SEGMENT INFORMATION

12 Months Ended

Jan. 28, 2024

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 18 – 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; and

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

Changes to segment reporting for fiscal 2024

We regularly monitor our reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. Before the fiscal 2024 third quarter, H Contract’s results included sales of products sourced from the Hooker Branded and Domestic Upholstery segments. Due to a change in the way management internally evaluates operating performance, beginning with fiscal 2024 third quarter, Hooker Branded and Domestic Upholstery segments’ results now include sales of products formerly included in H Contract’s results. Fiscal 2024 and fiscal 2023 results discussed below have been recast to reflect this change. The Home Meridian segment is unchanged.

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. Prior-year information has been recast to reflect the changes in segments discussed above.

	Fifty-Two Weeks Ended
	January 28, 2024						January 29, 2023						January 30, 2022
				% Net						% Net						% Net
Net Sales				Sales						Sales						Sales
Hooker Branded	$	156,590			36.2	%	$	205,935			35.3	%	$	200,945			33.8	%
Home Meridian		143,538			33.1	%		216,338			37.1	%		278,902			47.0	%
Domestic Upholstery		126,827			29.3	%		156,717			26.9	%		106,827			18.0	%
All Other		6,271			1.4	%		4,112			0.7	%		6,938			1.2	%
Consolidated	$	433,226			100	%	$	583,102			100	%	$	593,612			100	%
Gross Profit/(Loss)
Hooker Branded	$	57,671			36.8	%	$	60,871			29.6	%	$	63,333			31.5	%
Home Meridian		24,367			17.0	%		(2,620	)		-1.2	%		15,213			5.5	%
Domestic Upholstery		24,048			19.0	%		32,633			20.8	%		20,860			19.5	%
All Other		2,606			41.5	%		2,410			58.6	%		2,296			33.1	%
Consolidated	$	108,692			25.1	%	$	93,294			16.0	%	$	101,702			17.1	%
Operating Income/(Loss)
Hooker Branded	$	16,844			10.8	%	$	22,030			10.7	%	$	30,705			15.3	%
Home Meridian		(5,530	)		-3.9	%		(37,181	)		-17.2	%		(21,260	)		-7.6	%
Domestic Upholstery		1,131			0.9	%		8,871			5.7	%		4,675			4.4	%
All Other		(87	)		-1.4	%		234			5.7	%		723			10.4	%
Consolidated	$	12,358			2.9	%	$	(6,046	)		-1.0	%	$	14,843			2.5	%
Capital Expenditures
Hooker Branded	$	4,185					$	1,813					$	558
Home Meridian		1,679						1,280						4,829
Domestic Upholstery		860						1,106						1,295
All Other		91						-						10
Consolidated	$	6,815					$	4,199					$	6,692
Depreciation & Amortization
Hooker Branded	$	2,268					$	2,092					$	2,530
Home Meridian		2,689						2,899						2,594
Domestic Upholstery		3,972						3,827						2,678
All Other		27						11						12
Consolidated	$	8,956					$	8,829					$	7,814

	As of January 28,					As of January 29,
	2024		%Total			2023		%Total
Assets			Assets					Assets
Hooker Branded	$	168,832		56.3	%	$	174,523		52.1	%
Home Meridian		58,799		19.6	%		92,469		27.6	%
Domestic Upholstery		67,230		22.4	%		66,435		19.8	%
All Other		5,067		1.7	%		1,558		0.5	%
Consolidated Assets	$	299,928		100	%	$	334,985		100	%
Consolidated Goodwill and Intangibles		43,658					46,731
Total Consolidated Assets	$	343,586				$	381,716

Sales by product type are as follows:

	Net Sales (in thousands)
	Fiscal
	2024				2023				2022
Casegoods	$	248,627	57	%	$	328,849	56	%	$	348,548	59	%
Upholstery		184,599	43	%		254,253	44	%		245,064	41	%
	$	433,226	100	%	$	583,102	100	%	$	593,612	100	%

No significant long-lived assets were held outside the United States at either January 28, 2024 or January 29, 2023. International customers accounted for less than 2% of consolidated invoiced sales in fiscal 2024, 2023 and 2022. We define international sales as sales outside of the United States and Canada.