v3.26.1
Segment Information
 3 Months Ended
May 03, 2026
Segment Reporting [Abstract]  
Segment Reporting [Text Block]

14. 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, which is derived from net sales and cost of sales, 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. Each of these metrics are considered in budgeting, forecasting, and operational planning decisions.

 

For financial reporting purposes, we are organized into two reportable segments and “All Other”, which includes the remainder of our businesses. The following tables present segment information for the periods, and as of the dates, indicated.

 

◾Hooker Branded, consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery businesses;
   
◾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 Samuel Lawrence Hospitality product line, intercompany eliminations and operating segments that are not individually reportable.

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

 

    Thirteen Weeks Ended  
    May 3,
2026		           May 4,
2025		        
Net Sales         % Net
Sales		           % Net
Sales		  
Hooker Branded   $ 35,329       50.9 %   $ 37,108       52.1 %
Domestic Upholstery     28,355       40.8 %     28,913       40.6 %
All Other     5,768       8.3 %     5,163       7.3 %
Consolidated   $ 69,452       100 %   $ 71,184       100 %
                                 
Cost of Sales                                
Hooker Branded   $ 21,412       60.6 %   $ 26,045       70.2 %
Domestic Upholstery     23,389       82.5 %     23,633       81.7 %
All Other     4,059       70.4 %     3,571       69.2 %
Consolidated   $ 48,860       70.4 %   $ 53,249       74.8 %
                                 
Gross Profit                                
Hooker Branded   $ 13,918       39.4 %   $ 11,065       29.8 %
Domestic Upholstery     4,965       17.5 %     5,280       18.3 %
All Other     1,709       29.6 %     1,590       30.8 %
Consolidated   $ 20,592       29.6 %   $ 17,935       25.2 %
                                 
Selling and Administrative Expenses                                
Hooker Branded   $ 12,711       36.0 %   $ 11,037       29.7 %
Domestic Upholstery     5,110       18.0 %     5,290       18.3 %
All Other     648       11.2 %     1,439       27.9 %
Consolidated   $ 18,469       26.6 %   $ 17,766       25.0 %
                                 
Intangible Asset Amortization                                
Domestic Upholstery     545       1.9 %   $ 586       2.0 %
All Other     -       0.0 %     81       1.6 %
Consolidated   $ 545       0.8 %   $ 667       0.9 %
                                 
Operating Income / (Loss)                                
Hooker Branded   $ 1,206       3.4 %   $ 27       0.1 %
Domestic Upholstery     (689 )     -2.4 %     (595 )     -2.1 %
All Other     1,061       18.4 %     70       1.4 %
Consolidated   $ 1,578       2.3 %   $ (498 )     -0.7 %
                                 
Other (Expense) / Income                                
Hooker Branded   $ (59 )     -0.2 %   $ 81       0.2 %
Domestic Upholstery     -       0.0 %     -       0.0 %
All Other     (11 )     -0.2 %     17       0.3 %
Consolidated   $ (70 )     -0.1 %   $ 98       0.1 %
                                 
Interest expense - Corporate   $ 121       0.2 %   $ 378       0.5 %
                                 
Income tax expense / (benefit) - Corporate   $ 326       0.5 %   $ (164 )     -0.2 %
                                 
Net income / (loss) from continuing operations - Corporate   $ 1,061       1.5 %   $ (614 )     -0.9 %
   Thirteen Weeks Ended 
   May 3,
2026		   May 4,
2025		 
Restructuring Costs        
Hooker Branded  $5   $127 
Domestic Upholstery   114    113 
All Other   5    40 
Consolidated  $124   $280 
           
Capital Expenditures          
Hooker Branded  $336   $675 
Domestic Upholstery   67    42 
All Other   -    10 
Consolidated  $403   $727 
           
Depreciation & Amortization          
Hooker Branded  $711   $532 
Domestic Upholstery   1,016    1,037 
All Other   89    197 
Consolidated  $1,816   $1,766 

 

We recorded $124,000 and $280,000 in restructuring costs in the first quarter of fiscal 2027 and fiscal 2026, respectively, primarily related to severance. As of May 3, 2026 and February 1, 2026, we had accrued restructuring charges of approximately $211,000 and $298,000, respectively. The balance as of May 3, 2026 is expected to be paid during the next 12 months. The restructuring costs were recorded under cost of sales and selling and administrative expenses in the condensed consolidated statements of operations.

 

   As of
May 3,
2026		   %Total   As of
February 1,
2026		   %Total 
      Assets      Assets 
Assets                
Hooker Branded  $147,722    70.3%  $140,732    66.3%
Domestic Upholstery   53,115    25.3%   55,083    25.9%
All Other   9,356    4.4%   16,507    7.8%
Consolidated Assets  $210,193    100%  $212,322    100%
Consolidated Goodwill and Intangibles   13,024         13,569      
Total Consolidated Assets  $223,217        $225,891      

 

Sales by product type are as follows:

 

   Net Sales (in thousands) 
   Thirteen Weeks Ended 
   May 3,
2026		   %Total   May 4,
2025		   %Total 
Casegoods  $35,449    51%  $34,499    48%
Upholstery   34,003    49%   36,685    52%
   $69,452    100%  $71,184    100%