2,797 |  |  |  |  |
All Other |  |  | 11 |  |  |  |  |  |  |  | 12 |  |  |  |  |  |  |  | 12 |  |  |  |  |
Consolidated |  | $ | 8,829 |  |  |  |  |  |  | $ | 7,814 |  |  |  |  |  |  | $ | 6,778 |  |  |  |  |
|  | As of January 29, |  |  |  |  |  |  | As of January 30, |  |  |  |  |  |
|  | 2023 |  |  | %Total |  |  | 2022 |  |  | %Total |  |
Assets |  |  |  |  |  | Assets |  |  |  |  |  |  | Assets |  |
Hooker Branded |  | $ | 174,523 |  |  |  | 52.1 | % |  | $ | 170,968 |  |  |  | 48.8 | % |
Home Meridian |  |  | 92,469 |  |  |  | 27.6 | % |  |  | 130,890 |  |  |  | 37.4 | % |
Domestic Upholstery |  |  | 66,435 |  |  |  | 19.8 | % |  |  | 47,232 |  |  |  | 13.5 | % |
All Other |  |  | 1,558 |  |  |  | 0.5 | % |  |  | 1,126 |  |  |  | 0.3 | % |
Consolidated Assets |  | $ | 334,985 |  |  |  | 100 | % |  | $ | 350,216 |  |  |  | 100 | % |
Consolidated Goodwill and Intangibles |  |  | 46,731 |  |  |  |  |  |  |  | 24,343 |  |  |  |  |  |
Total Consolidated Assets |  | $ | 381,716 |  |  |  |  |  |  | $ | 374,559 |  |  |  |  |  |
Sales by product type are as follows:
|  | Net Sales (in thousands) |
|  | Fiscal |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Casegoods |  | $ | 328,849 |  |  |  | 56 | % |  | $ | 348,548 |  |  |  | 59 | % |  | $ | 329,906 |  |  |  | 61 | %
Upholstery |  |  | 254,253 |  |  |  | 44 | % |  |  | 245,064 |  |  |  | 41 | % |  |  | 210,175 |  |  |  | 39 | %
|  | $ | 583,102 |  |  |  |  |  |  | $ | 593,612 |  |  |  |  |  |  | $ | 540,081 |  |  |  |  |
No significant long-lived assets were held outside the United States at either January 29, 2023 or January 30, 2022. International customers accounted for less than 2% of consolidated invoiced sales in fiscal 2023, 2022 and 2021. We define international sales as sales outside of the United States and Canada.

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