XML 32 R22.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Information
 9 Months Ended
Nov. 02, 2025
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

14. 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 two 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; 

 

■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. Subsequent to the third quarter of fiscal 2026, the Company entered into an Asset Purchase Agreement to sell the Pulaski Furniture (“PFC”) and Samuel Lawrence (“SLF”) casegoods brands, formerly part of the Home Meridian segment. As the PFC and SLF businesses have been classified as discontinued operations, the remaining business does not qualify as a reportable segment, therefore, the Home Meridian segment will be eliminated. The Samuel Lawrence Hospitality product line, along with the remaining Home Meridian businesses, will be reported within All Other.

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

 

    Thirteen Weeks Ended     Thirty-Nine Weeks Ended  
    November 2,
2025		           October 27,
2024		           November 2,
2025		           October 27,
2024		        
          % Net           % Net           % Net           % Net  
          Sales           Sales           Sales           Sales  
Net Sales                                                
Hooker Branded   $ 36,492       51.6 %   $ 36,107       43.7 %   $ 109,851       52.0 %   $ 108,700       46.6 %
Domestic Upholstery     30,197       42.7 %     29,327       35.5 %     87,787       41.6 %     87,910       37.7 %
All Other     4,041       5.7 %     17,236       20.8 %     13,519       6.4 %     36,518       15.7 %
Consolidated   $ 70,730       100 %   $ 82,670       100 %   $ 211,157       100 %   $ 233,128       100 %
                                                                 
Cost of Sales                                                                
Hooker Branded   $ 24,463       67.0 %   $ 25,289       70.0 %   $ 76,216       69.4 %   $ 75,716       69.7 %
Domestic Upholstery     24,187       80.1 %     23,579       80.4 %     71,192       81.1 %     72,812       82.8 %
All Other     3,992       98.8 %     13,338       77.4 %     11,013       81.5 %     28,919       79.2 %
Consolidated   $ 52,642       74.4 %   $ 62,206       75.2 %   $ 158,421       75.0 %   $ 177,447       76.1 %
                                                                 
Gross Profit                                                                
Hooker Branded   $ 12,030       33.0 %   $ 10,818       30.0 %   $ 33,636       30.6 %   $ 32,983       30.3 %
Domestic Upholstery     6,009       19.9 %     5,748       19.6 %     16,594       18.9 %     15,099       17.2 %
All Other     49       1.2 %     3,898       22.6 %     2,506       18.5 %     7,599       20.8 %
Consolidated   $ 18,088       25.6 %   $ 20,464       24.8 %   $ 52,736       25.0 %   $ 55,681       23.9 %
                                                                 
Selling and Administrative Expenses                                                                
Hooker Branded   $ 11,318       31.0 %   $ 12,308       34.1 %   $ 32,886       29.9 %   $ 34,623       31.9 %
Domestic Upholstery     5,172       17.1 %     5,435       18.5 %     15,631       17.8 %     16,191       18.4 %
All Other     1,714       42.4 %     6,357       36.9 %     4,150       30.7 %     11,594       31.7 %
Consolidated   $ 18,204       25.7 %   $ 24,100       29.2 %   $ 52,667       24.9 %   $ 62,408       26.8 %
                                                                 
Goodwill and Intangible assets impairment                                                                
Domestic Upholstery     15,018       49.7 %   $ -       0.0 %     15,018       17.1 %   $ -       0.0 %
All Other     558       13.8 %     781       4.5 %     558       4.1 %     781       2.1 %
Consolidated   $ 15,576       22.0 %   $ 781       0.9 %   $ 15,576       7.4 %   $ 781       0.3 %
                                                                 
Operating (Loss) / Income                                                                
Hooker Branded   $ 711       1.9 %   $ (1,490 )     -4.1 %   $ 748       0.7 %   $ (1,640 )     -1.5 %
Domestic Upholstery     (14,725 )     -48.8 %     (281 )     -1.0 %     (15,729 )     -17.9 %     (2,875 )     -3.3 %
All Other     (2,301 )     -56.9 %     (3,333 )     -19.3 %     (2,437 )     -18.0 %     (5,066 )     -13.9 %
Consolidated   $ (16,315 )     -23.1 %   $ (5,104 )     -6.2 %   $ (17,418 )     -8.2 %   $ (9,581 )     -4.1 %
                                                                 
Other Income, net                                                                
Hooker Branded   $ 12       0.0 %   $ 207       0.6 %   $ 107       0.1 %   $ 951       0.9 %
Domestic Upholstery     -       0.0 %     1       0.0 %     -       0.0 %     767       0.9 %
All Other     251       6.2 %     404       2.3 %     373       2.8 %     857       2.3 %
Consolidated   $ 263       0.4 %   $ 612       0.7 %   $ 480       0.2 %   $ 2,575       1.1 %
                                                                 
Interest expense - Corporate   $ 86       0.1 %   $ 319       0.4 %   $ 634       0.3 %   $ 886       0.4 %
                                                                 
Income taxes - Corporate   $ (3,604 )     -5.1 %   $ (1,230 )     -1.5 %   $ (3,924 )     -1.9 %   $ (2,017 )     -0.9 %
                                                                 
Net (loss) / income from continuing operations - Corporate   $ (12,534 )     -17.7 %   $ (3,581 )     -4.3 %   $ (13,648 )     -6.5 %   $ (5,875 )     -2.5 %
   Thirteen Weeks Ended   Thirty-Nine Weeks Ended 
   November 2, 2025   October 27, 2024   November 2, 2025   October 27, 2024 
Restructuring Costs                
Hooker Branded  $438   $997   $1,220   $997 
Domestic Upholstery   154    559    418    559 
All Other   5    1,325    50    1,325 
Consolidated  $597   $2,881   $1,688   $2,881 
                     
Capital Expenditures                    
Hooker Branded  $747   $587   $1,989   $1,032 
Domestic Upholstery   110    619    232    1,334 
All Other   112    -    293    11 
Consolidated  $969   $1,206   $2,514   $2,377 
                     
Depreciation & Amortization                    
Hooker Branded  $536   $562   $1,603   $1,676 
Domestic Upholstery   977    1,074    3,012    3,239 
All Other   231    244    747    859 
Consolidated  $1,744   $1,880   $5,362   $5,774 

 

We recorded $597,000 and $1.7 million in restructuring costs in the third quarter and nine-month period of fiscal 2026, respectively, primarily related to severance and warehouse consolidation initiatives.

 

Within discontinued operations, we recorded expenses of $2.6 million in the fiscal 2026 third quarter and $4.1 million year-to-date related to the exit of HMI’s Savannah warehouse, which primarily supported the discontinued PFC and SLF businesses, including fixed-asset write-offs, inventory liquidation, severance, and moving costs. We also recorded a $6.5 million loss from classification to held-for-sale in the fiscal 2026 third quarter.

 

As of November 2, 2025 and February 2, 2025, we had accrued restructuring charges of approximately $490,000 and $174,000, respectively. The balance as of November 2, 2025 is expected to be paid during the next 12 months. The restructuring costs were recorded under cost of sales and selling and administrative expenses in the statements of operations.

 

    As of
November 2,		           As of
February 2,		        
    2025     %Total     2025     %Total  
          Assets           Assets  
Assets                        
Hooker Branded   $ 147,746       65.3 %   $ 153,373       54.6 %
Domestic Upholstery     54,411       24.1 %     58,746       20.9 %
All Other     10,667       4.7 %     40,006       14.2 %
Assets Held for Sale, net     13,301       5.9 %     28,782       10.2 %
Consolidated Assets   $ 226,125       100 %   $ 280,907       100 %
Consolidated Goodwill                                
and Intangibles     14,112               33,035          
Total Consolidated Assets   $ 240,237             $ 313,942          

Sales by product type are as follows:

 

   Net Sales (in thousands) 
   Thirteen Weeks Ended   Thirty-Nine Weeks Ended 
   November 2, 2025   %Total   October 27, 2024   %Total   November 2, 2025   %Total   October 27, 2024   %Total 
Casegoods  $33,990    48%  $43,083    52%  $103,781    49%  $98,756    42%
Upholstery   36,740    52%   39,587    48%   107,376    51%   134,372    58%
   $70,730    100%  $82,670    100%  $211,157    100%  $233,128    100%