SEGMENT INFORMATION

12 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 17 – 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 (“ASC 280”), which are to allow the users of our financial statements to:

■ 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.

We continually monitor our reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. In the fourth quarter of fiscal 2020, we updated our reportable segments as follows: Domestic upholstery producers Bradington-Young, Sam Moore and Shenandoah Furniture were moved from All other and aggregated into a new reportable segment called “Domestic Upholstery.” All Other now consists of H Contract and Lifestyle Brands. Lifestyle Brands is a business in its start-up phase targeted at the interior designer channel. The Hooker Branded and Home Meridian segments were unchanged. Therefore, for financial reporting purposes, we are organized into three reportable segments and “All Other”, which includes the remainder of our businesses:

■ Hooker Branded, consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery businesses;  

■ Home Meridian, a business acquired at the beginning of fiscal 2017, is a stand-alone, mostly autonomous business that serves a different type or class of customer than do our other operating segments and at much lower margins;

■ Domestic Upholstery, which includes the domestic upholstery manufacturing operations of Bradington-Young, Sam Moore and Shenandoah Furniture; and

■ All Other, consisting of H Contract and Lifestyle Brands, a new business started in late fiscal 2019. Neither of these operating segments were individually reportable; therefore, we combined them in “All Other” in accordance with ASC 280.

The following table presents segment information for the periods, and as of the dates, indicated. Prior-year information has been recast to reflect the changes in segments discussed above.

	Fifty-Two Weeks Ended						Fifty-Two Weeks Ended						Fifty-Three Weeks Ended
	January 31, 2021						February 2, 2020						February 3, 2019
				% Net						% Net					% Net
Net Sales				Sales						Sales					Sales
Hooker Branded	$	162,442			30.1	%	$	161,990			26.4	%	$	178,710		26.2	%
Home Meridian		282,423			52.3	%		340,630			55.8	%		387,825		56.7	%
Domestic Upholstery		83,678			15.5	%		95,670			15.7	%		106,580		15.6	%
All Other		11,538			2.1	%		12,534			2.1	%		10,386		1.5	%
Consolidated	$	540,081			100	%	$	610,824			100	%	$	683,501		100	%
Gross Profit
Hooker Branded	$	51,832			31.9	%	$	51,462			31.8	%	$	58,122		32.5	%
Home Meridian		39,832			14.1	%		36,936			10.8	%		62,850		16.2	%
Domestic Upholstery		17,121			20.5	%		21,120			22.1	%		22,503		21.1	%
All Other		3,963			34.4	%		4,440			35.4	%		3,512		33.8	%
Consolidated	$	112,748			20.9	%	$	113,958			18.7	%	$	146,987		21.5	%
Operating (Loss)/Income
Hooker Branded	$	22,827			14.1	%	$	21,512			13.3	%	$	25,269		14.1	%
Home Meridian		(26,071	)		-9.2	%		(7,169	)		-2.1	%		18,828		4.9	%
Domestic Upholstery		(12,418	)		-14.8	%		6,637			6.9	%		7,607		7.1	%
All Other		1,298			11.3	%		1,727			13.8	%		971		9.4	%
Consolidated	$	(14,364	)		-2.7	%	$	22,707			3.7	%	$	52,675		7.7	%
Capital Expenditures
Hooker Branded	$	377					$	690					$	843
Home Meridian		347						496						534
Domestic Upholstery		475						3,914						3,807
All Other		11						29						30
Consolidated	$	1,210					$	5,129					$	5,214
Depreciation    & Amortization
Hooker Branded	$	1,809					$	1,930					$	1,979
Home Meridian		2,160						2,218						2,407
Domestic Upholstery		2,797						2,938						3,049
All Other		12						14						7
Consolidated	$	6,778					$	7,100					$	7,442

	As of January 31,					As of February 2,
	2021		%Total			2020		%Total
Assets			Assets					Assets
Hooker Branded	$	174,475		53.5	%	$	144,112		45.0	%
Home Meridian		100,497		30.9	%		138,313		43.2	%
Domestic Upholstery		49,370		15.2	%		36,085		11.3	%
All Other		1,204		0.4	%		1,769		0.6	%
Consolidated Assets	$	325,546		100	%	$	320,279		100	%
Consolidated Goodwill and Intangibles		26,727					73,429
Total Consolidated Assets	$	352,273				$	393,708

Sales by product type are as follows:

	Net Sales (in thousands)
	Fiscal
	2021				2020				2019
Casegoods	$	329,906	61	%	$	397,192	65	%	$	417,677	61	%
Upholstery		210,175	39	%		213,632	35	%		265,824	39	%
	$	540,081			$	610,824			$	683,501

No significant long-lived assets were held outside the United States at either January 31, 2021 or February 2, 2020. International customers accounted for 2.0% of consolidated invoiced sales in fiscal 2021, 1.6% in fiscal 2020, and 1.2% fiscal 2019. We define international sales as sales outside of the United States and Canada.