Hooker Furnishings, one of the largest publicly traded furniture companies in the US, has reported a decline in second quarter and half year sales.
According to its latest trading update for fiscal 2026 second quarter ended 3 August 2025, total net sales declined 13.5% to $82.1m from $95m in 2024. Half year sales were also down by 11.2% to $167.4m from $188.6m.
Pre-tax losses resulted at $4.4m, widening from a loss of $1.8m in Q2, while half year losses amounted to $8.2m, widening from a loss of $6.7m.
Hooker said it has initiated a multi-phase cost reduction strategy aimed at achieving approximately $25m in annualised savings by fiscal year 2027.
“In fiscal 2025, we identified $10 million in expense reductions and were able to achieve $3 million in savings in that fiscal year,” the company said. “In Fiscal 2026, we identified an additional $15 million in expense reductions. In the first half of fiscal 2026, we achieved $3.7 million in expense reductions, despite having recorded $1.7 million in restructuring charges.
“We expect to achieve additional savings in the second half of the year from both initiatives and believe we are on track to achieving approximately $25 million in annualised savings beginning in fiscal 2027.”
The Hooker Branded segment posted modest growth in the second quarter of fiscal 2026, with net sales up $465,000, or 1.3%, to $36.2 million. The Home Meridian segment’s net sales declined $13.6 million, or 44.5% to $16.9 million, while the Domestic Upholstery segment’s net sales were essentially flat at $28 million.
“Hooker Furnishings is taking decisive steps to return the business to profitability. Our cost-reduction initiatives and focus on growth initiatives have positioned the Company to maintain resilience in today’s challenging environment, and to strategically capture growth when demand returns,” said Jeremy Hoff, Chief Executive Officer.
“Hooker Branded broke even in the quarter despite weak demand and $655,000 in restructuring charges, and Domestic Upholstery reduced its operating loss nearly 70% even including $152,000 of restructuring costs. At HMI, we have de-risked it significantly over the last several years and continue to further that effort. These actions have been obscured by weak demand in the home furnishings industry due to an extremely weak housing environment, and tariff buying hesitancy in the market segment in which HMI competes. By the end of our fiscal 2026 third quarter, HMI’s fixed cost structure will be aligned to support what we believe to be a sustainable business and one in which its sales can be significantly scaled from current levels when demand returns. Barring additional tariffs or other significant, disruptive events, we expect HMI’s performance to be significantly enhanced by the end of the current fiscal year.”
“We are confident that the actions we’ve taken, scaling fixed costs, reducing debt, and launching compelling new product lines, provide the foundation for long-term value creation. Importantly, we are on track to have our new expense structure largely in place by the end of the third quarter, supporting a path to profitability at even current revenue levels.”
