Hooker Furniture posts slight improvement in sales
The USA’s sixth largest publicly traded furniture producer Hooker Furniture has reported a slight increase in sales in the third quarter ended August 31. The company posted net sales of $83 million for the quarter, a 0.7% increase from the $82.4 million in the same quarter a year ago. Net income for the quarter increased by 82.2% to $1.2 million from $664,000 in the prior year period.
"We’re pleased to have achieved a modest sales increase given the challenging business environment in our industry, as well as improved net income despite some larger than typical selling and administrative expenses incurred during the quarter," said Paul Toms Jr., chairman and chief executive officer.
Selling and administrative expenses increased by 21%, or $3.2 million, to $18.6 million, compared with $15.4 million in the 2005 third quarter. This increase was principally attributed to higher warehousing and distribution costs; compensation expenses of $1.4 million, related to the previously announced early retirement of president and chief operating officer, Doug Williams; and higher bad debt expenses of $480,000. Meanwhile, the board of directors has elected the company’s chairman and CEO Paul Toms Jr. to the additional post of president effective November 1. He replaces Doug Williams’ who has taken early retirement.
