Hooker Furnishings (HOFT) 2027 財年第二季法說會：獲利能力與利潤率改善

重點摘要

• Hooker Furnishings 公布 2027 財年第二季合併淨利為 170 萬美元，年增 490 萬美元，連續第三個季度實現獲利。
• 由於所有營運部門的營收均下滑，淨銷售額減少 600 萬美元，降幅約為 9%。儘管銷售額下降，毛利率仍擴增 690 個基點至 31.8%。
• 受惠於關稅退款、先前的成本削減措施以及部門獲利能力提升，營業利益從去年同期的營業虧損 50 萬美元改善至 130 萬美元。
• Hooker 品牌部門毛利率大增 1,050 個基點至接近 40%，而美國家飾沙發部門則轉虧為盈，實現營業利益 83.3 萬美元（去年同期虧損 40.8 萬美元）。
• 合併在手訂單年增 6.2%，季增 8.4%。管理層預期 Margaritaville 系列的出貨量將在 2027 財年下半年至 2028 財年間持續成長。
• 管理層預期短期內房屋周轉率或高單價非必需品需求不會出現顯著改善，但相信較低的成本結構能夠支撐下半年業績較去年同期改善。

關鍵財務數據

公司表示，2027 財年第二季業績顯著受益於關稅退款。公司並指出，2026 財年包含預計 1,030 萬美元的累計稅前 IEEPA 關稅成本，高於本季所申報的退款金額。上一財年對持續營運業務實施的年化固定成本削減總計為 1,750 萬美元。

業務與營運表現

Hooker 品牌部門

由於出貨量減少、促銷折扣以及亞洲交貨前置時間延長導致關鍵 SKU 短缺，淨銷售額減少 160 萬美元（即 4.5%）。較高的平均售價抵銷了部分壓力，而進口軟墊家飾的庫存限制在季度末已大幅緩解。

毛利增加 320 萬美元，毛利率擴增 1,050 個基點至接近 40%。該部門實現營業利益 87 萬美元，而去年同期約為損益兩平。在手訂單年增近 35%。

美國家飾沙發部門

淨銷售額下降 150 萬美元（即 5.3%），主因高階皮革及客製化布藝沙發銷售下滑，抵銷了自有品牌與戶外家具雙位數成長的優勢。

毛利率增加 450 個基點至 23%，主要受惠於進口原料的關稅退款、原料成本降低以及製造費用分攤情況改善。營業利益達 83.3 萬美元，去年同期則為虧損 40.8 萬美元。在手訂單成長近 5%，主因自有品牌訂單增加。

所有其他業務及停業單位

「所有其他」業務淨銷售額減少 280 萬美元（約 66%），主因飯店專案驗收時程影響。該業務第二季出現營業虧損，但 2027 財年前六個月仍維持獲利。

停業單位產生 58.7 萬美元的稅前利潤。其中包括約 160 萬美元的關稅退款，但部分被約 60 萬美元的客戶折讓與 50 萬美元額外剝離相關結算費用所抵銷。

流動性與資本配置

在上半年，Hooker Furnishings 償還了 360 萬美元的信貸額度，發放 250 萬美元現金股利，買回 130 萬美元普通股，並支付了 110 萬美元資本支出。

公司以平均每股 13.68 美元的價格買回 92,357 股股票。季度末，其 500 萬美元的股份買回授權額度中仍剩餘約 370 萬美元。

管理層前景展望

管理層表示，消費者支出依然謹慎選擇，而房屋周轉率及高單價非必需品的需求維持疲軟。公司預期近期市場狀況不會出現實質改善。

然而，管理層預期，即使當前市場狀況持續，先前的成本控制與產品組合調整措施仍將支撐 2027 財年下半年業績較去年同期改善。促銷活動在第二財季對銷售組合及毛利率造成壓力後，預計將在下半年回歸正常。

Margaritaville 系列已獲得約 100 家店中店展示館及 10 家獨立零售門市的採購承諾。出貨已於第二財季開始，管理層預計出貨量將在 2027 財年下半年至 2028 財年期間持續成長。

風險與觀察重點

• 房市交易低迷、消費者信心不足以及家具與家飾需求疲軟，持續對銷售構成壓力。
• 亞洲地區交貨前置時間延長且難以預測，導致本季出現關鍵 SKU 短缺，不過管理層表示這些限制在季度末已大幅緩解。
• 促銷折扣及電子商務銷售比重提高，對 Hooker 品牌部門的毛利率造成壓力。
• 關稅退款提振了當期業績，但管理層表示，這不足以完全彌補 2026 財年產生的關稅支出以及相關行政、融資、專業服務和供應鏈成本。
• 正如「所有其他」業務第二季銷售額大幅下滑所顯示，飯店與餐旅業務營收對專案時程安排仍相當敏感。

分析師問答重點

管理層表示，Hooker 品牌部門的 SKU 短缺是一大阻力，但 7 月的營運結果顯示公司已開始走出供應限制的陰霾。這增強了管理層對下半年的信心。

在美國家飾沙發部門方面，高層強調戶外家具及自有品牌業務持續表現強勁。管理層亦指出，Sunset West 當前運作順暢，不再受到先前倉庫搬遷及 ERP 系統轉型所帶來的干擾。

高層對高強度的促銷不會持續表達了高度信心，理由是 7 月的趨勢有所改善，且夏季通常存在季節性波動。管理層還表示，零售商對美國勞動節前後的意向反饋相當正面。

關於 Margaritaville 系列，管理層表示零售商的採購承諾代表公司獲得了過去未曾擁有的銷售空間，且不會排擠 Hooker 現有的市場地位。預計與展示館相關的支出不會對資本配置產生重大影響。

法說會完整逐字稿

完整財報電話會議逐字稿

管理層陳述

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.

分析師問答

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.