Hooker Furnishings Corporation reported its fiscal 2025 third quarter operating results, with consolidated net sales decreasing by 10.7% to $104.4 million compared to the prior year period. The company recorded multiple charges during the quarter, including $1.0 million in severance for Hooker Branded and $4.6 million in charges for Home Meridian.
The Home Meridian segment's net sales decreased by 11.8%, with over 40% of this decline attributed to the loss of a major customer due to bankruptcy, which also resulted in $2.4 million in bad debt charges. Despite these challenges, Home Meridian achieved a gross margin of 20.5%, its highest level since the 2016 acquisition, and incoming orders increased by 8.1%.
Management noted sequential quarterly improvement in core business profitability and progress in cost reduction efforts, which are expected to be fully realized in the fourth quarter. Cash and cash equivalents stood at $20.4 million, with $28.3 million available under the existing revolver, providing financial resources despite the quarter's losses.
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