Regions Southern Virginia

Hooker reports profitable quarter, double-digit gain for fiscal year

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Fourth-quarter sales dipped at Martinsville-based Hooker Furniture, but the company recorded a profitable quarter and a 56 percent increase in net income for the fiscal year.

The furniture company reported Tuesday that fourth-quarter net sales for fiscal 2012 decreased 1.1 percent to $54.4 million, compared with sales of $55 million during the same period a year ago.

The company had net income of $628,000, or 6 cents a share in the latest fourth quarter, compared with a net loss of $182,000, or 2 cents per share, in the fiscal 2011 fourth quarter.

Hooker had net sales of $222.5 million and a net income of $5.1 million, or 47 cents per share, for its 2012 fiscal year ending Jan. 29.

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

Toms attributed the slight sales dip in the fourth quarter to soft retail demand 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.

Fiscal 2012 fourth quarter net income was negatively impacted by a $1.8 million pretax intangible asset impairment charge to write down the value of the company’s Bradington-Young trade name.


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