Hooker Furniture posts 13.7% sales gain but smaller profit for Q1MARTINSVILLE, VA -- Hooker Furniture, manufacturer and importer of residential furniture, reported net  sales of $58.4 million for its fiscal 2012 first quarter ended May 1.

Net sales for Q1 of fiscal 2012 increased $7.0 million or 13.7% compared to $51.4 million for the same period a year ago, marking the fourth consecutive quarter of year-over-year sales increases as unit volume grew across all divisions. Casegoods unit volume led the way with a nearly 26% increase, while upholstered fabric and upholstered leather seating unit sales increased 7% and 4%, respectively.

In spite of the sales gains, net income for the quarter decreased to $523,000, compared to a net income of $1.1 million.for the comparable period last year. Hooker Furniture said the lower net income was the result of increased product discounting from a focused effort to reduce slow-moving, excess inventory. Other factors Hooker Furniture cited contributing to decreased profitability for the quarter included:

  • higher freight costs on imported casegoods inventory that was shipped during the quarter compared to the prior-year quarter;
  • continuing but smaller operating losses in domestically produced upholstery;
  • higher returns and allowances expense; and
  • elevated health care costs.

"We're pleased to report a healthy top line gain in casegoods for the quarter," said Paul Toms Jr., chairman, CEO and president. "Although we've had positive sales comps during the previous three quarters, over the past six months we've started to see significant growth in casegoods. This kind of growth is vital for achieving the high profitability performance objectives we've set for ourselves."

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