Martinsville, VA, October 5, 2006--Hooker Furniture reported lower-than-expected third-quarter profit as sales rose slightly but trailed Wall Street estimates.
The company said business had improved "marginally" since August and was expected to get better in fall and winter.
Earnings came to $1.2 million, or $0.10 a share, up 82 percent from profit of $664,000, or $0.06 a share, a year earlier.
The latest results included after-tax charges of $1.8 million, or $0.15 a share, tied to the closure of a Virginia plant. Excluding the charge, earnings came to $0.25 a share, shy of the $0.32 expected by analysts.
Sales rose 0.7 percent to $83 million, shy of analysts' estimates of $83.63 million.
Hooker said gross profit margin improved because of the shipment of a greater proportion of imported wood, metal and upholstered products.
Furniture makers have come under pressure as cooling home sales and higher borrowing costs led some consumers to pull back from big-ticket purchases.
Last month, Stanley Furniture Co. and Furniture Brands International Inc. pared their quarterly profit estimates, citing weaker sales.
In a statement, Hooker Chairman Paul Toms Jr. said that while energy prices have eased and consumer confidence is improving, a slowdown in housing and economic activity, were still stoking caution among buyers.
