By Katherine Hamilton

Hooker Furnishings swung to a profit in the first quarter after its cost-cutting efforts helped offset falling sales.

The Martinsville, Va., company on Thursday posted a profit of $1.1 million, or 10 cents a share, in the quarter ended in early May, compared with a loss of $3.1 million, or 29 cents a share, a year earlier.

Revenue fell 2.4% to $69.5 million.

Chief Executive Jeremy Hoff said the swing to profit was the result of cost cutting, and came in spite of "depressed" housing activity and low consumer confidence. Hooker reduced fixed costs by $17.5 million during the prior year, Hoff said.

Along with streamlining costs, Hooker brought together two of its higher-end brands under one business. Hooker Custom Upholstery now combines its Sam Moore and Bradington-Young brands.

Hoff said the unified platform is expected to drive higher sales once market conditions improve by creating a more cohesive brand narrative.

Within the Hooker Branded segment, sales fell 4.8% due to inventory constraints in imported upholstery. Hooker Branded did raise prices to offset higher costs and had higher profit and margins in the business.

Domestic upholstery sales fell 1.9%, primarily due to soft demand.

Starting in the current quarter, Hooker is seeing orders and backlog increase, thanks in part to more orders of its Margaritaville line. Still, the housing market continues to be sluggish and management said it expects tariffs to be added to furniture imports later this year.

Hoff said the outlook for the second quarter of fiscal 2027 was cautious.

"While we do not expect meaningful near-term improvement in market conditions, our more efficient cost structure and streamlined portfolio should help position us to deliver improved results," Hoff said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

June 11, 2026 06:44 ET (10:44 GMT)

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