Hooker Furniture Corporation (NASDAQ: HOFT) shares soared Thursday morning, on reporting consolidated net sales of $620.6 million and net income of $28.6 million, or $2.44 per diluted share, for the fiscal year that ended on January 28, 2018.
The company, based in Martinsville, Va., revealed consolidated net sales increased $43.4 million, or 7.5%, from the prior year. Net income increased $3.3 million, or 12.9%. Earnings per diluted share increased 11.9% from $2.18 in the prior year.
"We’re pleased with our performance for the fiscal year, with solid sales growth, double-digit gains in profitability and strong cash flow generation," said Paul B. Toms Jr., chairman and chief executive officer.
Higher sales in all segments contributed to the annual consolidated revenue increase, driven by a 6% increase in the Home Meridian segment and a 20% sales increase in the All Other Segment.
Nearly 80% of the All Other segment net sales increase was due to the inclusion of four months of revenues from the business of Shenandoah Furniture, which was acquired on September 29, 2017.
During the fiscal year, higher revenues helped boost Hooker’s consolidated operating income by $6.7 million, or 17%. The improvement came despite approximately $800,000 in costs related to the Shenandoah acquisition and amortization of intangibles with shorter economic lives from that acquisition.
Also contributing to the higher operating income was $1.8 million less in intangible asset amortization in the Home Meridian segment for the current fiscal year and the absence of $1.2 million in acquisition-related expenses for the Home Meridian acquisition.
Hooker shares galloped $3.50, or 9.4%, mid-morning Thursday to $40.65.
