Hooker Furniture Corporation (NASDAQ: HOFT) reported fourth-quarter financial results that reflect strategic efforts to manage operational challenges in a turbulent furniture retail environment. The company's revenue reached $104.5 million, slightly above consensus estimates and representing a 7.9% year-over-year increase.
Despite macroeconomic headwinds including fluctuating interest rates and housing market constraints, Hooker Furniture has taken proactive steps to strengthen its financial position. The company successfully reduced fixed costs by 10%, approximately $10 million, with plans to achieve an additional $10 million in savings through warehouse optimization and other initiatives.
The company's consolidated gross profit margin increased 30 basis points quarter-over-quarter to 23.3%, demonstrating operational efficiency. Hooker Furniture maintained its dividend commitment, distributing $0.23 per share with an annualized rate of $0.92, representing a 12.2% dividend yield.
Financial strategic moves included reducing debt levels from $76.3 million to $70.3 million over the fiscal year and managing inventory levels strategically. The company's backlog of $52.6 million, while lower than the previous year, remains elevated compared to pre-pandemic levels.
Key operational improvements include streamlining the supply chain and enhancing warehousing capabilities in Vietnam, which are expected to decrease lead times from months to weeks. These efforts position the company to potentially gain a competitive advantage when market conditions stabilize.
Stonegate Capital Partners' valuation analysis suggests a potential stock value ranging from $14.22 to $21.47, with multiple assessment models indicating the company's underlying financial strength and potential for future growth.
