Hooker returns to profit with help from tariff recoveries

Hooker Furnishings ($HOFT) reported second-quarter operating income of $1.3 million and net income of $1.7 million, returning to profitability despite an 8.7% decline in sales. Order backlog increased 6.2% from a year earlier. The company ended the quarter with $18.7 million in cash and no outstanding term debt.

Tariff recoveries were an important contributor. Hooker received $7.9 million, including approximately $4.3 million recognized as a reduction in continuing-operations cost of sales; other portions affected interest income, customer credits, discontinued operations and inventory values. The entire recovery was therefore not booked as current operating profit. Management continued to describe demand as weak, so the better earnings should not be interpreted as evidence of a broad furniture-market rebound.

Sources:

• Hooker Furnishings — quarterly release, GlobeNewswire via StockTitan