MARTINSVILLE, Va. — Hooker Furnishings Corporation reported its operating results for fiscal 2026 fourth quarter and full-year ended February 1, 2026. The fiscal 2026 fourth quarter saw continuing operations return to profitability with operating income of $0.6 million despite lower sales volume.

Net sales for the FDMC 300 listed company, ranked #36, however, were $67.0 million, down 20.5% year-over-year, primarily due to lower hospitality project shipments and a one-week shorter quarter. The Hooker Branded segment delivered operating income, supported by margin improvement and disciplined cost control. Domestic Upholstery operating loss reduced by more than 50%, reflecting cost reduction initiatives and operational improvements. Completed divestiture of Pulaski Furniture and Samuel Lawrence Furniture, advancing portfolio simplification and strategic focus.

Key results for fiscal 2026 included net sales of $278.1 million, down 12.4% year-over-year, driven by lower hospitality sales and a shorter fiscal year. Gross margin increased 180 basis points and SG&A decreased by $11.9 million, reflecting structural cost improvements.

It suffered an operating loss of $16.5 million, primarily due to $15.6 million in non-cash impairment charges. Hooker Branded returned to profitability, while Domestic Upholstery gross margin improved significantly. 

“We are encouraged to report net income of $536,000 for the quarter,” said Jeremy Hoff, CEO. “Fiscal 2026 was incredibly transformative as we successfully navigated significant, disruptive tariffs on our imports, opened a successful fulfillment warehouse in Asia and exited two unprofitable divisions, all while reducing fixed costs by about $26.3 million, or 25%, of which approximately $17.5 million in fixed cost savings is related to the continuing operations. At the same time, we delivered slight market share growth, with strength in key businesses offsetting isolated softness, and launched our Margaritaville line, which is delivering on our expectation to be the most impactful product launch in company history.”

Hoff continued, “Today, we move forward as a leaner, higher-margin business with a much lower break-even point and the potential for significant profitability as demand returns. We believe we are positioned for a significant improvement in earnings in fiscal 2027 with our expectations bolstered by the early indications of strength within our Margaritaville product line, and we see a clear path to sustained profitable growth by focusing on our core expertise of better-to-best home furnishings.”

“Fourth quarter net income of $536,000 includes a $338,000 net loss from discontinued ops, related to the Pulaski Furniture and Samuel Lawrence Furniture businesses in the quarter,” said Earl Armstrong, chief financial officer. “Other items affecting the quarter included one fewer week of sales as compared to the prior year quarter, and lower revenue due to disruptive winter storms in our largest markets and continued lower overall demand due to macroeconomic factors affecting our industry. We estimate the severe winter weather in January 2026 reduced net sales by approximately $3 to 4 million.”

Armstrong continued, “For Fiscal 2026, we reported a consolidated net loss of approximately $27 million. $15.6 million ($11.7 million net of tax) of that net loss was driven by goodwill and tradename impairment charges under the continuing operations, and $14.2 million was driven by a net loss from discontinued operations. Additionally, we recorded approximately $2 million ($1.5 million net of tax) in restructuring charges in continuing operations.”

Hoff continued, “Despite significant headwinds, we are encouraged to report that the Hooker Branded segment reported $1.9 million in operating income for the year compared to a prior year operating loss of $433,000. Additionally, despite a significant impairment charge in the third quarter, the Domestic Upholstery segment showed improvements in the fourth quarter reducing its operating loss by more than 50% as compared to the prior year quarter, due to cost reduction initiatives and operational improvements.”