v3.25.1
Segment Information
 3 Months Ended
May 04, 2025
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
13.Segment Information

 

As a public entity, we are required to present disaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The management approach requires segment information to be reported based on how management internally evaluates the operating performance of the company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting as outlined in ASC 280 Segments (“ASC 280”), which are to allow the users of our financial statements to:

 

■better understand our performance;

 

■better assess our prospects for future net cash flows; and

 

■make more informed judgments about us as a whole.

 

We define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Company’s CODM is the Chief Executive Officer. The CODM regularly reviews net sales, gross profit, and operating income by segment as the primary measures of segment performance. The CODM reviews net sales as a primary indicator of operational performance, assessing how much revenue is brought in from core business activities, after returns, allowances, and discounts, which reflects demand and execution of each segment’s strategy. Gross profit is reviewed by the CODM as a diagnostic metric, particularly useful in evaluating margin trends. Operating income is the key profitability metric used to assess performance across segments and make decisions related to resource allocation, including capital expenditures, headcount, and other investment initiatives. These metrics are considered in budgeting, forecasting, and operational planning decisions.

 

For financial reporting purposes, we are organized into three reportable segments and “All Other”, which includes the remainder of our businesses:

 

■Hooker Branded, consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery businesses;

 

■Home Meridian, is a stand-alone, mostly autonomous business that serves a different type or class of customer than do our other operating segments and at much lower margins;

 

■Domestic Upholstery, which includes the domestic upholstery manufacturing operations of Bradington-Young, HF Custom (formerly Sam Moore), Shenandoah Furniture and Sunset West; and

 

■All Other, consisting of intercompany eliminations and operating segments that are not individually reportable. Due to a change in the way management internally evaluates operating performance, beginning with the fiscal 2026 first quarter, Hooker Branded and Domestic Upholstery segments’ results now include all the sales of products formerly included in H Contract’s results. Fiscal 2025 results discussed below have been recast to reflect this change.

The following tables present segment information for the periods, and as of the dates, indicated.

 

    Thirteen Weeks Ended  
    May 4,
2025		           April 28,
2024		        
          % Net           % Net  
Net Sales         Sales           Sales  
Hooker Branded   $ 37,108       43.5 %   $ 36,808       39.3 %
Home Meridian     18,811       22.0 %     26,424       28.2 %
Domestic Upholstery     28,913       33.9 %     30,027       32.1 %
All Other     484       0.6 %     312       0.3 %
Consolidated   $ 85,316       100 %   $ 93,571       100 %
                                 
Gross Profit                                
Hooker Branded   $ 11,065       29.8 %   $ 11,457       31.1 %
Home Meridian     2,733       14.5 %     3,301       12.5 %
Domestic Upholstery     5,280       18.3 %     4,705       15.7 %
All Other     (76 )     -15.7 %     (242 )     -77.6 %
Consolidated   $ 19,002       22.3 %   $ 19,221       20.5 %
                                 
Selling and Administrative Expenses                                
Hooker Branded   $ 11,037       29.7 %   $ 11,277       30.6 %
Home Meridian     5,245       27.9 %     6,394       24.2 %
Domestic Upholstery     5,290       18.3 %     5,419       18.0 %
All Other     81       16.7 %     377       120.8 %
Consolidated   $ 21,653       25.4 %   $ 23,467       25.1 %
                                 
Intangible assets amortization                                
Home Meridian   $ 327       1.7 %   $ 330       1.2 %
Domestic Upholstery     586       2.0 %     594       2.0 %
Consolidated   $ 913       1.1 %   $ 924       1.0 %
                                 
Operating (Loss) / Income                                
Hooker Branded   $ 27       0.1 %   $ 179       0.5 %
Home Meridian     (2,840 )     -15.1 %     (3,423 )     -13.0 %
Domestic Upholstery     (595 )     -2.1 %     (1,308 )     -4.4 %
All Other     (156 )     -32.2 %     (618 )     -198.1 %
Consolidated   $ (3,564 )     -4.2 %   $ (5,170 )     -5.5 %
                                 
Other Income, net                                
Hooker Branded   $ 81       0.2 %   $ 386       1.0 %
Home Meridian     14       0.1 %     240       0.9 %
Domestic Upholstery     -       0.0 %     -       0.0 %
All Other     31       6.4 %     1       0.3 %
Consolidated   $ 126       0.1 %   $ 627       0.7 %
                                 
Interest expense - Corporate   $ 378       0.4 %   $ 364       0.4 %
                                 
Income taxes - Corporate   $ (764 )     -0.9 %   $ (816 )     -0.9 %
                                 
Net (loss) / income - Corporate   $ (3,052 )     -3.6 %   $ (4,091 )     -4.4 %
                                 
Restructuring Costs                                
Hooker Branded   $ 127             $ -          
Home Meridian     277               -          
Domestic Upholstery     113               -          
All Other     6               -          
Consolidated   $ 523             $ -          
                                 
Capital Expenditures                                
Hooker Branded   $ 675             $ 205          
Home Meridian     134               235          
Domestic Upholstery     42               392          
All Other     -               11          
Consolidated   $ 851             $ 843          
                                 
Depreciation & Amortization                                
Hooker Branded   $ 532             $ 681          
Home Meridian     582               625          
Domestic Upholstery     1,037               968          
All Other     52               9          
Consolidated   $ 2,203             $ 2,283          
    As of
May 4,		           As of
February 2,		        
    2025     %Total     2025     %Total  
Assets         Assets           Assets  
Hooker Branded   $ 162,672       61.6 %   $ 153,373       55.4 %
Home Meridian     42,174       16.0 %     62,338       22.5 %
Domestic Upholstery     56,664       21.5 %     58,746       21.2 %
All Other     1,947       0.9 %     2,344       0.8 %
Consolidated Assets   $ 263,457       100 %   $ 276,801       100 %
Consolidated Goodwill and Intangibles     36,228               37,141          
Total Consolidated Assets   $ 299,685             $ 313,942          

 

Sales by product type are as follows:

 

   Net Sales (in thousands) 
   Thirteen Weeks Ended 
   May 4,
2025		   %Total   April 28,
2024		   %Total 
Casegoods  $48,520    57%  $53,109    57%
Upholstery   36,796    43%   40,462    43%
   $85,316    100%  $93,571    100%