Key Highlights

• Hooker Furnishings' $0.115 quarterly Dividend trades with a September 15, 2026 record date, payable September 30, down from $0.23 in the comparable prior-year period.

• Fiscal second-quarter net sales fell 8.7% to $63.3 million, while Net Income improved to $1.7 million from a $3.3 million loss a year earlier.

• Gross Margin improved 690 basis points to 31.8%, supported by $7.9 million of Tariff recoveries following a March 2026 court ruling on IEEPA tariffs.

• The company ended the quarter with $18.7 million of cash and no outstanding balance on its Credit facility, after repaying $3.6 million of debt.

Hooker Furnishings' (NASDAQ:HOFT) $0.115 quarterly dividend trades with a September 15 Record Date and September 30 payment date. CEO Jeremy Hoff said net sales fell 8.7% "driven by lower sales across all operating segments and continued weakness in the housing market," while the company posted its third consecutive profitable quarter aided by tariff recoveries and prior cost-reduction initiatives.

Dividend Program and Shareholder Returns

Hooker Furnishings declared a $0.115 per share quarterly dividend, payable September 30 to shareholders of record September 15. The annualized rate is $0.46 per share, a reduction from the $0.23 quarterly rate paid in the comparable prior-year period, reflecting the board's more conservative posture adopted as furniture Demand weakened over the past year. The company has maintained dividend payments for 27 consecutive years despite this rate reduction, and during the first six months of fiscal 2027 paid approximately $2.5 million of dividends, repaid $3.6 million of Debt and repurchased 92,357 shares for approximately $1.3 million, indicating the reduced payout is being paired with continued, if modest, Buybacks rather than a full pause on Capital return.

About the Company

Hooker Furnishings designs, sources, imports and markets casegoods, leather furniture, upholstered furniture and hospitality/contract products, serving residential, hospitality and commercial customers through retailers, interior designers and other distribution channels.

Financial Performance Behind the Payout

Hooker Furnishings reported fiscal second-quarter net sales of $63.3 million, down 8.7% from $69.3 million a year earlier, with lower sales across all operating segments. Consolidated net income was $1.7 million, a $4.9 million improvement from a $3.3 million net loss in the prior-year quarter, marking the company's third consecutive profitable quarter. Basic EPS was $0.16, compared with a loss of $0.31 per share a year earlier. Operating Income was $1.3 million, compared with an operating loss of $0.5 million. Gross margin improved 690 basis points to 31.8%, which the company said was supported by $4.3 million in tariff recoveries recognized from continuing operations during the quarter, out of $7.9 million in total tariff recoveries following a March 2026 court directive that invalidated certain tariffs imposed under the International Emergency Economic Powers Act.

Segment Performance and Balance Sheet

Hooker Branded net sales fell 4.5% on lower unit volume, higher promotional discounts and key SKU out-of-stocks tied to longer Asian lead times. Domestic Upholstery net sales decreased 5.3%, as lower sales of upscale leather and custom fabric upholstery offset growth in private label and outdoor furnishings. The company's Fixed Cost reductions, totaling $17.5 million in annualized savings from initiatives implemented in the prior fiscal year, contributed to the improved operating results. Cash and cash equivalents rose to $18.7 million, up $8.1 million from the first quarter, with no outstanding balance on the credit Facility and $51.8 million of available borrowing capacity. Backlog increased 6.2% year over year and 8.4% sequentially.

Outlook

Prior-year tariff costs of $10.3 million exceeded this quarter's $7.9 million of recoveries, meaning the margin benefit partly offsets costs already incurred rather than representing a clean gain. Backlog growth of 6.2% year over year, against declining current sales, makes the conversion pace worth watching over the next two quarters.