Hooker Furnishings Cuts Costs in Q2
Hooker Furnishings(NASDAQ:HOFT) reported fiscal 2026 second quarter results on September 11, 2025, with consolidated net sales down 13.6% year over year to $82.1 million and a net loss of $3.3 million, or $0.31 per share. The quarter featured $2.0 million in restructuring costs, a 44.5% year-over-year decline in Home Meridian segment sales, and management progress toward a 25% fixed cost reduction by the end of the fiscal 2026 third quarter. The following insights highlight key strategic actions, segment performance, and forward-looking priorities discussed on the call.
Management is executing a multiphase plan to eliminate $25 million in fixed costs, representing 25% of the prior cost structure, with most reductions expected by the end of the fiscal 2026 third quarter. The company achieved $3.7 million in expense reductions in the first half of fiscal 2026, despite $1.7 million in restructuring charges, and expects annualized savings to begin in fiscal 2027.
This cost structure overhaul lowers the company’s breakeven point and enhances future earnings leverage as demand recovers, without constraining operational capacity.
Source Fool.com
