Hooker Furnishings Corporation (NASDAQ:HOFT) reported fourth-quarter results on Thursday, with adjusted earnings per share of $0.05 in line with analyst expectations, while revenue of $67.0 million came in below the $76.21 million consensus forecast.
Despite the weaker-than-expected revenue, the company’s shares climbed 5.12% in pre-market trading, as investors reacted positively to its return to profitability and notable cost-saving measures.
Revenue declined 20.5% year on year, largely due to reduced shipments in the hospitality segment, one fewer selling week compared to the prior year, and severe winter weather, which management estimated cut sales by $3 million to $4 million.
For the full fiscal year 2026, revenue totaled $278.1 million, down 12.4% from $317.4 million in the previous year.
The company returned to profitability during the quarter, posting operating income of $0.6 million and net income of $0.5 million from continuing operations, compared with an operating loss of $0.3 million and a net loss of $0.4 million in the same period last year.
This turnaround was achieved despite lower sales volumes, supported by improved margins and strict cost discipline.
“We are encouraged to report net income of $536,000 for the quarter,” said CEO Jeremy Hoff. “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%.”
For the full year, gross margin increased by 180 basis points, while selling and administrative expenses fell by $11.9 million.
During the year, the company completed the sale of Pulaski Furniture and Samuel Lawrence Furniture, streamlining its operations and exiting lower-margin business lines.
Hooker’s Branded segment generated operating income of $1.9 million for the full year, compared to a loss of $0.4 million in the prior year. Meanwhile, the Domestic Upholstery segment cut its fourth-quarter operating loss by more than half to $1.2 million.