Hooker Furnishings Corporation reported its fiscal 2026 second quarter results, with consolidated net sales decreasing by 13.6% year-over-year to $82.1 million. The Home Meridian segment experienced a significant sales decline of 44.5% year-over-year, primarily due to weak demand, tariff-driven buying hesitancy, and the impact of a major customer bankruptcy.
Despite the overall sales pressure, the Hooker Branded segment broke even in the quarter, and Domestic Upholstery reduced its operating loss by nearly 70%, even with restructuring charges. The company's multi-phase cost reduction strategy remains on track to achieve approximately $25 million in annualized savings by fiscal year 2027, with $3.7 million in expense reductions realized in the first half of fiscal 2026.
The U.S. Government announced a 20% tariff rate on imports from Vietnam, effective August 1, 2025, which is a key sourcing country for Hooker Furnishings. The company is implementing mitigation efforts, including remerchandising lines, evaluating pricing, and new fabric sourcing. Cash and cash equivalents stood at $821,000, with $57.7 million in available borrowing capacity at quarter-end.
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