MARTINSVILLE, Va. — Hooker Furniture Corp. reported a consolidated operating loss of $2 million on sales of $95.1 million in the second quarter. The company viewed the second quarter operating loss, during what it termed “persistent, weak market conditions,” as an improvement over the first quarter when it reported a consolidated operating loss of $5.2 million on sales of $93.6 million.

Jeremy Hoff, CEO of Hooker, commented on the quarterly results and provided an update on the company’s consolidation plans, including workforce reductions that were announced last quarter. By implementing those plans, the company expects to realize 10% savings in fixed costs beginning in the second half of this fiscal year, for a total of a $10 million reduction.

“Challenges in the macroeconomic and furniture retail environment have extended well beyond our expectations,” Hoff said. “The combination of high interest rates, a housing shortage and elevated home prices have created a sustained housing downturn for over two years.”

“While retail sales are doing well overall, most furniture retail is not. In response, we continue to focus on the things we can control to ensure we’re in the best possible position to grow when the macroenvironment improves,” Hoff said. “In our cost reduction measures announced last quarter, we are focused on reducing non-strategic costs while continuing to invest in revenue and profit-generating initiatives.”

Those initiatives include reducing the company’s Savannah Warehouse footprint by half, restructuring the BOBO business into the Hooker Branded business, and eliminating BOBO’s retail store and separate warehouse. In addition, the company recently completed an early retirement offer to qualifying employees and other workforce reductions. Hooker said it expects to record approximately $3 million in severance expenses in its fiscal 2025 third quarter.

“Workforce reduction decisions like this are rare for our company and were incredibly difficult for us, as we’re acutely aware of the impact it will have on affected employees. We are committed to providing as much transition support as possible and are grateful for the contributions each of these individuals has made to Hooker,” Hoff said.

While cost-cutting on one hand, the company is also looking to reenergize is marketplace position.

In April, industry veteran Caroline Hipple joined Hooker in the new position of Chief Creative Officer to lead a remerchandising of Hooker Legacy Brands, which aims to position the Company as a more integrated, whole-home, consumer-centric resource with an elevated aesthetic and presentation.

“While early in this shift of our merchandising strategy, we have had a very positive reaction from customers in previews of new products targeted for the next High Point Market. Our partners’ positive feedback has given us the confidence to place initial cuttings prior to the October High Point Market launch. Essentially, this gives us a three-month head start on selling these products. This increased speed to market mentality helps strengthen our assortment for next year. We remain confident that the strategies we are pursuing in operations, marketing and merchandising are transformative. Extended downturns present opportunities to recalibrate and reinvent aspects of our business,” Hoff said.

Hooker ranks No. 25 on this year’s FDMC 300.