Hooker Furnishings Corp (NASDAQ:HOFT) stock rose 1.11% (As on Apr 14, 1:09:54 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 21. In the 2022 fourth quarter, the Company has reported a consolidated operating loss of $5.3 million, compared to $10.5 million of operating income in the prior year period. Net loss for the fourth quarter of fiscal 2022 was $4.0 million, or ($0.33) per diluted share, as compared to a net income of $8.5 million, or $0.71 per diluted share, in the fourth quarter of fiscal 2021. Driven by a $12.0 million operating loss at HMI, contributing factors in the Company’s fourth quarter consolidated net loss included inventory unavailability due to the Asian factory shutdowns, high freight costs, a decline in ecommerce and hospitality furniture sales and the Company’s planned exit from unprofitable businesses and channels.

HOFT in the fourth quarter of FY 21 has reported the adjusted loss per share of 33 cents, missing the analysts’ estimates for the adjusted earnings per share of 10 cents. The company had reported 13.2 percent fall in the adjusted revenue to $134.81 million in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $131.55 million.

Moreover, for the 2022 fiscal year, Hooker Branded net sales increased by $38.3 million, or 23.5%, at Hooker Branded, compared to the prior fiscal year. The revenue gains are attributed to a stronger product portfolio, effective supply chain and logistics management and robust consumer demand. By the end of fiscal 2022, the majority of shipments in the Hooker Branded segment carried price increases implemented in July 2021 to mitigate higher ocean freight and product costs we had experienced to that point. However, sales volume declined in the fourth quarter due to reduced inventory availability, resulting in lower operating income compared to the fiscal 2021 fourth quarter. Incoming orders increased by 24.2% compared to the prior year period when business dramatically rebounded from the initial Covid crisis. Backlog remained historically high and nearly doubled as compared to the prior year end when backlog was already at a high level, with part of that increase being due to lower shipments in the fourth quarter. In addition, the Home Meridian segment’s net sales decreased by 1.2% compared to the prior year period due to decreased unit volume as the result of COVID-related factory shutdowns in Vietnam and Malaysia, which led to lower shipments.