Sep 11, 2026 earnings call — Tariff recoveries lift quarterly profit
Hooker reported consolidated net income of $1.7 million, its third consecutive profitable quarter.
Revenue $0.1B (est $0.1B) · EPS $0.11 (est $-0.02)
Key quotes
"Prior to the US Supreme Court's February 2026 decision, invalidating IEPA tariffs, We incurred an estimated 10.3 million of cumulative pretax costs related to tariffs in our fiscal year 2026 results, which significantly exceeded the tariff recoveries we are reporting today."
"As well as the sustained impact of the $17.5 million in annualized fixed cost reductions implemented across continuing operations in the prior year."
"We now have commitments for approximately 100 in-store galleries and 10 freestanding retail stores, Shipments began in the second quarter and are expected to build through the second half of fiscal 27 and into fiscal 28."
Analyst Q&A 2
Out-of-stocks, upholstery types, Margaritaville galleries
Q (Anthony Lebiedzinski · Sidoti): He asked how serious the Hooker branded SKU out-of-stocks were and the current split of domestic upholstery between private label, outdoor, and custom. He also asked about Margaritaville revenue and timing, who pays to build the galleries, and any Labor Day retail feedback.
A: They said they could not comment further specifically on the out-of-stocks but called it a headwind caused by unpredictable overseas lead times and that they began to get through it in July, which gives a positive view for the second half. They said they report at the segment level and are seeing strength in outdoor furnishings and in private label. On Margaritaville they would not give specific revenue but said much of it will come in the second half as galleries open; gallery costs are to their capital allocation; Labor Day feedback was fairly positive and optimistic for the fall selling season.
"We tend to look at it at the segment level, Anthony." — C. Earl Armstrong (CFO)
Promotions, backlog, Margaritaville sales progress
Q (Dave Storms · Stonegate): He asked how confident they are in bringing down promotions in the second half despite a tough macro environment and how to think about price, mix, and volume discounting. He also asked for more detail on the backlog and whether Margaritaville is getting more firm commitments or sales funnel progress.
A: They said they have high confidence they can reduce promotions, citing July and seasonal summer patterns, and expect normalization and are optimistic about the second half. They would not give specific backlog details but said they are encouraged by the backlog and feel good about the second half. On Margaritaville they said partners are very supportive, noted "100 gallery commitments and 10 retail stores" as new real estate, and said the brand could be accretive without displacing Hooker.
"So we are confident that is not gonna be a trend moving forward." — Jeremy R. Hoff (CEO)