フッカー・ファニシングス（HOFT）2027年度第2四半期決算説明会：収益性とマージンが改善

主要なポイント

• Hooker Furnishingsは、2027年度第2四半期の連結純利益が170万ドルとなり、前年同期比で490万ドル改善し、3四半期連続の黒字を達成したと発表しました。
• 全事業セグメントで減収となったことから、売上高は前年同期比600万ドル（約9%）減少しました。減収にもかかわらず、売上総利益率は690ベーシスポイント拡大し31.8%となりました。
• 関税還付、これまでのコスト削減、セグメント収益性の強化に支えられ、営業損益は前年同期の50万ドルの営業赤字から130万ドルの営業黒字に改善しました。
• 「Hooker Branded」の売上総利益率は1,050ベーシスポイント上昇して40%近くに達し、「Domestic Upholstery」は前年同期の40万8,000ドルの営業赤字から83万3,000ドルの営業黒字に転換しました。
• 連結受注残高は前年同期比6.2%増、前四半期比8.4%増となりました。経営陣は、「Margaritaville」コレクションの出荷が2027年度後半から2028年度にかけて本格化すると見込んでいます。
• 経営陣は、住宅取引や高額な裁量的需要の短期的かつ大幅な改善は見込んでいないものの、低く抑えられたコスト基盤により、下半期の業績は前年同期比で改善できると考えています。

主要財務データ

同社によると、第2四半期の業績は関税還付の恩恵を大きく受けました。また、2026年度には推計1,030万ドルの税引前IEEPA関税コストが累計で計上されており、今四半期に報告された還付額を上回っていると注記しました。前年度に実施した固定費削減の効果は、継続事業全体で年換算1,750万ドルに達しています。

事業・営業業績

Hooker Branded

販売数量の減少、販促割引、アジアからのリードタイム長期化に伴う主要SKUの不足により、売上高は160万ドル（4.5%）減少しました。平均販売価格の上昇がこれらの下押し圧力を一部相殺したほか、輸入張り地家具の在庫制約は四半期末までに大幅に緩和しました。

売上総利益は320万ドル増加し、売上総利益率は1,050ベーシスポイント拡大して40%近くとなりました。同セグメントの営業損益は前年同期のほぼ均衡から87万ドルの営業黒字に転換しました。受注残高は前年同期比で約35%増加しました。

Domestic Upholstery

プライベートブランド（PB）およびアウトドア家具の2桁成長があったものの、高級レザーやカスタム生地の張り地家具の減収が上回り、売上高は150万ドル（5.3%）減少しました。

輸入資材にかかる関税還付、原材料コストの低下、固定費吸収率の改善により、売上総利益率は450ベーシスポイント上昇して23%となりました。営業損益は前年同期の40万8,000ドルの赤字から83万3,000ドルの黒字となりました。受注残高は主にPB受注の増加により約5%増加しました。

その他および非継続事業

「その他」セグメントの売上高は、主にホスピタリティ・プロジェクトの時期のずれにより280万ドル（約66%）減少しました。第2四半期は営業赤字を計上したものの、2027年度上半期通期では黒字を維持しました。

非継続事業は58万7,000ドルの税引前利益を計上しました。これには約160万ドルの関税還付が含まれますが、顧客向けクレジット約60万ドルおよび事業売却に関連する追加の和解費用50万ドルにより一部相殺されました。

流動性と資金配分

上半期中、Hooker Furnishingsは信用供与枠から360万ドルを返済し、250万ドルの現金配当を支払い、130万ドルの自社株買いを行い、110万ドルの設備投資を実施しました。

同社は平均価格13.68ドルで92,357株の自社株買いを実施しました。四半期末時点で、500万ドルの自社株買い枠のうち約370万ドルが残っています。

経営陣の見通し

経営陣は、消費者支出は選別的な状態が続いており、住宅取引や高額な裁量的商品の需要は依然として低調であると述べました。同社は市場環境が短期間で大幅に改善することは見込んでいません。

しかし経営陣は、現在の市場環境が続いたとしても、これまでに実施したコスト削減やポートフォリオ施策により、2027年度下半期の業績は前年同期比で改善すると見込んでいます。第2四半期の売上構成比や利益率の重荷となっていた販促活動は、下半期中に正常化する見通しです。

「Margaritaville」は、約100店舗のインストア・ギャラリーおよび10店舗の路面店での導入確約を得ています。出荷は第2四半期中に開始され、2027年度下半期から2028年度にかけて本格化すると経営陣は予想しています。

リスクと注目点

• 住宅市場の低迷、低い消費者信頼感、家具・インテリア用品に対する需要の伸び悩みにより、売上への圧力が続いています。
• アジアからの予測不能なリードタイム長期化により当四半期中に主要SKUの不足が生じましたが、経営陣によるとこれらの制約は四半期末までに大幅に解消されました。
• 販促割引およびEC売上構成比の上昇が、「Hooker Branded」の利益率を圧迫しました。
• 関税還付は足元の業績を押し上げましたが、2026年度に発生した関税支払いおよび関連する管理費用、資金調達費用、専門家費用、サプライチェーン費用を完全には補填できていないと経営陣は説明しています。
• 第2四半期における「その他」売上の急減が示すように、ホスピタリティ収益はプロジェクトの時期に引き続き影響されやすくなっています。

アナリストQ&Aの要点

経営陣は、「Hooker Branded」のSKU不足が大きな逆風となったものの、7月の業績は同社が供給制約を克服し始めたことを示していると述べました。これが下半期への自信につながっています。

「Domestic Upholstery」について、役員陣はアウトドア家具とPB事業の堅調さが持続していることを強調しました。また、「Sunset West」が以前経験した倉庫移転やERP移行による混乱なしに操業していることにも言及しました。

役員陣は、7月の改善傾向や夏季の例年の季節偏重を引き合いに出し、過度な販促活動が持続することはないと強い自信を示しました。また、レイバー・デー前後の小売業者からのフィードバックも概ね好意的であると述べました。

「Margaritaville」について、経営陣は小売業者のコミットメントが同社にとって以前は持っていなかった売り場スペースを意味しており、Hookerの既存の市場ポジションを代替するものではないと述べました。ギャラリー関連の支出が資金配分において重要になることは見込まれていません。

決算説明会全文

決算説明会の完全なトランスクリプト

経営陣による説明

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.

質疑応答

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.