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2024 Annual Report hookerfurnishings.com
MESSAGE TO OUR SHAREHOLDERS A CENTURY OF HOME As Hooker Furnishings celebrates its 100th anniversary this year, there s much from our storied history that informs our future vision. From wars and the Great Depression to recessions and a global pandemic, the Company has proven its resilience time and again, while learning and enhancing our core values along the way. Most essentially, we have learned the need to adapt as conditions change. We have learned the value of a strong balance sheet, and the importance of people and relationships to our success. We will continue to apply these values as we move forward into our next century. The adaptability that s been integral to our culture since 1924 was essential to our achievements and strategic execution in 2024. Our exceptional culture has been the key to the longevity of Hooker Furnishings. The integrity, generosity, compassion, loyalty and drive of our employees has been the foundation of our business for 100 years and no doubt will propel us forward into the next century of business. DISCIPLINE AND BOLDNESS Making both improvements and investments in a challenging year During a challenging year, we are proud of our team s accomplishments and discipline as they successfully restructured our HMI business model, improved pro tability and strengthened our balance sheet. At the same time, we demonstrated belief in our future vision by making investments to fuel long-term expansion. While taking comprehensive steps this year to reposition HMI for expected sustainable pro tability, we simultaneously executed an array of ambitious long-term growth initiatives including the launch of the new M modern lifestyle brand, new showroom openings, a new business operating system and the acquisition of BOBO Intriguing Objects to enhance our ability to be a whole home resource. Despite industry-wide weak demand for home furnishings much of the year and a 25.7% consolidated sales decrease, the Company reported an operating income of about $12 million and net income of about $10 million, or $0.91 per share for the scal year. During the year, we strengthened our nancial position and balance sheet, increasing cash by $24 million to over $43 million at year-end as we adjusted our inventory levels to align with current demand. This resulted in about $35 million or 36% reduction, including the successful liquidation of all of HMI s obsolete inventories. INDUSTRY-WIDE REDUCED REVENUES Business in scal 2024, and especially sales volume, was negatively impacted by excess inventories across the retail furniture sector, most likely the result of pandemic-era demand pull-forward which resulted in clogged warehouses throughout much of the industry, after more robust sales in the preceding years. We also saw a decline in sales at Home Meridian partially due to our strategic decision to exit the Accentrics Home business, which we reported last year when we took a $24 million non-cash inventory write-down and disposed of that division s inventory during scal 2024. Although we knew this decision would reduce sales in the short term, we believed, and still believe, that eliminating the risk and outsized inventory investment this business required is in our long-term best interests. We are pleased to report that we disposed of the excess inventory by mid-year, ahead of schedule and at the expected cost. This allowed us to reduce our footprint at our Savannah, GA warehouse by 400,000 square feet and reduce operating costs by about $2 million on an annualized basis. We believe this action, combined with other efforts to reduce Home Meridian overhead and increase gross margins, sets Home Meridian up for a return to operating pro tability in the near future.
 • shareholder letter icon 5/3/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/5/2023 HOFT Stockholder Letter
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HOFT Shareholder/Stockholder Letter Transcript:

2024 Annual Report
hookerfurnishings.com

MESSAGE TO OUR SHAREHOLDERS
A CENTURY OF HOME
As Hooker Furnishings celebrates its 100th anniversary this year, there   s much from our storied history that informs our future vision.
From wars and the Great Depression to recessions and a global pandemic, the Company has proven its resilience time and again,
while learning and enhancing our core values along the way.
Most essentially, we have learned the need to adapt as conditions change. We have learned the value of a strong balance sheet,
and the importance of people and relationships to our success.
We will continue to apply these values as we move forward into our next century. The adaptability that   s been integral to our
culture since 1924 was essential to our achievements and strategic execution in 2024.
Our exceptional culture has been the key to the longevity of Hooker Furnishings. The integrity, generosity, compassion, loyalty and
drive of our employees has been the foundation of our business for 100 years and no doubt will propel us forward into the next
century of business.
DISCIPLINE AND BOLDNESS
Making both improvements and investments in a challenging year
During a challenging year, we are proud of our team   s accomplishments and discipline as they successfully restructured our HMI
business model, improved pro   tability and strengthened our balance sheet.
At the same time, we demonstrated belief in our future vision by making investments to fuel long-term expansion.
While taking comprehensive steps this year to reposition HMI for expected sustainable pro   tability, we simultaneously executed
an array of ambitious long-term growth initiatives including the launch of the new    M    modern lifestyle brand, new showroom
openings, a new business operating system and the acquisition of BOBO Intriguing Objects to enhance our ability to be a whole
home resource.
Despite industry-wide weak demand for home furnishings much of the year and a 25.7% consolidated sales decrease, the Company
reported an operating income of about $12 million and net income of about $10 million, or $0.91 per share for the    scal year.
During the year, we strengthened our    nancial position and balance sheet, increasing cash by $24 million to over $43 million at
year-end as we adjusted our inventory levels to align with current demand. This resulted in about $35 million or 36% reduction,
including the successful liquidation of all of HMI   s obsolete inventories.
INDUSTRY-WIDE REDUCED REVENUES
Business in    scal 2024, and especially sales volume, was negatively impacted by excess inventories across the retail furniture sector,
most likely the result of pandemic-era demand pull-forward which resulted in clogged warehouses throughout much of the industry,
after more robust sales in the preceding years.
We also saw a decline in sales at Home Meridian partially due to our strategic decision to exit the Accentrics Home business, which
we reported last year when we took a $24 million non-cash inventory write-down and disposed of that division   s inventory during
   scal 2024. Although we knew this decision would reduce sales in the short term, we believed, and still believe, that eliminating the
risk and outsized inventory investment this business required is in our long-term best interests. We are pleased to report that we
disposed of the excess inventory by mid-year, ahead of schedule and at the expected cost. This allowed us to reduce our footprint
at our Savannah, GA warehouse by 400,000 square feet and reduce operating costs by about $2 million on an annualized basis.
We believe this action, combined with other efforts to reduce Home Meridian overhead and increase gross margins, sets Home
Meridian up for a return to operating pro   tability in the near future.



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