Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Apr. 30, 2023 | Jun. 02, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | HOOKER FURNISHINGS CORPORATION | |
Trading Symbol | HOFT | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --01-31 | |
Entity Common Stock, Shares Outstanding | 10,916,369 | |
Amendment Flag | false | |
Entity Central Index Key | 0001077688 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Apr. 30, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Entity File Number | 000-25349 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-0251350 | |
Entity Address, Address Line One | 440 East Commonwealth Boulevard | |
Entity Address, City or Town | Martinsville | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 24112 | |
City Area Code | 276 | |
Local Phone Number | 632-2133 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Current assets | ||
Cash and cash equivalents | $ 30,976 | $ 19,002 |
Trade accounts receivable, net | 54,528 | 62,129 |
Inventories | 73,188 | 96,675 |
Income tax recoverable | 2,985 | 3,079 |
Prepaid expenses and other current assets | 7,551 | 6,418 |
Total current assets | 169,228 | 187,303 |
Property, plant and equipment, net | 29,070 | 27,010 |
Cash surrender value of life insurance policies | 27,899 | 27,576 |
Deferred taxes | 14,208 | 14,484 |
Operating leases right-of-use assets | 66,806 | 68,949 |
Intangible assets, net | 30,895 | 31,779 |
Goodwill | 14,952 | 14,952 |
Other assets | 11,010 | 9,663 |
Total non-current assets | 194,840 | 194,413 |
Total assets | 364,068 | 381,716 |
Current liabilities | ||
Current portion of long-term debt | 1,393 | 1,393 |
Trade accounts payable | 15,991 | 16,090 |
Accrued salaries, wages and benefits | 5,743 | 9,290 |
Customer deposits | 6,582 | 8,511 |
Current portion of lease liabilities | 7,363 | 7,316 |
Other accrued expenses | 2,685 | 7,438 |
Total current liabilities | 39,757 | 50,038 |
Long term debt | 22,526 | 22,874 |
Deferred compensation | 8,022 | 8,178 |
Operating lease liabilities | 61,877 | 63,762 |
Other long-term liabilities | 855 | 843 |
Total long-term liabilities | 93,280 | 95,657 |
Total liabilities | 133,037 | 145,695 |
Shareholders’ equity | ||
Common stock, no par value, 20,000 shares authorized, 11,029 and 11,197 shares issued and outstanding on each date | 50,067 | 50,770 |
Retained earnings | 180,152 | 184,386 |
Accumulated other comprehensive income | 812 | 865 |
Total shareholders’ equity | 231,031 | 236,021 |
Total liabilities and shareholders’ equity | $ 364,068 | $ 381,716 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares | Apr. 30, 2023 | Jan. 29, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,029,000 | 11,197,000 |
Common stock, shares outstanding | 11,029,000 | 11,197,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 121,815,000 | $ 147,314,000 |
Cost of sales | 93,909,000 | 117,855,000 |
Gross profit | 27,906,000 | 29,459,000 |
Selling and administrative expenses | 25,048,000 | 24,658,000 |
Intangible asset amortization | 883,000 | 878,000 |
Operating income | 1,975,000 | 3,923,000 |
Other income, net | 56,000 | 278,000 |
Interest expense, net | 179,000 | 28,000 |
Income before income taxes | 1,852,000 | 4,173,000 |
Income tax expense | 402,000 | 991,000 |
Net income | $ 1,450,000 | $ 3,182,000 |
Earnings per share | ||
Basic (in Dollars per share) | $ 0.13 | $ 0.27 |
Diluted (in Dollars per share) | $ 0.13 | $ 0.26 |
Weighted average shares outstanding: | ||
Basic (in Shares) | 10,976 | 11,866 |
Diluted (in Shares) | 11,077 | 11,949 |
Cash dividends declared per share (in Dollars per share) | $ 0.22 | $ 0.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,450 | $ 3,182 |
Amortization of actuarial (loss) / gain | (70) | (18) |
Income tax effect on amortization | 17 | 4 |
Adjustments to net periodic benefit cost | (53) | (14) |
Total comprehensive income | $ 1,397 | $ 3,168 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Operating Activities: | ||
Net income | $ 1,450 | $ 3,182 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 2,147 | 2,287 |
Deferred income tax expense | 293 | 1,838 |
Noncash restricted stock and performance awards | 371 | 354 |
Provision for doubtful accounts and sales allowances | 37 | (349) |
Gain on life insurance policies | (634) | (568) |
Changes in assets and liabilities: | ||
Trade accounts receivable | 7,564 | (7,386) |
Inventories | 23,487 | (30,082) |
Income tax recoverable | 93 | (762) |
Prepaid expenses and other assets | (2,080) | (4,145) |
Trade accounts payable | (240) | 10,493 |
Accrued salaries, wages, and benefits | (3,547) | (1,827) |
Customer deposits | (1,928) | (906) |
Operating lease assets and liabilities | 305 | (168) |
Other accrued expenses | (4,743) | (1,830) |
Deferred compensation | (225) | (149) |
Net cash provided by/(used in) operating activities | 22,350 | (30,018) |
Investing Activities: | ||
Acquisitions | 0 | (25,912) |
Purchases of property and equipment | (3,158) | (830) |
Premiums paid on life insurance policies | (107) | (118) |
Net cash used in investing activities | (3,265) | (26,860) |
Financing Activities: | ||
Purchase and retirement of common stock | (4,317) | 0 |
Payments for long-term loans | (350) | 0 |
Cash dividends paid | (2,444) | (2,388) |
Cash used in financing activities | (7,111) | (2,388) |
Net increase/(decrease) in cash and cash equivalents | 11,974 | (59,266) |
Cash and cash equivalents - beginning of year | 19,002 | 69,366 |
Cash and cash equivalents - end of quarter | 30,976 | 10,100 |
Cash paid/(refund) for income taxes | 16 | (85) |
Cash paid for interest, net | 202 | 0 |
Increase in lease liabilities arising from changes in right-of-use assets | 0 | 3,689 |
Increase in property and equipment through accrued purchases | $ 145 | $ 47 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Jan. 30, 2022 | $ 53,295 | $ 207,884 | $ (51) | $ 261,128 |
Balance (in Shares) at Jan. 30, 2022 | 11,922,000 | |||
Net income | 3,182 | 3,182 | ||
Unrealized gain loss on defined benefit plan, net of tax | (14) | (14) | ||
Cash dividends paid and accrued | (2,388) | (2,388) | ||
Restricted stock grants, net of forfeitures | $ (96) | (96) | ||
Restricted stock grants, net of forfeitures (in Shares) | 80,000 | |||
Restricted stock compensation cost | $ 296 | 296 | ||
Performance-based restricted stock units costs | 154 | 154 | ||
Balance at May. 01, 2022 | $ 53,649 | 208,678 | (65) | 262,262 |
Balance (in Shares) at May. 01, 2022 | 12,002,000 | |||
Balance at Jan. 29, 2023 | $ 50,770 | 184,386 | 865 | $ 236,021 |
Balance (in Shares) at Jan. 29, 2023 | 11,197,000 | 11,197,000 | ||
Net income | 1,450 | $ 1,450 | ||
Unrealized gain loss on defined benefit plan, net of tax | (53) | (53) | ||
Cash dividends paid and accrued | (2,444) | (2,444) | ||
Purchase and retirement of common stock | $ (1,081) | (3,240) | (4,321) | |
Purchase and retirement of common stock (in Shares) | (227,000) | |||
Restricted stock grants, net of forfeitures | $ (150) | (150) | ||
Restricted stock grants, net of forfeitures (in Shares) | 59,000 | |||
Restricted stock compensation cost | $ 335 | 335 | ||
Performance-based restricted stock units costs | 193 | 193 | ||
Balance at Apr. 30, 2023 | $ 50,067 | $ 180,152 | $ 812 | $ 231,031 |
Balance (in Shares) at Apr. 30, 2023 | 11,029,000 | 11,029,000 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Unrealized loss on defined benefit plan, tax | $ 17 | $ 4 |
Cash dividends paid and accrued, per share | $ 0.22 | $ 0.2 |
Preparation of Interim Financia
Preparation of Interim Financial Statements | 3 Months Ended |
Apr. 30, 2023 | |
Accounting Policies [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. Preparation of Interim Financial Statements The condensed consolidated financial statements of Hooker Furnishings Corporation and subsidiaries (referred to as “we,” “us,” “our,” “Hooker” or the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these statements include all adjustments necessary for a fair statement of the results of all interim periods reported herein. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) are condensed or omitted pursuant to SEC rules and regulations. However, we believe that the disclosures made are adequate for a fair presentation of our results of operations and financial position. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended January 29, 2023 (“2023 Annual Report”). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect both the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. Operating results for the interim periods reported herein may not be indicative of the results expected for the fiscal year. The financial statements contained herein are being filed as part of a quarterly report on Form 10-Q covering the 2024 fiscal year thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “first quarter” or “quarterly period”) that began January 30, 2023 and ended April 30, 2023. This report discusses our results of operations for this period compared to the 2023 fiscal year thirteen-week period that began January 31, 2022 and ended May 1, 2022; and our financial condition as of April 30, 2023 compared to January 29, 2023. References in these notes to the condensed consolidated financial statements of the Company to: ■ the 2024 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began January 30, 2023 and will end January 28, 2024; and ■ the 2023 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began January 31, 2022 and ended January 29, 2023. |
Recently Adopted Accounting Pol
Recently Adopted Accounting Policies | 3 Months Ended |
Apr. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 2. Recently Adopted Accounting Policies No new accounting pronouncements have been adopted in the 2024 fiscal year. We reviewed newly issued accounting pronouncements and concluded they are either not applicable to our business or are not expected to have a material effect on our consolidated financial statements as a result of future adoption. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 30, 2023 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 3. Accounts Receivable April 30, January 29, 2023 2023 Gross accounts receivable $ 59,941 $ 67,600 Customer allowances (3,461 ) (3,702 ) Allowance for doubtful accounts (1,952 ) (1,769 ) Trade accounts receivable $ 54,528 $ 62,129 |
Inventories
Inventories | 3 Months Ended |
Apr. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 4. Inventories April 30, January 29, 2023 2023 Finished furniture $ 89,658 $ 115,015 Furniture in process 1,766 1,943 Materials and supplies 13,391 13,509 Inventories at FIFO 104,815 130,467 Reduction to LIFO basis (31,627 ) (33,792 ) Inventories $ 73,188 $ 96,675 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Apr. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property, Plant and Equipment Depreciable Lives April 30, January 29, (In years) 2023 2023 Buildings and land improvements 15 - 30 $ 32,783 $ 32,723 Computer software and hardware 3 - 10 16,000 15,887 Machinery and equipment 10 11,335 11,013 Leasehold improvements Term of lease 15,064 11,894 Furniture and fixtures 3 - 10 6,313 5,991 Other 5 695 694 Total depreciable property at cost 82,190 78,202 Less accumulated depreciation (54,663 ) (53,427 ) Total depreciable property, net 27,527 24,775 Land 1,077 1,077 Construction-in-progress 466 1,158 Property, plant and equipment, net $ 29,070 $ 27,010 |
Cloud Computing Hosting Arrange
Cloud Computing Hosting Arrangement | 3 Months Ended |
Apr. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Other Assets Disclosure [Text Block] | 6. Cloud Computing Hosting Arrangement We are in the process of implementing a common Enterprise Resource Planning system (ERP) across all divisions. The ERP went live at Sunset West in December 2022 and is expected to go-live in other legacy Hooker divisions during fiscal 2024, with the Home Meridian segment following afterwards. Based on the provisions of ASU 2018-15, Intangibles Goodwill and Other Internal-Use Software Interest Capitalized Implementation Costs Capitalized interest expenses Balance at January 29, 2023 $ 8,598 $ 84 Costs capitalized during the period 1,298 66 Accumulated amortization (19 ) (1 ) Balance at April 30, 2023 $ 9,877 $ 149 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 7. Fair Value Measurements Fair value is the price that would be received upon the sale of an asset or paid upon the transfer of a liability (an exit price) in an orderly transaction between market participants on the applicable measurement date. We use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: ■ Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities; ■ Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and ■ Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. As of April 30, 2023 and January 29, 2023, Company-owned life insurance was measured at fair value on a recurring basis based on Level 2 inputs. The fair value of the Company-owned life insurance is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Additionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value is reflected in income for that period. Our assets measured at fair value on a recurring basis at April 30, 2023 and January 29, 2023, were as follows: Fair value at April 30, 2023 Fair value at January 29, 2023 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Assets measured at fair value Company-owned life insurance $ - $ 27,899 $ - $ 27,899 $ - $ 27,576 $ - $ 27,576 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 8. Intangible Assets Our intangible assets with indefinite lives consist of goodwill related to the Shenandoah and Sunset West acquisitions and trademarks and tradenames related to the acquisitions of Bradington-Young, Sam Moore and Home Meridian. During the fiscal 2024 first quarter, we announced the rebranding of the Sam Moore product line to “HF Custom”. As a result, we reassessed the characteristics of the Sam Moore trade name and the roll-out process, and determined it qualified for amortization. We will amortize the value of Sam Moore trade name over a 24-month period using the straight-line method, starting from mid-April. Our intangible assets with definite lives are recorded in our Home Meridian and Domestic Upholstery segments. Details of our intangible assets are as follows: April 30, 2023 January 29, 2023 Gross carrying amount Accumulated Amortization Gross carrying amount Accumulated Amortization Intangible assets with indefinite lives: Goodwill Domestic Upholstery - Shenandoah * 490 - 490 - Domestic Upholstery - Sunset West 14,462 - 14,462 - Goodwill 14,952 - 14,952 - Trademarks and Trade names * 7,511 - 7,907 - Intangible assets with definite lives: Customer Relations 38,001 (16,460 ) 38,001 (15,618 ) Trademarks and Trade names 2,334 (491 ) 1,938 (449 ) Intangible assets, net 47,846 (16,951 ) 47,846 (16,067 ) *: The amounts are net of impairment charges of $16.4 million related to Shenandoah goodwill and $4.8 million related to certain Home Meridian segment trade names, which were recorded in fiscal 2021. Amortization expenses for intangible assets with definite lives were $883,000 and $878,000 for the first quarters of fiscal 2024 and 2023, respectively. For the remainder of fiscal 2024, amortization expense is expected to be approximately $2.8 million. |
Leases
Leases | 3 Months Ended |
Apr. 30, 2023 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | 9. Leases We recognized sublease income of $29,000 and $348,000 in the first quarters of fiscal 2024 and 2023, respectively. The components of lease cost and supplemental cash flow information for leases in the first quarters of fiscal 2024 and 2023 were: Thirteen Weeks Ended April 30, 2023 May 1, 2022 Operating lease cost $ 2,838 $ 2,527 Variable lease cost 82 55 Short-term lease cost 79 80 Total operating lease cost $ 2,999 $ 2,662 Operating cash outflows $ 2,694 $ 2,829 The right-of-use assets and lease liabilities recorded on our condensed consolidated balance sheets as of April 30, 2023 and January 29, 2023 were as follows: April 30, 2023 January 29, 2023 Real estate $ 66,173 $ 68,212 Property and equipment 633 737 Total operating leases right-of-use assets $ 66,806 $ 68,949 Current portion of operating lease liabilities $ 7,363 $ 7,316 Long term operating lease liabilities 61,877 63,762 Total operating lease liabilities $ 69,240 $ 71,078 For leases that commenced before July 2022, we used our incremental borrowing rate which was LIBOR plus 1.5%. When we entered into the new loan agreement (described in Note 10 below), our incremental borrowing rate for unsecured term loan became the current BSBY rate plus 1.40%. We use this rate as discount rate for leases commenced in July 2022 and thereafter. The weighted-average discount rate is 4.01%. The weighted-average remaining lease term is 7.8 years. The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on April 30, 2023: Undiscounted Future Operating Lease Payments Remainder of fiscal 2024 $ 7,463 2025 10,102 2026 10,182 2027 10,267 2028 8,931 2029 and thereafter 35,130 Total lease payments $ 82,075 Less: impact of discounting (12,835 ) Present value of lease payments $ 69,240 As of April 30, 2023, the Company had an additional lease for a showroom in Atlanta, Georgia. This lease commenced in May of calendar 2023 with an initial lease term of 3 years and estimated future minimum rental commitments of approximately $1.0 million. Since the lease had not yet commenced at quarter end, the undiscounted amounts are not included in the table above. Subsequent to the fiscal 2024 first quarter, we entered into an agreement to reduce our footprint in the Georgia warehouse. This amendment results in an approximate $6 million decrease in rental payments over the remaining lease term. Since the agreement had not yet commenced, the modification is not reflected in the table above. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt [Text Block] | 10. Long-Term Debt On July 26, 2022, we entered into the Fourth Amendment to the Second Amended and Restated Loan Agreement with Bank of America, N.A. (“BofA”) to replenish cash used to make the acquisition of substantially all of the assets of Sunset West (which closed at the beginning of the first quarter of fiscal 2023) (the “Sunset Acquisition”). The Second Amended and Restated Loan Agreement dated as of September 29, 2017, had previously been amended by a First Amendment to Second Amended and Restated Loan Agreement dated as of January 31, 2019, a Second Amendment to Second Amended and Restated Loan Agreement dated as of November 4, 2020, and a Third Amendment to Second Amended and Restated Loan Agreement dated as of January 27, 2021 (as so amended, the “Existing Loan Agreement”). Details of the individual credit facilities provided for in the Amendment are as follows: ■ Unsecured Revolving Credit Facility. Under the Amendment, the expiration date of the existing $35 million Unsecured Revolving Credit Facility (the “Existing Revolver”) was extended to July 26, 2027. Any amounts outstanding will bear interest at a rate per annum, equal to the then current Bloomberg Short-Term Bank Yield Index (“BSBY”) (adjusted periodically) plus 1.00%. The interest rate will be adjusted on a monthly basis. The actual daily amount of undrawn letters of credit is subject to a quarterly fee equal to a per annum rate of 1%. We must also pay a quarterly unused commitment fee that is based on the average daily amount of the facility utilized during the applicable quarter; ■ 2022 Secured Term Loan. The Amendment provided us with a $18 million term loan (the “Secured Term Loan”), which was disbursed to us on July 26, 2022. We are required to pay monthly interest only payments at a rate per annum equal to the then current BSBY rate (adjusted periodically) plus 0.90% on the outstanding balance until the principal is paid in full. The interest rate will be adjusted on a monthly basis. On July 26, 2027, the entire outstanding indebtedness is due in full, including all principal and interest. The Secured Term Loan is secured by certain company-owned life insurance policies under a Security Agreement (Assignment of Life Insurance Policy as Collateral) dated July 26, 2022, by and between the Company and BofA; and ■ 2022 Unsecured Term Loan. The Amendment provided us with a $7 million unsecured term loan (the “Unsecured Term Loan”), which was disbursed to us on July 26, 2022. We are required to pay monthly principal payments of $116,667 and monthly interest payments at a rate per annum equal to the then current BSBY (adjusted periodically) plus 1.40% on the outstanding balance until paid in full. The interest rate will be adjusted monthly. On July 26, 2027, the entire outstanding indebtedness is due in full, including all principal and interest. We may prepay any outstanding principal amounts borrowed under either the Secured Term Loan or the Unsecured Term Loan at any time, without penalty provided that any payment is accompanied by all accrued interest owed. As of April 30, 2023, $5.9 million was outstanding under the Unsecured Term Loan, and $18 million was outstanding under the Secured Term Loan. We incurred $37,500 in debt issuance costs in connection with our term loans. As of April 30, 2023, unamortized loan costs of $31,875 were netted against the carrying value of our term loans on our condensed consolidated balance sheets. The Amendment also included customary representations and warranties and requires us to comply with customary covenants, including, among other things, the following financial covenants: ■ Maintain a ratio of funded debt to EBITDA not exceeding: o 2.50:1.0 through July 30, 2023; o 2.25:1.0 through July 30, 2024; and o 2.00:1.00 thereafter. ■ A basic fixed charge coverage ratio of at least 1.25:1.00; and ■ Limit capital expenditures to no more than $15.0 million during any fiscal year. The Existing Loan Agreement also limits our right to incur other indebtedness, make certain investments and create liens upon our assets, subject to certain exceptions, among other restrictions. The Existing Loan Agreement does not restrict our ability to pay cash dividends on, or repurchase, shares of our common stock, subject to our compliance with the financial covenants discussed above if we are not otherwise in default under the Existing Loan Agreement. We were in compliance with each of these financial covenants at April 30, 2023 and expect to remain in compliance with existing covenants for the foreseeable future. As of April 30, 2023, we had $27.2 million available under our $35 million Existing Revolver to fund working capital needs. Standby letters of credit in the aggregate amount of $7.8 million, used to collateralize certain insurance arrangements and for imported product purchases, were outstanding under the Existing Revolver as of April 30, 2023. There were no additional borrowings outstanding under the Existing Revolver as of April 30, 2023. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 11. Earnings Per Share We refer you to the discussion of Earnings Per Share in Note 2. Summary of Significant Accounting Policies, in the financial statements included in our 2023 Annual Report, for additional information concerning the calculation of earnings per share (EPS). All stock awards are designed to encourage retention and to provide an incentive for increasing shareholder value. We have issued restricted stock awards to non-employee members of the board of directors since 2006 and to certain non-executive employees since 2014. We have issued restricted stock units (“RSUs”) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We have issued Performance-based Restricted Stock Units (“PSUs”) to certain senior executives since fiscal 2019 under the Company’s Stock Incentive Plan. Each PSU entitles the executive officer to receive one share of our common stock based on the achievement of two specified performance conditions if the executive officer remains continuously employed through the end of the three-year performance period. One target is based on our annual average growth in our EPS over the performance period and the other target is based on EPS growth over the performance period compared to our peers. The payout or settlement of the PSUs will be made in shares of our common stock. We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated: April 30, January 29, 2023 2023 Restricted shares 175 132 RSUs and PSUs 156 101 331 233 All restricted shares, RSUs and PSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share: Thirteen Weeks Ended April 30, May 1, 2023 2022 Net income $ 1,450 $ 3,182 Less: Unvested participating restricted stock dividends 30 19 Net earnings allocated to unvested participating restricted stock 18 25 Earnings available for common shareholders 1,402 3,138 Weighted average shares outstanding for basic earnings per share 10,976 11,866 Dilutive effect of unvested restricted stock, RSU and PSU awards 101 83 Weighted average shares outstanding for diluted earnings per share 11,077 11,949 Basic earnings per share $ 0.13 $ 0.27 Diluted earnings per share $ 0.13 $ 0.26 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 12. Income Taxes We recorded income tax expenses of $402,000 and $991,000 for the fiscal 2024 and fiscal 2023 first quarters, respectively. The effective tax rates for the fiscal 2024 and 2023 first quarters were 21.7% and 23.7%, respectively. No material and non-routine positions have been identified that are uncertain tax positions. Tax years ending February 2, 2020 through January 29, 2023 remain subject to examination by federal and state taxing authorities. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 13. Segment Information As a public entity, we are required to present disaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The management approach requires segment information to be reported based on how management internally evaluates the operating performance of the company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting as outlined in ASC 280 Segments ■ better understand our performance; ■ better assess our prospects for future net cash flows; and ■ make more informed judgments about us as a whole. We define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income, as determined by the information regularly reviewed by the CODM. For financial reporting purposes, we are organized into three reportable segments and “All Other”, which includes the remainder of our businesses: ■ Hooker Branded ■ Home Meridian ■ Domestic Upholstery, ■ All Other The following table presents segment information for the periods, and as of the dates, indicated. Thirteen Weeks Ended April 30, May 1, 2023 2022 % Net % Net Net Sales Sales Sales Hooker Branded $ 41,891 34.4 % $ 42,230 28.7 % Home Meridian 41,921 34.4 % 62,085 42.1 % Domestic Upholstery 35,104 28.8 % 41,220 28.0 % All Other 2,899 2.4 % 1,779 1.2 % Consolidated $ 121,815 100 % $ 147,314 100.0 % Gross Profit Hooker Branded $ 13,091 31.3 % $ 13,240 31.4 % Home Meridian 6,713 16.0 % 6,305 10.2 % Domestic Upholstery 7,023 20.0 % 9,354 22.7 % All Other 1,079 37.2 % 560 31.5 % Consolidated $ 27,906 22.9 % $ 29,459 20.0 % Operating Income/(Loss) Hooker Branded $ 2,300 5.5 % $ 4,142 9.8 % Home Meridian (2,119 ) -5.1 % (3,095 ) -5.0 % Domestic Upholstery 1,328 3.8 % 2,752 6.7 % All Other 466 16.1 % 124 7.0 % Consolidated $ 1,975 1.6 % $ 3,923 2.7 % Capital Expenditures Hooker Branded $ 2,787 $ 468 Home Meridian 227 40 Domestic Upholstery 116 322 All Other 28 - Consolidated $ 3,158 $ 830 Depreciation & Amortization Hooker Branded $ 491 $ 684 Home Meridian 687 662 Domestic Upholstery 947 938 All Other 22 3 Consolidated $ 2,147 $ 2,287 As of April 30, As of January 29, 2023 %Total 2023 %Total Identifiable Assets Assets Assets Hooker Branded $ 172,499 54.2 % $ 174,523 52.1 % Home Meridian 80,709 25.4 % 92,469 27.6 % Domestic Upholstery 63,307 19.9 % 66,435 19.8 % All Other 1,706 0.5 % 1,558 0.5 % Consolidated $ 318,221 100 % $ 334,985 100 % Consolidated Goodwill and Intangibles 45,847 46,731 Total Consolidated Assets $ 364,068 $ 381,716 Sales by product type are as follows: Net Sales (in thousands) Thirteen Weeks Ended April 30, 2023 %Total May 1, 2022 %Total Casegoods $ 67,975 56 % $ 74,192 50 % Upholstery 53,840 44 % 73,122 50 % $ 121,815 100 % $ 147,314 100 % |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 14. Subsequent Events Dividends On June 5, 2023, our board of directors declared a quarterly cash dividend of $0.22 per share which will be paid on June 30, 2023 to shareholders of record at June 16, 2023. Additional Share Repurchase Authorization On June 5, 2023 our Board of Directors approved an additional $5 million for the repurchase of our common shares, adding to the $20 million authorization it approved in June 2022. As of the filing date of this report, approximately $5.5 million remains available for the repurchase of our shares under these authorizations. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | April 30, January 29, 2023 2023 Gross accounts receivable $ 59,941 $ 67,600 Customer allowances (3,461 ) (3,702 ) Allowance for doubtful accounts (1,952 ) (1,769 ) Trade accounts receivable $ 54,528 $ 62,129 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | April 30, January 29, 2023 2023 Finished furniture $ 89,658 $ 115,015 Furniture in process 1,766 1,943 Materials and supplies 13,391 13,509 Inventories at FIFO 104,815 130,467 Reduction to LIFO basis (31,627 ) (33,792 ) Inventories $ 73,188 $ 96,675 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Depreciable Lives April 30, January 29, (In years) 2023 2023 Buildings and land improvements 15 - 30 $ 32,783 $ 32,723 Computer software and hardware 3 - 10 16,000 15,887 Machinery and equipment 10 11,335 11,013 Leasehold improvements Term of lease 15,064 11,894 Furniture and fixtures 3 - 10 6,313 5,991 Other 5 695 694 Total depreciable property at cost 82,190 78,202 Less accumulated depreciation (54,663 ) (53,427 ) Total depreciable property, net 27,527 24,775 Land 1,077 1,077 Construction-in-progress 466 1,158 Property, plant and equipment, net $ 29,070 $ 27,010 |
Cloud Computing Hosting Arran_2
Cloud Computing Hosting Arrangement (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Based on the provisions of ASU 2018-15, Intangibles Goodwill and Other Internal-Use Software Interest Capitalized Implementation Costs Capitalized interest expenses Balance at January 29, 2023 $ 8,598 $ 84 Costs capitalized during the period 1,298 66 Accumulated amortization (19 ) (1 ) Balance at April 30, 2023 $ 9,877 $ 149 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Our assets measured at fair value on a recurring basis at April 30, 2023 and January 29, 2023, were as follows: Fair value at April 30, 2023 Fair value at January 29, 2023 Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (In thousands) Assets measured at fair value Company-owned life insurance $ - $ 27,899 $ - $ 27,899 $ - $ 27,576 $ - $ 27,576 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | April 30, 2023 January 29, 2023 Gross carrying amount Accumulated Amortization Gross carrying amount Accumulated Amortization Intangible assets with indefinite lives: Goodwill Domestic Upholstery - Shenandoah * 490 - 490 - Domestic Upholstery - Sunset West 14,462 - 14,462 - Goodwill 14,952 - 14,952 - Trademarks and Trade names * 7,511 - 7,907 - Intangible assets with definite lives: Customer Relations 38,001 (16,460 ) 38,001 (15,618 ) Trademarks and Trade names 2,334 (491 ) 1,938 (449 ) Intangible assets, net 47,846 (16,951 ) 47,846 (16,067 ) *: The amounts are net of impairment charges of $16.4 million related to Shenandoah goodwill and $4.8 million related to certain Home Meridian segment trade names, which were recorded in fiscal 2021. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Disclosure Text Block [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease cost and supplemental cash flow information for leases in the first quarters of fiscal 2024 and 2023 were: Thirteen Weeks Ended April 30, 2023 May 1, 2022 Operating lease cost $ 2,838 $ 2,527 Variable lease cost 82 55 Short-term lease cost 79 80 Total operating lease cost $ 2,999 $ 2,662 Operating cash outflows $ 2,694 $ 2,829 |
Schedule of Right-of-Use Assets and Lease Liabilities [Table Text Block] | The right-of-use assets and lease liabilities recorded on our condensed consolidated balance sheets as of April 30, 2023 and January 29, 2023 were as follows: April 30, 2023 January 29, 2023 Real estate $ 66,173 $ 68,212 Property and equipment 633 737 Total operating leases right-of-use assets $ 66,806 $ 68,949 Current portion of operating lease liabilities $ 7,363 $ 7,316 Long term operating lease liabilities 61,877 63,762 Total operating lease liabilities $ 69,240 $ 71,078 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on April 30, 2023: Undiscounted Future Operating Lease Payments Remainder of fiscal 2024 $ 7,463 2025 10,102 2026 10,182 2027 10,267 2028 8,931 2029 and thereafter 35,130 Total lease payments $ 82,075 Less: impact of discounting (12,835 ) Present value of lease payments $ 69,240 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Earnings Per Share [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated: April 30, January 29, 2023 2023 Restricted shares 175 132 RSUs and PSUs 156 101 331 233 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | All restricted shares, RSUs and PSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share: Thirteen Weeks Ended April 30, May 1, 2023 2022 Net income $ 1,450 $ 3,182 Less: Unvested participating restricted stock dividends 30 19 Net earnings allocated to unvested participating restricted stock 18 25 Earnings available for common shareholders 1,402 3,138 Weighted average shares outstanding for basic earnings per share 10,976 11,866 Dilutive effect of unvested restricted stock, RSU and PSU awards 101 83 Weighted average shares outstanding for diluted earnings per share 11,077 11,949 Basic earnings per share $ 0.13 $ 0.27 Diluted earnings per share $ 0.13 $ 0.26 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents segment information for the periods, and as of the dates, indicated. Thirteen Weeks Ended April 30, May 1, 2023 2022 % Net % Net Net Sales Sales Sales Hooker Branded $ 41,891 34.4 % $ 42,230 28.7 % Home Meridian 41,921 34.4 % 62,085 42.1 % Domestic Upholstery 35,104 28.8 % 41,220 28.0 % All Other 2,899 2.4 % 1,779 1.2 % Consolidated $ 121,815 100 % $ 147,314 100.0 % Gross Profit Hooker Branded $ 13,091 31.3 % $ 13,240 31.4 % Home Meridian 6,713 16.0 % 6,305 10.2 % Domestic Upholstery 7,023 20.0 % 9,354 22.7 % All Other 1,079 37.2 % 560 31.5 % Consolidated $ 27,906 22.9 % $ 29,459 20.0 % Operating Income/(Loss) Hooker Branded $ 2,300 5.5 % $ 4,142 9.8 % Home Meridian (2,119 ) -5.1 % (3,095 ) -5.0 % Domestic Upholstery 1,328 3.8 % 2,752 6.7 % All Other 466 16.1 % 124 7.0 % Consolidated $ 1,975 1.6 % $ 3,923 2.7 % Capital Expenditures Hooker Branded $ 2,787 $ 468 Home Meridian 227 40 Domestic Upholstery 116 322 All Other 28 - Consolidated $ 3,158 $ 830 Depreciation & Amortization Hooker Branded $ 491 $ 684 Home Meridian 687 662 Domestic Upholstery 947 938 All Other 22 3 Consolidated $ 2,147 $ 2,287 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | As of April 30, As of January 29, 2023 %Total 2023 %Total Identifiable Assets Assets Assets Hooker Branded $ 172,499 54.2 % $ 174,523 52.1 % Home Meridian 80,709 25.4 % 92,469 27.6 % Domestic Upholstery 63,307 19.9 % 66,435 19.8 % All Other 1,706 0.5 % 1,558 0.5 % Consolidated $ 318,221 100 % $ 334,985 100 % Consolidated Goodwill and Intangibles 45,847 46,731 Total Consolidated Assets $ 364,068 $ 381,716 |
Revenue from External Customers by Products and Services [Table Text Block] | Sales by product type are as follows: Net Sales (in thousands) Thirteen Weeks Ended April 30, 2023 %Total May 1, 2022 %Total Casegoods $ 67,975 56 % $ 74,192 50 % Upholstery 53,840 44 % 73,122 50 % $ 121,815 100 % $ 147,314 100 % |
Accounts Receivable (Details) -
Accounts Receivable (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Schedule Of Accounts Notes Loans And Financing Receivable Abstract | ||
Gross accounts receivable | $ 59,941 | $ 67,600 |
Customer allowances | (3,461) | (3,702) |
Allowance for doubtful accounts | (1,952) | (1,769) |
Trade accounts receivable | $ 54,528 | $ 62,129 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Schedule Of Inventory Current Abstract | ||
Finished furniture | $ 89,658 | $ 115,015 |
Furniture in process | 1,766 | 1,943 |
Materials and supplies | 13,391 | 13,509 |
Inventories at FIFO | 104,815 | 130,467 |
Reduction to LIFO basis | (31,627) | (33,792) |
Inventories | $ 73,188 | $ 96,675 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - Property, Plant and Equipment - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | Jan. 29, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 82,190 | $ 78,202 |
Less accumulated depreciation | (54,663) | (53,427) |
Total depreciable property, net | 27,527 | 24,775 |
Land | 1,077 | 1,077 |
Construction-in-progress | 466 | 1,158 |
Property, plant and equipment, net | 29,070 | 27,010 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 32,783 | 32,723 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 15 | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 30 | |
Computer Software and Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 16,000 | 15,887 |
Computer Software and Hardware [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 3 | |
Computer Software and Hardware [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 10 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 11,335 | 11,013 |
Property, Plant and Equipment, Depreciable Lives | 10 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 15,064 | 11,894 |
Property, Plant and Equipment, Depreciable Lives | Term of lease | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,313 | 5,991 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 3 | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Depreciable Lives | 10 | |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 695 | $ 694 |
Property, Plant and Equipment, Depreciable Lives | 5 |
Cloud Computing Hosting Arran_3
Cloud Computing Hosting Arrangement (Details) | Apr. 30, 2023 |
Computer Software and Hardware [Member] | |
Cloud Computing Hosting Arrangement (Details) [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Cloud Computing Hosting Arran_4
Cloud Computing Hosting Arrangement (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure $ in Thousands | 3 Months Ended |
Apr. 30, 2023 USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Capitalized Implementation Costs, Balance | $ 8,598 |
Capitalized interest expenses, Balance | 84 |
Capitalized Implementation Costs, Costs capitalized | 1,298 |
Capitalized interest expenses, Costs capitalized | 66 |
Capitalized Implementation Costs, Accumulated amortization | (19) |
Capitalized interest expenses, Accumulated amortization | (1) |
Capitalized Implementation Costs, Balance | 9,877 |
Capitalized interest expenses, Balance | $ 149 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Assets measured at fair value | ||
Company-owned life insurance | $ 27,899 | $ 27,576 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value | ||
Company-owned life insurance | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value | ||
Company-owned life insurance | 27,899 | 27,576 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value | ||
Company-owned life insurance | $ 0 | $ 0 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | Jan. 31, 2021 | |
Intangible Assets (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 24 months | ||
Amortization of Intangible Assets | $ 883,000 | $ 878,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 2,800,000 | ||
Shenandoah Furniture [Member] | |||
Intangible Assets (Details) [Line Items] | |||
Goodwill and Intangible Asset Impairment | $ 16,400,000 | ||
Home Meridian International [Member] | |||
Intangible Assets (Details) [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 4,800,000 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Indefinite-Lived Intangible Assets - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Intangible assets with definite lives: | ||
Intangible assets, net, Gross carrying amount | $ 47,846 | $ 47,846 |
Intangible assets, net, Accumulated Amortization | (16,951) | (16,067) |
Goodwill [Member] | ||
Goodwill | ||
Goodwill, Gross carrying amount | 14,952 | 14,952 |
Goodwill, Accumulated Amortization | 0 | 0 |
Goodwill [Member] | Shenandoah Furniture [Member] | ||
Goodwill | ||
Goodwill, Gross carrying amount | 490 | 490 |
Goodwill, Accumulated Amortization | 0 | 0 |
Goodwill [Member] | Sunset West [Member] | ||
Goodwill | ||
Goodwill, Gross carrying amount | 14,462 | 14,462 |
Goodwill, Accumulated Amortization | 0 | 0 |
Trademarks and Trade Names [Member] | ||
Goodwill | ||
Trademarks and trade names, Gross carrying amount | 7,511 | 7,907 |
Customer Relationships [Member] | ||
Intangible assets with definite lives: | ||
Trademarks and trade names, Gross carrying amount | 38,001 | 38,001 |
Trademarks and trade names, Accumulated Amortization | (16,460) | (15,618) |
Trademarks and Trade Names [Member] | ||
Intangible assets with definite lives: | ||
Trademarks and trade names, Gross carrying amount | 2,334 | 1,938 |
Trademarks and trade names, Accumulated Amortization | $ (491) | $ (449) |
Leases (Details)
Leases (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 08, 2023 | Jul. 31, 2022 | Apr. 30, 2023 | May 01, 2022 | Jan. 30, 2022 | |
Leases (Details) [Line Items] | |||||
Operating Lease, Lease Income | $ 29,000 | $ 348,000 | |||
Operating Leases of Lessee, Contingent Rentals, Description of Variable Rate Basis | incremental borrowing rate for unsecured term loan became the current BSBY rate plus 1.40% | incremental borrowing rate which was LIBOR plus 1.5% | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4.01% | ||||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 9 months 18 days | ||||
Operating Lease, Payments | $ 2,694,000 | 2,829,000 | |||
Increase (Decrease) in Operating Lease Liability | $ (6,000,000) | $ 0 | $ 3,689,000 | ||
Minimum [Member] | |||||
Leases (Details) [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 3 years | ||||
Operating Lease, Payments | $ 1,000,000 |
Leases (Details) - Lease, Cost
Leases (Details) - Lease, Cost - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Leases (Details) - Lease, Cost [Line Items] | ||
Operating lease cost | $ 2,999 | $ 2,662 |
Operating cash outflows | 2,694 | 2,829 |
Operating Lease Costs [Member] | ||
Leases (Details) - Lease, Cost [Line Items] | ||
Operating lease cost | 2,838 | 2,527 |
Variable Lease Cost [Member] | ||
Leases (Details) - Lease, Cost [Line Items] | ||
Operating lease cost | 82 | 55 |
Leases Less Then 12 Months [Member] | ||
Leases (Details) - Lease, Cost [Line Items] | ||
Operating lease cost | $ 79 | $ 80 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | $ 66,806 | $ 68,949 |
Current portion of operating lease liabilities | 7,363 | 7,316 |
Long term operating lease liabilities | 61,877 | 63,762 |
Total operating lease liabilities | 69,240 | 71,078 |
Real Estate [Member] | ||
Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | 66,173 | 68,212 |
Property, Plant and Equipment [Member] | ||
Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items] | ||
Operating leases right-of-use assets | $ 633 | $ 737 |
Leases (Details) - Lessee, Oper
Leases (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Lessee Operating Lease Liability Maturity Abstract | ||
Remainder of fiscal 2024 | $ 7,463 | |
2025 | 10,102 | |
2026 | 10,182 | |
2027 | 10,267 | |
2028 | 8,931 | |
2029 and thereafter | 35,130 | |
Total lease payments | 82,075 | |
Less: impact of discounting | (12,835) | |
Present value of lease payments | $ 69,240 | $ 71,078 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Jul. 26, 2022 | Apr. 30, 2023 |
Long-Term Debt (Details) [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 27,200,000 | |
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 37,500 | 31,875 |
Line of Credit Facility, Covenant Terms | Maintain a ratio of funded debt to EBITDA not exceeding: o 2.50:1.0 through July 30, 2023; o 2.25:1.0 through July 30, 2024; and o 2.00:1.00 thereafter. ■ A basic fixed charge coverage ratio of at least 1.25:1.00; and ■ Limit capital expenditures to no more than $15.0 million during any fiscal year. | |
Letters of Credit Outstanding, Amount | 7,800,000 | |
2022 Secured Term Loan [Member] | ||
Long-Term Debt (Details) [Line Items] | ||
Debt Instrument, Face Amount | $ 18,000,000 | |
2022 Secured Term Loan [Member] | Bloomberg Short-Term Bank Yield Index ("BSBY") [Member] | ||
Long-Term Debt (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.90% | |
2022 Unsecured Term Loan [Member] | ||
Long-Term Debt (Details) [Line Items] | ||
Debt Instrument, Face Amount | $ 7,000,000 | |
Debt Instrument, Periodic Payment | $ 116,667 | |
Line of Credit Facility, Current Borrowing Capacity | 5,900,000 | |
2022 Unsecured Term Loan [Member] | Bloomberg Short-Term Bank Yield Index ("BSBY") [Member] | ||
Long-Term Debt (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.40% | |
Line of Credit [Member] | ||
Long-Term Debt (Details) [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 35,000,000 | $ 35,000,000 |
Debt Instrument, Basis Spread on Variable Rate | 1% | |
Line of Credit [Member] | Bloomberg Short-Term Bank Yield Index ("BSBY") [Member] | ||
Long-Term Debt (Details) [Line Items] | ||
Line of Credit Facility, Commitment Fee Percentage | 1% |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units - shares shares in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 331 | 233 |
Restricted Stock [Member] | ||
Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 175 | 132 |
Restricted Stock Units (RSUs) and Performance Shares (PSUs) [Member] | ||
Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items] | ||
Number of Shares Outstanding | 156 | 101 |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Schedule Of Earnings Per Share Basic And Diluted Abstract | ||
Net income | $ 1,450 | $ 3,182 |
Less: Unvested participating restricted stock dividends | 30 | 19 |
Net earnings allocated to unvested participating restricted stock | 18 | 25 |
Earnings available for common shareholders | $ 1,402 | $ 3,138 |
Weighted average shares outstanding for basic earnings per share (in Shares) | 10,976 | 11,866 |
Dilutive effect of unvested restricted stock, RSU and PSU awards (in Shares) | 101 | 83 |
Weighted average shares outstanding for diluted earnings per share (in Shares) | 11,077 | 11,949 |
Basic earnings per share (in Dollars per share) | $ 0.13 | $ 0.27 |
Diluted earnings per share (in Dollars per share) | $ 0.13 | $ 0.26 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 21.70% | 23.70% |
Income Tax Expense (Benefit) | $ 402 | $ 991 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended |
Apr. 30, 2023 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Segment Information (Details) -
Segment Information (Details) - Segment Reporting Information - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 121,815 | $ 147,314 |
% of Net Sales | 100% | 100% |
Gross Profit | ||
Gross Profit | $ 27,906 | $ 29,459 |
% of Net Sales, Gross Profit | 22.90% | 20% |
Operating Income/(Loss) | ||
Operating Income | $ 1,975 | $ 3,923 |
% of Net Sales, Operating Income | 1.60% | 2.70% |
Capital Expenditures | ||
Capital Expenditures | $ 3,158 | $ 830 |
Depreciation & Amortization | ||
Depreciation & Amortization | 2,147 | 2,287 |
Hooker Branded [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 41,891 | $ 42,230 |
% of Net Sales | 34.40% | 28.70% |
Gross Profit | ||
Gross Profit | $ 13,091 | $ 13,240 |
% of Net Sales, Gross Profit | 31.30% | 31.40% |
Operating Income/(Loss) | ||
Operating Income | $ 2,300 | $ 4,142 |
% of Net Sales, Operating Income | 5.50% | 9.80% |
Capital Expenditures | ||
Capital Expenditures | $ 2,787 | $ 468 |
Depreciation & Amortization | ||
Depreciation & Amortization | 491 | 684 |
Home Meridian International [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 41,921 | $ 62,085 |
% of Net Sales | 34.40% | 42.10% |
Gross Profit | ||
Gross Profit | $ 6,713 | $ 6,305 |
% of Net Sales, Gross Profit | 16% | 10.20% |
Operating Income/(Loss) | ||
Operating Income | $ (2,119) | $ (3,095) |
% of Net Sales, Operating Income | (5.10%) | (5.00%) |
Capital Expenditures | ||
Capital Expenditures | $ 227 | $ 40 |
Depreciation & Amortization | ||
Depreciation & Amortization | 687 | 662 |
Upholstery [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 35,104 | $ 41,220 |
% of Net Sales | 28.80% | 28% |
Gross Profit | ||
Gross Profit | $ 7,023 | $ 9,354 |
% of Net Sales, Gross Profit | 20% | 22.70% |
Operating Income/(Loss) | ||
Operating Income | $ 1,328 | $ 2,752 |
% of Net Sales, Operating Income | 3.80% | 6.70% |
Capital Expenditures | ||
Capital Expenditures | $ 116 | $ 322 |
Depreciation & Amortization | ||
Depreciation & Amortization | 947 | 938 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 2,899 | $ 1,779 |
% of Net Sales | 2.40% | 1.20% |
Gross Profit | ||
Gross Profit | $ 1,079 | $ 560 |
% of Net Sales, Gross Profit | 37.20% | 31.50% |
Operating Income/(Loss) | ||
Operating Income | $ 466 | $ 124 |
% of Net Sales, Operating Income | 16.10% | 7% |
Capital Expenditures | ||
Capital Expenditures | $ 28 | $ 0 |
Depreciation & Amortization | ||
Depreciation & Amortization | $ 22 | $ 3 |
Segment Information (Details)_2
Segment Information (Details) - Assets from Segments to Consolidated - USD ($) $ in Thousands | Apr. 30, 2023 | Jan. 29, 2023 |
Identifiable Assets | ||
Total Assets | $ 318,221 | $ 334,985 |
% Total Assets | 100% | 100% |
Consolidated Goodwill and Intangibles | $ 45,847 | $ 46,731 |
Total Consolidated Assets | 364,068 | 381,716 |
Hooker Branded [Member] | ||
Identifiable Assets | ||
Total Assets | $ 172,499 | $ 174,523 |
% Total Assets | 54.20% | 52.10% |
Home Meridian International [Member] | ||
Identifiable Assets | ||
Total Assets | $ 80,709 | $ 92,469 |
% Total Assets | 25.40% | 27.60% |
Upholstery [Member] | ||
Identifiable Assets | ||
Total Assets | $ 63,307 | $ 66,435 |
% Total Assets | 19.90% | 19.80% |
Other Segments [Member] | ||
Identifiable Assets | ||
Total Assets | $ 1,706 | $ 1,558 |
% Total Assets | 0.50% | 0.50% |
Segment Information (Details)_3
Segment Information (Details) - Revenue from External Customers by Products and Services - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2023 | May 01, 2022 | |
Revenue from External Customer [Line Items] | ||
Net Sales | $ 121,815 | $ 147,314 |
% Total | 100% | 100% |
Casegoods [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | $ 67,975 | $ 74,192 |
% Total | 56% | 50% |
Upholstery [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | $ 53,840 | $ 73,122 |
% Total | 44% | 50% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Jun. 05, 2023 | Apr. 30, 2023 | May 01, 2022 | Jun. 08, 2023 | Jun. 30, 2022 | |
Subsequent Events (Details) [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | $ 0.2 | |||
Stock Repurchase Program, Authorized Amount | $ 20 | ||||
Subsequent Event [Member] | |||||
Subsequent Events (Details) [Line Items] | |||||
Dividends Payable, Date Declared | Jun. 05, 2023 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.22 | ||||
Dividends Payable, Date to be Paid | Jun. 30, 2023 | ||||
Dividends Payable, Date of Record | Jun. 16, 2023 | ||||
Stock Repurchase Program, Authorized Amount | $ 5 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 5.5 |