MARTINSVILLE, VA – Hooker Furniture reported net sales of $203.3 million and a net income of $3.0 million 2010 fiscal year ended Jan. 31.
Hooker's 2010 profit was obtained in the fourth quarter. The company reported net income of $3.0 million for Q4 based on $52.7 million in net sales.
Net sales for FY10 decreased $57.8 million or 22.1% compared to $261.2 million for FY09. Net income for FY10 decreased $3.9 million, or 56.5%, compared to net income of $6.9 million for the 2009 fiscal period. The company said lower sales were driven by continued weak demand at retail and lower profits were driven by reduced sales, operating inefficiencies and $1.3 million in pretax intangible asset impairment charges.
"Given the inconsistent demand at retail, we're pleased that we were able to post a respectable profit in the fourth quarter and that sales seem to have stabilized," said Paul Toms Jr., chairman, CEO and president. "Our upholstery division is leading the way on top line performance. Consistent with overall industry trends, our upholstery shipments have rebounded earlier and stronger than wood furniture shipments. Profitability has been positively impacted by reductions made in our cost structure, improved work schedules and capacity utilization in our upholstery division and lower warehousing and distribution expenses."
Toms pointed out that wood furniture incoming order rates are trending slightly better than shipments. "We're seeing delivery times lengthen somewhat from most of our largest suppliers," he said. "We are addressing the situation by adjusting orders and working with our Asian staff and those suppliers to bring lead times down."
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Hooker's 2010 profit was obtained in the fourth quarter. The company reported net income of $3.0 million for Q4 based on $52.7 million in net sales.
Net sales for FY10 decreased $57.8 million or 22.1% compared to $261.2 million for FY09. Net income for FY10 decreased $3.9 million, or 56.5%, compared to net income of $6.9 million for the 2009 fiscal period. The company said lower sales were driven by continued weak demand at retail and lower profits were driven by reduced sales, operating inefficiencies and $1.3 million in pretax intangible asset impairment charges.
"Given the inconsistent demand at retail, we're pleased that we were able to post a respectable profit in the fourth quarter and that sales seem to have stabilized," said Paul Toms Jr., chairman, CEO and president. "Our upholstery division is leading the way on top line performance. Consistent with overall industry trends, our upholstery shipments have rebounded earlier and stronger than wood furniture shipments. Profitability has been positively impacted by reductions made in our cost structure, improved work schedules and capacity utilization in our upholstery division and lower warehousing and distribution expenses."
Toms pointed out that wood furniture incoming order rates are trending slightly better than shipments. "We're seeing delivery times lengthen somewhat from most of our largest suppliers," he said. "We are addressing the situation by adjusting orders and working with our Asian staff and those suppliers to bring lead times down."
Read more.
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