Segment Information

6 Months Ended

Jul. 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 (“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.

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, HF Custom (formerly Sam Moore), Shenandoah Furniture and Sunset West, a business acquired at the beginning of fiscal 2023; and

■ All Other, consisting of H Contract, Lifestyle Brands and BOBO Intriguing Objects. None of these operating segments were individually reportable; therefore, we combined them in “All Other” in accordance with ASC 280.

During the second quarter of fiscal 2024, we acquired substantially all the assets of BOBO Intriguing Objects. Based on the requirements of ASC 280: Segment Reporting, BOBO’s results are included in All Other on a prospective basis.

The following table presents segment information for the periods, and as of the dates, indicated.

	Thirteen Weeks Ended												Twenty-Six Weeks Ended
	July 30,						July 31,						July 30,						July 31,
	2023						2022						2023						2022
				% Net						% Net						% Net						% Net
Net Sales				Sales						Sales						Sales						Sales
Hooker Branded	$	34,685			35.4	%	$	52,817			34.5	%	$	76,576			34.9	%	$	95,047			31.7	%
Home Meridian		28,911			29.6	%		59,048			38.6	%		70,832			32.3	%		121,133			40.3	%
Domestic Upholstery		30,892			31.6	%		38,326			25.1	%		65,996			30.0	%		79,546			26.5	%
All Other		3,318			3.4	%		2,717			1.8	%		6,217			2.8	%		4,497			1.5	%
Consolidated	$	97,806			100	%	$	152,908			100.0	%	$	219,621			100.0	%	$	300,223			100.0	%
Gross Profit
Hooker Branded	$	12,419			35.8	%	$	15,598			29.5	%	$	25,512			33.3	%	$	28,837			30.3	%
Home Meridian		3,210			11.1	%		7,321			12.4	%		9,922			14.0	%		13,626			11.2	%
Domestic Upholstery		6,365			20.6	%		7,128			18.6	%		13,387			20.3	%		16,483			20.7	%
All Other		1,347			40.6	%		1,008			37.1	%		2,426			39.0	%		1,568			34.9	%
Consolidated	$	23,341			23.9	%	$	31,055			20.3	%	$	51,247			23.3	%	$	60,514			20.2	%
Operating Income/(Loss)
Hooker Branded	$	3,223			9.3	%	$	6,072			11.5	%	$	5,524			7.2	%	$	10,214			10.7	%
Home Meridian		(3,336	)		-11.5	%		(991	)		-1.7	%		(5,454	)		-7.7	%		(4,085	)		-3.4	%
Domestic Upholstery		724			2.3	%		1,713			4.5	%		2,051			3.1	%		4,465			5.6	%
All Other		662			20.0	%		497			18.3	%		1,128			18.1	%		621			13.8	%
Consolidated	$	1,273			1.3	%	$	7,291			4.8	%	$	3,249			1.5	%	$	11,215			3.7	%
Capital Expenditures
Hooker Branded	$	622					$	239					$	3,409					$	706
Home Meridian		11						592						238						632
Domestic Upholstery		141						286						257						609
All Other		33						-						61						-
Consolidated	$	807					$	1,117					$	3,965					$	1,947
Depreciation & Amortization
Hooker Branded	$	503					$	437					$	994					$	1,122
Home Meridian		690						725						1,377						1,386
Domestic Upholstery		1,007						957						1,954						1,896
All Other		25						3						47						5
Consolidated	$	2,225					$	2,122					$	4,372					$	4,409

	As of July 30,					As of January 29,
	2023		%Total			2023		%Total
Identifiable Assets			Assets					Assets
Hooker Branded	$	184,244		60.5	%	$	174,523		52.1	%
Home Meridian		55,927		18.3	%		92,469		27.6	%
Domestic Upholstery		60,534		19.9	%		66,435		19.8	%
All Other		3,863		1.3	%		1,558		0.5	%
Consolidated	$	304,568		100	%	$	334,985		100	%
Consolidated Goodwill and Intangibles		45,547					46,731
Total Consolidated Assets	$	350,115				$	381,716

Sales by product type are as follows:

	Net Sales (in thousands)
	Thirteen Weeks Ended										Twenty-Six Weeks Ended
	July 30, 2023		%Total			July 31, 2022		%Total			July 30, 2023		%Total			July 31, 2022		%Total
Casegoods	$	49,984		51	%	$	92,869		61	%	$	117,883		54	%	$	167,313		56	%
Upholstery		47,822		49	%		60,039		39	%		101,738		46	%		132,910		44	%
	$	97,806		100	%	$	152,908		100	%	$	219,621		100	%	$	300,223		100	%