Martinsville, VA, March 31, 2006--Hooker Furniture Corp., reported better-than-expected quarterly profit on stronger sales of imported wood and metal furniture.
The company, which had reported sales decreases for the last three quarters of 2005, forecast sales would rise 3 percent to 7 percent for its second quarter.
Net income came to $3.56 million, or $0.30 a share, for the first quarter ended Feb. 28, up about 21 percent from $2.95 million, or $0.25 a share, a year earlier.
Analysts on average expected $0.26 a share.
The company cited better orders for imported wood and metal furniture and said efforts to improve product flow to customers were working.
The company also expected to reduce inventory and warehousing costs.
Sales of wood and metal furniture were up 7.6 percent in the quarter to $69.5 million. The Bradington-Young line of leather upholstery had a slight sales decline in the quarter, reflecting softer demand for domestically produced upholstery, the company said.
Some furniture makers are seeing improved results following hurricane-related materials shortages last year. Earlier this month, Furniture Brands said its orders were tracking up and sales were running positive compared with the prior year.
