HOOKER FURNISHINGS Corp
For the period ended Aug 3, 2025. Filed Sep 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 3, 2025 · Filed Sep 12, 2025
HOFT$14.53-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-04; filed 2025-06-13.
0001185185-25-000635
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-03; filed 2025-09-12.
0001185185-25-001179
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 102 current paragraphs.
64 unchanged; 19 reworded; 18 added; 20 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 50 previous and 44 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
In contrast, Domestic Upholstery backlog rose nearly 7% compared to both year-end and the prior year’s quarter-end, with three of its four divisions showing increases across both periods. Hooker Branded’s backlog was flat compared to last year’s second quarter, but increased nearly 20% from year-end, supported by a 10.6% rise in incoming orders during the second quarter.
Current report
During the second quarter of fiscal 2026, the home furnishings industry continued to face a challenging macroeconomic environment, as reflected in several key economic indicators. Existing home sales also remained at historically low levels, particularly for single-family homes, which are a key driver of home furnishings sales. Elevated mortgage rates continued to pressure housing affordability and dampen turnover in the housing market, limiting consumer willingness to invest in home-related products. The Consumer Price Index (CPI) remains elevated, reflecting persistent inflationary pressures, while the Index of Consumer Sentiment indicated continued weakness in consumer confidence. Additionally, since the early 1980s, the average age of first time homebuyers has increased by nearly ten years over four decades. Collectively, these factors contributed to reduced demand across the industry.
Current report
The Home Meridian segment was most heavily impacted by these conditions, given its value-focused customer base. Inflationary pressures and weak consumer sentiment disproportionately affected demand for lower-priced products, while tariff-related buying hesitancy further pressured its revenue. As a result of these factors, and the absence of sales from a major customer’s bankruptcy in the prior year and lower hospitality shipments due to the project-based nature and timing of these sales, Home Meridian’s net sales declined by 44.5% in the second quarter, and gross margin decreased by 1,330 bps.
Current report
In contrast, the Hooker Branded and Domestic Upholstery segments demonstrated modest recovery in net sales during the quarter, reflecting some stabilization in higher-priced product categories. However, sales volumes in these segments remain at historically low levels due to ongoing weakness in the housing market and subdued housing demand.
Current report
In response to these persistent macroeconomic challenges, we remain focused on factors within our control:
Current report
Net sales of $82.1 million were down 13.6% from the prior year second quarter. We recorded $2.0 million in consolidated restructuring costs in the second quarter of fiscal 2026. These costs included $1.3 million in severance and warehouse consolidation expenses and approximately $700,000 in inventory liquidation losses at the Georgia warehouse. For the first half of fiscal 2026, total restructuring costs were $2.5 million, consisting of $1.7 million in severance and warehouse consolidation expenses and $821,000 in inventory liquidation losses at the same facility. Operating loss was $4.4 million versus $3.1 million last year, reflecting lower Home Meridian volumes and an unfavorable product-customer mix. Hooker Branded achieved breakeven in operating results for the quarter despite including $655,000 restructuring costs, while Domestic Upholstery reduced its operating loss by $877,000 or 68% compared to the same quarter last year, despite including $152,000 restructuring costs. The consolidated net loss for the quarter was $3.3 million, or ($0.31) per diluted share, compared to a net loss of $2.0 million, or ($0.19) per diluted share, in the same quarter last year. The consolidated net loss for the six-month period was $6.3 million, or ($0.60) per diluted share, compared to a net loss of $6.0 million, or ($0.57) per diluted share, in the prior year period.
Current report
These phased initiatives are designed to enhance profitability, improve operational efficiency, and support long-term shareholder value creation. We do not expect these cost reduction measures to materially impact our strategic growth priorities, which include advancing the Collected Living merchandising platform, leveraging the Vietnam warehouse advantage, and launching the Margaritaville licensed collection.
Current report
Consolidated net sales decreased by $12.9 million, or 13.6%, in the second quarter of fiscal 2026, primarily attributable to a significant decline in the Home Meridian segment. The Hooker Branded and Domestic Upholstery segments each experienced modest recoveries in net sales during the quarter. For the six-month period, consolidated net sales decreased by $21.2 million, or 11.2%, also driven by the decline in the Home Meridian segment and, to a lesser extent, a slight decrease in the Domestic Upholstery segment.
Current report
Consolidated gross profit decreased by $4.1 million in the second quarter, and gross margin declined by 150 bps, primarily due to significantly lower profitability in the Home Meridian segment. These declines were partially offset by higher gross profit in the Domestic Upholstery segment. For the six-month period, gross profit also decreased, driven by the Home Meridian segment, partially offset by improved results in Domestic Upholstery and a reduced loss in All Other. Gross margin for the six-month period was essentially flat compared to the prior-year period.
Current report
We recorded $2 million in consolidated restructuring costs in the fiscal 2026 second quarter and $2.5 million in the first half of fiscal 2026. We recorded an operating loss of $4.4 million in the second quarter of fiscal 2026, compared to a $3.1 million loss in the same period last year. The higher loss was driven by the restructuring costs and continued weakness in Home Meridian, partially offset by improved performance and reduced losses in the other segments, as noted above. For the first half of fiscal 2026, operating loss and operating margin also decreased compared to the prior-year period, reflecting the same factors.
Current report
We recorded an income tax benefit of $1.2 million for the fiscal 2026 second quarter, compared to an income tax expense of $85,000 in the fiscal 2025 second quarter. The effective tax rates for these periods were 26.9% and (4.5%), respectively. The fiscal 2025 second quarter reflected an income tax expense despite a pretax loss due to the effective tax rate annualization method. For the first half of fiscal 2026, we recorded income tax benefits of $2.0 million compared to $731,000 in the prior-year period, with effective tax rates of 23.7% and 10.8%, respectively. The differences in the rates reflect the impacts of favorable tax adjustments, specifically the cash surrender value gain of company-owned life insurance, over expected pretax income in fiscal 2025 as opposed to an expected pretax loss in fiscal 2026 under the annualization method.
Current report
Hooker Furnishings is taking decisive steps that return the business to profitability. Our cost-reduction initiatives and focus on growth initiatives have positioned the Company to maintain resilience in today’s challenging environment, and to strategically capture growth when demand returns
Current report
At the beginning and end of the quarter, we saw an encouraging momentum in Hooker Legacy orders, with July orders up 24% year-over-year at both Hooker Branded and Domestic Upholstery. For the quarter, Hooker Branded orders were up nearly 11% and Domestic Upholstery were up 1.6%. That said, the home furnishings industry continues to face headwinds from low existing home sales, elevated mortgage rates and persistent inflation, all of which are weighing on consumer confidence and demand.
Current report
At HMI, we have de-risked it significantly over the last several years and continue to further that effort. These actions have been obscured by required restructuring charges, weak demand in the home furnishings industry due to an extremely weak housing environment, and tariff buying hesitancy in the market segment in which HMI competes. By the end of our fiscal 2025 third quarter, HMI’s fixed cost structure will be aligned to support what we believe to be a sustainable business and one in which its sales can be significantly scaled from current levels when demand returns. Barring additional tariffs or other significant, disruptive events, we expect HMI’s performance to be significantly enhanced by the end of the current fiscal year.
Current report
We remain focused on factors within our control – scaling our cost structure for profitability, preparing for the October debut of Margaritaville collection and pursuing growth in hospitality, contract and outdoor channels, supported by the new Vietnam warehouse. These initiatives position us well to navigate near-term challenges and capitalize on opportunities when the market recovers, creating long-term value for our shareholders.
Current report
During the first six months of fiscal 2026, cash decreased by approximately $5.5 million from the prior fiscal year-end. Cash used in financing activities, primarily related to repayments on the term loan and revolving credit facility, together with cash used in investing activities, was largely offset by cash provided by operating activities, which was driven by favorable changes in working capital.
Current report
Cash used in investing activities totaled $2.0 million, compared to $808,000 in the prior-year period. The increase was primarily due to $936,000 life insurance proceeds received in the prior year that did not recur in the current period.
Current report
Cash used in financing activities was $21.6 million, compared to $5.6 million in the prior-year period, primarily due to $16.5 million of repayments on the revolving credit facility during the current period.
Removed paragraphs (20)
Previous report
There have been exceptions to the general predictive nature of our orders and backlogs noted in this paragraph, such as during times of extremely high demand and supply chain challenges as experienced during the immediate aftermath of the initial COVID-19 crisis and subsequent recovery. Orders were not being converted to shipments as quickly as would be expected compared to the pre-pandemic environment due to the lack and cost of shipping containers and vessel space as well as limited overseas vendor capacity. As a result, backlogs were significantly elevated and reached historical levels at the end of fiscal 2021 and 2022.
Previous report
Macroeconomic factors affecting our results
Previous report
The home furnishings industry continues to face significant challenges due to macroeconomic factors dampening consumer demand. Demand in this category is historically linked to existing home sales, as consumers often buy furnishings after moving. However, the housing market remains sluggish due to housing affordability, high mortgage rates and low consumer confidence. According to the National Association of Realtors, existing home sales have hovered around 75% of pre-pandemic levels for the past three years, despite the addition of over seven million jobs. This indicates that employment growth hasn’t translated into greater housing mobility or home-related spending. Notably, despite the U.S. population growing by over 50% since 1978, fewer existing homes were sold in 2024 than in 1978, underscoring deep housing market stagnation.
Previous report
In calendar 2025, the average 30-year fixed mortgage rate has hovered around 6.8%. This marks a significant increase compared to the pandemic-era lows of approximately 3% in 2020 and 2021. The doubling of borrowing costs has effectively cooled the housing market, discouraging both first-time buyers and existing homeowners from moving. This stagnation has, in turn, suppressed demand for new furnishings typically associated with home moves.
Previous report
Consumer sentiment has deteriorated sharply, as reflected in the University of Michigan’s Consumer Sentiment Index, which fell to 52.2 in May 2025. This marks a nearly 30% drop since January 2025, underscoring a steep erosion in public confidence. During the home furnishings sales boom in 2021, this index consistently hovered around 80, highlighting just how far optimism has fallen. The recent decline is fueled by concerns over inflation, trade uncertainty, and rising unemployment expectations—factors that are prompting consumers to delay discretionary purchases like furniture.
Previous report
We reported consolidated net sales of $85.3 million for the first quarter, a decrease of $8.3 million, or 8.8%, compared to the same period last year. Home Meridian accounted for over 90% of the sales decrease, primarily due to ongoing challenges in the home furnishings industry driven by macroeconomic pressures and tariff-related buying hesitancy among Home Meridian’s customers, who tend to be more cost conscious. In addition, the absence of sales due to the bankruptcy of a former major customer in the prior year accounted for approximately 30% of the segment’s net sales decrease.
Previous report
We maintained gross profit levels, with gross margin increasing by 180 bps, driven by higher margins at Home Meridian and Domestic Upholstery. Despite the decrease in net sales, we reduced our consolidated operating loss by $1.6 million, or 31%, to $3.6 million, reflecting the impact of cost reduction initiatives implemented in the second half of the prior year. In the first quarter of fiscal 2026, we saw clear results from those reductions as we reduced operating expenses by $2.2 million versus the prior year quarter. This reduction occurred despite our first quarter fiscal 2026 results including $523,000 in restructuring costs, primarily severance. Hooker Branded achieved breakeven in operating results for the quarter, while Domestic Upholstery and Home Meridian significantly reduced their operating losses by $713,000 (55%) and $584,000 (17%), respectively. We recorded a net loss of $3.1 million, or ($0.29) per diluted share, an improvement from the prior year first quarter’s net loss of $4.1 million, or ($0.39) per diluted share.
Previous report
Summary
Previous report
Results of Operations
Previous report
Consolidated gross profit remained nearly unchanged despite lower net sales, with consolidated gross margin increasing due to improvements at Home Meridian and Domestic Upholstery, partially offset by a slight decrease at Hooker Branded.
Previous report
In the first quarter of fiscal 2026, we recorded an operating loss of $3.6 million, primarily due to lower sales volume. However, our cost reduction initiatives and other factors outlined earlier reduced the operating loss by $1.6 million versus the prior year.
Previous report
We recorded income tax benefit of $764,000 and $816,000 for the fiscal 2026 and 2025 first quarters. The effective tax rates for the fiscal 2026 and 2025 first quarters were 20.0% and 16.6%, respectively. The increase in the fiscal 2026 first quarter effective tax rate was primarily attributable to a non-taxable life insurance gain recognized in the prior-year period, which reduced the comparative effective tax rate.
Previous report
According to U.S. Census Bureau monthly retail trade survey, furniture retail sales have shown modest improvement in recent months. April sales were slightly higher compared to the January–March period and increased 5.6% year-over-year. However, existing home sales remain subdued, currently operating at approximately 75% of typical pre-pandemic levels for the third consecutive year. Despite these headwinds, inflation and employment indicators appear to be relatively stable.
Previous report
To navigate the ongoing economic challenges, we continue to prioritize product innovation, cost optimization, and operational excellence. These strategic imperatives position the business to capitalize on emerging opportunities as macroeconomic conditions improve, ultimately driving long-term shareholder value.
Previous report
Key initiatives include the launch of the new Margaritaville licensing program, the development of a best-in-class international warehouse that reduces the need for domestic safety stock, preserves working capital, and shortens lead times, and the Collected Living whole-home merchandising approach, which received strong validation at the April High Point Market.
Previous report
In addition, a redesigned corporate website is scheduled to launch in October. The updated site is expected to:
Previous report
Within the Hooker Branded segment, the newly introduced Live Your Way strategy is designed to:
Previous report
We are simultaneously driving operational efficiencies across the segments and are beginning to observe measurable improvements in performance.
Previous report
During fiscal 2026 first quarter, cash provided by operating activities totaled $14.7 million for the first quarter of fiscal 2026, compared to $1.5 million for the comparable prior-year period. This increase was primarily driven by favorable changes in working capital and a reduction in net loss.
Previous report
Cash used in investing activities totaled $967,000 compared to $959,000 in the first quarter of the prior year. Cash used in financing activities totaled $2.0 million compared to $2.8 million in the prior year first quarter, due to $534,000 proceeds from revolving credit facility and the absence of term loan payments during the current quarter.
Reworded paragraphs (19)
Previous wording
(2) adverse political acts or developments in, or affecting, the international markets from which we import products and some components used in our Domestic Upholstery segment, including duties or tariffs imposed on those products by foreign governments or the U.S. government, such as the current ten percent tariff and potential additional higher reciprocal tariffs on imports from key sourcing countries , affecting the countries from which we source imported home furnishings and components, including the possible adverse effects on our sales, earnings, and liquidity;
Current wording
(1) adverse political acts or developments in, or affecting, the international markets from which we import products and some components used in our Domestic Upholstery segment, including duties or tariffs imposed on those products or product components by foreign governments or the U.S. government, such as the current twenty percent tariff, potential additional higher reciprocal tariffs on imports from key sourcing countries, U.S. Department of Commerce’s Section 232 investigation into timber, lumber, and their derivative products, including furniture, affecting the countries from which we source imported home furnishings and components, including the possible adverse effects on our sales, earnings, and liquidity;
Previous wording
(25) changes in consumer preferences, including increased demand for lower-priced furniture.
Current wording
(25) changes in consumer preferences, including increased demand for lower-priced furniture, especially in light of recently imposed tariffs on imported furniture.
Previous wording
This quarterly report on Form 10-Q includes our unaudited condensed consolidated financial statements for the 2026 fiscal year thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “first quarter” or “quarterly period”) that began February 3, 2025 and ended May 4, 2025. This report discusses our results of operations for this period compared to the 2025 fiscal year thirteen-week period that began January 29, 2024 and ended April 28, 2024; and our financial condition as of May 4, 2025 compared to February 2, 2025.
Current wording
This quarterly report on Form 10-Q includes our unaudited condensed consolidated financial statements for the 2026 fiscal year thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “second quarter” or “quarterly period”) that began May 5, 2025 and the twenty-six-week period (also referred to as “six months”, “six-month period” or “first half”) that began February 3, 2025, which both ended August 3, 2025. This report discusses our results of operations for these periods compared to the 2025 fiscal year thirteen-week period that began April 29, 2024, and the twenty-six-week period that began January 29, 2024, which both ended July 28, 2024; and our financial condition as of August 3, 2025 compared to February 2, 2025.
Previous wording
For the Hooker Branded and Domestic Upholstery segments, we generally consider backlogs to be one helpful indicator of sales for the upcoming 30-day period, but because of our relatively quick delivery and our cancellation policies, we do not consider order backlogs to be a reliable indicator of expected long-term sales. We generally consider the Home Meridian segment’s backlog to be one helpful indicator of that segment’s sales for the upcoming 90-day period. Due to (i) the average sales order sizes of its mass and mega account channels of distribution, (ii) the proprietary nature of many of its products and (iii) the project nature of its hospitality business, for which average order sizes tend to be larger and consequently, the Home Meridian segment’s order backlog tends to be larger.
Current wording
For the Hooker Branded and Domestic Upholstery segments, we generally consider backlogs to be one helpful indicator of sales for the upcoming 30-day period, but because of our relatively quick delivery and our cancellation policies, we do not consider order backlogs to be a reliable indicator of expected long-term sales. We generally consider the Home Meridian segment’s backlog to be one helpful indicator of that segment’s sales for the upcoming 90-day period. Due to (i) the average sales order sizes of its mass and mega account channels of distribution, (ii) the proprietary nature of many of its products and (iii) the project nature of its hospitality business, for which average order sizes tend to be larger, the Home Meridian segment’s order backlog tends to be larger.
Previous wording
The consolidated order backlog at the end of the first quarter of fiscal 2026 decreased by 2.7% compared to the year-end on February 2, 2025, and by 40.3% compared to the end of the previous year’s first quarter. This decrease was primarily driven by the Home Meridian segment, where incoming orders and backlog fell due to reduced demand and the loss of orders from a major customer that filed for bankruptcy in 2024. These trends reflect broader macroeconomic pressures and tariff-related buying hesitancy among our customers, particularly affecting value-focused segments.
Current wording
At the end of the second quarter of fiscal 2026, consolidated order backlog experienced a modest decrease of 2.8% compared to the fiscal year-end on February 2, 2025, These decreases were driven by the Home Meridian segment, where incoming orders and backlog decreased significantly due to softer demand from macroeconomic pressures, tariff-related buying hesitancy among value-focused customers, and the loss of orders from a major customer that filed for bankruptcy in calendar 2024.
Previous wording
We are executing a multi-phase cost reduction strategy aimed at achieving approximately $25 million in annualized savings by next year (fiscal year 2027).
Current wording
We are executing a multi-phase cost reduction strategy aimed at achieving approximately $25 million in annualized savings by next year (fiscal year 2027). In fiscal 2025, we identified $10 million of expense reduction opportunities and realized approximately $3 million of savings within that year. In fiscal 2026, we identified an additional $15 million of expense reductions. During the first half of fiscal 2026, we achieved approximately $3.7 million in savings, notwithstanding the recognition of $1.7 million in restructuring charges. We expect to realize further benefits during the second half of fiscal 2026 and believe we remain on track to achieve approximately $25 million in annualized savings beginning in fiscal 2027.
Previous wording
In total, we expect to eliminate approximately $25 million or 25% of our fixed costs due to these cost reduction initiatives, consisting of $11 million in warehousing and distribution expenses under cost of goods sold and $14 million in selling and administrative expenses. In fiscal 2026, we expect to realize about $14 million in cost savings net of offsets and special charges. By fiscal 2027, we expect to realize approximately $25 million in net annualized savings through these phased initiatives, enhancing profitability, operational efficiency, and long-term shareholder value. Our cost reductions should not impact our strategic growth priorities, including our collected living merchandising platform, the Vietnam warehouse advantage, and our upcoming Margaritaville licensed collection.
Current wording
In total, we expect these initiatives to reduce fixed costs by approximately $25 million, or nearly 25%. This includes approximately $11 million in warehousing and distribution expenses, which are reported within cost of goods sold, and approximately $14 million in selling and administrative expenses.
Previous wording
Phase 1: Initial Cost Reductions (last year - fiscal year 2025)
Current wording
Phase 1: Initial Cost Reductions (Fiscal 2025)
Previous wording
Phase 2: Logistics & Operations Consolidation (current year – fiscal year 2026)
Current wording
Phase 2: Logistics & Operations Consolidation (Fiscal 2026)
Previous wording
Our fiscal 2026 first quarter performance is discussed in greater detail below under “Results of Operations.”
Current wording
Our fiscal 2026 second quarter and first-half performance is discussed in greater detail below under “Results of Operations.”
Previous wording
Fiscal 2026 First Quarter Compared to Fiscal 2025 First Quarter
Current wording
Fiscal 2026 Second Quarter and First Half Compared to Fiscal 2025 Second Quarter and First Half
Previous wording
Consolidated net sales decreased by $8.3 million, or 8.8%, in the first quarter of fiscal 2026 driven by the decrease at Home Meridian, and to a lesser extent, at Domestic Upholstery. Despite the lower overall unit volume down 21.2% on a consolidated basis, the consolidated Average Selling Price (ASP) rose by 15.4% compared to the prior year. This significant increase in ASP reflects a favorable shift in product mix: sales of lower-priced Home Meridian products fell sharply, while sales of higher-priced Hooker Branded and Domestic Upholstery products made up a larger share of the total.
Current wording
Although ASP in the Home Meridian segment decreased significantly, consolidated ASP increased compared to both prior-year periods. The increase in consolidated average selling price was due to a favorable shift in product mix. Unit volume of lower-priced Home Meridian products declined by 37.7% in the second quarter and 36.7% for the six-month period, while higher-priced Hooker Branded and Domestic Upholstery products represented a larger proportion of total unit volume.
Previous wording
Consolidated selling and administrative (“S&A”) expenses decreased by $1.8 million in the first quarter of fiscal 2026, driven by cost reduction measures implemented across all three segments. S&A expenses increased slightly as a percentage of net sales due to the overall decrease in net sales.
Current wording
Consolidated selling and administrative (“S&A”) expenses decreased by $2.8 million in the second quarter and $4.6 million in the first half of fiscal 2026, reflecting reductions across all three segments driven by the ongoing cost-reduction and restructuring plan. As a percentage of net sales, S&A expenses increased in both periods due to the overall decline in net sales.
Previous wording
Intangible asset amortization decreased slightly compared to the first quarter of the previous year, due to the full amortization of Sam Moore trade name. See Note 8 to our Condensed Consolidated Financial Statements for additional information.
Current wording
Intangible asset amortization for the second quarter and first half decreased compared to the prior-year periods due to the full amortization of the Sam Moore trade name. See Note 8 to our Condensed Consolidated Financial Statements for additional information.
Previous wording
The Amended and Restated Loan Agreement provides for a revolving credit facility in a committed principal amount of up to $70,000,000 (the “Revolving Commitment”), including subline of $8,000,000 for letters of credit, and an option to increase the Revolving Commitment by up to $30,000,000 upon meeting certain conditions, including agreement by BofA to increase the Revolving Commitment by such amount. Proceeds of loans and letters of credit under the Amended and Restated Loan Agreement will be available (a) on entry into the Amended and Restated Loan Agreement to replace the outstanding loans and letters of credit outstanding under the Existing Loan Agreement and to pay fees and expenses related to entry into the Amended and Restated Loan Agreement and (b) from and after entry into the Amended and Restated Loan Agreement, for general working capital and other corporate purposes of the Borrower.
Current wording
The Amended and Restated Loan Agreement provides for a revolving credit facility in a committed principal amount of up to $70,000,000 (the “Revolving Commitment”), including subline of $8,000,000 for letters of credit, and an option to increase the Revolving Commitment by up to $30,000,000 upon meeting certain conditions, including agreement by BofA to increase the Revolving Commitment by such amount. Proceeds of loans and letters of credit under the Amended and Restated Loan Agreement will be available (a) on entry into the Amended and Restated Loan Agreement to replace the outstanding loans and letters of credit outstanding under the Existing Loan Agreement and to pay fees and expenses related to entry into the
Previous wording
We incurred $480,000 in fiscal 2025 and an additional $17,000 in fiscal 2026 first quarter in debt issuance costs in connection with our term loans. As of May 4, 2025, unamortized loan costs of $456,000 were netted against the carrying value of our term loans on our consolidated balance sheets.
Current wording
We incurred $480,000 in fiscal 2025 and an additional $33,000 in fiscal 2026 first half in debt issuance costs in connection with our term loans. As of August 3, 2025, unamortized loan costs of $447,000 were netted against the carrying value of our term loans on our consolidated balance sheets.
Previous wording
As of May 4, 2025, we had $22.6 million principal amount of outstanding loans and $6.7 million face amount of letters of credit. We had $40.7 million of Availability based on the current Borrowing Base. There were no additional borrowings outstanding under the Amended and Restated Loan Agreement as of May 4, 2025.
Current wording
As of August 3, 2025, we had $5.6 million principal amount of outstanding loans and $6.7 million face amount of letters of credit. We had $57.7 million of Availability based on the current Borrowing Base. There were no additional borrowings outstanding under the Amended and Restated Loan Agreement as of August 3, 2025.
Previous wording
We expect to spend approximately $2 to $3 million in capital expenditures over the remainder of fiscal 2026 to maintain and enhance our operating systems and facilities, excluding any possible spending decreases resulting from the cost reduction plan discussed above.
Current wording
We expect to spend approximately $1 to $2 million in capital expenditures over the remainder of fiscal 2026 to maintain and enhance our operating systems and facilities, excluding any possible spending decreases resulting from the cost reduction plan discussed above.
Previous wording
During calendar 2021, our Board of Directors approved an upgrade to our current ERP system and implementation efforts began shortly thereafter. The ERP system went live at Sunset West in December 2022 and in the legacy Hooker divisions in early September 2023. Due to our cost reduction initiatives, we have temporarily paused the ERP project in the Home Meridian segment.
Current wording
During calendar 2021, our Board of Directors approved an upgrade to our current ERP system and implementation efforts began shortly thereafter. The ERP system went live at Sunset West in December 2022 and in the legacy Hooker divisions in early September 2023.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Amended and Restated Loan Agreement and (b) from and after entry into the Amended and Restated Loan Agreement, for general working capital and other corporate purposes of the Borrower.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations