Hooker Furniture Corporation F2Q09 (Qtr End 08/03/08) Earnings Call Transcript

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2008-09-10 11:59:12.0

Tags: Hooker Furniture Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Analyst for Matthew McCall - BB&T Capital Markets.

Analyst for Matthew McCall - BB&T Capital Markets

I had a quick question on the domestic wood business, the more aggressive discounting there that impacted the margins. How much business is still there to work through? I kind of thought that was pretty much all behind you guys.

Paul B. Toms, Jr.

Right now the remaining domestic wood inventory represents about 1.5% of our finished goods inventory. At selling price at cost it’s higher than that, maybe a little less than 3%. It’s not a significant amount but it’s still there and we are working through it. I feel like we’ll work through it by the end of this fiscal year. But if you were to compare back to prior periods, I think in the second quarter of last year there was about $4 million in volume and there was $7 million in volume in the first quarter. So the fact that we’re selling smaller amounts of it this year and we’re selling it at a more discounted value makes the comparisons very difficult on that particular product.

Analyst for Matthew McCall - BB&T Capital Markets

I know you commented that your youth furniture line was up year-over-year driven primarily by Opus. Did you comment on what level of contribution Opus had to your top line? Is it still running at about that $7 million annual run rate? Is that right?

Paul B. Toms, Jr.

That’s for the first half; maybe slightly less. But I think we anticipate for the year it’s going to fun right at $7 million or $7.5 million annualized.

Analyst for Matthew McCall - BB&T Capital Markets

What about Sam Moore? Did that show any growth this quarter? Was the first half growth primarily the inclusion in Q1?

Paul B. Toms, Jr.

Sam Moore on a versus prior year basis is experiencing the same sorts of sales declines as Hooker and Bradington-Young.

Analyst for Matthew McCall - BB&T Capital Markets

I’m trying to figure out the back half. Is the seasonality that we saw in the second half last year still be applicable to this year do you think? It looks like your inventory ramp at the end of Q2 was similar to the levels that you had on the books last year. A little bit higher. Should we expect 52% to 55% of full-year revenue to show up in this second half again or do you think Q3 may be a little weaker given your comments over the next couple of weeks?

 

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