v3.26.1
Segment Information
 6 Months Ended
Aug. 02, 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, 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       Twenty-Six Weeks Ended     
   August 2, 2026       August 3, 2025       August 2, 2026       August 3, 2025     
       % Net       % Net       % Net       % Net 
Net Sales      Sales       Sales       Sales       Sales 
Hooker Branded  $34,620    54.7%  $36,250    52.4%  $69,950    52.7%  $73,359    52.2%
Domestic Upholstery   27,152    42.9%   28,677    41.4%   55,506    41.8%   57,590    41.0%
All Other   1,478    2.3%   4,316    6.2%   7,246    5.5%   9,478    6.7%
Consolidated  $63,250    100%  $69,243    100%  $132,702    100%  $140,427    100%
                                         
Cost of Sales                                        
Hooker Branded  $20,899    60.4%  $25,709    70.9%  $42,311    60.5%  $51,754    70.5%
Domestic Upholstery   20,919    77.0%   23,372    81.5%   44,308    79.8%   47,005    81.6%
All Other   1,333    90.2%   2,920    67.7%   5,392    74.4%   6,491    68.5%
Consolidated  $43,151    68.2%  $52,001    75.1%  $92,011    69.3%  $105,250    74.9%
                                         
Gross Profit                                        
Hooker Branded  $13,722    39.6%  $10,541    29.1%  $27,639    39.5%  $21,605    29.5%
Domestic Upholstery   6,233    23.0%   5,305    18.5%   11,198    20.2%   10,585    18.4%
All Other   144    9.7%   1,396    32.3%   1,854    25.6%   2,987    31.5%
Consolidated  $20,099    31.8%  $17,242    24.9%  $40,691    30.7%  $35,177    25.1%
                                         
Selling and Administrative Expenses                                        
Hooker Branded  $12,852    37.1%  $10,532    29.1%  $25,563    36.5%  $21,569    29.4%
Domestic Upholstery   4,856    17.9%   5,169    18.0%   9,966    18.0%   10,458    18.2%
All Other   564    38.2%   1,426    33.0%   1,212    16.7%   2,867    30.2%
Consolidated  $18,272    28.9%  $17,127    24.7%  $36,741    27.7%  $34,894    24.8%
                                         
Intangible Asset Amortization                                        
Domestic Upholstery   544    2.0%  $544    1.9%   1,089    2.0%  $1,130    2.0%
All Other   -    0.0%   81    1.9%   -    0.0%   162    1.7%
Consolidated  $544    0.9%  $625    0.9%  $1,089    0.8%  $1,292    0.9%
                                         
Operating Income / (Loss)                                        
Hooker Branded  $870    2.5%  $10    0.0%  $2,076    3.0%  $37    0.1%
Domestic Upholstery   833    3.1%   (408)   -1.4%   144    0.3%   (1,004)   -1.7%
All Other   (420)   -28.4%   (112)   -2.6%   641    8.8%   (42)   -0.4%
Consolidated  $1,283    2.0%  $(510)   -0.7%  $2,861    2.2%  $(1,009)   -0.7%
                                         
Other Income, net                                        
Hooker Branded  $285    0.8%  $13    0.0%  $226    0.3%  $94    0.1%
Domestic Upholstery   35    0.1%   -    0.0%   35    0.1%   -    0.0%
All Other   56    3.8%   9    0.2%   88    1.2%   26    0.3%
Consolidated  $376    0.6%  $22    0.0%  $349    0.3%  $120    0.1%
                                         
Interest expense - Corporate  $116    0.2%  $171    0.2%  $237    0.2%  $549    0.4%
                                         
Income taxes - Corporate  $338    0.5%  $(114)   -0.2%  $664    0.5%  $(278)   -0.2%
                                         
Net income / (loss) from continuing operations - Corporate  $1,205    1.9%  $(545)   -0.8%  $2,309    1.7%  $(1,160)   -0.8%

 

During the second quarter of fiscal 2027, the Company received $7.9 million in recoveries of tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) from the implementation of the tariffs through the U.S. Supreme Court’s decision in early February 2026. In continuing operations, the Company recorded $4.3 million as a reduction of cost of sales and $201,000 as interest income in the second quarter of fiscal 2027, partially offset by a $522,000 reduction of revenue. In discontinued operations, the Company recorded $1.6 million as a reduction of cost of sales and $54,000 interest income, partially offset by a $612,000 reduction of revenue. Additionally, approximately $1.8 million of the tariff recoveries had not yet impacted costs of sales and was recorded as a reduction of the carrying value of inventories at quarter end. The Company does not expect to receive material additional tariff recoveries.

 

The following table presents the tariff recoveries recorded by segment during the second quarter of fiscal 2027.

   TARIFF RECOVERIES BY SEGMENT 
   13 Weeks Ended   26 Weeks Ended 
   August 2,
2026		       August 2,
2026		     
       % Net       % Net 
Net sales      Sales       Sales 
Hooker Branded  $(65)   -0.2%  $(65)   -0.1%
Domestic Upholstery   -    0.0%   -    0.0%
All Other   (457)   -30.9%   (457)   -6.3%
Consolidated  $(522)   -0.8%  $(522)   -0.4%
                     
Cost of sales                    
Hooker Branded  $(2,503)   -7.2%  $(2,503)   -3.6%
Domestic Upholstery   (805)   -3.0%   (805)   -1.5%
All Other   (961)   -65.0%   (961)   -13.3%
Consolidated  $(4,269)   -6.7%  $(4,269)   -3.2%
                     
Interest Income                    
Hooker Branded  $138    0.4%  $138    0.2%
Domestic Upholstery   40    0.1%   40    0.1%
All Other   23    1.6%   23    0.3%
Consolidated  $201    0.3%  $201    0.2%
                     
Discontinued Operations                    
Net sales  $(612)       $(612)     
Cost of sales   (1,635)        (1,635)     
Interest Income   54         54      

 

   As of 
   August 2,
2026		 
Inventories    
Hooker Branded  $(1,511)
Domestic Upholstery   (276)
All Other   - 
Consolidated  $(1,787)
Discontinued Operations  $- 

 

   Thirteen Weeks Ended   Twenty-Six Weeks Ended 
   August 2, 2026   August 3, 2025   August 2, 2026   August 3, 2025 
Restructuring Costs                
Hooker Branded  $153   $655   $157   $782 
Domestic Upholstery   -    152    114    265 
All Other   5    153    11    194 
Consolidated  $158   $960   $282   $1,241 
                     
Capital Expenditures                    
Hooker Branded  $647   $749   $984   $1,424 
Domestic Upholstery   34    79    100    122 
All Other   10    24    10    24 
Consolidated  $691   $852   $1,094   $1,570 
                     
Depreciation & Amortization                    
Hooker Branded  $715   $536   $1,426   $1,068 
Domestic Upholstery   1,012    998    2,028    2,033 
All Other   86    199    175    398 
Consolidated  $1,813   $1,733   $3,629   $3,499 

 

Restructuring costs, primarily related to severance, were $158,000 and $960,000 during the second quarters of fiscal 2027 and fiscal 2026, and $282,000 and $1.2 million during the first six months of those fiscal years, respectively. As of August 2, 2026 and February 1, 2026, we had accrued restructuring charges of approximately $157,000 and $298,000, respectively. The balance as of August 2, 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
August 2,		       As of
February 1,		     
   2026   %Total   2026   %Total 
Assets      Assets       Assets 
Hooker Branded  $154,741    73.0%  $140,732    66.3%
Domestic Upholstery   52,881    24.9%   55,083    25.9%
All Other   4,340    2.1%   16,507    7.8%
Consolidated Assets  $211,962    100%  $212,322    100%
Consolidated Goodwill and Intangibles   12,480         13,569      
Total Consolidated Assets  $224,442        $225,891      

 

Sales by product type are as follows:

 

   Net Sales (in thousands) 
   Thirteen Weeks Ended       Twenty-Six Weeks Ended 
   August 2,
2026		   %Total   August 3,
2025		   %Total   August 2,
2026		   %Total   August 3,
2025		   %Total 
Casegoods  $30,520    48%  $34,610    50%  $65,969    50%  $69,950    50%
Upholstery   32,730    52%   34,633    50%   66,733    50%   70,477    50%
   $63,250    100%  $69,243    100%  $132,702    100%  $140,427    100%