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Segment Information
 6 Months Ended
Aug. 03, 2025
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. The Company’s CODM is the Chief Executive Officer. The CODM regularly reviews net sales, gross profit, and operating income by segment as the primary measures of segment performance. The CODM reviews net sales as a primary indicator of operational performance, assessing how much revenue is brought in from core business activities, after returns, allowances, and discounts, which reflects demand and execution of each segment’s strategy. Gross profit, which is derived from net sales and cost of sales, is reviewed by the CODM as a diagnostic metric, particularly useful in evaluating margin trends. Operating income is the key profitability metric used to assess performance across segments and make decisions related to resource allocation, including capital expenditures, headcount, and other investment initiatives. Each of these metrics are considered in budgeting, forecasting, and operational planning decisions.

 

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, 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 intercompany eliminations and operating segments that are not individually reportable. Due to a change in the way management internally evaluates operating performance, beginning with the fiscal 2026 first quarter, Hooker Branded and Domestic Upholstery segments’ results now include all the sales of products formerly included in H Contract’s results. Fiscal 2025 results discussed below have been recast to reflect this change.

The following tables present segment information for the periods, and as of the dates, indicated.

 

   Thirteen Weeks Ended   Twenty-Six Weeks Ended 
   August 3,
2025		       July 28,
2024		       August 3,
2025		       July 28,
2024		     
      % Net      % Net      % Net      % Net 
Net Sales      Sales       Sales       Sales       Sales 
Hooker Branded  $36,250    44.1%  $35,785    37.6%  $73,359    43.8%  $72,593    38.5%
Home Meridian   16,932    20.6%   30,516    32.1%   35,742    21.3%   56,940    30.2%
Domestic Upholstery   28,677    34.9%   28,556    30.0%   57,590    34.4%   58,583    31.1%
All Other   290    0.4%   224    0.2%   774    0.5%   536    0.3%
Consolidated  $82,149    100%  $95,081    100%  $167,465    100%  $188,652    100%
                                         
Cost of Sales                                        
Hooker Branded  $25,709    70.9%  $25,077    70.1%  $51,754    70.5%  $50,428    69.5%
Home Meridian   15,878    93.8%   24,570    80.5%   31,955    89.4%   47,543    83.5%
Domestic Upholstery   23,372    81.5%   23,910    83.7%   47,005    81.6%   49,232    84.0%
All Other   353    121.7%   602    268.8%   913    118.0%   1,155    215.5%
Consolidated  $65,312    79.5%  $74,159    78.0%  $131,627    78.6%  $148,358    78.6%
                                         
Gross Profit                                        
Hooker Branded  $10,541    29.1%  $10,708    29.9%  $21,605    29.5%  $22,165    30.5%
Home Meridian   1,054    6.2%   5,946    19.5%   3,787    10.6%   9,397    16.5%
Domestic Upholstery   5,305    18.5%   4,646    16.3%   10,585    18.4%   9,351    16.0%
All Other   (63)   -21.7%   (378)   -168.8%   (139)   -18.0%   (619)   -115.5%
Consolidated  $16,837    20.5%  $20,922    22.0%  $35,838    21.4%  $40,294    21.4%
                                         
Selling and Administrative Expenses                                        
Hooker Branded  $10,532    29.1%  $11,037    30.8%  $21,569    29.4%  $22,316    30.7%
Home Meridian   4,641    27.4%   6,511    21.3%   9,886    27.7%   12,905    22.7%
Domestic Upholstery   5,169    18.0%   5,338    18.7%   10,458    18.2%   10,756    18.4%
All Other   24    8.3%   261    116.5%   105    13.6%   637    118.8%
Consolidated  $20,366    24.8%  $23,147    24.3%  $42,018    25.1%  $46,614    24.7%
                                         
Intangible assets amortization                                        
Home Meridian  $328    1.9%  $330    1.1%  $655    1.8%  $661    1.2%
Domestic Upholstery   544    1.9%   594    2.1%   1,130    2.0%   1,188    2.0%
Consolidated  $872    1.1%  $924    1.0%  $1,785    1.1%  $1,849    1.0%
                                         
Operating (Loss) / Income                                        
Hooker Branded  $10    0.0%  $(329)   -0.9%  $37    0.1%  $(150)   -0.2%
Home Meridian   (3,916)   -23.1%   (896)   -2.9%   (6,754)   -18.9%   (4,169)   -7.3%
Domestic Upholstery   (408)   -1.4%   (1,285)   -4.5%   (1,004)   -1.7%   (2,593)   -4.4%
All Other   (87)   -30.0%   (639)   -285.3%   (244)   -31.5%   (1,257)   -234.5%
Consolidated  $(4,401)   -5.4%  $(3,149)   -3.3%  $(7,965)   -4.8%  $(8,169)   -4.3%
                                         
Other Income, net                                        
Hooker Branded  $13    0.0%  $358    1.0%  $94    0.1%  $744    1.0%
Home Meridian   47    0.3%   16    0.1%   61    0.2%   106    0.2%
Domestic Upholstery   -    0.0%   766    2.7%   -    0.0%   766    1.3%
All Other   32    11.0%   346    154.5%   63    8.1%   347    64.7%
Consolidated  $92    0.1%  $1,486    1.6%  $218    0.1%  $1,963    1.0%
                                         
Interest expense - Corporate  $171    0.2%  $203    0.2%  $549    0.3%  $567    0.3%
                                         
Income taxes - Corporate  $(1,203)   -1.5%  $85    0.1%  $(1,967)   -1.2%  $(731)   -0.4%
                                         
Net (loss) / income - Corporate  $(3,277)   -4.0%  $(1,951)   -2.1%  $(6,329)   -3.8%  $(6,042)   -3.2%

We recorded $2.0 million in consolidated restructuring costs in the second quarter of fiscal 2026. These costs included $1.3 million in severance and warehouse consolidation expenses and approximately $700,000 in inventory liquidation losses at the Georgia warehouse. For the first half of fiscal 2026, total restructuring costs were $2.5 million, consisting of $1.7 million in severance and warehouse consolidation expenses and $821,000 in inventory liquidation losses at the same facility. As of August 3, 2025 and February 2, 2025, we had accrued restructuring charges of approximately $300,000 and $174,000, respectively. The balance as of August 3, 2025 is expected to be paid during the next five months. The restructuring costs were recorded under cost of sales and selling and administrative expenses in the statements of operations.

 

   Thirteen Weeks Ended   Twenty-Six Weeks Ended 
   August 3,
2025		   July 28,
2024		   August 3,
2025		   July 28,
2024		 
Restructuring Costs                
Hooker Branded  $655   $-   $782   $- 
Home Meridian   1,161    -    1,437    - 
Domestic Upholstery   152    -    265    - 
All Other   38    -    45    - 
Consolidated  $2,006   $-   $2,529   $- 
                     
Capital Expenditures                    
Hooker Branded  $749   $240   $1,424   $445 
Home Meridian   16    16    149    251 
Domestic Upholstery   79    323    122    714 
All Other   -    -    -    11 
Consolidated  $844   $579   $1,695   $1,421 
                     
Depreciation & Amortization                    
Hooker Branded  $536   $562   $1,068   $1,114 
Home Meridian   586    659    1,169    1,284 
Domestic Upholstery   998    1,087    2,033    2,166 
All Other   52    27    105    53 
Consolidated  $2,172   $2,335   $4,375   $4,617 

 

   As of
August 3,		       As of
February 2,		     
   2025   %Total   2025   % Total 
Assets      Assets       Assets 
Hooker Branded  $144,062    59.4%  $153,373    55.4%
Home Meridian   43,209    17.8%   62,338    22.5%
Domestic Upholstery   54,845    22.6%   58,746    21.2%
All Other   571    0.2%   2,344    0.8%
Consolidated Assets  $242,687    100%  $276,801    100%
Consolidated Goodwill                    
and Intangibles   35,356         37,141      
Total Consolidated Assets  $278,043        $313,942      

 

Sales by product type are as follows:

 

   Net Sales (in thousands) 
   Thirteen Weeks Ended   Twenty-Six Weeks Ended 
   August 3,
2025		   %Total   July 28,
2024		   % Total   August 3,
2025		   %Total   July 28,
2024		   % Total 
Casegoods  $47,459    58%  $55,731    59%  $96,829    58%  $108,583    58%
Upholstery   34,690    42%   39,350    41%   70,636    42%   80,069    42%
   $82,149    100%  $95,081    100%  $167,465    100%  $188,652    100%