MARTINSVILLE, VA -- Spurred by a 46 percent increased profitability from casegoods and improved results of upholstery sales, Hooker Furniture posted net sales of $54.9 million and net income increase of 34.6 percent for the second quarter of 2015.
CEO Paul Toms said the company is seeing indications of a recovery in casegoods sales, which has been lackluster in previous years. In the first quarter the company saw a 10 percent gain in casegoods revenue. Toms said the company is “bullish” a casegoods recovery is coming.
"Given the lackluster demand and sluggish retail conditions that characterized the summer months, we were pleased to deliver an approximate 35% net income increase on the strong performance of our casegoods unit, a nearly $200,000 operating profit turnaround for our H Contract unit and sequential improvements in Sam Moore profitability," Toms said.
While demand remained subdued through the just-completed quarter, Toms said an uptick in incoming orders began in early August and has continued through the first month of the current fiscal third quarter.
"Based on the increases in incoming orders we're seeing… we are encouraged about the prospects for fall business," Toms said. "Economically, the fundamentals are in place for an improved housing market, and consumer confidence continues to strengthen. We're in a good service position in all divisions with adequate inventory on most of our best sellers.”
Have something to say? Share your thoughts with us in the comments below.