Thursday, April 12, 2012

ANNUAL SALES OF HOOKER FURNITURE INCREASED IN 2012

Hooker Furniture reported net sales of $222.5 million and a net income of $5.1 million, or $0.47 per share, for its fifty-two week fiscal year ended January 29, 2012. Annual net sales increased by $7.1 million, or 3.3%, and net income increased 56.1% compared to last year. Earnings per share were $0.47 compared to $0.30 for the prior year.

"All things considered, we had a very good year," said Paul B. Toms Jr., chairman and chief executive officer. "Progress in many areas of our operations this year enabled us to grow profits over 50% on a 3.3% sales increase. As the year moved forward, we reduced excess inventory, improved our cash flow and cut operating losses in our upholstery division substantially."

The Company's case goods and upholstery divisions each achieved sales increases of slightly over 3% for the year. Within the upholstery division, Bradington-Young's imported leather sales were up nearly 9.4% and Sam Moore's domestically produced custom upholstery line increased shipments by almost 13.6%. Shipments of Bradington-Young's domestically produced line decreased approximately 7% year over year.

For the fiscal 2012 fourth quarter, net sales decreased $606,000, or (1.1)%, to $54.4 million, compared to net sales of $55.0 million during the same period a year ago. Toms attributed the slight sales dip to soft demand at retail and to sourcing transitions that delayed shipments of recent introductions. "As we work through some vendor shifts from China to Vietnam and Indonesia, initial shipments of several well-placed new collections were delayed a few months, which impacted the fourth quarter," he said.

For the 2012 fiscal year, gross profit increased $2.0 million to $48.9 million, compared to $46.9 million in the same period a year ago. As a percent of sales, gross profit margin increased slightly to 22.0% of net sales as compared to 21.8% of net sales in the comparable prior year quarter. Improved margins at the Company's upholstery division were primarily a result of cost reduction efforts and higher fabric upholstery selling prices, partially offset by increased raw material costs and a casualty loss expense of $181,000 related to a sprinkler malfunction at one of the Company's warehouses during the 2012 fiscal year. The Company's casegoods business reported an approximate 1% reduction in gross margins as a percentage of net sales as a result of heavy discounting implemented to reduce excess inventory, partially offset by lower freight costs on imported products in the second half of the fiscal year.

For the fiscal 2012 fourth quarter, selling and administrative expenses increased $427,000 to $10.4 million, or 19.1% of net sales, compared to $10.0 million or 18.1% of net sales in the 2011 fourth quarter. The unfavorable fourth quarter comparison for selling and administrative expenses is primarily due to higher compensation expense in the fiscal 2012 fourth quarter, due to increased bonus accruals in the fiscal 2012 fourth quarter, favorable adjustments in our long-term incentive compensation accrual in the prior year fiscal quarter and a charge to write-off a note receivable.
Operating income increased in the 2012 fiscal year, due to the favorable factors noted previously. For fiscal 2012, the Company reported operating income of $6.7 million, or 3.0% of net sales, an increase of $2.6 million from $4.1 million, or 1.9% of net sales, in fiscal 2011.

SOURCE: PR Newswire
 

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