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Segment Information
 9 Months Ended
Oct. 29, 2023
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

13.         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 Sunset West, a business acquired at the beginning of fiscal 2023; and
 

■

All Other, consisting of H Contract, Lifestyle Brands and BOBO Intriguing Objects. None 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 2024

 

During the second quarter of fiscal 2024, we acquired substantially all the assets of BOBO Intriguing Objects. Based on the requirements of ASC 280: Segment Reporting, BOBO’s results are included in All Other on a prospective basis.

 

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 2024 third quarter, H Contract’s results included sales of products sourced from the Hooker Branded segment and Sunset West. Due to a change in the way management internally evaluates operating performance, beginning with fiscal 2024 third quarter, Hooker Branded and Domestic Upholstery segments’ results now include sales of products formerly included in H Contract’s results. Fiscal 2024 year-to-date period and fiscal 2023 results discussed below have been recast to reflect this change. The Home Meridian segment is unchanged.

 

The following table presents segment information for the periods, and as of the dates, indicated.

 

   

Thirteen Weeks Ended

    

Thirty-Nine Weeks Ended

  
   

October 29,

            

October 30,

            

October 29,

            

October 30,

          
   

2023

            

2022

            

2023

            

2022

          
           

% Net

            

% Net

            

% Net

            

% Net

  

Net Sales

          

Sales

            

Sales

            

Sales

            

Sales

  

Hooker Branded

   $ 39,122       33.5 %   $ 56,632       37.4 %   $ 118,936       35.4 %   $ 154,133       34.1 %

Home Meridian

     43,692       37.4 %     50,588       33.4 %     114,524       34.0 %     171,721       38.0 %

Domestic Upholstery

     32,559       27.9 %     43,436       28.7 %     98,555       29.3 %     122,982       27.2 %

All Other

     1,458       1.2 %     924       0.5 %     4,437       1.3 %     2,967       0.7 %

Consolidated

   $ 116,831       100 %   $ 151,580       100 %   $ 336,452       100 %   $ 451,803       100 %
                                                                 

Gross Profit

                                                                

Hooker Branded

   $ 17,823       45.6 %   $ 16,156       28.5 %   $ 43,840       36.9 %   $ 45,357       29.4 %

Home Meridian

     8,803       20.1 %     5,431       10.7 %     18,726       16.4 %     19,057       11.1 %

Domestic Upholstery

     6,485       19.9 %     9,918       22.8 %     19,872       20.2 %     26,400       21.5 %

All Other

     599       41.1 %     503       54.4 %     2,519       56.8 %     1,708       57.6 %

Consolidated

   $ 33,710       28.9 %   $ 32,008       21.1 %   $ 84,957       25.3 %   $ 92,522       20.5 %
                                                                 

Operating Income/(Loss)

                                                                

Hooker Branded

   $ 7,287       18.6 %   $ 5,860       10.3 %   $ 13,298       11.2 %   $ 16,423       10.7 %

Home Meridian

     923       2.1 %     (3,205 )     -6.3 %     (4,532 )     -4.0 %     (7,290 )     -4.2 %

Domestic Upholstery

     688       2.1 %     3,823       8.8 %     2,739       2.8 %     8,288       6.7 %

All Other

     (128 )     -8.8 %     (60 )     -6.5 %     513       11.6 %     212       7.1 %

Consolidated

   $ 8,770       7.5 %   $ 6,418       4.2 %   $ 12,018       3.6 %   $ 17,633       3.9 %
                                                                 

Capital Expenditures (net of disposals)

                                                                

Hooker Branded

   $ 747             $ 589             $ 4,156             $ 1,295          

Home Meridian

     827               589               1,065               1,221          

Domestic Upholstery

     179               344               436               953          

All Other

     -               -               61               -          

Consolidated

   $ 1,753             $ 1,522             $ 5,718             $ 3,469          
                                                                 

Depreciation

& Amortization

                                                                

Hooker Branded

   $ 467             $ 479             $ 1,461             $ 1,600          

Home Meridian

     670               724               2,047               2,110          

Domestic Upholstery

     1,100               963               3,092               2,860          

All Other

     17               3               26               8          

Consolidated

   $ 2,254             $ 2,169             $ 6,626             $ 6,578          

 

   

As of October 29,

            

As of January 29,

                                          
   

2023

    

%Total

    

2023

    

%Total

                                  

Identifiable Assets

          

Assets

            

Assets

                                  

Hooker Branded

   $ 178,435       57.6 %   $ 174,523       52.1 %                 

Home Meridian

     63,310       20.4 %     92,469       27.6 %                                

Domestic Upholstery

     63,179       20.4 %     66,435       19.8 %  

All Other

     4,991       1.6 %     1,558       0.5 %                                

Consolidated

   $ 309,915       100 %   $ 334,985       100 %  

Consolidated Goodwill and Intangibles

     44,583               46,731                                          

Total Consolidated Assets

   $ 354,498             $ 381,716            

 

Sales by product type are as follows:

 

   

Net Sales (in thousands)

  
   

Thirteen Weeks Ended

    

Thirty-Nine Weeks Ended

  
   

October 29, 2023

    

%Total

    

October 30, 2022

    

%Total

    

October 29, 2023

    

%Total

    

October 30, 2022

    

%Total

  

Casegoods

   $ 71,787       61 %   $ 86,717       57 %   $ 191,825       57 %   $ 253,748       56 %

Upholstery

     45,044       39 %     64,863       43 %     144,627       43 %     198,055       44 %
    $ 116,831       100 %   $ 151,580       100 %   $ 336,452       100 %   $ 451,803       100 %