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Hooker Furniture president discusses recent revenue surge
Sep 17, 2015

Profits have jumped at Hooker Furniture, reports Furniture Today. The second quarter, ending August 2, saw soaring revenues for the company in its case goods and upholstery segments, with net income totaling $3.94 million. That figure is up $2.27 million in the same quarter of 2014. The company’s sales rose 9.6 percent to $60.1 million in the most recent quarter. Case goods saw greatest growth, with a 13 percent sales jump. Sales were down in the custom upholstery division, but, according to the publication, the drop was due to the conversion of resource planning system to a new platform.

The company’s president, Mike Delgatti, shared his take on the profit surge with EAL.


Mike Delgatti

Hooker experienced a 13 percent sales jump in case goods and a 70-plus percent profit increase. Which products, styles or designs are leading the way in these gains?
Historically, Hooker has been known as a “category killer,” or market leader in home office, home entertainment and accents. As changes have occurred in computer and entertainment technology and consumer preferences, we have sought to diversify our product line. Over the last several years, we have strengthened our emphasis on whole home collections like Sanctuary and Rhapsody, on dining and bedroom furniture and have continued to emphasize high-fashion accent furniture.

During our most recent quarter, our dining room sales were up 31 percent, bedroom sales were up 25 percent and occasional furniture sales were up 12 percent. While our accent biz remains strong, we have seen a shift in our accent sales from smaller-scale pieces to larger and grander-scale accents such as credenzas. For some time now, our sales have been strongest in our most upscale furnishings, or the “best” price points of our good-better-best assortment.

Has that trend changed over time?
Over the last couple of years, we have sought to strengthen the “better” portion of our good-better-best assortment, and brought in a merchandising executive with expertise in that area. During the first half of this year, we began to get very good traction and strong retail sales in the “better” portion of our line, adding to the success of the “best” price points.

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