Hooker Furnishings (NASDAQ:HOFT) has released its financial results for the fourth quarter and full fiscal year ended February 1, 2026, revealing a company in the midst of a significant structural transformation.
The company reported fiscal 2026 net sales of $278.1 million, a 12.4% decrease compared to the prior year.
For the fourth quarter, net sales reached $67 million, down 20.5% year-over-year, while net income for the period stood at $0.54 million.
The fiscal year was defined by aggressive moves to streamline the company’s portfolio and balance sheet.
Hooker Furnishings completed the divestitures of its Pulaski and Samuel Lawrence brands, a decision aimed at exiting lower-margin segments to focus on its premium core businesses.
These strategic exits, along with related restructuring, resulted in $15.6 million in non-cash impairment charges for the year.
Despite the top-line decline—which management attributed to a generally sluggish housing market and the deliberate reduction in the company's footprint—there were notable improvements in operational efficiency.
The company successfully executed $26.3 million in fixed cost reductions and reported an expansion in gross margins.
Furthermore, inventory levels were aggressively managed, ending the year at $48.7 million, down significantly from previous levels, which helped the firm maintain a year-end cash balance of $1.1 million.
Reflecting confidence in the new streamlined structure, the Board of Directors has authorized a share repurchase program of up to $5 million.