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SEGMENT INFORMATION
 12 Months Ended
Feb. 02, 2025
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, key operating expenses and operating income, as determined by the information regularly reviewed by the CODM. The Company’s CODM is the Chief Executive Officer.

 

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; and

 

■All Other, consisting of H Contract and BOBO. None of these operating segments were individually reportable; therefore, we combined them in “All Other” in accordance with ASC 280.

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.

 

   53 Weeks Ended       52 Weeks Ended       52 Weeks Ended     
   February 2, 2025       January 28, 2024       January 29, 2023     
       % Net       % Net       % Net 
Net Sales      Sales       Sales       Sales 
Hooker Branded  $146,470    36.9%  $156,590    36.1%  $205,935    35.3%
Home Meridian   130,816    32.9%   143,538    33.1%   216,338    37.1%
Domestic Upholstery   114,216    28.7%   126,827    29.3%   156,717    26.9%
All Other   5,963    1.5%   6,271    1.4%   4,112    0.7%
Consolidated  $397,465    100%  $433,226    100%  $583,102    100%
                               
Gross Profit/(Loss)                              
Hooker Branded  $45,187    30.9%  $58,387    37.3%  $60,871    29.6%
Home Meridian   25,386    19.4%   24,367    17.0%   (2,620)   -1.2%
Domestic Upholstery   18,289    16.0%   24,048    19.0%   32,633    20.8%
All Other   (214)   -3.6%   1,890    30.1%   2,410    58.6%
Consolidated  $88,648    22.3%  $108,692    25.1%  $93,294    16.0%
                               
Selling and Administrative Expenses                              
Hooker Branded  $46,149    31.5%  $40,829    26.1%  $38,840    18.9%
Home Meridian   29,593    22.6%   28,575    19.9%   33,215    15.4%
Domestic Upholstery   21,287    18.6%   20,582    16.2%   21,584    13.8%
All Other   3,186    53.4%   2,692    42.9%   2,176    52.9%
Consolidated  $100,215    25.2%  $92,678    21.4%  $95,815    16.4%
                               
Trade name impairment                              
Home Meridian  $2,831    2.2%  $-    0.0%  $13    0.0%
Consolidated  $2,831    0.7%  $-    0.0%  $13    0.0%
                               
Intangible assets amortization                              
Home Meridian  $1,311    1.0%  $1,322    0.9%  $1,334    0.6%
Domestic Upholstery   2,376    2.1%   2,334    1.8%   2,178    1.4%
Consolidated  $3,687    0.9%  $3,656    0.8%  $3,512    0.6%
                               
Operating (Loss) / Income                              
Hooker Branded  $(962)   -0.7%  $17,560    11.2%  $22,030    10.7%
Home Meridian   (8,349)   -6.4%   (5,530)   -3.9%   (37,181)   -17.2%
Domestic Upholstery   (5,374)   -4.7%   1,131    0.9%   8,871    5.7%
All Other   (3,400)   -57.0%   (803)   -12.8%   234    5.7%
Consolidated  $(18,085)   -4.6%  $12,358    2.9%  $(6,046)   -1.0%
                               
Other Income, net                              
Hooker Branded  $1,292    0.9%  $872    0.6%  $(131)   -0.1%
Home Meridian   170    0.1%   765    0.5%   387    0.2%
Domestic Upholstery   770    0.7%   2    0.0%   160    0.1%
All Other   701    11.8%   14    0.2%   -    0.0%
Consolidated  $2,933    0.7%  $1,653    0.4%  $416    0.1%
                               
Interest expense - Corporate  $1,274    0.3%  $1,573    0.4%  $519    0.1%
                               
Income taxes - Corporate  $(3,919)   -1.0%  $2,573    0.6%  $(1,837)   -0.3%
                               
Net (loss) / income - Corporate  $(12,507)   -3.1%  $9,865    2.3%  $(4,312)   -0.7%
                               
Restructuring costs                              
Hooker Branded  $1,406    1.0%  $-    0.0%  $-    0.0%
Home Meridian   851    0.7%  $-    0.0%  $-    0.0%
Domestic Upholstery   639    0.6%  $-    0.0%  $-    0.0%
All Other   2,011    33.7%  $-    0.0%  $-    0.0%
Consolidated  $4,907    1.2%  $-    0.0%  $-    0.0%
                               
Bad debt related to major customer bankruptcy                              
Home Meridian   3,084    2.4%  $-    0.0%  $-    0.0%
Consolidated  $3,084    0.8%  $-    0.0%  $-    0.0%
                               
Capital Expenditures                              
Hooker Branded  $1,438        $4,185        $1,813      
Home Meridian   280         1,679         1,280      
Domestic Upholstery   1,514         860         1,106      
All Other   11         91         -      
Consolidated  $3,243        $6,815        $4,199      
                               
Depreciation & Amortization                              
Hooker Branded  $2,254        $2,268        $2,092      
Home Meridian   2,590         2,689         2,886      
Domestic Upholstery   4,278         3,972         3,827      
All Other   107         27         11      
Consolidated  $9,229        $8,956        $8,816      
   As of February 2,       As of
January 28,		     
   2025   %Total   2024   %Total 
Assets      Assets       Assets 
Hooker Branded  $153,373    55.4%  $168,832    56.3%
Home Meridian   62,338    22.5%   58,799    19.6%
Domestic Upholstery   58,746    21.2%   67,230    22.4%
All Other   2,344    0.8%   5,067    1.7%
Consolidated Assets  $276,801    100%  $299,928    100%
Consolidated Goodwill and Intangibles   37,141         43,658      
Total Consolidated Assets  $313,942        $343,586      

 

Sales by product type are as follows:

 

   Net Sales (in thousands) 
   Fiscal 
   2025       2024       2023     
Casegoods  $239,669    60%  $248,627    57%  $328,849    56%
Upholstery   157,796    40%   184,599    43%   254,253    44%
   $397,465    100%  $433,226    100%  $583,102    100%

 

No significant long-lived assets were held outside the United States at either February 2, 2025 or January 28, 2024. International customers accounted for less than 2% of consolidated invoiced sales in fiscal 2025, 2024, and 2023. We define international sales as sales outside of the United States and Canada.