HOFT

EX-99.1

2 exh_991.htm

PRESS RELEASE

EdgarFiling

EXHIBIT 99.1

Hooker Furnishings Reports Profitable Quarter and First Half

MARTINSVILLE, Va., Sept. 11, 2026 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT) (“Hooker” or the “Company”), a global leader in home furnishings, today reported its operating results for its fiscal 2027 second quarter ended August 2, 2026.

Key Results for the Fiscal 2027 Second Quarter and First Half:

Significant adverse impact of tariffs in the prior year.  In February 2026, the U.S. Supreme Court (SCOTUS) ruled that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were not authorized by statute. In March 2026, the U.S. Court of International Trade directed U.S. Customs and Border Protection to implement a refund process for previously collected duties. Prior to the U.S. Supreme Court’s February 2026 decision invalidating the IEEPA tariffs, the Company incurred an estimated $10.3 million of cumulative pre-tax costs related to tariffs in fiscal year 2026, which had a significant adverse impact on the fiscal 2026 results, and significantly exceeded the tariff recoveries the Company is reporting today. Factors contributing to the prior-year tariff impact. Following the imposition of IEEPA tariffs beginning in April 2025, the Company elected to honor pricing on its existing customer backlog and, for competitive and administrative reasons, did not immediately adjust pricing on certain other products. Net sales remained under pressure. Consolidated net sales decreased by $6.0 million, or 8.7%, in the second quarter and $7.7 million, or 5.5%, in the first six months. Tariff recoveries. The Company received $7.9 million in tariff recoveries during the quarter. Of this amount, continuing operations recognized approximately $4.3 million as a reduction of cost of sales and $0.2 million of related interest income, partially offset by approximately $0.5 million of customer credits recorded as a reduction of revenue. Discontinued operations recognized approximately $1.0 million of net pre-tax benefit. Approximately $1.8 million of the tariff recoveries had not yet impacted cost of sales and was recorded as a reduction in inventory carrying values at quarter end. The Company does not expect to receive material additional tariff recoveries. Hooker Branded sales reflected lower volume and higher promotional discounts. Hooker Branded net sales declined 4.5% in the second quarter and 4.6% in the first six months, as lower unit volume and higher promotional discounts more than offset higher average selling prices. Domestic Upholstery benefited from growth in private-label and outdoor furnishings. Gross margin increased by 450 basis points in the second quarter and 180 basis points in the first six months, supported by tariff recoveries on imported materials, lower imported-material costs, and improved overhead absorption. All Other results reflected softer hospitality industry demand and timing of  project activity. Despite a second-quarter operating loss driven by lower shipments, the business was profitable for the first six months, with approximately 80% of first-half shipments occurring in the first quarter. Maintaining S&A discipline. Second quarter and year-to-date S&A reflect the sustained benefit of more than $17.5 million in annualized cost reductions implemented across our continuing operations in prior fiscal years. Higher expenses in Hooker Branded were primarily driven by certain administrative costs retained following the Home Meridian segment divestiture, partially offset by benefits from previously implemented cost-reduction and consolidation actions in Domestic Upholstery and All Other. Continued operating profitability. Operating income was $1.3 million for the second quarter and $2.9 million for the first six months, compared with operating losses of $0.5 million and $1.0 million, respectively, in the prior-year periods.

Backlog strengthened sequentially and year over year. Consolidated backlog increased by 6.2% from the prior-year second-quarter end and by 8.4% from the end of the first quarter, led by Hooker Branded and  Domestic Upholstery, reflecting improved order momentum across key businesses.

Executive Commentary

“The significant costs we incurred due to the IEEPA tariffs significantly and adversely affected our prior-year results, and we are grateful to have recovered some of those costs in our fiscal 2027 second quarter,” said Jeremy Hoff, Chief Executive Officer. “The substantial administrative burden these tariffs placed on our team over many months cannot be recovered. In addition to the tariffs paid, we incurred incremental costs associated with the IEEPA tariffs, including increased customs bond costs, legal and professional fees, financing and working-capital costs, and other administrative and supply-chain-related expenses.

Although we do not believe that the tariff recoveries make us whole for the si

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