Hooker Furniture reports improved Q3 sales and profits
August 15, 2011 | 10:38 pm UTC
Hooker Furniture posts 13.7% sales gain but smaller profit for Q1
MARTINSVILLE, VA -- Hooker Furniture posted net sales of $55.7 million, a 6% year- over-year increase for its fiscal 2011 third quarter ended Oct. 31.

In addition, Hooker reported Q3 net income of $1.2 million compared to net income of $957,000 for the comparable period last year.

For the first nine months of the fiscal year, which began on Feb. 1, and ended Oct. 31, net sales increased $9.8 million, or 6.5% to $160.5 million compared to $150.6 million for the same period a year ago. The company reported net income for the first nine months of $3.4 million, compared with net income of $38,000 last year.

Paul Toms Jr., chairman and CEO, said, "We were successful this quarter in focusing our inventory mix on those best-selling products that drive our business. Consequently, as we've seen demand pick up since early November, we are well-positioned from an inventory availability standpoint to ship customer orders for in-line merchandise immediately."

During Q3, Hooker's wood furniture sales increased nearly 4%, while upholstery sales increased approximately 11%, contributing to the $3.1 million increase in revenues compared to the same time a year ago. Imported upholstery sales increased nearly 50% compared to the prior-year quarter, while domestic upholstery sales were essentially flat for the same period.

Toms noted that quality-related costs declined during the third quarter and throughout the first nine months of the year. "A significant improvement in our product and packaging quality, resulting in a reduction of quality-related costs, has been a real bright spot in our performance this year," said Toms. He added that quality costs have been reduced over $1 million as returns and allowances have improved versus the same period a year ago.

On Nov. 8, Hooker Furniture announced that it would transfer the Cherryville, NC, operations and corporate offices of its Bradington-Young leather upholstery division to Hickory, NC, consolidating its domestic upholstery finished goods production at the company's Hickory plant.

On Nov. 26, Hooker Furniture announced that Bruce Cohenour had resigned from his position of president of Hooker Furniture Casegoods, effective Nov, 30. There are no immediate plans to fill the position.

Read press release about Hooker Furniture's third-quarter performance.

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