- Hooker Furniture (HOFT, Financial) reports Q4 FY25 revenue of $104.5M, a 7.9% increase year-over-year.
- Gross profit margin improved by 30 basis points to 23.3% from the previous quarter.
- HOFT achieved a fixed cost reduction of $10M, with further savings expected by FY27.
Hooker Furniture Corporation (HOFT) reported its fourth-quarter fiscal year 2025 results with a revenue of $104.5 million, showing a robust 7.9% increase compared to $96.8 million in the same quarter last year. This revenue slightly exceeded consensus estimates. Despite the challenging macroeconomic environment, the company managed to improve its consolidated gross profit margin to 23.3%, reflecting a 30 basis point rise from the prior quarter.
The company, however, faced a setback with an operating loss of $2.7 million and an adjusted EPS of negative $0.22, which fell short of analyst expectations. As part of its strategic cost management efforts, HOFT has successfully reduced its fixed costs by 10%, approximately $10 million, and plans to achieve an additional $10 million in savings by exiting the Savannah warehouse and implementing other cost-saving initiatives, with full realization anticipated by fiscal year 2027.
Moreover, Hooker Furniture reduced its debt levels from $76.3 million to $70.3 million throughout FY25. As the company navigates the current market turbulence, these efforts position it for future growth despite persistent macroeconomic challenges, such as fluctuating interest rates and a tight housing market.
