(Editor: Leona) Driven by a strong case goods business, Hooker Furniture said sales rose 6.8% and profits jumped more than 50% in the quarter ended Nov. 2.
Net sales for the period, the third quarter of the company's fiscal year, totaled $63.2 million. That's up from $59.1 million in last year's third fiscal quarter.
Net income was $3.2 million or 30 cents per share. In the same quarter last year, the total was $2.11 million or 20 cents per share.
“It’s very encouraging to enter the historically strong fourth quarter with this kind of top and bottom-line momentum,” said Paul Toms, chairman and CEO. “Our overall performance for the first nine months is one of best in memory, and net sales were the highest in six years. It is especially gratifying to see case goods leading the way in sales growth while continuing to improve operating profitability.”
He attributed the strength in case goods to the shipment of several top-selling product introductions from the April High Point Market, a good inventory position on all best-sellers, a national digital advertising effort, and an improvement in the case goods market as housing activity increases.
Toms said the company began seeing an uptick in orders in August, and that continued throughout the third quarter and into November, when incoming orders were up about 10%.
“Based on the sales order momentum of last quarter and so far in the fourth quarter, we have an optimistic outlook for the remainder of the year,” said Toms. “In the larger economic outlook, it’s hard to find many negatives, as housing steadily improves, consumer confidence is up and the stock market is at an all-time high. Therefore, we expect and are planning for stronger business in the near term.”
For the nine months ended Nov.2, net sales were $179.4 million, an increase of 5.1% from $170.7 million in the first nine months of the previous fiscal year.
Nine-month net income totaled $8.28 million or 77 cents per share. That's an increase of nearly 40% from $5.93 million or 55 cents per share in the comparable period.