By Nicholas G. Miller

Hooker Furnishings posted a wider second-quarter loss as it contends with a weak housing market that is sapping furniture demand and tariffs that are raising sourcing costs.

The furniture company posted a loss of $3.3 million, or 31 cents a share, compared with a loss of $2 million, or 19 cents a share, the year prior.

Sales fell to $82.1 million from $95.1 million the year before. Top-line declines were fueled by a $13.6 million decline in revenue from the company's Home Meridian brand. Chief Executive Jeremy Hoff said the brand was hurt by "weak demand in the home furnishings industry due to an extremely weak housing environment, and tariff buying hesitancy in the market segment in which HMI competes."

The company said Vietnam, whose imports now have a 20% tariff, is its main source country. Hooker said it was using new fabric sourcing and pricing to help mitigate tariffs and that it was awaiting guidance on additional lumber tariffs.

The company is undertaking cost-reduction measures including facility downsizing, layoffs and logistics consolidation to achieve $25 million in annual savings by fiscal 2027.

Trump said last month his administration would begin a tariff investigation into furniture imports. He said furniture imports would receive a tariff at a "rate yet to be determined."

Analysts have said the furniture industry could struggle to move production to the U.S. and also suffer from consumers delaying their purchases if prices go up.

The furniture industry has also been hurt by a dormant housing market, with affordability concerns putting off home buyers. But some companies in the housing and home improvement markets have said demand is starting to pick up with mortgage rates having declined slightly.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

September 11, 2025 06:25 ET (10:25 GMT)

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