Hooker Furnishings Corporation (HOFT) Q2 FY2027 earnings

Reported results

• Net sales decreased $6.0 million, or 8.7%, to $63.3 million in Q2 (13 weeks ended August 2, 2026) and decreased $7.7 million, or 5.5%, to $132.7 million in the first 26 weeks, under pressure from lower volume and pricing actions.
• Gross profit increased to $20.1 million (31.8% gross margin) in Q2 versus $17.2 million (24.9%) in prior-year Q2, and to $40.7 million (30.7% gross margin) in first 26 weeks versus $35.2 million (25.1%), supported by tariff recoveries and lower imported-material costs.
• Operating income was $1.3 million in Q2 and $2.9 million in first 26 weeks, compared with operating losses of $0.5 million and $1.0 million in prior-year periods.
• Net income was $1.7 million in Q2 (GAAP) and $2.7 million in first 26 weeks (GAAP), compared with net loss of $3.3 million and $6.3 million in prior-year periods.
• Tariff recoveries totaled $7.9 million in Q2: $4.3 million recognized as reduction of cost of sales, $0.2 million as interest income, $0.5 million as customer credits reducing revenue, $1.0 million in discontinued operations, and $1.8 million reducing inventory carrying values.
• Cash and cash equivalents increased to $18.7 million at quarter-end from $1.1 million at fiscal 2026 year-end, reflecting tariff refund proceeds; the company has $51.8 million in available borrowing capacity with no outstanding term loan balance.

Guidance

• The company does not expect to receive material additional tariff recoveries.
• For the second half of fiscal 2027, the company does not expect meaningful near-term improvement in market conditions but believes cost structure changes and portfolio modifications position it to deliver improved results compared with prior-year period even if current conditions persist.
• Margaritaville shipments began in late Q2 and are expected to scale over the second half of fiscal 2027 and into fiscal 2028; retailer commitments include approximately 100 in-store galleries and 10 free-standing retail stores to date.
• Promotional activity in Hooker Branded is expected to normalize during the second half of the fiscal year.

Notes

The company incurred an estimated $10.3 million of cumulative pre-tax tariff costs in fiscal year 2026 related to IEEPA tariffs, which the February 2026 U.S. Supreme Court ruling invalidated. The company notes that tariff recoveries do not fully compensate for all costs incurred, including customs bond costs, legal and professional fees, financing and working-capital costs. The Home Meridian segment was divested in the prior fiscal year; discontinued operations generated $0.6 million pre-tax income in Q2 fiscal 2027 from tariff recoveries and post-divestiture activity. Approximately 92,357 shares were repurchased at an average price of $13.68 per share under a $5 million authorization, with $3.7 million remaining available.

Price and volatility reaction

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-11 (8-K, Item 2.02). Read the original filing on sec.gov.