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SEGMENT INFORMATION
 12 Months Ended
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.