NOTE 16 - CONCENTRATIONS OF SOURCING RISK

12 Months Ended

Jan. 31, 2016

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

NOTE 16 – CONCENTRATIONS OF SOURCING RISK

We source imported products through approximately 18 different vendors, from approximately 20 separate factories, located in five countries.  Because of the large number and diverse nature of the foreign factories from which we can source our imported products, we have some flexibility in the placement of products in any particular factory or country.

Factories located in China and Vietnam are a critical resource for Hooker Furniture.  In fiscal year 2016, imported products sourced from China and Vietnam accounted for 68% and 26%, respectively, of import purchases, and the factory in China from which we directly source the most product accounted for 58% of our worldwide purchases of imported product.  A disruption in our supply chain from this factory, or from China or Vietnam in general, could significantly impact our ability to fill customer orders for products manufactured at that factory or in that country.