10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended May 2, 2021

Commission file number 000-25349

HOOKER FURNITURE CORPORATION

(Exact name of registrant as specified in its charter)

Virginia	54-0251350
(State or other jurisdiction of incorporation or organization)	(IRS employer identification no.)

440 East Commonwealth Boulevard, Martinsville, VA 24112

(Address of principal executive offices, zip code)

(276) 632-2133

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated Filer ☐	Accelerated filer ☒
Non-accelerated Filer ☐	Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	HOFT	NASDAQ Global Select Market

As of June 4, 2021, there were 11,908,956 shares of the registrant’s common stock outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	26
Item 4.	Controls and Procedures	26
PART II. OTHER INFORMATION
Item 6.	Exhibits	27
Signature		28

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HOOKER FURNITURE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

As of	May 2,			January 31,
	2021			2021
	(unaudited)
Assets
Current assets
Cash and cash equivalents	$	61,596		$	65,841
Trade accounts receivable, net		91,336			83,290
Inventories		81,475			70,159
Prepaid expenses and other current assets		6,240			4,432
Total current assets		240,647			223,722
Property, plant and equipment, net		27,853			26,780
Cash surrender value of life insurance policies		25,935			25,365
Deferred taxes		12,400			14,173
Operating leases right-of-use assets		32,800			34,613
Intangible assets, net		25,641			26,237
Goodwill		490			490
Other assets		1,549			893
Total non-current assets		126,668			128,551
Total assets	$	367,315		$	352,273
Liabilities and Shareholders’ Equity
Current liabilities
Trade accounts payable	$	39,589		$	32,213
Accrued salaries, wages and benefits		6,084			7,136
Income tax accrual		1,536			501
Customer deposits		7,259			4,256
Current portion of lease liabilities		6,381			6,650
Other accrued expenses		2,796			3,354
Total current liabilities		63,645			54,110
Deferred compensation		11,127			11,219
Lease liabilities		27,980			29,441
Total long-term liabilities		39,107			40,660
Total liabilities		102,752			94,770
Shareholders’ equity
Common stock, no par value, 20,000 shares authorized,       11,909 and 11,888 shares issued and outstanding on each date		53,004			53,323
Retained earnings		212,291			204,988
Accumulated other comprehensive loss		(732	)		(808	)
Total shareholders’ equity		264,563			257,503
Total liabilities and shareholders’ equity	$	367,315		$	352,273

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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HOOKER FURNITURE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Thirteen Weeks Ended
	May 2,		May 3,
	2021		2020
Net sales	$	162,861	$	104,597
Cost of sales		129,279		85,944
Gross profit		33,582		18,653
Selling and administrative expenses		20,743		19,177
Goodwill impairment charges		-		39,568
Trade name impairment charges		-		4,750
Intangible asset amortization		596		596
Operating income/(loss)		12,243		(45,438	)
Other income/(expense), net		4		(42	)
Interest expense, net		31		208
Income/(loss) before income taxes		12,216		(45,688	)
Income tax expense/(benefit)		2,773		(10,869	)
Net income/(loss)	$	9,443	$	(34,819	)
Earnings/(loss) per share
Basic	$	0.79	$	(2.95	)
Diluted	$	0.78	$	(2.95	)
Weighted average shares outstanding:
Basic		11,833		11,798
Diluted		11,972		11,798
Cash dividends declared per share	$	0.18	$	0.16

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

4

HOOKER FURNITURE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(In thousands)

(Unaudited)

	Thirteen Weeks Ended
	May 2,			May 3,
	2021			2020
Net Income/(Loss)	$	9,443		$	(34,819	)
Other comprehensive income (loss):
Amortization of actuarial loss		100			84
Income tax effect on amortization		(24	)		(20	)
Adjustments to net periodic benefit cost		76			64
Total Comprehensive Income/(Loss)	$	9,519		$	(34,755	)

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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HOOKER FURNITURE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	For the
	Thirteen Weeks Ended
	May 2,			May 3,
	2021			2020
Operating Activities:
Net income/(loss)	$	9,443		$	(34,819	)
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill and intangible asset impairment charges		-			44,318
Depreciation and amortization		1,714			1,685
Deferred income tax expense		1,749			(10,045	)
Noncash restricted stock and performance awards		(319	)		605
Benefit from doubtful accounts and sales allowances		(791	)		(328	)
Gain on life insurance policies		(439	)		(571	)
Changes in assets and liabilities:
Trade accounts receivable		(7,255	)		24,129
Inventories		(11,316	)		10,763
Income tax recoverable		-			(867	)
Prepaid expenses and other current assets		(2,441	)		(1,468	)
Trade accounts payable		7,373			(12,149	)
Accrued salaries, wages, and benefits		(1,053	)		(1,661	)
Accrued income taxes		1,035			-
Customer deposits		3,004			673
Operating lease liabilities		84			367
Other accrued expenses		(558	)		(1,720	)
Deferred compensation		8			12
Net cash provided by operating activities	$	238		$	18,924
Investing Activities:
Purchases of property and equipment		(2,188	)		(380	)
Premiums paid on life insurance policies		(155	)		(162	)
Proceeds received on life insurance policies		-			673
Net cash (used in)/provided by investing activities		(2,343	)		131
Financing Activities:
Cash dividends paid		(2,140	)		(1,894	)
Payments for long-term debt		-			(1,952	)
Cash used in financing activities		(2,140	)		(3,846	)
Net (decrease)/increase in cash and cash equivalents		(4,245	)		15,209
Cash and cash equivalents - beginning of year		65,841			36,031
Cash and cash equivalents - end of quarter	$	61,596		$	51,240
Supplemental disclosure of cash flow information:
Cash paid for interest, net	$	-		$	240
Cash (refund)/paid for income taxes		(9	)		43
Non-cash transactions:
Increase/(decrease) in lease liabilities arising from obtaining right-of-use assets	$	6		$	(3	)
Increase in property and equipment through accrued purchases		3			51

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

6

HOOKER FURNITURE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(In thousands, except per share data)

(Unaudited)

									Accumulated
									Other			Total
	Common Stock					Retained			Comprehensive			Shareholders'
	Shares		Amount			Earnings			Income (loss)			Equity
Balance at February 2, 2020		11,838	$	51,582		$	223,252		$	(713	)	$	274,121
Net loss							(34,819	)					(34,819	)
Unrealized loss on defined benefit plan, net of tax of $20										64			64
Cash dividends paid and accrued ($0.16 per share)							(1,893	)					(1,893	)
Restricted stock grants, net of forfeitures		33		169									169
Restricted stock compensation cost				218									218
Performance-based restricted stock units costs				218									218
Balance at May 3, 2020		11,871	$	52,187		$	186,540		$	(649	)	$	238,078
Balance at January 31, 2021		11,888	$	53,323		$	204,988		$	(808	)	$	257,503
Net income							9,443						9,443
Unrealized loss on defined benefit plan, net of tax of $24										76			76
Cash dividends paid and accrued ($0.18 per share)							(2,140	)					(2,140	)
Restricted stock grants, net of forfeitures		21											-
Restricted stock compensation cost				274									274
Performance-based restricted stock units costs				147									147
PSU awards				(740	)								(740	)
Balance at May 2, 2021		11,909	$	53,004		$	212,291		$	(732	)	$	264,563

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

7

HOOKER FURNITURE CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollar and share amounts in tables, except per share amounts, in thousands unless otherwise indicated)

(Unaudited)

For the Thirteen Weeks Ended May 2, 2021

1.         Preparation of Interim Financial Statements

The condensed consolidated financial statements of Hooker Furniture Corporation and subsidiaries (referred to as “we,” “us,” “our,” “Hooker” or the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these statements include all adjustments necessary for a fair statement of the results of all interim periods reported herein. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) are condensed or omitted pursuant to SEC rules and regulations. However, we believe that the disclosures made are adequate for a fair presentation of our results of operations and financial position. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended January 31, 2021 (“2021 Annual Report”). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect both the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. Operating results for the interim periods reported herein may not be indicative of the results expected for the fiscal year.

The financial statements contained herein are being filed as part of a quarterly report on Form 10-Q covering the thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “first quarter” or “quarterly period”) that began February 1, 2021 and ended May 2, 2021. This report discusses our results of operations for this period compared to the thirteen-week period that began February 3, 2020 and ended May 3, 2020; and our financial condition as of May 2, 2021 compared to January 31, 2021.

References in these notes to the condensed consolidated financial statements of the Company to:

■ the 2022 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began February 1, 2021 and will end January 30, 2022; and

■ the 2021 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began February 3, 2020 and ended January 31, 2021.

2.          Recently Adopted Accounting Policies

In August 2018, the FASB issued ASU No. 2018-14, Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). The amendments in this update change the disclosure requirements for employers that sponsor defined benefit pension and/or other post-retirement benefit plans. It eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new disclosures that the FASB considers pertinent. The guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance in the fiscal 2022 first quarter. The adoption of ASU 2018-14 did not have a material impact on our consolidated financial statements or disclosures.

3.         Accounts Receivable

	May 2,			January 31,
	2021			2021
Trade accounts receivable	$	99,979		$	92,621
Other accounts receivable allowances		(6,311	)		(6,993	)
Allowance for doubtful accounts		(2,332	)		(2,338	)
Accounts receivable	$	91,336		$	83,290

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4.          Inventories

	May 2,			January 31,
	2021			2021
Finished furniture	$	90,591		$	81,290
Furniture in process		1,888			1,397
Materials and supplies		11,345			9,639
Inventories at FIFO		103,824			92,326
Reduction to LIFO basis		(22,349	)		(22,167	)
Inventories	$	81,475		$	70,159

5.         Property, Plant and Equipment

	Depreciable Lives	May 2,		January 31,
	(In years)	2021		2021
Buildings and land improvements	15 - 30	$	31,321	$	31,316
Computer software and hardware	3 - 10		15,152		15,012
Machinery and equipment	10		9,584		9,314
Leasehold improvements	Term of lease		10,022		10,005
Furniture and fixtures	3 - 10		2,667		2,614
Other	5		651		651
Total depreciable property at cost			69,397		68,912
Less accumulated depreciation			45,216		44,098
Total depreciable property, net			24,181		24,814
Land			1,077		1,077
Construction-in-progress			2,595		889
Property, plant and equipment, net		$	27,853	$	26,780

6.          Fair Value Measurements

Fair value is the price that would be received upon the sale of an asset or paid upon the transfer of a liability (an exit price) in an orderly transaction between market participants on the applicable measurement date. We use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

■ Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities;

■ Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

■ Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of May 2, 2021 and January 31, 2021, Company-owned life insurance was measured at fair value on a recurring basis based on Level 2 inputs. The fair value of the Company-owned life insurance is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Additionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value is reflected in income for that period.

Our assets measured at fair value on a recurring basis at May 2, 2021 and January 31, 2021, were as follows:

	Fair value at May 2, 2021								Fair value at January 31, 2021
Description	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(In thousands)
Assets measured at fair value
Company-owned life insurance	$	-	$	25,935	$	-	$	25,935	$	-	$	25,365	$	-	$	25,365

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7.         Intangible Assets

		January 31, 2021				May 2, 2021
Non-amortizable Intangible Assets	Segment	Beginning Balance		Impairment Charges		Net Book Value
Goodwill	Domestic Upholstery	$	490	$	-	$	490
Trademarks and trade names - Home Meridian	Home Meridian		6,650		-		6,650
Trademarks and trade names - Bradington-Young	Domestic Upholstery		861		-		861
Trademarks and trade names - Sam Moore	Domestic Upholstery		396		-		396
Total Trademarks and trade names		$	7,907	$	-	$	7,907
Total non-amortizable assets		$	8,397	$	-	$	8,397

Our amortizable intangible assets are recorded in our Home Meridian and Domestic Upholstery segments. The carrying amounts and changes therein of those amortizable intangible assets were as follows:

	Amortizable Intangible Assets
	Customer
	Relationships			Trademarks			Totals
Balance at January 31, 2021	$	17,672		$	658		$	18,330
Amortization		(581	)		(15	)		(596	)
Balance at May 2, 2021	$	17,091		$	643		$	17,734

For the remainder of fiscal 2022, amortization expense is expected to be approximately $1.8 million.

8.          Leases

In fiscal 2020, we adopted Accounting Standards Codification Topic 842 Leases. We recognized $146,000 sub-lease income for the three-month period ended May 2, 2021. The components of lease cost and supplemental cash flow information for leases for the three-months ended May 2, 2021 were:

	Thirteen Weeks Ended
	May 2, 2021		May 3, 2020
Operating lease cost	$	2,013	$	2,100
Variable lease cost		44		46
Short-term lease cost		19		116
Total operating lease cost	$	2,076	$	2,262
Operating cash outflows	$	1,992	$	1,852

The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of May 2, 2021 and January 31, 2021 were as follows:

	May 2, 2021		January 31, 2021
Real estate	$	31,918	$	33,651
Property and equipment		882		962
Total operating leases right-of-use assets	$	32,800	$	34,613
Current portion of operating lease liabilities	$	6,381	$	6,650
Long term operating lease liabilities		27,980		29,441
Total operating lease liabilities	$	34,361	$	36,091

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The weighted-average remaining lease term is 6.6 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 2.2%.

The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on May 2, 2021:

	Undiscounted Future Operating Lease Payments
Remainder of 2022	$	5,436
2023		5,593
2024		5,665
2025		5,281
2026		5,336
2027 and thereafter		9,809
Total lease payments	$	37,120
Less: impact of discounting		(2,759	)
Present value of lease payments	$	34,361

Due to the COVID-19 pandemic, we received concessions on several of our leases, including changes in lease terms and deferred rent payments. We accounted for the concessions as lease modifications. None of the modifications had a material effect on our condensed consolidated financial statements or results of operations. As of May 2, 2021, the Company had an additional lease for a warehouse in Georgia that had not yet commenced with estimated future minimum rental commitments of approximately $28 million. This lease is expected to commence in Fall of 2021 with an initial lease term of 10 years. Since the lease has not commenced, the undiscounted amounts are not included in the table above.

9.         Long-Term Debt

As of May 2, 2021, we had an aggregate $28.7 million available under our $35 million revolving credit facility (the “Existing Revolver”) to fund working capital needs. Standby letters of credit in the aggregate amount of $6.3 million, used to collateralize certain insurance arrangements and for imported product purchases, were outstanding under the revolving credit facility as of May 2, 2021. There were no additional borrowings outstanding under the Existing Revolver as of May 2, 2021.

10.         Earnings Per Share

We refer you to the discussion of Earnings Per Share in Note 2. Summary of Significant Accounting Policies, in the financial statements included in our 2021 Annual Report, for additional information concerning the calculation of earnings per share.

All stock awards are designed to encourage retention and to provide an incentive for increasing shareholder value. We have issued restricted stock awards to non-employee members of the board of directors since 2006 and to certain non-executive employees since 2014. We have issued restricted stock units (“RSUs”) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We have issued Performance-based Restricted Stock Units (“PSUs”) to certain senior executives since fiscal 2019 under the Company’s Stock Incentive Plan. Each PSU entitles the executive officer to receive one share of our common stock based on the achievement of two specified performance conditions if the executive officer remains continuously employed through the end of the three-year performance period. One target is based on our annual average growth in our EPS over the performance period and the other target is based on EPS growth over the performance period compared to our peers. The payout or settlement of the PSUs will be made in shares of our common stock.

11

We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:

	May 2,		January 31,
	2021		2021
Restricted shares		75		55
RSUs and PSUs		151		141
		226		196

All restricted shares, RSUs and PSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share:

	Thirteen Weeks Ended
	May 2,		May 3,
	2021		2020
Net income/(loss)	$	9,443	$	(34,819	)
Less: Unvested participating restricted stock dividends		11		8
Net earnings allocated to unvested participating restricted stock		49		-
Earnings/(loss) available for common shareholders		9,383		(34,827	)
Weighted average shares outstanding for basic earnings per share		11,833		11,798
Dilutive effect of unvested restricted stock, RSU and PSU awards		139		-
Weighted average shares outstanding for diluted earnings per share		11,972		11,798
Basic earnings/(loss) per share	$	0.79	$	(2.95	)
Diluted earnings/(loss) per share	$	0.78	$	(2.95	)

11. Income Taxes

We recorded income tax expense of $2.8 million for the fiscal 2022 first quarter, compared to income tax benefit of $10.9 million for the comparable prior year period, of which $10.6 million was recorded related to goodwill and trade name impairment charges. The effective tax rates for the fiscal 2022 and 2021 first quarters were 22.7% and 23.8%, respectively.

No material and non-routine positions have been identified that are uncertain tax positions.

Tax years ending January 28, 2018 through January 31, 2021 remain subject to examination by federal and state taxing authorities.

12.          Segment Information

As a public entity, we are required to present disaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The management approach requires segment information to be reported based on how management internally evaluates the operating performance of the company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting as outlined in ASC 280 Segments (“ASC 280”), which are to allow the users of our financial statements to:

■ better understand our performance;

■ better assess our prospects for future net cash flows; and

■ make more informed judgments about us as a whole.

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We define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income, as determined by the information regularly reviewed by the CODM. We continually monitor our reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary.  For financial reporting purposes, we are organized into three reportable segments and “All Other”, which includes the remainder of our businesses:

■ Hooker Branded, consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery businesses;  

■ Home Meridian, a business acquired at the beginning of fiscal 2017, is a stand-alone, mostly autonomous business that serves a different type or class of customer than do our other operating segments and at much lower margins;

■ Domestic Upholstery, which includes the domestic upholstery manufacturing operations of Bradington-Young, Sam Moore and Shenandoah Furniture; and

■ All Other, consisting of H Contract and Lifestyle Brands, a new business started in late fiscal 2019. Neither of these operating segments were individually reportable; therefore, we combined them in “All Other” in accordance with ASC 280.

The following table presents segment information for the periods, and as of the dates, indicated.

	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020
			% Net						% Net
Net Sales			Sales						Sales
Hooker Branded	$	51,339		31.5	%	$	27,162			26.0	%
Home Meridian		84,411		51.8	%		57,665			55.1	%
Domestic Upholstery		24,492		15.1	%		16,783			16.0	%
All Other		2,619		1.6	%		2,987			2.9	%
Consolidated	$	162,861		100	%	$	104,597			100.0	%
Gross Profit
Hooker Branded	$	17,212		33.5	%	$	8,005			29.5	%
Home Meridian		10,135		12.0	%		6,809			11.8	%
Domestic Upholstery		5,355		21.9	%		2,783			16.6	%
All Other		880		33.6	%		1,056			35.4	%
Consolidated	$	33,582		20.6	%	$	18,653			17.8	%
Operating Income/(Loss)
Hooker Branded	$	9,442		18.4	%	$	1,333			4.9	%
Home Meridian		866		1.0	%		(30,348	)		-52.6	%
Domestic Upholstery		1,688		6.9	%		(16,810	)		-100.2	%
All Other		247		9.4	%		387			12.9	%
Consolidated	$	12,243		7.5	%	$	(45,438	)		-43.4	%
Capital Expenditures
Hooker Branded	$	83				$	53
Home Meridian		1,346					89
Domestic Upholstery		759					238
All Other		-					-
Consolidated	$	2,188				$	380
Depreciation    & Amortization
Hooker Branded	$	449				$	455
Home Meridian		501					528
Domestic Upholstery		761					699
All Other		3					3
Consolidated	$	1,714				$	1,685

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	As of May 2,					As of January 31,
	2021		%Total			2021		%Total
Identifiable Assets			Assets					Assets
Hooker Branded	$	170,115		49.8	%	$	174,475		53.5	%
Home Meridian		119,737		35.1	%		100,497		30.9	%
Domestic Upholstery		50,794		14.9	%		49,370		15.2	%
All Other		538		0.2	%		1,204		0.4	%
Consolidated	$	341,184		100	%	$	325,546		100	%
Consolidated Goodwill and Intangibles		26,131					26,727
Total Consolidated Assets	$	367,315				$	352,273

Sales by product type are as follows:

	Net Sales (in thousands)
	Thirteen Weeks Ended
	May 2, 2021		%Total			May 3, 2020		%Total
Casegoods	$	97,959		60	%	$	63,602		61	%
Upholstery		64,902		40	%		40,995		39	%
	$	162,861		100	%	$	104,597		100	%

13. Subsequent Events

Dividends

On June 3, 2021, our board of directors declared a quarterly cash dividend of $0.18 per share, which will be paid on June 30, 2021 to shareholders of record at June 16, 2021.

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Item 2.          Management’s Discussion and Analysis of Financial Condition and Results of Operations

All references to the “Company,” “we,” “us” and “our” in this document refer to Hooker Furniture Corporation and its consolidated subsidiaries, unless specifically referring to segment information.

Forward-Looking Statements

Certain statements made in this report, including statements under Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in the notes to the consolidated financial statements included in this report, are not based on historical facts, but are forward-looking statements.  These statements reflect our reasonable judgment with respect to future events and typically can be identified by the use of forward-looking terminology such as “believes,” “expects,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “would,” “could” or “anticipates,” or the negatives thereof, or other variations thereof, or comparable terminology, or by discussions of strategy.  Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Those risks and uncertainties include but are not limited to:

■ disruptions involving our vendors or the transportation and handling industries, particularly those affecting imported products from Vietnam and China, including customs issues, labor stoppages, strikes or slowdowns and the availability of shipping containers and cargo ships;

■ the effect and consequences of the coronavirus (COVID-19) pandemic or future pandemics on a wide range of matters including but not limited to U.S. and local economies; our business operations and continuity; the health and productivity of our employees; and the impact on our global supply chain, the retail environment and our customer base;

■ general economic or business conditions, both domestically and internationally, and instability in the financial and credit markets, including their potential impact on our (i) sales and operating costs and access to financing or (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their respective businesses;

■ adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products by foreign governments or the U.S. government, such as the prior U.S. administration’s imposition of a 25% tariff on certain goods imported into the United States from China including almost all furniture and furniture components manufactured in China, which is still in effect, with the potential for additional or increased tariffs in the future;

■ sourcing transitions away from China, including the lack of adequate manufacturing capacity and skilled labor and longer lead times, due to competition and increased demand for resources in those countries;

■ risks associated with our reliance on offshore sourcing and the cost of imported goods, including fluctuation in the prices of purchased finished goods, ocean freight costs and warehousing costs and the risk that a disruption in our offshore suppliers could adversely affect our ability to timely fill customer orders;

■ changes in U.S. and foreign government regulations and in the political, social and economic climates of the countries from which we source our products;

■ difficulties in forecasting demand for our imported products;

■ risks associated with product defects, including higher than expected costs associated with product quality and safety, and regulatory compliance costs related to the sale of consumer products and costs related to defective or non-compliant products, including product liability claims and costs to recall defective products;

■ disruptions and damage (including those due to weather) affecting our Virginia, North Carolina or California warehouses (and our new Georgia warehouse when occupied), our Virginia or North Carolina administrative facilities or our representative offices or warehouses in Vietnam and China;

■ risks associated with our newly leased warehouse space in Georgia, including delays in construction and occupancy and risks associated with our move to the facility, including information systems, access to warehouse labor and the inability to realize anticipated cost savings;

15

■ risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices and availability of key raw materials, as well as changes in transportation, warehousing and domestic labor costs, availability of skilled labor, and environmental compliance and remediation costs;

■ the risks specifically related to the concentrations of a material part of our sales and accounts receivable in only a few customers, including the loss of several large customers through business consolidations, failures or other reasons, or the loss of significant sales programs with major customers;

■ our inability to collect amounts owed to us or significant delays in collecting such amounts;

■ the interruption, inadequacy, security breaches or integration failure of our information systems or information technology infrastructure, related service providers or the internet or other related issues including unauthorized disclosures of confidential information or inadequate levels of cyber-insurance or risks not covered by cyber insurance;

■ the direct and indirect costs and time spent by our associates associated with the implementation of our Enterprise Resource Planning system, including costs resulting from unanticipated disruptions to our business;

■ achieving and managing growth and change, and the risks associated with new business lines, acquisitions, restructurings, strategic alliances and international operations;

■ the impairment of our long-lived assets, which can result in reduced earnings and net worth;

■ capital requirements and costs;

■ risks associated with distribution through third-party retailers, such as non-binding dealership arrangements;

■ the cost and difficulty of marketing and selling our products in foreign markets;

■ changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials;

■ the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers’ income available for discretionary purchases, and the availability and terms of consumer credit;

■ price competition in the furniture industry;

■ competition from non-traditional outlets, such as internet and catalog retailers; and

■ changes in consumer preferences, including increased demand for lower-quality, lower-priced furniture.

Our forward-looking statements could be wrong in light of these and other risks, uncertainties and assumptions. The future events, developments or results described in this report could turn out to be materially different. Any forward-looking statement we make speaks only as of the date of that statement, and we undertake no obligation, except as required by law, to update any forward-looking statements whether as a result of new information, future events or otherwise and you should not expect us to do so.

Also, our business is subject to a number of significant risks and uncertainties any of which can adversely affect our business, results of operations, financial condition or future prospects. For a discussion of risks and uncertainties that we face, see the Forward-Looking Statements detailed above and Item 1A, “Risk Factors” in our 2021 annual report on Form 10-K (the “2021 Annual Report”).

Investors should also be aware that while we occasionally communicate with securities analysts and others, it is against our policy to selectively disclose to them any material nonpublic information or other confidential commercial information. Accordingly, investors should not assume that we agree with any projection, forecast or report issued by any analyst regardless of the content of the statement or report, as we have a policy against confirming information issued by others.

This quarterly report on Form 10-Q includes our unaudited condensed consolidated financial statements for the thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “first quarter” or “quarterly period”) that began February 1, 2021 and ended May 2, 2021. This report discusses our results of operations for this period compared to the 2021 fiscal year thirteen-week period that began February 3, 2020 and ended May 3, 2020; and our financial condition as of May 2, 2021 compared to January 31, 2021.

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References in this report to:

■ the 2022 fiscal year and comparable terminology mean the fiscal year that began February 1, 2021 and will end January 30, 2022; and

■ the 2021 fiscal year and comparable terminology mean the fiscal year that began February 3, 2020 and ended January 31, 2021.

Dollar amounts presented in the tables below are in thousands except for per share data.

In the discussion below and herein we reference changes in sales orders or “orders” and sales order backlog (unshipped orders at a point in time) or “backlog” over and compared to certain periods of time and changes discussed are in sales dollars and not units of inventory, unless stated otherwise. We believe orders are generally good current indicators of sales momentum and business conditions. However, except for custom or proprietary products, orders may be cancelled before shipment. If the items ordered are in stock and the customer has requested immediate delivery, we generally ship products in about seven days or less from receipt of order; however, orders may be shipped later if they are out of stock or there are production or shipping delays or the customer has requested the order to be shipped at a later date. For the Hooker Branded and Domestic Upholstery segments and All Other, we generally consider unshipped order backlogs to be one helpful indicator of sales for the upcoming 30-day period, but because of our relatively quick delivery and our cancellation policies, we do not consider order backlogs to be a reliable indicator of expected long-term sales. We generally consider the Home Meridian segment’s backlog to be one helpful indicator of that segment’s sales for the upcoming 90-day period. Due to (i) Home Meridian’s sales volume, (ii) the average sales order sizes of its mass, club and mega account channels of distribution, (iii) the proprietary nature of many of its products and (iv) the project nature of its hospitality business, for which average order sizes tend to be larger and consequently, its order backlog tends to be larger. There are exceptions to the general predictive nature of our orders and backlogs noted in this paragraph due to current demand and supply chain challenges related to the COVID-19 pandemic. They are discussed in greater detail below and are essential to understanding our prospects.

At May 2, 2021, our backlog of unshipped orders was as follows:

	Order Backlog
	(Dollars in 000s)
	May 2, 2021		January 31, 2021		May 3, 2020
Reporting Entity	Dollars		Dollars		Dollars
Hooker Branded	$	41,007	$	34,776	$	12,392
Home Meridian		191,767		180,188		63,831
Domestic Upholstery		43,985		30,271		12,720
All Other		3,704		2,845		2,656
Consolidated	$	280,463	$	248,080	$	91,599

At the end of fiscal 2022 first quarter, order backlog had increased $32.4 million or 13% as compared to the end of fiscal 2021 and increased $188.9 million or 206% as compared to the prior-year first quarter end, due to increased incoming orders in all three reportable segments as well as the supply chain disruptions in the Home Meridian and, to a lesser degree, Hooker Branded segments and production delays in the Domestic Upholstery segment. We are very encouraged by the current historic levels of orders and backlogs; however, due to the current supply chain issues including the lack of shipping containers and vessel space and limited overseas vendor capacity, orders are not converting to shipments as quickly as could be expected compared to the pre-pandemic environment and we expect that to continue at least into the second half of fiscal 2022. The current logistics challenges are slowing order fulfillment, particularly for Home Meridian whose average order sizes tend to be larger and more episodic versus orders for the traditional Hooker businesses, which tend to be smaller and more predictable. Additionally, Home Meridian orders are programmed out and scheduled for delivery to its larger accounts further into the future than usual, which is also contributing to the increased backlog.

The following discussion should be read in conjunction with the condensed consolidated financial statements, including the related notes, contained elsewhere in this quarterly report. We also encourage users of this report to familiarize themselves with all of our recent public filings made with the Securities and Exchange Commission (“SEC”), especially our 2021 Annual Report. Our 2021 Annual Report contains critical information regarding known risks and uncertainties that we face, critical accounting policies and information on commitments and contractual obligations that are not reflected in our condensed consolidated financial statements, as well as a more thorough and detailed discussion of our corporate strategy and new business initiatives.

Our 2021 Annual Report and our other public filings made with the SEC are available, without charge, at www.sec.gov and at http://investors.hookerfurniture.com.

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Overview

Hooker Furniture Corporation, incorporated in Virginia in 1924, is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture and fabric-upholstered furniture for the residential, hospitality and contract markets. We also domestically manufacture premium residential custom leather and custom fabric-upholstered furniture. We are ranked among the nation’s top five largest publicly traded furniture sources, based on 2019 shipments to U.S. retailers, according to a 2020 survey by a leading trade publication. We believe that consumer tastes and channels in which they shop for furniture are evolving at a rapid pace and we continue to change to meet these demands.

Executive Summary-Results of Operations

As discussed in greater detail under “Results of Operations” below, the following are the primary factors that affected our consolidated fiscal 2022 first quarter results of operations:

■ Consolidated net sales for fiscal 2022 first quarter increased by $58.3 million or 55.7% as compared to the prior year period, from $104.6 million to $162.9 million, due to an 89% sales increase in the Hooker Branded segment and 46% sales increases in both Home Meridian and Domestic Upholstery segments. All Other net sales decreased by 12.3% as H Contract has not yet recovered from certain impacts of the COVID-19 pandemic.

■ Consolidated gross profit increased both in absolute terms and as a percentage of net sales, due to increased gross profit and margin at Hooker Branded and Domestic Upholstery segments. Home Meridian’s gross profit increased slightly as a percentage of net sales as this segment was heavily impacted by higher freight costs which largely offset the sales increase. All Other’s gross profit decreased in absolute terms and as a percentage of net sales.

■ Consolidated operating income was $12.2 million compared to $45.4 million operating loss in the prior year period, which was largely attributable to $44.3 million in non-cash impairment charges. Consolidated net income was $9.4 million or $0.78 per diluted share, as compared to net loss of $34.8 million or $(2.95) per diluted share in the prior year period.

Review

We are pleased to report fiscal 2022 first quarter results with strong rebound and record growth one year after the severe onset of the COVID-19 pandemic as the Company witnessed the most significant downturn in its history in the prior year. Despite logistics challenges that impacted our Hooker Branded and Home Meridian segments and some raw material shortages affecting our Domestic Upholstery segment, consolidated net sales increased by 55.7% or $58.3 million as compared to the prior year period with all three reportable segments delivering significant revenue growth, driven by industry-wide ongoing high demand and consumer interest in home furnishings and home-related projects.

The Hooker Branded segment’s net sales increased by $24.2 million or 89% versus the prior year period as incoming orders nearly doubled and finished the quarter with a backlog that more than tripled versus the prior year first quarter end. The majority of Hooker Branded sales are shipped out of U.S. warehouses and because we source product on a consistent weekly basis, we were better able to flow imports from Asia and utilize lower cost freight contracts, which helped reduce the unfavorable impacts of vessel space and container shortages and domestic trucking availability. Additionally, we were also able to sell some slower-moving inventory from our warehouses. As the result of this higher sales volume, transportation cost containment, and to a lesser extent lower discounting, this segment remained highly profitable and contributed over 75% of consolidated operating profit during the quarter.

The Home Meridian segment’s net sales increased by $26.7 million or 46.4% in the fiscal 2022 first quarter versus the fiscal 2021 first quarter due to increased sales with major furniture chains and retail stores driven by increased demand and incoming orders. The Pulaski Furniture, Samuel Lawrence Furniture and Prime Resources International divisions experienced increased incoming orders and reported significantly increased net sales. However, profits on these increased sales were largely offset by higher freight costs as the result of continued global supply chain challenges. Freight costs have a more material and adverse impact on the Home Meridian segment compared to Hooker Branded segment due to relatively lower value of each of Home Meridian’s containers and Home Meridian’s greater reliance on the spot market for container freight. Net sales in the Accentrics Home division, which focuses on the e-commerce channel, increased slightly versus the prior year period as inventory availability had a more adverse impact on its sales, since ecommerce customers generally expect immediate shipment. The HMidea division’s sales to its Club accounts remained stable; however, current sales volumes are not sufficient to fully cover fixed costs at the relatively lower margins in this channel. The Samuel Lawrence Hospitality division was also unprofitable during the quarter due to very low sales volume as a result of continued low building and remodeling activity in the hospitality industry as it continues its slow climb out of the depths of the COVID crisis. The Home Meridian segment finished the quarter with a small operating profit and backlog tripled as compared to the prior year quarter end. Freight surcharges and price increases were imposed during the quarter to try to mitigate these increased costs; however these customer increases often trail the increases passed on by our suppliers.

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The Domestic Upholstery segment’s net sales increased by $7.7 million or 45.9% in the fiscal 2022 first quarter versus the prior year period due to significantly increased sales volume at all three divisions. (In response to the COVID-19 restrictions and reduced orders, we temporarily closed our manufacturing plants at Bradington-Young and Shenandoah for about a month during the prior year first quarter, and Sam Moore operated at about 50% capacity. As a result, these divisions did not report sales or reported sales at much lower levels during that month.) Although we are encouraged by 156% higher incoming orders during this quarter, we started to experience foam shortages and inflation in certain raw materials, such as foam, lumber, plywood, fabric and mechanisms. These manufacturing constraints led to reduced production levels later this quarter, which adversely impacted sales volume and led to operating inefficiencies in this segment. We believe the foam shortage is beginning to show signs of improvement and we are increasing prices to our customers where possible to offset increased raw material costs.

All Other’s net sales decreased by $368,000 or 12.3% as compared to the prior year period due principally to 16.6% sales decrease at H Contract. The senior living industry, which comprises the majority of H Contract’s business, has not yet recovered from the COVID-19 crisis. However, we believe the ongoing vaccination progress has helped the senior living industry as H Contract’s incoming orders increased by 9.5% during the quarter and backlog was 35% higher than prior year quarter end. Despite the sale decline, H Contract still reported operating income for the quarter. Lifestyle Brands, a new business started in fiscal 2019, also reported a profit.

We used $238,000 generated from operating activities and existing cash on hand to pay $2.2 million of capital expenditures to enhance our business systems and facilities and $2.1 million in cash dividends to our shareholders. Cash and cash equivalents stood at $61.6 million at fiscal 2022 first quarter-end, a decrease of $4.2 million compared to the balance at fiscal 2021 year-end. Meanwhile, our inventory balance increased $11.3 million as production capacity at our Asian suppliers continues to return to pre-pandemic levels. We expect our cash balances to decrease as we continue to build inventories to meet increased customer demand. In addition to our cash balance, we have an aggregate of $28.7 million available under our existing revolver to fund working capital needs, which we believe we have the financial resources to fund our business operations, including weathering the logistics issues, cost increases and production capacity constraints which are currently impacting our industry.

Results of Operations

The following table sets forth the percentage relationship to net sales of certain items included in the condensed consolidated statements of income included in this report.

	Thirteen Weeks Ended
	May 2,			May 3,
	2021			2020
Net sales		100	%		100	%
Cost of sales		79.4			82.2
Gross profit		20.6			17.8
Selling and administrative expenses		12.7			18.3
Goodwill impairment charges		-			37.8
Trade name impairment charges		-			4.6
Intangible asset amortization		0.4			0.6
Operating income/(loss)		7.5			(43.4	)
Interest expense, net		-			0.2
Income/(Loss) before income taxes		7.5			(43.7	)
Income tax expense		1.7			(10.4	)
Net income/(loss)		5.8			(33.3	)

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Fiscal 2022 First Quarter Compared to Fiscal 2021 First Quarter

	Net Sales
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020					$ Change			% Change
			% Net Sales					% Net Sales
Hooker Branded	$	51,339		31.5	%	$	27,162		26.0	%	$	24,177			89.0	%
Home Meridian		84,411		51.8	%		57,665		55.1	%		26,746			46.4	%
Domestic Upholstery		24,492		15.1	%		16,783		16.0	%		7,709			45.9	%
All Other		2,619		1.6	%		2,987		2.9	%		(368	)		-12.3	%
Consolidated	$	162,861		100	%	$	104,597		100	%	$	58,264			55.7	%

Unit Volume	FY22 Q1 % Increase vs. FY21 Q1			Average Selling Price (ASP)	FY22 Q1 % Increase vs. FY21 Q1
Hooker Branded		72.2	%	Hooker Branded		8.5	%
Home Meridian		49.4	%	Home Meridian		-5.4	%
Domestic Upholstery		43.8	%	Domestic Upholstery		0.9	%
All Other		-20.5	%	All Other		6.2	%
Consolidated		51.0	%	Consolidated		0.6	%

Consolidated net sales increased significantly due to strong sales in all three reportable segments compared to the prior year period.

■ The Hooker Branded segment’s net sales increased by 89% as compared to the prior year period due to increased unit volume and ASP, driven by increased demand and lower discounting. A strong retail environment also enabled this segment to sell slower-moving inventory with less promotional and discounting costs.

■ The Home Meridian segment’s net sales increased due to increased unit volume with major furniture chains and retail stores as the result of strong demand, partially offset by decreased sales in the Samuel Lawrence Hospitality as the hospitality business has not recovered from the pandemic. Accentrics Home net sales increased slightly compared to prior year first quarter as e-commerce sales were more impacted by inventory availability. The ASP decrease was attributable to customer mix.

■ The Domestic Upholstery segment’s net sales increased due to increased unit volume in all three divisions. In the prior year period, we temporarily shut down Bradington-Young and Shenandoah manufacturing plants and kept the Sam Moore division operating at 50% capacity for a month. In fiscal 2022 first quarter, all three divisions were operated near full capacity in response to increased orders and backlog. However, we saw foam allocations and certain material shortages later in the quarter that limited our production levels and adversely impacted sales volume.

■ All Other’s net sales decrease was attributable to H Contract, as this division has not yet recovered from the pandemic, partially offset by continued growth at Lifestyle Brands.

	Gross Profit and Margin
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020					$ Change			% Change
			% Net Sales					% Net Sales
Hooker Branded	$	17,212		33.5	%	$	8,005		29.5	%	$	9,207			115.0	%
Home Meridian		10,135		12.0	%		6,809		11.8	%		3,326			48.8	%
Domestic Upholstery		5,355		21.9	%		2,783		16.6	%		2,572			92.4	%
All Other		880		33.6	%		1,056		35.4	%		(176	)		-16.7	%
Consolidated	$	33,582		20.6	%	$	18,653		17.8	%	$	14,929			80.0	%

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Consolidated gross profit and margin both increased in the fiscal 2022 first quarter as compared to the prior year period.

■ The Hooker Branded segment’s gross profit and margin both increased due primarily to the net sales increase as well as lower fixed distribution costs. Product costs benefited from a favorable sourcing mix as we imported a higher portion of product from Vietnam which carried lower costs. The favorable sourcing mix was negatively impacted by higher freight costs and inflation from Asian vendors.

■ The Home Meridian segment’s gross profit increased in absolute terms and slightly as a percentage of net sales. Freight costs increased 300 bps as compared to prior year period, which was the primary driver of product costs increase. Despite a net sales increase, Home Meridian’s gross margins were negatively impacted by some higher-volume but lower-margin sales programs.

■ The Domestic Upholstery segment’s gross profit and margin increased significantly due to the net sales increases and operating efficiency improvements this segment experienced as compared to the prior year period that included lower sales volumes and operating inefficiencies due to temporary factory shutdowns. However, foam allocations and other critical material shortages began to impact production in the first quarter of fiscal 2022. This led to operating at reduced production volumes and resulted in production inefficiencies which adversely impacted gross profit. Inflation of raw material costs also drove increased product costs in this segment.

■ All Other’s gross profit and margin decreased in the first quarter due principally to net sales decline at H Contract.

	Selling and Administrative Expenses (S&A)
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020					$ Change			% Change
			% Net Sales					% Net Sales
Hooker Branded	$	7,771		15.1	%	$	6,672		24.6	%	$	1,099			16.5	%
Home Meridian		8,936		10.6	%		8,886		15.4	%		50			0.6	%
Domestic Upholstery		3,404		13.9	%		2,949		17.6	%		455			15.4	%
All Other		632		24.1	%		670		22.4	%		(38	)		-5.7	%
Consolidated	$	20,743		12.7	%	$	19,177		18.3	%	$	1,566			8.2	%

Consolidated selling and administrative (“S&A”) expenses increased in absolute terms while decreased as a percentage of net sales in the fiscal 2022 first quarter versus the prior year period.

■ The Hooker Branded segment’s S&A expenses increased in absolute terms due primarily to increased selling costs as the result of higher net sales, and to a lesser extent increased expenses incurred as part of our ERP system implementation. The increases were partially offset by lower bad debt expenses due to a customer write-off in the prior year and lower advertising supplies and market expenses due to the postponement of the Spring High Point Furniture Market. Hooker Branded segment’s S&A expenses decreased as a percentage of net sales due to increased net sales.

■ The Home Meridian segment’s S&A expenses increased slightly in absolute terms but decreased as a percentage of net sales. The increase was principally attributable to increased selling expenses due to higher net sales, partially offset by decreased travel expenses, decreased professional service expenses and other spending reductions.

■ The Domestic Upholstery segment’s S&A expenses increased in absolute terms due to increased selling expenses on higher net sales, higher salaries and wages compared to the prior year, when a number of employees were furloughed due to factory shutdowns, and increased depreciation expenses due to the accelerated depreciation of our existing ERP system, partially offset by lower medical claims costs.

■ All Other S&A expenses decreased in absolute terms due to decreased selling expenses as well as decreased advertising supply expenses. S&A expenses increased as a percentage of net sales due to lower net sales.

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	Goodwill impairment charges
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020					$ Change			% Change
			% Net Sales					% Net Sales
Home Meridian	$	-		0.0	%	$	23,187		40.2	%	$	(23,187	)
Domestic Upholstery		-		0.0	%		16,381		97.6	%		(16,381	)
Consolidated		-		0.0	%		39,568		37.8	%		(39,568	)

	Trade name impairment charges
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020					$ Change			% Change
			% Net Sales					% Net Sales
Home Meridian	$	-		0.0	%	$	4,750		8.2	%	$	(4,750	)
Consolidated		-		0.0	%	$	4,750		4.6	%		(4,750	)

In the prior year first quarter, we recorded $23.2 million and $16.4 million in non-cash impairment charges to write down goodwill in Home Meridian segment and the Shenandoah division under Domestic Upholstery segment, respectively. We also recorded $4.8 million non-cash impairment charges to write down tradenames in the Home Meridian segment.

	Intangible Asset Amortization
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020					$ Change		% Change
			% Net Sales					% Net Sales
Intangible asset amortization	$	596		0.4	%	$	596		0.6	%	$	-		0.0	%

Intangible asset amortization expense stayed the same compared to the prior year first quarter.

	Operating Profit/(Loss) and Margin
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020						$ Change			% Change
			% Net Sales						% Net Sales
Hooker Branded	$	9,442		18.4	%	$	1,333			4.9	%	$	8,109			608.3	%
Home Meridian		866		1.0	%		(30,348	)		-52.6	%		31,214			102.9	%
Domestic Upholstery		1,688		6.9	%		(16,810	)		-100.2	%		18,498			110.0	%
All Other		247		9.4	%		387			12.9	%		(140	)		-36.2	%
Consolidated	$	12,243		7.5	%	$	(45,438	)		-43.4	%	$	57,681			126.9	%

Operating profitability increased in absolute terms and as a percentage of net sales, due to the factors discussed above.

	Interest Expense, net
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020					$ Change			% Change
			% Net Sales					% Net Sales
Consolidated interest expense, net	$	31		0.0	%	$	208		0.2	%	$	(177	)		-85.1	%

Consolidated interest expense decreased in fiscal 2022 first quarter primarily due to the payoff of our term loans in fiscal 2021 fourth quarter.

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	Income taxes
	Thirteen Weeks Ended
	May 2, 2021						May 3, 2020						$ Change		% Change
				% Net Sales						% Net Sales
Consolidated income tax expense/(benefit)	$	2,773			1.7	%	$	(10,869	)		-10.4	%	$	13,642		125.5	%
Effective Tax Rate		22.7	%					23.8	%

We recorded income tax expense of $2.8 million for the fiscal 2022 first quarter compared to income tax benefit of $10.9 million for the comparable prior year period. The effective tax rates for the fiscal 2022 and 2021 first quarters were 22.7% and 23.8%, respectively.

	Net Income/(Loss)
	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020						$ Change		% Change
Net income/(loss)			% Net Sales						% Net Sales
Consolidated	$	9,443		5.8	%	$	(34,819	)		-33.3	%	$	44,262		127.1	%
Diluted earnings/(loss) per share	$	0.78				$	(2.95	)

COVID-19

We monitor information on COVID-19 from the CDC and believe we are adhering to their recommendations regarding the health and safety of our personnel. To address the potential human impact of the virus, much of our administrative staff are telecommuting. For those administrative staff not telecommuting and our warehouse and domestic manufacturing employees, we have implemented appropriate social distancing policies and have stepped-up facility cleaning at each location. Non-essential domestic travel for our employees has ceased and international travel has been prohibited out-right. Testing, treatment and vaccinations for COVID-19 are covered 100% under our medical plan and counseling is available through our employee assistance plan to assist employees with financial, mental and emotional stress related to the virus and other issues. In addition, we are offering temporary paid leave to employees diagnosed with the virus (and those associates with another diagnosed person or persons in their household) and are working to accommodate associates with child-care issues related to school or day-care closures.

As more state and local governments have eased restrictions on retail activities, we have seen a significant improvement in our business conditions, including order rates, profitability, and financial condition. We continue to cautiously make decisions regarding our financial resources to weather and adapt to changes in market conditions, including any remaining impacts of COVID-19 and future pandemics.

Outlook

Our consolidated orders and backlogs are more than double historical norms as we head into the summer months. Given this strong position, we are cautiously optimistic, considering the industry-wide supply chain, logistics and raw materials shortages and inflation.

We continue to manage our logistics issues, with the goal of minimizing costs and maximizing delivery; however, there is no indication that ocean freight container rates will return to pre-COVID-19 levels in the near term. We believe we have mitigated these dynamics as much as possible through surcharges and price increases, but these increases often trail price increases received by logistics partners and suppliers. Additionally, these supply-side factors are unpredictable and often involve frequent, unexpected changes with little or no notice.

We believe that several macroeconomic factors provide a nice path for growth such as the strong housing market and favorable demographics with the large Millennial generation becoming highly engaged in household formation and home furnishings purchases. However, we expect increased competition for consumer discretionary income from industries such as travel, apparel, dining out and in-person events as vaccination rates increase.

While we expect the extraordinary levels of demand for home furnishings to diminish somewhat, we also expect that demand for home furnishings will settle into a higher level of demand than pre-pandemic. We believe we are well positioned to help consumers enhance their homes with comfortable, stylish and quality home furnishings.

23

Financial Condition, Liquidity and Capital Resources

Cash Flows – Operating, Investing and Financing Activities

	Thirteen Weeks Ended
	May 2,			May 3,
	2021			2020
Net cash provided by operating activities	$	238		$	18,924
Net cash used in investing activities		(2,343	)		131
Cash used in financing activities		(2,140	)		(3,846	)
Net (decrease)/increase in cash and cash equivalents	$	(4,245	)	$	15,209

During the three months ended May 2, 2021, we used a portion of the existing cash and cash equivalent on hand to pay $2.2 million of capital expenditures to enhance our business systems and facilities, $2.1 million in cash dividends, and $155,000 in life insurance premiums on Company-owned life insurance policies.

In comparison, during the three months ended May 3, 2020, we used a portion of the $18.9 million cash generated from operations and $673,000 life insurance proceeds to pay $2.2 million in principal and interest payments on our term loans, $1.9 million in cash dividends, and $162,000 in life insurance premiums on Company-owned life insurance policies.

Liquidity, Financial Resources and Capital Expenditures

Our financial resources include:

■ available cash and cash equivalents, which are highly dependent on incoming order rates and our operating performance;

■ expected cash flow from operations;

■ available lines of credit; and

■ cash surrender value of Company-owned life insurance.

We believe these resources are sufficient to meet our business requirements and the payment of dividends through fiscal 2022 and for the foreseeable future, including expected capital expenditures and working capital needs.

Loan Agreements and Revolving Credit Facility

We paid off the remaining $24.3 million term loans at the end of fiscal 2021 and currently have one $35 million revolving credit facility (the “Existing Revolver”). The credit facility was provided for in the amended and restated loan agreement (the “Original Loan Agreement”), which we entered into on February 1, 2016 with Bank of America, N. A. (“BofA”). We entered a Second Amended and Restated Loan Agreement dated as of September 29, 2017 (the “Second Amended and Restated Loan Agreement”), a First Amendment to Second Amended and Restated Loan Agreement dated as of January 31, 2019, a Second Amendment to Second Amended and Restated Loan Agreement dated as of November 4, 2020, and a Third Amendment to the Second Amended and Restated Loan Agreement dated as of January 27, 2021. Details of our Existing Revolver are outlined below:

■ The facility is available between January 27, 2021 and February 1, 2026 or such earlier date as the availability may terminate or such later date as BofA may from time to time in its sole discretion designate in any extension notice;

■ During the availability period, BofA will provide a line of credit to the maximum amount of the Existing Revolver;

■ The initial amount of the Existing Revolver is $35 million;

■ The sublimit of the facility available for the issuance of letters of credit was increased to $10 million;

■ The actual daily amount of undrawn letters of credit is subject to a quarterly fee equal to a per annum rate of 1%;

■ We may, on a one-time basis, request an increase in the Existing Revolver by an amount not to exceed $30 million at BofA’s discretion; and

24

■ Any amounts outstanding under the Existing Revolver bear interest at a rate, equal to the then current LIBOR monthly rate (adjusted periodically) plus 1.00%. We must also pay a quarterly unused commitment fee at a rate of 0.15% determined by the actual daily amount of credit outstanding during the applicable quarter.

The loan covenants agreed to under the Second Amended and Restated Loan Agreement continue to apply to us. They include customary representations and warranties and requires us to comply with customary covenants, including, among other things, the following financial covenants:

■ Maintain a ratio of funded debt to EBITDA not exceeding 2.00:1.00.

■ A basic fixed charge coverage ratio of at least 1.25:1.00; and

■ Limit capital expenditures to no more than $15.0 million during any fiscal year.

They also limit our right to incur other indebtedness, make certain investments and create liens upon our assets, subject to certain exceptions, among other restrictions. They do not restrict our ability to pay cash dividends on, or repurchase shares of our common stock, subject to our compliance with the financial covenants discussed above, if we are not otherwise in default under the agreements.

We were in compliance with each of these financial covenants at May 2, 2021 and expect to remain in compliance with existing covenants for the foreseeable future. We believe we have the financial resources to fund our business operations, including weathering the logistics issues, cost increases and production capacity constraints which are currently impacting our industry.

Revolving Credit Facility Availability

As of May 2, 2021, we had an aggregate $28.7 million available under our Existing Revolver to fund working capital needs. Standby letters of credit in the aggregate amount of $6.3 million, used to collateralize certain insurance arrangements and for imported product purchases, were outstanding under the Existing Revolver as of May 2, 2021. There were no additional borrowings outstanding under the revolving credit facility as of May 2, 2021.

Capital Expenditures

We expect to spend approximately $5 million in capital expenditures over the remainder of fiscal 2022 to maintain and enhance our operating systems and facilities. Of those amounts, we expect to spend approximately:

● $3.0 million outfitting a newly built leased warehouse space in Savannah, Georgia that we expect to occupy in the fall of 2021. The facility will consolidate several older, less efficient Home Meridian segment warehouses into a single strategically located distribution facility near the port of Savannah and major interstate highways. We believe this is critical to servicing customers and is expected to reduce transportation costs and increase operating efficiencies; and

● $1.0 million on implementation costs for a new common, cloud-based Enterprise Resource Planning (“ERP”) platform which we expect to be online in our Hooker Branded segment and certain divisions under Domestic Upholstery segment by mid-2022, with other segments following thereafter.

Enterprise Resource Planning

In early fiscal 2022, our Board of Directors approved an upgrade to our current ERP system and implementation efforts began shortly thereafter. We expect to implement the ERP upgrade in our Hooker Branded segment and certain divisions under Domestic Upholstery segment by mid calendar 2022, with Home Meridian and Shenandoah divisions following afterwards. To complete the ERP system implementation as anticipated, we will be required to expend significant financial and human resources. We anticipate spending approximately $5.5 million over the course of this project, with a significant amount of time invested by our associates. In the fiscal 2022 first quarter, we spent approximately $400,000 on this project.

Dividends

Subsequent to the end of the fiscal 2022 first quarter, on June 3, 2021, our board of directors declared a quarterly cash dividend of $0.18 per share, which will be paid on June 30, 2021 to shareholders of record at June 16, 2021. The Board will continue to evaluate the appropriateness of the current dividend rate considering our performance and economic conditions in future quarters.

25

Critical Accounting Policies

Except as discussed below, there have been no material changes to our critical accounting policies and estimates from the information provided in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our 2021 Annual Report.

On the first day of the current fiscal year, we adopted the accounting standards outlined in Part 1, Notes to Condensed Consolidated Financial Statements, “Note 2. Recently Adopted Accounting Policies” (“Note 2”). See Note 2 for additional information related to the impact of adopting this accounting standard.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various types of market risk in the normal course of our business, including the impact of interest rate changes, raw materials price risk and changes in foreign currency exchange rates, which could impact our results of operations or financial condition. We manage our exposure to this risk through our normal operating activities.

Interest Rate Risk

Borrowings under the revolving credit facility bears interest based on LIBOR plus 1.0%. As such, this debt instrument exposes us to market risk for changes in interest rates. There was no outstanding balance under our revolving credit facility as of May 2, 2021, other than amounts reserved for standby letters of credit in the amount of $6.3 million.

Raw Materials Price Risk

We are exposed to market risk from changes in the cost of raw materials used in our domestic upholstery manufacturing processes; principally, wood, fabric and foam products.  Increases in home construction activity could result in increases in wood and fabric costs. Additionally, the cost of petroleum-based foam products we utilize are sensitive to crude oil prices, which vary due to supply, demand and geo-political factors.

Currency Risk

For imported products, we generally negotiate firm pricing denominated in U.S. Dollars with our foreign suppliers, typically for periods of at least one year.  We accept the exposure to exchange rate movements beyond these negotiated periods. We do not use derivative financial instruments to manage this risk but could choose to do so in the future.  Most of our imports are purchased from suppliers located in Vietnam and China.  The Chinese currency floats within a limited range in relation to the U.S. Dollar, resulting in exposure to foreign currency exchange rate fluctuations.

Since we transact our imported product purchases in U.S. Dollars, a relative decline in the value of the U.S. Dollar could increase the price we pay for imported products beyond the negotiated periods. We generally expect to reflect substantially all of the effect of any price increases from suppliers in the prices we charge for imported products. However, these changes could adversely impact sales volume or profit margins during affected periods.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the fiscal quarter ended May 2, 2021. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures are effective as of May 2, 2021 to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the Company’s management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the fiscal quarter ended May 2, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

26

PART II. OTHER INFORMATION

Item 6.         Exhibits

3.1	Amended and Restated Articles of Incorporation of the Company, as amended March 28, 2003 (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended February 28, 2003)
3.2	Amended and Restated Bylaws of the Company, as amended December 10, 2013 (incorporated by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K (SEC File No. 000-25349) for the year ended February 2, 2014)
4.1	Amended and Restated Articles of Incorporation of the Company, as amended (See Exhibit 3.1)
4.2	Amended and Restated Bylaws of the Company, as amended (See Exhibit 3.2)
31.1*	Rule 13a-14(a) Certification of the Company’s principal executive officer
31.2*	Rule 13a-14(a) Certification of the Company’s principal financial officer
32.1**	Rule 13a-14(b) Certification of the Company’s principal executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	Interactive Data Files (formatted as Inline XBRL)
104*	Cover page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

*Filed herewith

** Furnished herewith

27

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HOOKER FURNITURE CORPORATION
Date: June 10, 2021		By: /s/Paul A. Huckfeldt
		Paul A. Huckfeldt  Chief Financial Officer and Senior Vice President – Finance and Accounting

28

EX-31.1

Exhibit 31.1

Form 10-Q for the Quarterly Period Ended May 2, 2021

SECTION 13a-14(a) CERTIFICATION

I, Jeremy R. Hoff, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hooker Furniture Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 10, 2021	By:  /s/ Jeremy R. Hoff.
	Jeremy R. Hoff Chief Executive Officer and Director

EX-31.2

Exhibit 31.2

Form 10-Q for the Quarterly Period Ended May 2, 2021

SECTION 13a-14(a) CERTIFICATION

I, Paul A. Huckfeldt, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hooker Furniture Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 10, 2021	By:  /s/ Paul A. Huckfeldt
	Paul A. Huckfeldt Chief Financial Officer and Senior Vice President - Finance and Accounting

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Hooker Furniture Corporation (the “Company”) Quarterly Report on Form 10-Q for the quarterly period ended May 2, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

a. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

b. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: June 10, 2021	By:  /s/ Jeremy R. Hoff
	Jeremy R. Hoff Chief Executive Officer and Director

By:  /s/ Paul A. Huckfeldt                        

Paul A. Huckfeldt

Chief Financial Officer and

Senior Vice President - Finance and Accounting

XML

Document And Entity Information - shares	3 Months Ended
	May 02, 2021	Jun. 04, 2021
Document Information Line Items
Entity Registrant Name	HOOKER FURNITURE CORPORATION
Trading Symbol	HOFT
Document Type	10-Q
Current Fiscal Year End Date	--01-31
Entity Common Stock, Shares Outstanding		11,908,956
Amendment Flag	false
Entity Central Index Key	0001077688
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Period End Date	May 02, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Document Quarterly Report	true
Entity File Number	000-25349
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	54-0251350
Entity Address, Address Line One	440 East Commonwealth Boulevard
Entity Address, City or Town	Martinsville
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	24112
City Area Code	276
Local Phone Number	632-2133
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, no par value
Security Exchange Name	NASDAQ
Document Transition Report	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	May 02, 2021	Jan. 31, 2021
Current assets
Cash and cash equivalents	$ 61,596	$ 65,841
Trade accounts receivable, net	91,336	83,290
Inventories	81,475	70,159
Prepaid expenses and other current assets	6,240	4,432
Total current assets	240,647	223,722
Property, plant and equipment, net	27,853	26,780
Cash surrender value of life insurance policies	25,935	25,365
Deferred taxes	12,400	14,173
Operating leases right-of-use assets	32,800	34,613
Intangible assets, net	25,641	26,237
Goodwill	490	490
Other assets	1,549	893
Total non-current assets	126,668	128,551
Total assets	367,315	352,273
Current liabilities
Trade accounts payable	39,589	32,213
Accrued salaries, wages and benefits	6,084	7,136
Income tax accrual	1,536	501
Customer deposits	7,259	4,256
Current portion of lease liabilities	6,381	6,650
Other accrued expenses	2,796	3,354
Total current liabilities	63,645	54,110
Deferred compensation	11,127	11,219
Lease liabilities	27,980	29,441
Total long-term liabilities	39,107	40,660
Total liabilities	102,752	94,770
Shareholders’ equity
Common stock, no par value, 20,000 shares authorized, 11,909 and 11,888 shares issued and outstanding on each date	53,004	53,323
Retained earnings	212,291	204,988
Accumulated other comprehensive loss	(732)	(808)
Total shareholders’ equity	264,563	257,503
Total liabilities and shareholders’ equity	$ 367,315	$ 352,273

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares shares in Thousands	May 02, 2021	Jan. 31, 2021
Statement of Financial Position [Abstract]
Common stock, shares authorized	20,000	20,000
Common stock, shares issued	11,909	11,888
Common stock, shares outstanding	11,909	11,888

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Income Statement [Abstract]
Net sales	$ 162,861	$ 104,597
Cost of sales	129,279	85,944
Gross profit	33,582	18,653
Selling and administrative expenses	20,743	19,177
Goodwill impairment charges	0	39,568
Trade name impairment charges	0	4,750
Intangible asset amortization	596	596
Operating income/(loss)	12,243	(45,438)
Other income/(expense), net	4	(42)
Interest expense, net	31	208
Income/(loss) before income taxes	12,216	(45,688)
Income tax expense/(benefit)	2,773	(10,869)
Net income/(loss)	$ 9,443	$ (34,819)
Earnings/(loss) per share
Basic (in Dollars per share)	$ 0.79	$ (2.95)
Diluted (in Dollars per share)	$ 0.78	$ (2.95)
Weighted average shares outstanding:
Basic (in Shares)	11,833	11,798
Diluted (in Shares)	11,972	11,798
Cash dividends declared per share (in Dollars per share)	$ 0.18	$ 0.16

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Statement of Comprehensive Income [Abstract]
Net Income/(Loss)	$ 9,443	$ (34,819)
Amortization of actuarial loss	100	84
Income tax effect on amortization	(24)	(20)
Adjustments to net periodic benefit cost	76	64
Total Comprehensive Income/(Loss)	$ 9,519	$ (34,755)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Operating Activities:
Net income/(loss)	$ 9,443	$ (34,819)
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill and intangible asset impairment charges	0	44,318
Depreciation and amortization	1,714	1,685
Deferred income tax expense	1,749	(10,045)
Noncash restricted stock and performance awards	(319)	605
Benefit from doubtful accounts and sales allowances	(791)	(328)
Gain on life insurance policies	(439)	(571)
Changes in assets and liabilities:
Trade accounts receivable	(7,255)	24,129
Inventories	(11,316)	10,763
Income tax recoverable	0	(867)
Prepaid expenses and other current assets	(2,441)	(1,468)
Trade accounts payable	7,373	(12,149)
Accrued salaries, wages, and benefits	(1,053)	(1,661)
Accrued income taxes	1,035	0
Customer deposits	3,004	673
Operating lease liabilities	84	367
Other accrued expenses	(558)	(1,720)
Deferred compensation	8	12
Net cash provided by operating activities	238	18,924
Investing Activities:
Purchases of property and equipment	(2,188)	(380)
Premiums paid on life insurance policies	(155)	(162)
Proceeds received on life insurance policies	0	673
Net cash (used in)/provided by investing activities	(2,343)	131
Financing Activities:
Cash dividends paid	(2,140)	(1,894)
Payments for long-term debt	0	(1,952)
Cash used in financing activities	(2,140)	(3,846)
Net (decrease)/increase in cash and cash equivalents	(4,245)	15,209
Cash and cash equivalents - beginning of year	65,841	36,031
Cash and cash equivalents - end of quarter	61,596	51,240
Supplemental disclosure of cash flow information:
Cash paid for interest, net	0	240
Cash (refund)/paid for income taxes	(9)	43
Non-cash transactions:
Increase/(decrease) in lease liabilities arising from obtaining right-of-use assets	6	(3)
Increase in property and equipment through accrued purchases	$ 3	$ 51

XML

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Feb. 02, 2020	$ 51,582	$ 223,252	$ (713)	$ 274,121
Balance (in Shares) at Feb. 02, 2020	11,838
Net income (loss)		(34,819)		(34,819)
Unrealized gain loss on defined benefit plan, net of tax			64	64
Cash dividends paid and accrued		(1,893)		(1,893)
Restricted stock grants, net of forfeitures	$ 169			169
Restricted stock grants, net of forfeitures (in Shares)	33
Restricted stock compensation cost	$ 218			218
Performance-based restricted stock units costs	218			218
Balance at May. 03, 2020	$ 52,187	186,540	(649)	238,078
Balance (in Shares) at May. 03, 2020	11,871
Balance at Jan. 31, 2021	$ 53,323	204,988	(808)	$ 257,503
Balance (in Shares) at Jan. 31, 2021	11,888			11,888
Net income (loss)		9,443		$ 9,443
Unrealized gain loss on defined benefit plan, net of tax			76	76
Cash dividends paid and accrued		(2,140)		(2,140)
Restricted stock grants, net of forfeitures (in Shares)	21
Restricted stock compensation cost	$ 274			274
Performance-based restricted stock units costs	147			147
PSU awards	(740)			(740)
Balance at May. 02, 2021	$ 53,004	$ 212,291	$ (732)	$ 264,563
Balance (in Shares) at May. 02, 2021	11,909			11,909

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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Statement of Stockholders' Equity [Abstract]
Unrealized gain loss on defined benefit plan, tax	$ 24	$ 20
Cash dividends paid and accrued, per share	$ 0.18	$ 0.16

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Preparation of Interim Financial Statements

3 Months Ended

May 02, 2021

Accounting Policies [Abstract]

Business Description and Basis of Presentation [Text Block]

1.         Preparation of Interim Financial Statements

The condensed consolidated financial statements of Hooker Furniture Corporation and subsidiaries (referred to as “we,” “us,” “our,” “Hooker” or the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these statements include all adjustments necessary for a fair statement of the results of all interim periods reported herein. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) are condensed or omitted pursuant to SEC rules and regulations. However, we believe that the disclosures made are adequate for a fair presentation of our results of operations and financial position. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended January 31, 2021 (“2021 Annual Report”). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect both the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. Operating results for the interim periods reported herein may not be indicative of the results expected for the fiscal year.

The financial statements contained herein are being filed as part of a quarterly report on Form 10-Q covering the thirteen-week period (also referred to as “three months,” “three-month period,” “quarter,” “first quarter” or “quarterly period”) that began February 1, 2021 and ended May 2, 2021. This report discusses our results of operations for this period compared to the thirteen-week period that began February 3, 2020 and ended May 3, 2020; and our financial condition as of May 2, 2021 compared to January 31, 2021.

References in these notes to the condensed consolidated financial statements of the Company to:

■ the 2022 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began February 1, 2021 and will end January 30, 2022; and

■ the 2021 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began February 3, 2020 and ended January 31, 2021.

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Recently Adopted Accounting Policies

3 Months Ended

May 02, 2021

Accounting Standards Update and Change in Accounting Principle [Abstract]

Accounting Standards Update and Change in Accounting Principle [Text Block]

2.          Recently Adopted Accounting Policies

In August 2018, the FASB issued ASU No. 2018-14, Compensation —Retirement Benefits —Defined Benefit Plans —General (Subtopic 715-20) —Disclosure Framework —Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). The amendments in this update change the disclosure requirements for employers that sponsor defined benefit pension and/or other post-retirement benefit plans. It eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new disclosures that the FASB considers pertinent. The guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance in the fiscal 2022 first quarter. The adoption of ASU 2018-14 did not have a material impact on our consolidated financial statements or disclosures.

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Accounts Receivable

3 Months Ended

May 02, 2021

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3.         Accounts Receivable

	May 2,			January 31,
	2021			2021
Trade accounts receivable	$	99,979		$	92,621
Other accounts receivable allowances		(6,311	)		(6,993	)
Allowance for doubtful accounts		(2,332	)		(2,338	)
Accounts receivable	$	91,336		$	83,290

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Inventories

3 Months Ended

May 02, 2021

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

4.          Inventories

	May 2,			January 31,
	2021			2021
Finished furniture	$	90,591		$	81,290
Furniture in process		1,888			1,397
Materials and supplies		11,345			9,639
Inventories at FIFO		103,824			92,326
Reduction to LIFO basis		(22,349	)		(22,167	)
Inventories	$	81,475		$	70,159

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Property, Plant and Equipment

3 Months Ended

May 02, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

5.         Property, Plant and Equipment

	Depreciable Lives	May 2,		January 31,
	(In years)	2021		2021
Buildings and land improvements	15 - 30	$	31,321	$	31,316
Computer software and hardware	3 - 10		15,152		15,012
Machinery and equipment	10		9,584		9,314
Leasehold improvements	Term of lease		10,022		10,005
Furniture and fixtures	3 - 10		2,667		2,614
Other	5		651		651
Total depreciable property at cost			69,397		68,912
Less accumulated depreciation			45,216		44,098
Total depreciable property, net			24,181		24,814
Land			1,077		1,077
Construction-in-progress			2,595		889
Property, plant and equipment, net		$	27,853	$	26,780

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Fair Value Measurements

3 Months Ended

May 02, 2021

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

6.          Fair Value Measurements

Fair value is the price that would be received upon the sale of an asset or paid upon the transfer of a liability (an exit price) in an orderly transaction between market participants on the applicable measurement date. We use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

■ Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities;

■ Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

■ Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of May 2, 2021 and January 31, 2021, Company-owned life insurance was measured at fair value on a recurring basis based on Level 2 inputs. The fair value of the Company-owned life insurance is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Additionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value is reflected in income for that period.

Our assets measured at fair value on a recurring basis at May 2, 2021 and January 31, 2021, were as follows:

	Fair value at May 2, 2021								Fair value at January 31, 2021
Description	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(In thousands)
Assets measured at fair value
Company-owned life insurance	$	-	$	25,935	$	-	$	25,935	$	-	$	25,365	$	-	$	25,365

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Intangible Assets

3 Months Ended

May 02, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

7.         Intangible Assets

		January 31, 2021				May 2, 2021
Non-amortizable Intangible Assets	Segment	Beginning Balance		Impairment Charges		Net Book Value
Goodwill	Domestic Upholstery	$	490	$	-	$	490
Trademarks and trade names - Home Meridian	Home Meridian		6,650		-		6,650
Trademarks and trade names - Bradington-Young	Domestic Upholstery		861		-		861
Trademarks and trade names - Sam Moore	Domestic Upholstery		396		-		396
Total Trademarks and trade names		$	7,907	$	-	$	7,907
Total non-amortizable assets		$	8,397	$	-	$	8,397

Our amortizable intangible assets are recorded in our Home Meridian and Domestic Upholstery segments. The carrying amounts and changes therein of those amortizable intangible assets were as follows:

	Amortizable Intangible Assets
	Customer
	Relationships			Trademarks			Totals
Balance at January 31, 2021	$	17,672		$	658		$	18,330
Amortization		(581	)		(15	)		(596	)
Balance at May 2, 2021	$	17,091		$	643		$	17,734

For the remainder of fiscal 2022, amortization expense is expected to be approximately $1.8 million.

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Leases

3 Months Ended

May 02, 2021

ASU 2016-02 Transition [Abstract]

Lessee, Operating Lease, Disclosure [Table Text Block]

8.          Leases

In fiscal 2020, we adopted Accounting Standards Codification Topic 842 Leases. We recognized $146,000 sub-lease income for the three-month period ended May 2, 2021. The components of lease cost and supplemental cash flow information for leases for the three-months ended May 2, 2021 were:

	Thirteen Weeks Ended
	May 2, 2021		May 3, 2020
Operating lease cost	$	2,013	$	2,100
Variable lease cost		44		46
Short-term lease cost		19		116
Total operating lease cost	$	2,076	$	2,262
Operating cash outflows	$	1,992	$	1,852

The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of May 2, 2021 and January 31, 2021 were as follows:

	May 2, 2021		January 31, 2021
Real estate	$	31,918	$	33,651
Property and equipment		882		962
Total operating leases right-of-use assets	$	32,800	$	34,613
Current portion of operating lease liabilities	$	6,381	$	6,650
Long term operating lease liabilities		27,980		29,441
Total operating lease liabilities	$	34,361	$	36,091

The weighted-average remaining lease term is 6.6 years. We used our incremental borrowing rate which is LIBOR plus 1.5% at the adoption date. The weighted-average discount rate is 2.2%.

The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on May 2, 2021:

	Undiscounted Future Operating Lease Payments
Remainder of 2022	$	5,436
2023		5,593
2024		5,665
2025		5,281
2026		5,336
2027 and thereafter		9,809
Total lease payments	$	37,120
Less: impact of discounting		(2,759	)
Present value of lease payments	$	34,361

Due to the COVID-19 pandemic, we received concessions on several of our leases, including changes in lease terms and deferred rent payments. We accounted for the concessions as lease modifications. None of the modifications had a material effect on our condensed consolidated financial statements or results of operations. As of May 2, 2021, the Company had an additional lease for a warehouse in Georgia that had not yet commenced with estimated future minimum rental commitments of approximately $28 million. This lease is expected to commence in Fall of 2021 with an initial lease term of 10 years. Since the lease has not commenced, the undiscounted amounts are not included in the table above.

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Long-Term Debt

3 Months Ended

May 02, 2021

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

9.         Long-Term Debt

As of May 2, 2021, we had an aggregate $28.7 million available under our $35 million revolving credit facility (the “Existing Revolver”) to fund working capital needs. Standby letters of credit in the aggregate amount of $6.3 million, used to collateralize certain insurance arrangements and for imported product purchases, were outstanding under the revolving credit facility as of May 2, 2021. There were no additional borrowings outstanding under the Existing Revolver as of May 2, 2021.

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Earnings Per Share

3 Months Ended

May 02, 2021

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

10.         Earnings Per Share

We refer you to the discussion of Earnings Per Share in Note 2. Summary of Significant Accounting Policies, in the financial statements included in our 2021 Annual Report, for additional information concerning the calculation of earnings per share.

All stock awards are designed to encourage retention and to provide an incentive for increasing shareholder value. We have issued restricted stock awards to non-employee members of the board of directors since 2006 and to certain non-executive employees since 2014. We have issued restricted stock units (“RSUs”) to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common stock if the executive remains continuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors. We have issued Performance-based Restricted Stock Units (“PSUs”) to certain senior executives since fiscal 2019 under the Company’s Stock Incentive Plan. Each PSU entitles the executive officer to receive one share of our common stock based on the achievement of two specified performance conditions if the executive officer remains continuously employed through the end of the three-year performance period. One target is based on our annual average growth in our EPS over the performance period and the other target is based on EPS growth over the performance period compared to our peers. The payout or settlement of the PSUs will be made in shares of our common stock.

We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:

	May 2,		January 31,
	2021		2021
Restricted shares		75		55
RSUs and PSUs		151		141
		226		196

All restricted shares, RSUs and PSUs awarded that have not yet vested are considered when computing diluted earnings per share. The following table sets forth the computation of basic and diluted earnings per share:

	Thirteen Weeks Ended
	May 2,		May 3,
	2021		2020
Net income/(loss)	$	9,443	$	(34,819	)
Less: Unvested participating restricted stock dividends		11		8
Net earnings allocated to unvested participating restricted stock		49		-
Earnings/(loss) available for common shareholders		9,383		(34,827	)
Weighted average shares outstanding for basic earnings per share		11,833		11,798
Dilutive effect of unvested restricted stock, RSU and PSU awards		139		-
Weighted average shares outstanding for diluted earnings per share		11,972		11,798
Basic earnings/(loss) per share	$	0.79	$	(2.95	)
Diluted earnings/(loss) per share	$	0.78	$	(2.95	)

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Income Taxes

3 Months Ended

May 02, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

11. Income Taxes

We recorded income tax expense of $2.8 million for the fiscal 2022 first quarter, compared to income tax benefit of $10.9 million for the comparable prior year period, of which $10.6 million was recorded related to goodwill and trade name impairment charges. The effective tax rates for the fiscal 2022 and 2021 first quarters were 22.7% and 23.8%, respectively.

No material and non-routine positions have been identified that are uncertain tax positions.

Tax years ending January 28, 2018 through January 31, 2021 remain subject to examination by federal and state taxing authorities.

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Segment Information

3 Months Ended

May 02, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

12.          Segment Information

As a public entity, we are required to present disaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The management approach requires segment information to be reported based on how management internally evaluates the operating performance of the company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting as outlined in ASC 280 Segments (“ASC 280”), which are to allow the users of our financial statements to:

■ better understand our performance;

■ better assess our prospects for future net cash flows; and

■ make more informed judgments about us as a whole.

We define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income, as determined by the information regularly reviewed by the CODM. We continually monitor our reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary.  For financial reporting purposes, we are organized into three reportable segments and “All Other”, which includes the remainder of our businesses:

■ Hooker Branded, consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery businesses;  

■ Home Meridian, a business acquired at the beginning of fiscal 2017, is a stand-alone, mostly autonomous business that serves a different type or class of customer than do our other operating segments and at much lower margins;

■ Domestic Upholstery, which includes the domestic upholstery manufacturing operations of Bradington-Young, Sam Moore and Shenandoah Furniture; and

■ All Other, consisting of H Contract and Lifestyle Brands, a new business started in late fiscal 2019. Neither of these operating segments were individually reportable; therefore, we combined them in “All Other” in accordance with ASC 280.

The following table presents segment information for the periods, and as of the dates, indicated.

	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020
			% Net						% Net
Net Sales			Sales						Sales
Hooker Branded	$	51,339		31.5	%	$	27,162			26.0	%
Home Meridian		84,411		51.8	%		57,665			55.1	%
Domestic Upholstery		24,492		15.1	%		16,783			16.0	%
All Other		2,619		1.6	%		2,987			2.9	%
Consolidated	$	162,861		100	%	$	104,597			100.0	%
Gross Profit
Hooker Branded	$	17,212		33.5	%	$	8,005			29.5	%
Home Meridian		10,135		12.0	%		6,809			11.8	%
Domestic Upholstery		5,355		21.9	%		2,783			16.6	%
All Other		880		33.6	%		1,056			35.4	%
Consolidated	$	33,582		20.6	%	$	18,653			17.8	%
Operating Income/(Loss)
Hooker Branded	$	9,442		18.4	%	$	1,333			4.9	%
Home Meridian		866		1.0	%		(30,348	)		-52.6	%
Domestic Upholstery		1,688		6.9	%		(16,810	)		-100.2	%
All Other		247		9.4	%		387			12.9	%
Consolidated	$	12,243		7.5	%	$	(45,438	)		-43.4	%
Capital Expenditures
Hooker Branded	$	83				$	53
Home Meridian		1,346					89
Domestic Upholstery		759					238
All Other		-					-
Consolidated	$	2,188				$	380
Depreciation    & Amortization
Hooker Branded	$	449				$	455
Home Meridian		501					528
Domestic Upholstery		761					699
All Other		3					3
Consolidated	$	1,714				$	1,685

	As of May 2,					As of January 31,
	2021		%Total			2021		%Total
Identifiable Assets			Assets					Assets
Hooker Branded	$	170,115		49.8	%	$	174,475		53.5	%
Home Meridian		119,737		35.1	%		100,497		30.9	%
Domestic Upholstery		50,794		14.9	%		49,370		15.2	%
All Other		538		0.2	%		1,204		0.4	%
Consolidated	$	341,184		100	%	$	325,546		100	%
Consolidated Goodwill and Intangibles		26,131					26,727
Total Consolidated Assets	$	367,315				$	352,273

Sales by product type are as follows:

	Net Sales (in thousands)
	Thirteen Weeks Ended
	May 2, 2021		%Total			May 3, 2020		%Total
Casegoods	$	97,959		60	%	$	63,602		61	%
Upholstery		64,902		40	%		40,995		39	%
	$	162,861		100	%	$	104,597		100	%

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Subsequent Events

3 Months Ended

May 02, 2021

Subsequent Events [Abstract]

Subsequent Events [Text Block]

13. Subsequent Events

Dividends

On June 3, 2021, our board of directors declared a quarterly cash dividend of $0.18 per share, which will be paid on June 30, 2021 to shareholders of record at June 16, 2021.

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Accounts Receivable (Tables)

3 Months Ended

May 02, 2021

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	May 2,			January 31,
	2021			2021
Trade accounts receivable	$	99,979		$	92,621
Other accounts receivable allowances		(6,311	)		(6,993	)
Allowance for doubtful accounts		(2,332	)		(2,338	)
Accounts receivable	$	91,336		$	83,290

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Inventories (Tables)

3 Months Ended

May 02, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

	May 2,			January 31,
	2021			2021
Finished furniture	$	90,591		$	81,290
Furniture in process		1,888			1,397
Materials and supplies		11,345			9,639
Inventories at FIFO		103,824			92,326
Reduction to LIFO basis		(22,349	)		(22,167	)
Inventories	$	81,475		$	70,159

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Property, Plant and Equipment (Tables)

3 Months Ended

May 02, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	Depreciable Lives	May 2,		January 31,
	(In years)	2021		2021
Buildings and land improvements	15 - 30	$	31,321	$	31,316
Computer software and hardware	3 - 10		15,152		15,012
Machinery and equipment	10		9,584		9,314
Leasehold improvements	Term of lease		10,022		10,005
Furniture and fixtures	3 - 10		2,667		2,614
Other	5		651		651
Total depreciable property at cost			69,397		68,912
Less accumulated depreciation			45,216		44,098
Total depreciable property, net			24,181		24,814
Land			1,077		1,077
Construction-in-progress			2,595		889
Property, plant and equipment, net		$	27,853	$	26,780

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Fair Value Measurements (Tables)

3 Months Ended

May 02, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Our assets measured at fair value on a recurring basis at May 2, 2021 and January 31, 2021, were as follows:

	Fair value at May 2, 2021								Fair value at January 31, 2021
Description	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(In thousands)
Assets measured at fair value
Company-owned life insurance	$	-	$	25,935	$	-	$	25,935	$	-	$	25,365	$	-	$	25,365

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Intangible Assets (Tables)

3 Months Ended

May 02, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived Intangible Assets [Table Text Block]

		January 31, 2021				May 2, 2021
Non-amortizable Intangible Assets	Segment	Beginning Balance		Impairment Charges		Net Book Value
Goodwill	Domestic Upholstery	$	490	$	-	$	490
Trademarks and trade names - Home Meridian	Home Meridian		6,650		-		6,650
Trademarks and trade names - Bradington-Young	Domestic Upholstery		861		-		861
Trademarks and trade names - Sam Moore	Domestic Upholstery		396		-		396
Total Trademarks and trade names		$	7,907	$	-	$	7,907
Total non-amortizable assets		$	8,397	$	-	$	8,397

Schedule of Finite-Lived Intangible Assets [Table Text Block]

Our amortizable intangible assets are recorded in our Home Meridian and Domestic Upholstery segments. The carrying amounts and changes therein of those amortizable intangible assets were as follows:

	Amortizable Intangible Assets
	Customer
	Relationships			Trademarks			Totals
Balance at January 31, 2021	$	17,672		$	658		$	18,330
Amortization		(581	)		(15	)		(596	)
Balance at May 2, 2021	$	17,091		$	643		$	17,734

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Leases (Tables)

3 Months Ended

May 02, 2021

ASU 2016-02 Transition [Abstract]

Lease, Cost [Table Text Block]

The components of lease cost and supplemental cash flow information for leases for the three-months ended May 2, 2021 were:

	Thirteen Weeks Ended
	May 2, 2021		May 3, 2020
Operating lease cost	$	2,013	$	2,100
Variable lease cost		44		46
Short-term lease cost		19		116
Total operating lease cost	$	2,076	$	2,262
Operating cash outflows	$	1,992	$	1,852

Schedule of Right-of-Use Assets and Lease Liabilities [Table Text Block]

The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheets as of May 2, 2021 and January 31, 2021 were as follows:

	May 2, 2021		January 31, 2021
Real estate	$	31,918	$	33,651
Property and equipment		882		962
Total operating leases right-of-use assets	$	32,800	$	34,613
Current portion of operating lease liabilities	$	6,381	$	6,650
Long term operating lease liabilities		27,980		29,441
Total operating lease liabilities	$	34,361	$	36,091

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on May 2, 2021:

	Undiscounted Future Operating Lease Payments
Remainder of 2022	$	5,436
2023		5,593
2024		5,665
2025		5,281
2026		5,336
2027 and thereafter		9,809
Total lease payments	$	37,120
Less: impact of discounting		(2,759	)
Present value of lease payments	$	34,361

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Earnings Per Share (Tables)

3 Months Ended

May 02, 2021

Earnings Per Share [Abstract]

Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:

	May 2,		January 31,
	2021		2021
Restricted shares		75		55
RSUs and PSUs		151		141
		226		196

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

We expect to continue to grant these types of awards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:

	Thirteen Weeks Ended
	May 2,		May 3,
	2021		2020
Net income/(loss)	$	9,443	$	(34,819	)
Less: Unvested participating restricted stock dividends		11		8
Net earnings allocated to unvested participating restricted stock		49		-
Earnings/(loss) available for common shareholders		9,383		(34,827	)
Weighted average shares outstanding for basic earnings per share		11,833		11,798
Dilutive effect of unvested restricted stock, RSU and PSU awards		139		-
Weighted average shares outstanding for diluted earnings per share		11,972		11,798
Basic earnings/(loss) per share	$	0.79	$	(2.95	)
Diluted earnings/(loss) per share	$	0.78	$	(2.95	)

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Segment Information (Tables)

3 Months Ended

May 02, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following table presents segment information for the periods, and as of the dates, indicated.

	Thirteen Weeks Ended
	May 2, 2021					May 3, 2020
			% Net						% Net
Net Sales			Sales						Sales
Hooker Branded	$	51,339		31.5	%	$	27,162			26.0	%
Home Meridian		84,411		51.8	%		57,665			55.1	%
Domestic Upholstery		24,492		15.1	%		16,783			16.0	%
All Other		2,619		1.6	%		2,987			2.9	%
Consolidated	$	162,861		100	%	$	104,597			100.0	%
Gross Profit
Hooker Branded	$	17,212		33.5	%	$	8,005			29.5	%
Home Meridian		10,135		12.0	%		6,809			11.8	%
Domestic Upholstery		5,355		21.9	%		2,783			16.6	%
All Other		880		33.6	%		1,056			35.4	%
Consolidated	$	33,582		20.6	%	$	18,653			17.8	%
Operating Income/(Loss)
Hooker Branded	$	9,442		18.4	%	$	1,333			4.9	%
Home Meridian		866		1.0	%		(30,348	)		-52.6	%
Domestic Upholstery		1,688		6.9	%		(16,810	)		-100.2	%
All Other		247		9.4	%		387			12.9	%
Consolidated	$	12,243		7.5	%	$	(45,438	)		-43.4	%
Capital Expenditures
Hooker Branded	$	83				$	53
Home Meridian		1,346					89
Domestic Upholstery		759					238
All Other		-					-
Consolidated	$	2,188				$	380
Depreciation    & Amortization
Hooker Branded	$	449				$	455
Home Meridian		501					528
Domestic Upholstery		761					699
All Other		3					3
Consolidated	$	1,714				$	1,685

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

The following table presents segment information for the periods, and as of the dates, indicated.

	As of May 2,					As of January 31,
	2021		%Total			2021		%Total
Identifiable Assets			Assets					Assets
Hooker Branded	$	170,115		49.8	%	$	174,475		53.5	%
Home Meridian		119,737		35.1	%		100,497		30.9	%
Domestic Upholstery		50,794		14.9	%		49,370		15.2	%
All Other		538		0.2	%		1,204		0.4	%
Consolidated	$	341,184		100	%	$	325,546		100	%
Consolidated Goodwill and Intangibles		26,131					26,727
Total Consolidated Assets	$	367,315				$	352,273

Revenue from External Customers by Products and Services [Table Text Block]

Sales by product type are as follows:

	Net Sales (in thousands)
	Thirteen Weeks Ended
	May 2, 2021		%Total			May 3, 2020		%Total
Casegoods	$	97,959		60	%	$	63,602		61	%
Upholstery		64,902		40	%		40,995		39	%
	$	162,861		100	%	$	104,597		100	%

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Accounts Receivable (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable - USD ($) $ in Thousands	May 02, 2021	Jan. 31, 2021
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract]
Trade accounts receivable	$ 99,979	$ 92,621
Other accounts receivable allowances	(6,311)	(6,993)
Allowance for doubtful accounts	(2,332)	(2,338)
Accounts receivable	$ 91,336	$ 83,290

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Inventories (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands	May 02, 2021	Jan. 31, 2021
Schedule of Inventory, Current [Abstract]
Finished furniture	$ 90,591	$ 81,290
Furniture in process	1,888	1,397
Materials and supplies	11,345	9,639
Inventories at FIFO	103,824	92,326
Reduction to LIFO basis	(22,349)	(22,167)
Inventories	$ 81,475	$ 70,159

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Property, Plant and Equipment (Details) - Property, Plant and Equipment - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	Jan. 31, 2021
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 69,397	$ 68,912
Less accumulated depreciation	45,216	44,098
Total depreciable property, net	24,181	24,814
Land	1,077	1,077
Construction-in-progress	2,595	889
Property, plant and equipment, net	27,853	26,780
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	31,321	31,316
Computer Software and Hardware [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	15,152	15,012
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 9,584	9,314
Property, Plant and Equipment, Depreciable Lives	10
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 10,022	10,005
Property, Plant and Equipment, Depreciable Lives	Term of lease
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,667	2,614
Property, Plant and Equipment, Other Types [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 651	$ 651
Property, Plant and Equipment, Depreciable Lives	5
Minimum [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Depreciable Lives	15
Minimum [Member] | Computer Software and Hardware [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Depreciable Lives	3
Minimum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Depreciable Lives	3
Maximum [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Depreciable Lives	30
Maximum [Member] | Computer Software and Hardware [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Depreciable Lives	10
Maximum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Depreciable Lives	10

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Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands	May 02, 2021	Jan. 31, 2021
Assets measured at fair value
Company-owned life insurance	$ 25,935	$ 25,365
Fair Value, Inputs, Level 1 [Member]
Assets measured at fair value
Company-owned life insurance	0	0
Fair Value, Inputs, Level 2 [Member]
Assets measured at fair value
Company-owned life insurance	25,935	25,365
Fair Value, Inputs, Level 3 [Member]
Assets measured at fair value
Company-owned life insurance	$ 0	$ 0

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Intangible Assets (Details) $ in Millions	May 02, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year	$ 1.8

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Intangible Assets (Details) - Schedule of Indefinite-Lived Intangible Assets - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020	Jan. 31, 2021
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 0	$ (39,568)
Goodwill	490		$ 490
Trademarks and trade names	25,641		$ 26,237
Total non-amortizable assets	8,397
Total non-amortizable assets	0	$ (44,318)
Total non-amortizable assets	8,397
Home Meridian International [Member] | Trademarks and Trade Names [Member]
Indefinite-lived Intangible Assets [Line Items]
Trademarks and trade names	6,650
Trademarks and trade names	0
Trademarks and trade names	6,650
Goodwill [Member] | Other Segments [Member]
Indefinite-lived Intangible Assets [Line Items]
Goodwill	490
Goodwill	0
Goodwill	490
Trademarks and Trade Names [Member]
Indefinite-lived Intangible Assets [Line Items]
Trademarks and trade names	0
Trademarks and trade names	7,907
Trademarks and trade names	7,907
Trademarks and Trade Names [Member] | Bradington-Young [Member]
Indefinite-lived Intangible Assets [Line Items]
Trademarks and trade names	0
Trademarks and trade names	861
Trademarks and trade names	861
Trademarks and Trade Names [Member] | Sam Moore [Member]
Indefinite-lived Intangible Assets [Line Items]
Trademarks and trade names	0
Trademarks and trade names	396
Trademarks and trade names	$ 396

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Intangible Assets (Details) - Schedule of Finite-Lived Intangible Assets $ in Thousands	3 Months Ended
	May 02, 2021 USD ($)
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Balance	$ 17,672
Amortization	(581)
Balance	17,091
Order or Production Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Balance	658
Amortization	(15)
Balance	643
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Balance	18,330
Amortization	(596)
Balance	$ 17,734

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Leases (Details) $ in Millions	3 Months Ended
	May 02, 2021 USD ($)
Leases (Details) [Line Items]
Operating Lease, Weighted Average Remaining Lease Term	6 years 7 months 6 days
Operating Leases of Lessee, Contingent Rentals, Description of Variable Rate Basis	incremental borrowing rate which is LIBOR plus 1.5%
Operating Lease, Weighted Average Discount Rate, Percent	2.20%
Operating Leases, Future Minimum Payments Due	$ 28
Lessee, Operating Lease, Term of Contract	10 years
London Interbank Offered Rate (LIBOR) [Member]
Leases (Details) [Line Items]
Operating Leases of Lessee, Contingent Rentals, Basis Spread on Variable Rate	1.50%

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Leases (Details) - Lease, Cost - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Leases (Details) - Lease, Cost [Line Items]
Operating lease cost	$ 2,076	$ 2,262
Operating cash outflows	1,992	1,852
Operating Lease Costs [Member]
Leases (Details) - Lease, Cost [Line Items]
Operating lease cost	2,013	2,100
Variable Lease Cost [Member]
Leases (Details) - Lease, Cost [Line Items]
Operating lease cost	44	46
Leases Less Then 12 Months [Member]
Leases (Details) - Lease, Cost [Line Items]
Operating lease cost	$ 19	$ 116

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Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities - USD ($) $ in Thousands	May 02, 2021	Jan. 31, 2021
Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items]
Operating leases right-of-use assets	$ 32,800	$ 34,613
Current portion of operating lease liabilities	6,381	6,650
Long term operating lease liabilities	27,980	29,441
Total operating lease liabilities	34,361	36,091
Real Estate [Member]
Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items]
Operating leases right-of-use assets	31,918	33,651
Property, Plant and Equipment [Member]
Leases (Details) - Schedule of Right-of-Use Assets and Lease Liabilities [Line Items]
Operating leases right-of-use assets	$ 882	$ 962

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Leases (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($) $ in Thousands	May 02, 2021	Jan. 31, 2021
Lessee, Operating Lease, Liability, Maturity [Abstract]
Remainder of 2022	$ 5,436
2023	5,593
2024	5,665
2025	5,281
2026	5,336
2027 and thereafter	9,809
Total lease payments	37,120
Less: impact of discounting	(2,759)
Present value of lease payments	$ 34,361	$ 36,091

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Long-Term Debt (Details) $ in Millions	May 02, 2021 USD ($)
Long-Term Debt (Details) [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 28.7
Letters of Credit Outstanding, Amount	6.3
Line of Credit [Member]
Long-Term Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 35.0

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Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units - shares shares in Thousands	May 02, 2021	Jan. 31, 2021
Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items]
Number of Shares Outstanding	226	196
Restricted Stock [Member]
Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items]
Number of Shares Outstanding	75	55
Restricted Stock Units (RSUs) and Performance Shares (PSUs) [Member]
Earnings Per Share (Details) - Schedule of Restricted Stock and Restricted Stock Units [Line Items]
Number of Shares Outstanding	151	141

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Earnings Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Schedule of Earnings Per Share, Basic and Diluted [Abstract]
Net income/(loss)	$ 9,443	$ (34,819)
Less: Unvested participating restricted stock dividends	11	8
Net earnings allocated to unvested participating restricted stock	49	0
Earnings/(loss) available for common shareholders	$ 9,383	$ (34,827)
Weighted average shares outstanding for basic earnings per share (in Shares)	11,833	11,798
Dilutive effect of unvested restricted stock, RSU and PSU awards (in Shares)	139	0
Weighted average shares outstanding for diluted earnings per share (in Shares)	11,972	11,798
Basic earnings/(loss) per share (in Dollars per share)	$ 0.79	$ (2.95)
Diluted earnings/(loss) per share (in Dollars per share)	$ 0.78	$ (2.95)

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Income Taxes (Details) [Line Items]
Income Tax Expense (Benefit)	$ 2,773	$ (10,869)
Effective Income Tax Rate Reconciliation, Percent	22.70%	23.80%
Goodwill And Trade Name Impairment Charges [Member]
Income Taxes (Details) [Line Items]
Income Tax Expense (Benefit)		$ 10,600

XML

Segment Information (Details)	3 Months Ended
	May 02, 2021
Segment Reporting [Abstract]
Number of Reportable Segments	3

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Segment Information (Details) - Segment Reporting Information - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Segment Reporting Information [Line Items]
Net Sales	$ 162,861	$ 104,597
% of Net Sales	100.00%	100.00%
Gross Profit
Gross Profit	$ 33,582	$ 18,653
% of Net Sales, Gross Profit	20.60%	17.80%
Operating Income/(Loss)
Operating Income	$ 12,243	$ (45,438)
% of Net Sales, Operating Income	7.50%	(43.40%)
Capital Expenditures
Capital Expenditures	$ 2,188	$ 380
Depreciation & Amortization
Depreciation & Amortization	1,714	1,685
Hooker Branded [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 51,339	$ 27,162
% of Net Sales	31.50%	26.00%
Gross Profit
Gross Profit	$ 17,212	$ 8,005
% of Net Sales, Gross Profit	33.50%	29.50%
Operating Income/(Loss)
Operating Income	$ 9,442	$ 1,333
% of Net Sales, Operating Income	18.40%	4.90%
Capital Expenditures
Capital Expenditures	$ 83	$ 53
Depreciation & Amortization
Depreciation & Amortization	449	455
Home Meridian International [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 84,411	$ 57,665
% of Net Sales	51.80%	55.10%
Gross Profit
Gross Profit	$ 10,135	$ 6,809
% of Net Sales, Gross Profit	12.00%	11.80%
Operating Income/(Loss)
Operating Income	$ 866	$ (30,348)
% of Net Sales, Operating Income	1.00%	(52.60%)
Capital Expenditures
Capital Expenditures	$ 1,346	$ 89
Depreciation & Amortization
Depreciation & Amortization	501	528
Upholstery [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 24,492	$ 16,783
% of Net Sales	15.10%	16.00%
Gross Profit
Gross Profit	$ 5,355	$ 2,783
% of Net Sales, Gross Profit	21.90%	16.60%
Operating Income/(Loss)
Operating Income	$ 1,688	$ (16,810)
% of Net Sales, Operating Income	6.90%	(100.20%)
Capital Expenditures
Capital Expenditures	$ 759	$ 238
Depreciation & Amortization
Depreciation & Amortization	761	699
Other Segments [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 2,619	$ 2,987
% of Net Sales	1.60%	2.90%
Gross Profit
Gross Profit	$ 880	$ 1,056
% of Net Sales, Gross Profit	33.60%	35.40%
Operating Income/(Loss)
Operating Income	$ 247	$ 387
% of Net Sales, Operating Income	9.40%	12.90%
Capital Expenditures
Capital Expenditures	$ 0	$ 0
Depreciation & Amortization
Depreciation & Amortization	$ 3	$ 3

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Segment Information (Details) - Assets from Segments to Consolidated - USD ($) $ in Thousands	May 02, 2021	Jan. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 341,184	$ 325,546
% Total Assets	100.00%	100.00%
Consolidated Goodwill and Intangibles	$ 26,131	$ 26,727
Total Consolidated Assets	367,315	352,273
Hooker Branded [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 170,115	$ 174,475
% Total Assets	49.80%	53.50%
Home Meridian International [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 119,737	$ 100,497
% Total Assets	35.10%	30.90%
Upholstery [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 50,794	$ 49,370
% Total Assets	14.90%	15.20%
Other Segments [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 538	$ 1,204
% Total Assets	0.20%	0.40%

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Segment Information (Details) - Revenue from External Customers by Products and Services - USD ($) $ in Thousands	3 Months Ended
	May 02, 2021	May 03, 2020
Revenue from External Customer [Line Items]
Net Sales	$ 162,861	$ 104,597
% Total	100.00%	100.00%
Casegoods [Member]
Revenue from External Customer [Line Items]
Net Sales	$ 97,959	$ 63,602
% Total	60.00%	61.00%
Upholstery [Member]
Revenue from External Customer [Line Items]
Net Sales	$ 64,902	$ 40,995
% Total	40.00%	39.00%

XML

Subsequent Events (Details) - Subsequent Event [Member]	Jun. 03, 2021 $ / shares
Subsequent Events (Details) [Line Items]
Dividends Payable, Date Declared	Jun. 03, 2021
Common Stock, Dividends, Per Share, Declared	$ 0.18
Dividends Payable, Date to be Paid	Jun. 30, 2021
Dividends Payable, Date of Record	Jun. 16, 2021