Hooker Furnishings (NASDAQ:HOFT) today reported its fiscal 2026 third-quarter results, marked by a sharp decline in sales and significant restructuring efforts, including the strategic divestiture of two core brands.
For the quarter ended November 2, 2025, consolidated net sales fell 14.4% year-over-year.
The company reported an operating loss of $16.3 million, driven partly by non-cash impairment charges.
Management recorded $22.1 million in non-cash impairments, or $16.7 million net of tax, in connection with its decision to exit unprofitable operations.
The company announced it has classified the businesses of Pulaski Furniture and Samuel Lawrence Furniture as discontinued operations, with the divestiture expected to close this week.
The move is part of a multi-year effort to streamline the portfolio and enhance future profitability.
To stabilize its financial footing, Hooker Furnishings has implemented significant cost reductions, estimating annualized savings of approximately $25 million to $26.5 million.
Despite the operating loss, the company reported a strong liquidity position with $63.8 million in available borrowing capacity at quarter-end.
In a move reflecting a focus on capital preservation, the board authorized a $5 million share repurchase program but also voted to cut the annual dividend by 50% to $0.46 per share.
A quarterly dividend of $0.115 per share will be payable on December 31, 2025.