Conferencia de resultados del segundo trimestre fiscal de 2027 de Hooker Furnishings (HOFT): mejoran la rentabilidad y los márgenes

Puntos clave

• Hooker Furnishings registró un beneficio neto consolidado de 1,7 millones de dólares en el segundo trimestre del ejercicio fiscal 2027, lo que supone una mejora de 4,9 millones de dólares respecto al mismo periodo del año anterior y marca su tercer trimestre consecutivo con ganancias.
• Las ventas netas disminuyeron en 6 millones de dólares, o aproximadamente un 9%, debido a la caída de los ingresos en todos los segmentos operativos. A pesar de las menores ventas, el margen bruto se amplió en 690 puntos básicos hasta el 31,8%.
• El resultado operativo mejoró hasta situarse en 1,3 millones de dólares, frente a una pérdida operativa de 0,5 millones de dólares en el mismo trimestre del año anterior, impulsado por la recuperación de aranceles, reducciones de costes previas y una mayor rentabilidad de los segmentos.
• El margen bruto de Hooker Branded aumentó 1.050 puntos básicos hasta situarse cerca del 40%, mientras que Domestic Upholstery pasó a registrar un beneficio operativo de 833.000 dólares, frente a la pérdida de 408.000 dólares anterior.
• La cartera de pedidos consolidada aumentó un 6,2% interanual y un 8,4% secuencialmente. La directiva prevé que los envíos de Margaritaville aumenten progresivamente durante la segunda mitad del ejercicio fiscal 2027 y hasta el ejercicio fiscal 2028.
• La directiva no prevé una mejora significativa a corto plazo en la rotación de viviendas ni en la demanda discrecional de productos de elevado valor, pero confía en que la menor base de costes ayude a mejorar los resultados de la segunda mitad del año en comparación con el ejercicio anterior.

Datos financieros clave

La empresa señaló que los resultados del segundo trimestre fiscal se beneficiaron de forma significativa de la recuperación de aranceles. También indicó que el ejercicio fiscal 2026 incluyó unos costes arancelarios acumulados antes de impuestos derivados de la IEEPA estimados en 10,3 millones de dólares, lo que supera las recuperaciones registradas en el trimestre actual. Las reducciones de costes fijos anualizados implementadas en el año anterior sumaron 17,5 millones de dólares en las operaciones continuadas.

Rendimiento comercial y operativo

Hooker Branded

Las ventas netas cayeron 1,6 millones de dólares, o un 4,5%, debido al menor volumen de unidades, los descuentos promocionales y la escasez de SKU clave provocada por los mayores plazos de entrega desde Asia. El aumento de los precios medios de venta compensó en parte estas presiones, mientras que las limitaciones de inventario de tapicería importada se habían reducido en gran medida al cierre del trimestre.

El beneficio bruto aumentó 3,2 millones de dólares y el margen bruto se amplió en 1.050 puntos básicos hasta rozar el 40%. El segmento generó un resultado operativo de 870.000 dólares, frente a un resultado cercano al umbral de rentabilidad un año antes. La cartera de pedidos aumentó casi un 35% interanual.

Domestic Upholstery

Las ventas netas cayeron 1,5 millones de dólares, o un 5,3%, ya que la disminución de las ventas de tapicería de cuero de alta gama y telas personalizadas superó el crecimiento de doble dígito en las marcas blancas y los muebles de exterior.

El margen bruto aumentó 450 puntos básicos hasta el 23%, impulsado por la recuperación de aranceles sobre materiales importados, menores costes de materiales y una mejor absorción de costes fijos. El resultado operativo alcanzó los 833.000 dólares, en comparación con una pérdida de 408.000 dólares en el mismo trimestre del año anterior. La cartera de pedidos creció casi un 5%, principalmente por el incremento de los pedidos de marcas blancas.

Otros segmentos y operaciones discontinuadas

Las ventas netas de Otros segmentos disminuyeron 2,8 millones de dólares, o aproximadamente un 66%, debido principalmente a los plazos de ejecución de los proyectos del sector hostelero. El negocio registró una pérdida operativa en el segundo trimestre, pero se mantuvo rentable durante los primeros seis meses del ejercicio fiscal 2027.

Las operaciones discontinuadas generaron 587.000 dólares de beneficio antes de impuestos. Esto incluyó aproximadamente 1,6 millones de dólares en recuperaciones de aranceles, compensados en parte por cerca de 0,6 millones de dólares en créditos a clientes y 0,5 millones de dólares en gastos adicionales por liquidaciones vinculadas a desinversiones.

Liquidez y asignación de capital

Durante el primer semestre, Hooker Furnishings amortizó 3,6 millones de dólares de su línea de crédito, pagó 2,5 millones de dólares en dividendos en efectivo, recompró 1,3 millones de dólares en acciones ordinarias y destinó 1,1 millones de dólares a gastos de capital.

La empresa recompró 92.357 acciones a un precio medio de 13,68 dólares. Al cierre del trimestre, quedaban aproximadamente 3,7 millones de dólares dentro de su autorización de recompra de 5 millones de dólares.

Perspectivas de la directiva

La directiva señaló que el gasto de los consumidores sigue siendo selectivo, mientras que la rotación de viviendas y la demanda de productos discrecionales de elevado precio se mantienen débiles. La empresa no prevé una mejora significativa a corto plazo en las condiciones del mercado.

Sin embargo, la directiva prevé que las medidas previas de costes y cartera contribuyan a mejorar los resultados en la segunda mitad del ejercicio fiscal 2027 respecto al mismo periodo del año anterior, incluso si se mantienen las condiciones actuales del mercado. Se espera que la actividad promocional se normalice durante la segunda mitad del año tras haber pesado sobre la mezcla de ventas y los márgenes del segundo trimestre fiscal.

Margaritaville contaba con compromisos para unas 100 galerías dentro de tiendas y 10 tiendas minoristas independientes. Los envíos comenzaron durante el segundo trimestre fiscal y la directiva prevé que aumenten progresivamente a lo largo de la segunda mitad del ejercicio fiscal 2027 y durante el ejercicio fiscal 2028.

Riesgos y aspectos a vigilar

• La débil actividad inmobiliaria, la baja confianza de los consumidores y la escasa demanda de muebles y artículos para el hogar continúan ejerciendo presión sobre las ventas.
• Los plazos de entrega más largos e impredecibles desde Asia provocaron escasez de SKU clave durante el trimestre, aunque la directiva indicó que esas limitaciones se habían solucionado en gran medida al cierre del trimestre.
• Los descuentos promocionales y una mayor proporción de ventas a través del comercio electrónico ejercieron presión sobre los márgenes de Hooker Branded.
• La recuperación de aranceles impulsó los resultados actuales, pero la directiva afirmó que no compensó por completo los pagos arancelarios y los costes administrativos, de financiación, profesionales y de la cadena de suministro derivados e incurridos en el ejercicio fiscal 2026.
• Los ingresos del sector hostelero siguen siendo sensibles a los plazos de los proyectos, como demuestra la acusada caída del segundo trimestre en las ventas de Otros segmentos.

Puntos destacados del turno de preguntas de analistas

La directiva afirmó que la escasez de SKU de Hooker Branded fue un obstáculo significativo, pero los resultados de julio indicaron que la empresa había comenzado a dejar atrás los problemas de suministro. Esto contribuyó a la confianza de la dirección de cara a la segunda mitad del año.

En cuanto a Domestic Upholstery, los ejecutivos destacaron la solidez continuada en los muebles de exterior y el negocio de marcas blancas. La directiva también señaló que Sunset West está operando sin las interrupciones por la reubicación del almacén y la conversión del sistema ERP experimentadas anteriormente.

Los ejecutivos expresaron una gran confianza en que las promociones elevadas no se mantendrán, citando la mejora de las tendencias en julio y el habitual desequilibrio estacional del verano. Además, la directiva calificó los comentarios de los minoristas de cara al Día del Trabajo como razonablemente positivos.

Respecto a Margaritaville, la directiva indicó que los compromisos de los minoristas representan un espacio de venta del que la empresa no disponía previamente y que no desplazan la posición de mercado existente de Hooker. No se espera que los gastos vinculados a las galerías sean significativos dentro de la asignación de capital.

Transcripción completa de la conferencia de resultados

Transcripción completa de la conferencia de resultados

Comentarios de la dirección

Operator

Thank you. Good day and thank you for standing by. Welcome to the Hooker Furnishings Corporation Second Quarter 2027 Earnings Webcast. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Earl Armstrong, Senior Vice President and Chief Financial Officer. Please go ahead.

Earl Armstrong

Thank you, Tanya, and good morning, everyone. Welcome to our quarterly conference call to review financial results for the fiscal 2027 second quarter, which began on May 4, 2026, and ended on August 2, 2026. Joining me today is Jeremy Hoff, our Chief Executive Officer. We appreciate your participation. During our call, we may make forward-looking statements, which are subject to risks and uncertainties. A discussion of factors that could cause our actual results to differ materially from management's expectations is contained in our press release and SEC filing announcing our fiscal 2027 second quarter results. Any forward-looking statement speaks only as of today, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after today's call.

Before we jump into results, we want to discuss tariffs. We've included a table in our earnings release showing the impacts of this quarter's tariff recoveries by operating segment and for the total company. Obviously, tariff recoveries significantly and favorably impacted our Q2 results. However, it's important to note that tariff costs significantly and adversely affected our prior year results, too. Prior to the U.S. Supreme Court's February 2026 decision invalidating IEEPA tariffs, we incurred an estimated $10.3 million of cumulative pre-tax costs related to tariffs in our fiscal year 2026 results, which significantly exceeded the tariff recoveries we are reporting today.

In fiscal '26, we reported a net loss of nearly $27 million. Following the imposition of IEEPA tariffs beginning in April '25, we elected to honor pricing on existing customer backlog and for competitive and administrative reasons, did not immediately adjust pricing on certain other products. Our pricing reflects our total cost structure and the competitive and macroeconomic environment in which we operate, with tariffs being only one of many factors considered.

On to results. Despite continued weaknesses in the housing market, soft retail demand for furniture and home furnishings, and persistent macroeconomic challenges, we delivered a consolidated net income of $1.7 million, marking our third consecutive profitable quarter. Results benefited from tariff recoveries received during the quarter, the sustained impact of our prior cost reduction initiatives, and improved profitability in our reportable segments.

Consolidated net sales decreased $6 million, or about 9%, compared to the prior year period, reflecting lower sales across each of our operating segments. Despite the sales decline, gross profit increased $2.9 million and gross margin improved 690 basis points to 31.8%, while operating income improved to $1.3 million compared to an operating loss of $0.5 million in the prior year period. Now I'll turn the call over to Jeremy for his comments on fiscal 2027 second quarter results.

Jeremy Hoff

Thank you, Earl. Good morning, everyone. The significant costs we incurred due to the IEEPA tariffs significantly and adversely affected our prior year results, and we are grateful to have recovered some of those costs in our fiscal '27 second quarter. The substantial administrative burden these tariffs placed on our team over many months cannot be recovered. In addition to the tariffs paid, we incurred incremental costs associated with the IEEPA tariffs, including increased customs bond costs, legal and professional fees, financing and working capital costs, and other administrative and supply chain related expenses.

Although we do not believe that the tariff recoveries make us whole for the significant cost incurred by us in fiscal '26, I am grateful to the Hooker team for their persistence and extraordinary effort in navigating an unprecedented and highly complex environment and ultimately securing these recoveries for our shareholders. We are also deeply appreciative of the commitment and partnership of our suppliers and customers as we navigated this period of extraordinary uncertainty for our industry. We are encouraged to report $1.7 million in consolidated net income for the quarter, marking our third consecutive quarter of profitability and a $4.9 million improvement over the prior year's second quarter.

These results were achieved despite continued weakness in the housing activity, low consumer confidence, and the seasonally softer demand environment we typically experience in the first half of our fiscal year. The improvement reflects the benefit of tariff recoveries received during the quarter, as well as the sustained impact of the $17.5 million in annualized fixed cost reductions implemented across continuing operations in the prior year. These actions have helped position us to remain profitable despite continued pressure on sales. From a segment perspective, Hooker Branded and Domestic Upholstery both delivered improved profitability compared to the prior year quarter.

Hooker Branded benefited from tariff recoveries and higher selling prices, while Domestic Upholstery benefited from tariff recoveries, lower imported material costs, and improved overhead absorption. In addition to tariff recoveries, Hooker Branded profitability was impacted by shifts in channel and sales mix dynamics during the quarter. Seasonally softer summer shipments to brick-and-mortar retailers resulted in a greater mix of e-commerce sales along with targeted promotional activity designed to support consumer engagement.

The combination of channel mix and elevated promotional activity pressured margins during the quarter. We expect promotional activity to normalize during the second half of the fiscal year, much like we saw in July, the last month of our fiscal second quarter. It's important to note that our core fiscal July results, absent any tariff recoveries, showed significant improvement over prior year as we had mitigated many of the supply challenges referenced earlier. We believe that positive momentum will continue into the second half of the fiscal year. Now I want to turn the discussion back over to Earl, who will discuss highlights in each of our segments, along with our cash, debt, inventory, and capital allocation strategies.

Earl Armstrong

Thank you, Jeremy. Starting with Hooker Branded, net sales decreased $1.6 million, or 4.5%, in the second quarter, primarily due to lower unit volume, higher promotional discounts, and key SKU out-of-stocks due to significantly longer lead times out of Asia. These headwinds were partially offset by higher average selling prices. Inventory constraints in imported upholstery that began in the first quarter had largely eased by quarter end. Despite the decrease in sales, Hooker Branded gross profit increased $3.2 million and gross margin improved 1,050 basis points to nearly 40%. The improvement primarily reflected tariff recoveries and higher selling prices, partially offset by promotional discounting and higher warehousing and distribution costs. The segment generated $870,000 of operating income for the quarter, compared with approximately break-even results in the prior year period. The backlog increased nearly 35% compared to the prior year second quarter.

Turning now to Domestic Upholstery, net sales decreased $1.5 million, or 5.3%, in the second quarter as lower sales of upscale leather and custom fabric upholstery were partially offset by double digit growth in private label and outdoor furnishings. Gross profit increased $928,000 and gross margin improved 450 basis points to 23%, supported by tariff recoveries on imported materials, lower imported material costs, and improved overhead absorption. The segment generated operating income of $833,000 compared with an operating loss of $408,000 in the prior year quarter, reflecting the improved gross margin as well as the benefit of previously implemented cost reduction actions. The Domestic Upholstery's backlog increased nearly 5% compared to the prior year quarter, primarily reflecting higher private label orders.

In All Other, net sales decreased $2.8 million or about 66% in the second quarter, primarily due to project timing in its hospitality business, with approximately 80% of first half shipments occurring during the first quarter. Lower second quarter shipments resulted in an operating loss for the quarter. However, the business remained profitable for the first 6 months of fiscal 2027.

Turning to Disc Ops, although the divestiture was completed in the prior fiscal year, Disc Ops generated second quarter pre-tax income of $587,000, reflecting tariff recoveries, customer-related adjustments, and other post-divestiture activity. Results included approximately $1.6 million of tariff recoveries recognized as a reduction of cost of sales, partially offset by approximately $0.6 million of customer credits recorded as a reduction of revenue. Current period activity also included approximately $0.5 million of additional charges, arising from the net settlement of various divestiture-related balances with the buyer.

Turning now to cash, debt, and inventory. Cash and cash equivalents stood at $18.7 million at quarter end, an increase of $8.1 million from the end of the first quarter, and $17.5 million from the fiscal 2026 year end. Cash generated from operations during the first 6 months was $24 million. Cash was used to repay $3.6 million on our credit facility, distribute $2.5 million in cash dividends, repurchase $1.3 million of our common shares, and fund $1.1 million in CapEx. Inventory levels decreased by $5.3 million from $48.7 million at fiscal 2026 year end to $43.4 million at the end of the second quarter. We maintained our financial flexibility with $51.8 million in available borrowing capacity under our Amended and Restated Loan Agreement as of quarter end, net of standby letters of credit, and no outstanding balances on the facility. As of yesterday, we had approximately $21 million in cash on hand.

Finally, I'll discuss our capital allocation strategy. During the first 6 months of fiscal '27, we repurchased 92,357 shares of our common stock for approximately $1.3 million at an average price of $13.68 per share. At quarter end, approximately $3.7 million remained available for future purchases under our $5 million share repurchase authorization. As we position the company for sustainable growth, the share repurchase program and adjusted dividend continue to provide a balanced framework for returning capital to shareholders while preserving flexibility to invest in strategic priorities. We believe this approach supports both near-term returns and long-term shareholder value.

Now I'll turn the discussion back to Jeremy for his outlook.

Jeremy Hoff

Thank you, Earl. Looking to the second half of fiscal '27, consumer spending remains selective. Housing turnover and big-ticket discretionary demand remain weak, and we do not expect meaningful near-term improvement in market conditions. At the same time, the changes we have made to our cost structure and portfolio are delivering tangible benefits and should help position us to deliver improved results compared with the prior year period, even if current conditions persist. With the major cost reduction initiatives behind us, our focus is on disciplined execution across our core businesses.

Consolidated backlog increased 6.2% compared to prior year second quarter and 8.4% sequentially, led by Hooker Branded and Domestic Upholstery. We are also encouraged by the continued retail response to Margaritaville. We now have commitments for approximately 100 in-store galleries and 10 freestanding retail stores. Shipments began in the second quarter and are expected to build through the second half of fiscal '27 and into fiscal '28. We believe we are well positioned to capitalize on opportunities as demand recovers. This ends the formal part of our discussion, and at this time I will turn the call back over to our operator, Tanya, for questions.

Operator

[Operator Instructions] And our first question will be coming from the line of Anthony Lebiedzinski of Sidoti.

Preguntas y respuestas

Anthony Lebiedzinski

Certainly nice to see the improved profitability in the quarter. First, just wanted to ask as far as the impact of the key SKU out-of-stocks at Hooker Branded. How significant was this? I mean, it sounds like it's no longer an issue, but just wanted to see if you could comment further on that topic, please.

Jeremy Hoff

I can't comment further specifically, but it was definitely a headwind for us, and it had a lot to do with lead times overseas, which extended, kind of, unpredictably. So as I mentioned in the script, the July, we feel like we started to get through that once we reached July. And our results in that month of the quarter gave us pretty positive view of where we can be in the second half.

Anthony Lebiedzinski

Okay. And then as far as Domestic Upholstery, just curious, what's the mix of business nowadays between private label and outdoor products and custom upholstery? I mean, kind of, where is that business nowadays and how do you see that going forward?

Earl Armstrong

We tend to look at it at the segment level, Anthony. And I think that's basically all we can say at this point. I think we're seeing strength in outdoor furnishings, especially given the seasonality. And like we mentioned, private label too is doing well.

Jeremy Hoff

Yes, I'll mention too with outdoor, this year, we don't have a warehouse move from Savannah, for example, for Sunset West. We don't have -- earlier in the game they had an ERP conversion with D365. So they've got as clear of a path as they've had due to us not having those type of movements going on. So it's really good business for us, and the category is strong. So we're excited about the opportunity.

Anthony Lebiedzinski

That's good to hear. Okay. And then just curious, you mentioned that shipments of Margaritaville started late in the quarter. Just wondering if you could comment on the revenue from Margaritaville and how do we think about the second half of the year as it relates to Margaritaville?

Jeremy Hoff

We can't get specific on that, but I will tell you that a big part of it is going to be in the second half, which we're in now. And many of those galleries are opening throughout the country, so that's probably all I can say on that.

Anthony Lebiedzinski

Okay. And just to follow up on the galleries, as far as those are concerned, I know you talked about 100 of those being open, but as far as the cost to do those galleries is that being done by you guys or by the retailers and, like, just wondering about if you could comment on that and if you could share more details?

Jeremy Hoff

That won't be significant to our capital allocation.

Anthony Lebiedzinski

Okay, got you. Okay. And lastly for me, I mean, so we just had Labor Day, which is an important holiday for the home furnishings industry. I know it's only been a few days since the holiday, but can you share any comments as to what you've heard from your retail customers about Labor Day? Even small anecdotes would be helpful.

Jeremy Hoff

I think that, I mean, the feedback that we've received has been fairly positive. I've been in this, I think, 30 years, and I think every one of those 30 years, retailers, our partners, are always grateful to be to the end of summer and actually to a point where you can start the fall. So I think there's a lot of optimism for just getting into that fall selling season. And I think Labor Day was reasonably good.

Operator

And our next question will be coming from the line of Dave Storms of Stonegate.

David Storms

Just wanted to maybe start with your comments around promotions expected to come down in the second half here, in light of the challenging macro environment, how should we be thinking about maybe your confidence to bring down promotions despite the macro environment?

Jeremy Hoff

High confidence because we already -- we mentioned July. And you do that in the summer months. You just simply don't balance it enough with enough regular business. We're confident that that's not going to be a trend moving forward.

David Storms

Understood. So then looking into the second half here, should that follow pretty regular seasonality with maybe a little bit of Margarita input, or I guess maybe said a different way, how should we think about price and mix and volume discount in the second half?

Jeremy Hoff

I think you should think about it as where we would normalize more and we're pretty optimistic on the second half.

David Storms

Understood. And I got to imagine the strong backlog that you have gives you a healthy dose of confidence there. Is there anything more you can tell us about the backlog? Maybe the texture of the margins, how much that is Margaritaville, anything in that vein?

Jeremy Hoff

Can't get that specific, but we're encouraged by our backlog, and we feel good about the second half.

David Storms

Understood. Appreciate that. And then maybe just one more on Margaritaville. I know you've mentioned it a couple times here, very excited to see how that develops over the next 6 to 12 months, but how should we be thinking about the sales funnel evolving from last quarter to this quarter? Are you seeing more firm commitments? I know you started shipping a little bit. Just anything more there would be great.

Jeremy Hoff

Overall, with Margaritaville, we just continue to be really encouraged by the amount of support, participation that our partners are giving us. They're as excited about the brand as we are. And there's going to be a significant amount of -- if you think about 100 gallery commitments and 10 retail stores, that's real estate that we didn't have before. So we feel really good about our position in that, and our ability to gain some market share in a different way than Hooker. One thing that is encouraging for us is that that's not taking Hooker's position in the marketplace. So it's real. It has a chance to be really accretive to our business and give us a real chance of growth in those categories.

Operator

And I would now like to turn the call back to Jeremy for closing remarks.

Jeremy Hoff

Thank you. I would like to thank everyone on the call for their interest in Hooker Furnishings. We look forward to sharing our fiscal '27 third quarter results in December. Take care.

Operator

And this concludes today's conference call. Thank you for participating. You may now disconnect.