1. Hooker completed the sale of Pulaski and Samuel Lawrence for $6.1 million. 2. CEO emphasizes improved profitability and future growth opportunities. 3. Ten percent of sale price is under post-closing adjustments. 4. The company also eliminated $4.8 million in lease liabilities. 5. Plans to enhance shareholder value through a new share repurchase program.
FAQ
Why Bullish?
The sale reflects effective asset management and a focus on profitability, likely boosting investor confidence, similar to past strategic divestitures in the furniture sector that led to improved margins for companies like La-Z-Boy.
How important is it?
The article highlights strategic decisions that can significantly enhance profitability and reduce liabilities, which is critical for investor perception.
Why Short Term?
Immediate effects may be seen through stock repurchases and investor sentiment; historically, such transactions often create short-lived boosts in stock prices.
Hooker Furnishings Completes Sale of Pulaski and Samuel Lawrence Brands for $6.1 Million
MARTINSVILLE, Va., Dec. 15, 2025 (GLOBE NEWSWIRE) -- Hooker Furnishings Corporation (NASDAQ-GS: HOFT), a leader in the global home furnishings industry, has successfully finalized the sale of its Pulaski Furniture and Samuel Lawrence Furniture brands to Magnussen Home Furnishings, Inc. The transaction is valued at approximately $6.1 million, pending customary post-closing adjustments.
Strategic Milestone for Hooker Furnishings
Jeremy Hoff, CEO of Hooker Furnishings, expressed enthusiasm regarding the completed transaction, stating, “Completing this transaction marks a significant milestone in our journey toward enhanced profitability, and we are pleased to complete the transaction at a higher price than initially estimated.” He added that the company is gaining positive momentum, driven by a modest improvement in sales and margins within the Hooker Branded and Domestic Upholstery segments during the fiscal third quarter.
- Completion of sale to Magnussen Home for approximately $6.1 million.
- Transaction reflects a strategic move towards enhanced profitability.
- Ten percent of the purchase price is subject to a holdback for 210 days for customary indemnification.
Financial Implications and Future Prospects
In conjunction with the sale, Hooker Furnishings will assume approximately $4.8 million in lease liabilities linked to the High Point showroom, which will now be managed by Magnussen. This move is part of a broader strategy aimed at increasing shareholder value, which includes the launch of a share repurchase program.
Hoff also highlighted the company's excitement regarding the future, particularly with the upcoming Margaritaville licensed collection. “We look forward to creating value for shareholders and capturing the potential of our more focused business as we move into the next calendar year,” he said.
Advisors for the Sale Transaction
Stump & Company acted as the financial advisor, while McGuireWoods LLP provided legal support during this significant transaction.
About Hooker Furnishings Corporation
With a proud legacy spanning over 101 years, Hooker Furnishings Corporation is a prominent designer, marketer, and importer of a diverse range of home furnishings, including casegoods, upholstered furniture, and outdoor furniture. Key product categories under the Hooker brand include:
- Home entertainment furniture
- Home office furniture
- Dining and bedroom furniture
- Residential upholstered seating, including Bradington-Young and HF Custom
Hooker Furnishings operates its corporate offices, manufacturing facilities, and showrooms across Virginia, North Carolina, California, and internationally in Ho Chi Minh City, Vietnam. This strategic positioning supports a robust distribution network to meet market demands.
Contact Information
For additional details, please reach out to:
C. Earl Armstrong III, Senior Vice President-Finance and CFO
Hooker Furnishings Corporation
Phone: 276.666.3969
Forward-Looking Statements
Any forward-looking statements made in this release are subject to inherent risks and uncertainties. Actual results may differ due to various factors including economic conditions, industry competition, and global market dynamics.