DALLAS, TX -- SEPTEMBER 15, 2026
DALLAS, TX -- September 15th, 2026 --Hooker Furniture Corporation (NASDAQ: HOFT): Stonegate Capital Partners updates their coverage on Hooker Furniture Corporation (NASDAQ: HOFT). HOFT reported revenue, operating income, and EPS of $63.3M, $1.3M, and $0.16, respectively. This compares to our/consensus estimates of $65.2M/$62.3M, $0.1M/($0.7)M, and $0.01/($0.02). Consolidated gross margin expanded 690 bps y/y to 31.8%, with tariff recoveries accounting for most of the increase. Excluding $4.3M of COGS recoveries and $0.5M of customer credits, we calculate gross margin still improved roughly 70 bps y/y to ~25.6%. More importantly, the core businesses showed better underlying core margin performance, with tariff-adjusted gross margin improving approximately 340 bps y/y at Hooker Branded and 150 bps at Domestic Upholstery. With material additional tariff recoveries not expected, 2H27 should provide investors with a cleaner read on normalized profitability.
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Key Takeaways:
- Reported gross margin expanded to 31.8% from a recast 24.9% a year ago, with tariff recoveries providing much of the increase. After removing approximately $4.3M of COGS recoveries and $0.5M of customer credits, the report’s estimate of roughly 25.6% normalized gross margin is reasonable, implying approximately 70 bps of underlying y/y improvement. The Hooker Branded and Domestic Upholstery adjusted-margin calculations also check.
- Backlog improved 6.2% y/y overall, with Hooker Branded up 34.7% and Domestic Upholstery up 4.8%. Combined Hooker Branded and Domestic backlog was approximately $41.4M, up about 18% y/y, while All Other declined on hospitality-project timing. Margaritaville has moved into shipment conversion, with approximately 100 in-store galleries and 10 freestanding stores committed.
- Management does not expect a near-term industry recovery but continues to expect improved 2H results versus last year even if current conditions persist. July core results improved materially y/y without tariff recoveries, promotions are expected to normalize, and the report’s FY27 model assumes stronger second-half sales and profitability rather than another major restructuring benefit.
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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.
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