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CONCENTRATIONS OF RISK
12 Months Ended
Jan. 31, 2021
Risks and Uncertainties [Abstract]  
Concentration Risk Disclosure [Text Block]

NOTE 19 CONCENTRATIONS OF RISK

 

Imported Products Sourcing

 

We source imported products through multiple vendors, located in nine countries. Because of the large number and diverse nature of the foreign factories from which we can source our imported products, we have some flexibility in the placement of products in any particular factory or country.

 

Factories located in Vietnam and China are a critical resource for Hooker Furniture. In fiscal 2021, imported products sourced from Vietnam and China accounted for 91% of our import purchases and our top five suppliers in those countries accounted for 45% of our fiscal 2021 import purchases. A disruption in our supply chain from Vietnam or China could significantly impact our ability to fill customer orders for products manufactured at that factory or in that country.

 

Raw Materials Sourcing for Domestic Upholstery Manufacturing

 

Our five largest domestic upholstery suppliers accounted for 28% of our raw materials supply purchases for domestic upholstered furniture manufacturing operations in fiscal 2021. One supplier accounted for 8.1% of our raw material purchases in fiscal 2021. Should disruptions with these suppliers occur, we believe we could successfully source these products from other suppliers without significant disruption to our operations.

 

Concentration of Sales and Accounts Receivable

 

One customer accounted for nearly 12% of our consolidated sales in fiscal 2021. Our top five customers accounted for approximately 30% of our fiscal 2021 consolidated sales. The loss of any one or more of these customers could adversely affect our earnings, financial condition and liquidity. At January 31, 2021, half of our consolidated accounts receivable is concentrated in our top five customers.