Hooker Furnishings (HOFT) 8 Sep 232024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Hooker Furnishings Second Quarter 2024 Earnings Webcast. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Huckfeldt, conference Chief like speaker to now Paul today, Financial would hand over the your I Officer. Please go ahead.

Thanks, our quarterly financial and and ended welcome to May XXth, which morning fiscal our XXXX. July quarter, the results Catherine. review for Xst, second began on conference Good call XXXX to

participation is morning Jeremy Executive this our me Chief We today. Officer. Joining Hoff, certainly appreciate your

cause to SEC reflect our of make quarter press results. risks today, events we results contained today's our may forward-looking call. or filing factors statements, any that to are is Any of call, as materially undertake XXXX could uncertainties. and we revise only obligation release circumstances no after differ speaks subject actual A announcing our and to expectations from discussion update During which and fiscal management's our to forward-looking statements second or statement forward-looking in

for $XX.X furnishings million within XXXX as driven Meridian morning, planned net Home fiscal year's second home weak second we by $XX unprofitable of exit of the the our segment. decrease quarter, industry-wide of sales demand quarter or to a last for consolidated reported and compared This operations XX%, million,

by or $XX $X.X million Branded $XX per to the prior share the Net diluted sales was or period. upholstery income our $XXX,XXX compared the segment Segment, year for per quarter, million and $X.XX segment. diluted in decreased domestic share Meridian million as Home in well million the $X.X Hooker in $X.XX as in Consolidated net

million per prior share to net or million, XX.X%, sales to diluted consolidated XXXX $XX down month million income or last year diluted first-half $X.XX share, per first-half. compared period. million fiscal compared year’s the the $XXX $X.XX $X.X Consolidated in six net was $X.X For or were

to comment over second results. XXXX quarter to our I'll Jeremy call on fiscal the turn Now,

morning, our we'll everyone. Paul, call results. discuss Thank and quarter On first-half good today, you, and second

and in position our invest deploying higher with and our this will resources visibility strategically progress report growth financial addition, in capital on we customers. and future challenging potential In to strengthening other environment in

the current positions of and by is driven furnishings the market. continuing through believe glut We demand heavily to industry-wide discounted over in sell softer home inventory a retailers

exit non-profitable the year-over-year segment. higher the comparisons operations the from in risk Home reflect addition, our Meridian In

that have We orders a are higher up by the consolidated encouraged are prior month compared incoming year, each to year through trended ago. orders versus double-digits summer, and

During cash the quarter from position our bolstered quarter, we the cash million. equivalents over financial and and $XX with in ending generating cash $XX million of operations

$XX sales end and by a our our completed Home targeted much quality ago of of was and it demand. is aligned discontinued year Meridian last at with of the inventories. levels expected inventory is from million reduced The year inventories we than most liquidation Additionally, at better the segment's

are focused investments on our customer larger addition, In base working. a building

the new interactions example, customer of X,XXX Vegas High our about our existing Las customers. collective quadrupling For to increased our showrooms contacts XX,XXX impact annually, in around potential and Point and Atlanta with from

accounts will in to this that The have first-half the business model and sustainably engagement term, the opened new well the mostly longer a already full profitable underway. is expect we segment While we've Meridian visibility of investment of of X,XXX as Home the year impact transformation be increased.

paying the fiscal efforts connected the inventories last Most of been are the unit have of reduction the off. year related excess to cost business closures and at end the sold

capital volumes will longer feet warehouse Rightsizing feet it Accentrics liquidity calendar to in and by XXX,XXX we quarter improve cost, reduced inventory footprint of XXX,XXX when not footprint to current levels. demand square for another ‘XX. working In reduce stock will during expect addition, our we align the Home reduce early to and Georgia our no with XXX,XXX significant only square our

and July, second-half while The recorded volatility HMI fiscal this achieve work of a in sales to to hard to earnings, fiscal we income expect are XX-months beginning the difficult expected profitability benefits. some in show and the we short-term continue we've over operating made past year. and small in decisions

our $XX million stable, million breakeven by have over by for and believe rate with we'll Home reduced the year's to million run about $XXX from will margin, expect contribution able profitable a million overhead and volume point be high have segment. be focus now end $XX on in building over We improvements of $XX we below lowered coupled to to Meridian's we

product This to the art. to we an the positions textiles to completed During decorative more for brand even BOBO broadens wall base. our include valuable acquisition our and diversity lighting, quarter, pleased decor, our comprehensive BOBO portfolio Atlanta-based us acquisition Objects. have were and partner specialist Intriguing customer as of accessories Adding

Like part we material a last sales, intend to BOBO longer existing sales our teams our year's scale of to West using acquisition, operations to and in the marketing medium term. make it Sunset consolidated

discussion each turn to who in the will our want highlights discuss of segments. to Paul, I over Now

quarter, XXX Jeremy. branded. Thanks, Net than prior year the unusually fiscal $XX decreased the higher in low. basis decreased million in points XXXX with segment to the unit by due was second XX% Furthermore, volume. sales or Hooker Beginning quarter, discounting which was

Sales from XX%, period. furnishings. to for six extent the underscore costs For year decreased the $XX.X freight in first-half, in sales product lesser Hooker costs. month gross warehousing home to increased and net periods decreased lower or decrease rates to the fiscal XXXX a branded decreases due favorable by primarily sales, both demand margin compared Despite a softer million prior

million XX.X% operating segment million prior quarter. to the a of of second margin year's The operating income reported and $X.X in $X.X an compared X.X%, and

year for second-half remains was higher late position of a and year quarters. Incoming to backlog in at branded’s this and quarter. earlier received portion XXXX segment backlog year, expected XX% products of from than orders end XX% positively year of pre-pandemic are new by ship significant lower levels which Hooker to increased the quarter, this second the the it consists the almost last the of year the upcoming prior fiscal end, quarter than orders prior order the compared While

Turning to decline Home decreased reduced XX% of due higher XX% XXXX or from in to decreases the furniture for second the e-commerce Sales Furnishings unprofitable by sales absence the about quarter, net for Home of XX% and $XX chains accounted sales the the about demand exited major risk, in Meridian, fiscal million and of accounted operations. the for channel decrease.

gross decreased the rent to under and net Gross sales. and costs, in percentage and both net freight profit sales, a labor Product lower decreased sales of due the due as expenses significant to adversely margin decline to from the operating resulting warehousing costs second net XXXX costs due absorbed costs. lower fixed but margin, quarter, impacted

period, For due month Meridian decreased same Home these the sales to six factors.

expect ago. further As versus our during the reduce by Home X we costs quarter. in absorbed a footprint reduced calendar total warehouse $X.X year in that This will feet to Jeremy bringing future, early reported mentioned Meridian square square feet the feet million to XXXX quarter Georgia improve capital. square and sales rightsizing around working decline footage operating and square operating the earlier, XXX,XXX XXX,XXX a liquidity under and million loss to the a costs, reduce significant Due for

was loss operating consistent expectations. management's first-half with its However,

absence second still orders carrying from the was than in during who the exited and as the as quarter. retail inventories are backlog of operations, well previous the previous lower our customer, orders attributed XXXX to incoming excess end This fiscal from quarter, a decline ordered is year. Quarter year's reduction

sales the increase upholstery, offset Shenandoah Sunset domestic due in material direct prior about basis sales as than indirect West. under reduced costs, million quarter. at Custom costs Shenandoah, by year decreased and Moore, partially more net decreases lower absorbed known gross points $X.X labor offset the XX% due same In Despite year, was decreased to raw quarter, margin XX% the to HF decrease, Custom a to at or by XXX due partially formally by second second the stable net including sales costs, production were costs. direct Sam HF Bradington-Young higher in sales prior and as the

For increased West. sales compared by prior a Custom, Shenandoah, six Sunset at Bradington-Young quarter. the XX%, the month some in sales to period. decreased and HF the first-half, XXXX orders Incoming reported fiscal small increase year net

in longer backlogs period orders However, higher due and to times. low prior year were the relatively lead

levels for quarter. times pre-pandemic Bradington-Young fiscal end the XXXX remained X second Quarter that of backlog at

in backlog as to higher sales by sales. senior industry the to net to recover in similar levels lesser XXXX. increased All Custom and BOBO and first-half, Contract also fiscal H [Indiscernible] of and HF a at sales to the other margin continues decreased living driven after the addition COVID extent, increased quarter Gross profit at pandemic and Shenandoah both While the the net second the

end, quarter year. equivalents million from ago. inventory stood the decreased cash sheet, position levels progress from at by the made considerable On we an prior and million million investments. a and increase our Cash in $XX at cash million fiscal and from the of $XX $XX in XXXX strategic capital $XX Inventory year-end year balance

During for the our million for from $XX development expenditures, million as $X investments in including $X.X six activities, repurchases; million cash period of cash new in the $X.X as our BOBO the $X.X month funded in million operating cloud well capital acquisition. million share in $X.X system dividends; showrooms; generated million based of ERP

share this our end repurchase of and spent purchase we the common program X.X of year, as the $XX last stock million of of approximately Since shares in began million quarter retire second the quarter.

end. million balances available was our cash revolver $XX In quarter addition to under an at aggregate existing

of improve. growth favorably continue as the plan and position remainder we our share year, continues sheet, us appropriate balance invest program the we in strengthen opportunities, to to which For our to continue will believe to business repurchase as continue organic

back Jeremy I'll to Now discussion for outlook. the turn his

in XX-year fixed has in are there interest activity. rise housing the confidence. on continued mortgage shortage believe and The We rates -- housing down consumer over economy, has slowed rates the mixed signals customer a suppressed high

rate a However, low. new and manufacturing activity sector near spending the is overall and the unemployment business remains healthy, in retail while startups XX-year

spending second-half in the worked we year and up business the was consumer to for habits, reasons. expect inventories we through several As of first-half bloated the pick changing difficult and the as industry demand anticipated,

trending are over segment past with few for time the months. up in orders the mid-double-digits in consolidated each year this ago, First, a orders up

portion Hooker this significant of to the the year. backlog a in new consists products second-half Secondly, for market at launched Branded's orders of ship Point are and of expected High

of history. we the the new number ship expects Thirdly, over to X,XXX believe product what in in be largest placements Home retail its Meridian second-half, floors, to

We believe year. Home pieces half profitability place the the to all Meridian in are the to of second right return in

and put things as are overhead us demand ensure have promote potential in visibility continues continued strong we with balance in significantly future focused customers and keeping deploying capital, our believe these growth invest to that position reducing will improve. cost, strongest initiatives and higher we While sheet on the judiciously to

to over our This ends Catherine, the time, this And formal for part of will questions. operator, discussion. back at the our turn I call

our And Instructions] Anthony comes [Operator from & from Company. Sidoti Lebiedzinski first question

Your line is open.

taking thank morning Good and you for the questions.

Good morning, Anthony.

Alright, -- hi morning. good so first

you just And thoughts furniture -- first, as sales curious through hear read if from that. industry? you about can an So on Day, May important then are hearing of the how could And retail on comment customers give as from your which is QX? us cadence to you about an holiday early the far what curious I'm your July, Labor for

Sure. When sales, mean cadence orders? you you say shipments of or

shipments. The

Okay.

making Just the same page. on we're sure

summarize throughout So our backlogs I level sustainable really to would how shipments as quarter far a great is the shipments, obviously, as that got for wasn't it.

for of orders that the debt we as are progressed, that quarter. mentioned, definitely improving, and the all us but As our backlogs issue timing affected quarter on the increased,

at Our really just last checked, -- were last were below Labor was year, the would just area been big. which barely almost year they reports has last they we've feedback or either every it that from back above in year positive. either they were I really or were say, Day

that's really a we for sign overall. us So think positive

sheet That's inventories good so Jeremy. lower and position. improved balance hear, nice then cash your to with job with own And improvements

think think of is do point you with inventories. progress you do up quarters that this low make pick maybe So that kind inventories? of the further -- you as can further Or you're

here? you us think do you if do go maybe -- from where could just inventories like we help Just understand where

I ACH We stabilize we we've the We is this -- as gone believe the inventories are of that here. think inventory position in with healthy I the Accentrics through going we've I I our say as that's controllables Home really about and I of what best from company public. as have everything overall standpoint, an our is But feel all since started. been since an started, from that to particularly been would

inventories standpoint to a and to -- our do the as So position and It it lot to relates significantly our We're it has in a are has demand with balance the lot from up. do a order a sheet. great inventories. with rates

feel can things I good the all we So we about. affect, really believe actually

Got you.

you've order order there a the rates back that there? be so in think And increases increases then you you way. year-over-year you'll somewhat double-digit will of imply half and my talked see about the by does the Or And that that disconnect sales basis, improve, as shipment as Okay. question of do year? is on still seen, a

rate the inflated pandemic. to bit second-half I little of we're throughout in we the a a I'm tale more would to be a we'll I But say order shipping to like in for do substantial first-half. going compete a going have versus that it somewhat sales we're shipping it's the from still going did we not and year, because were second-half. last from was because half, pretty second-half year-over-year, say lot the beat well what us, and ready two-halves pretty positive feel to

reduced costs. we've the operating And

Yes, right.

going a different that really as whole denominator throughout well. against we're So half

Understood.

you. Okay. like Yes, Home space. overhead in you're looks making progress Got it I their know with Meridian and further warehousing

do So think it Sunset like that the sustainable? West growth was that? What's And key you highlights of quarter in the one here. driving is looks

as with they're one opportunity. It's of we very big is centric. the And our whole it the Coast we larger a when that do. West growth company. bought company, throughout several initiatives One levels, We see actually on

representation anywhere sales So whether stronger to than as had definitely with Carolina, we them. U.S. our territories, bought throughout their throughout what throughout we the know the have talking relationships ability before more our and Florida, expand South distribution U.S., they our Texas, you're you team

feed position to they facility on our of in freight doing some and half of growth the really the really to due stuff before the the with sides we've able being so United cuts bought supply them, really we the eastern of again, savings HF a we have both going need Bedford, two, West showroom. cost to Savannah point Number do Sunset also chain cushion high created things out U.S., Custom just visibility, which is States, of and in the didn't to

in, Chicago of in there. place. show our for casual they're Now show were course, the They

Atlanta. ship country. their from Now the exponentially to up sides Their gone visibility they're and ability both has in of

So to major in all going to way pretty their are those factors growth. contribute a

acquisition in to hear. the a then made -- good quarter. That's And so you small

additional for Just curious about appetite your acquisitions?

It portfolio. particular really We're currently We open-minded that to space. pretty We're want be comes a pretty we in on we're what always our along. anything don't throughout white candidly, will at point. what our within this has cannibalize are focused --

our to the bought one However, change did in note goods BOBO on case is who that we for BOBO, I lighting, customers this so one buy instance, lighting? example, number can can question our the that reason Hooker at the And we a this yes when question. is number look

sense. of lot a makes That

buyback. Okay, as I guess the -- far question and then as my last

and buybacks. between think, you So certainly a have of good guys I dividends a allocation well-balanced, having done capital job

you buyback? give an If very have that So exhausted us be the you authorization? guys on you do on can would Or that, have the repurchase update much helpful. left

-- of the about $X We so. $X had of $X.X million left. million, since -- It's think I as then, yes, then, -- the $X or have since quarter, end we purchased million another million we

that execute a X-X continue So on continue it's will amount -- have left plan. fairly in that to which repurchase, -- (d) XX just we'll small we a

But balance think a bit we economy worked to uncertain. it's have with still bolstering well. that I The is sheet. really the little balance

maintaining sheet. trying strategy we're to capital a along balance allocation balance our strong that with So --

of Well, best very luck. you thank Understood. much and

you, Anthony. Thank

Storms comes Our with from Stonegate. Instructions] question [Operator Dave next

is line open. Your

morning. Good

morning. Good

morning, Dave. Good

Appreciate just call. my taking

It the profit balance gross up sheet. is start year-over-year towards a like looks points XXX just the to wanted that XXX, about margin are Can you top basis? of drivers so. the basis or talk what of on Just about

Right able and lower we've have now, our -- stabilized, margins on from costs the been our benefiting better. costs. as mentioned we're are labor because well, balance call, up Upholstery to We

benefiting we've from as these we've the prices, but of On reduced of increased corresponding we're somewhat -- last the freight higher had freight product the factory cost, prices in costs decreases. from reduced side, mostly with our imported and benefit

are But the the less out. inventories rolling are costs -- now higher-priced of last the higher

those which some cost were burdened year, with we all business, down the with to the chose is businesses. combined exit why So last difficult upside structure time ACH This exiting of we it.

they So probably going this see I -- little but are are compared than what to more bit margins think last the normal margins high, year. we'll these gross time probably a were forward,

of Would point? volumes to it more opposed fair be this as that it's to at factor a say pricing

Yes.

mentioned just you And forward? are that you to going That's starting suppliers orders the destocking seeing working their orders Or of very downstream of point you've Thank still then turning but with really some just through inventory. looking to to that come downstream, some do you. sort increasing? increase, helpful. are Are expect continue

We're but seems And Yes. to that a loosening seeing and actually a it be definitely each some be has factor, situation with been to retailer. continued different it's little that up, factor. a of

So going few it's we're a answer, time. during to blanket this I know, another to looser weeks. to next us, overall, for differently regards And in now I -- one sure. retailer environment a bought help that Day strong bit feeling inventory it's we so definitely with dealing -- see not we'll this say Labor think point are And may can't with sales -- is -- although little the because retailer are that hard the but a give that have to really you and

Can very that's then position Thank current -- helpful. you availability balance that about maintaining just about guys. think going sheet Paul, mentioned with just revolver have? the talk you your you. your strong important And debt comfortability and for I how to you back Very you and a

the always company sheet pretty conservatively. I XXX-year balance the almost think in managed has And over served us it history very well Well, this the company.

a so strong a maintain to -- core balance to sheet. try And it's value that's

We is revolver, this tied up on above tied have, $XX we've that, million up in of at $X million got a credit. point, we've availability our $XX letters got $X million million of revolver,

there. But million we've got $XX got We've million in debt. $XX available

So $XX that industry debt. debt got We've fairly know course, level with is I still think I pretty comfortable pretty but a this low cash. debt. level in of it's million of of

a that's a And So that's level. comfortable I pretty think -- level. comfortable pretty

like year rest we'd happens but I things the of as in and this we're this to economy for see capital -- -- we what manage next this to see cautiously of year, So think year. as allocation over to next develop -- we our the then remainder going we decisions year the -- as make try

always XX-year well. we an our over And paying mentioned of history we have dividend as

Right. Right, X%. dividend under is yield which just

Right, right.

We for that's important think me...

priority. the That's

Yes.

more One if Understood. me, could. I for

that Just from to foreseeable $X for budgets a to $X fair XXXX? modeling perspective, around million million extrapolate me, a Is for the remainder CapEx quarter. the -- excuse of running

CapEx a probably or modeling CapEx has bit bigger you're probably probably forward, for CapEx. million for with if the been remainder I with is year year, million-ish. would of year little In million just This project this $X $X $X a our ERP our so a this put -- one $X year million. is normal -- new showrooms going

for questions. all, taking That’s Thank helpful. very my you

welcome. you’re Thank Yes, you.

have Budd Instructions] from [Operator question We Tower Bugatch a Research. from Water

open. line is Your

industry your balance for sheet and ever congratulations and I want we've the in think you've time the Congratulations. what's and volatile condition Thank got to maintained my I society. your financial have in seen and most well. as taking you echo on thank you much the maybe to questions very the been way

Thank you. We appreciate that.

of well you customers the wondering, of a think and if problem And You're has terms book on HMI. type a give seemed customers a or with from customers what read you're order Hooker geography, was various Jeremy, had of model. of I maybe Hooker, had widest down? business to in deserve. diversity maybe know us big and hearing the could I number welcome, and delve I levels When about have majors, -- of in who the big

their around the about? -- you So you the what they hearing as country seeing from are are look and retailers, what talking what's

It's interesting, it's So good Budd. a question. really

customer lot -- from and So observed inventories type has inventory an really of what I've is, position flowing a what it what I've their model that to I've like heard things do seems is standpoint. each they've in with the been through

they're inventory. of bringing in in So the containers. larger customers, larger bringing positions They're of course,

So to difficult around turn those just are more quickly.

container goods, So across and case of toughest the been the I has model say, model would our industry.

into domestically inventory -- time, into kind less fit you been you they where X position has you buy was which As disruptive manufacturers of designers get actually that didn't could typically to smaller by and could because of the places that a at anything also model customer, get can course, more some I some situation medium a described, orders have probably of just e-commerce. interior

segment, most a if you position. I A domestically probably, time. we've a be reasons to for which of that in another order. that all into is of place inventory was advantaged again, It's the an -- X custom all the upholstery, at Then just in, my stated it's situation it's made lot get been from lot opinion, the throughout

So models, was kind retailer in determined what in. really, type the position my each of opinion, of, different

have -- -- at retailers demand the of you've this I differences that And it's you the are be to back and you retailers going the anecdotal only end seems how coming Day, health think What down to -- which in various digging inventories do realize are may time. the inventory Labor mentioned, in seen destocking. is hearing think and to you the any classes heard, these on of and that of you the I you

by one retail at inventories among offer, are how would you the guys smaller said, and as obviously, one. because majors, So order the

we… when So

in we're line the better We to ordering Labor if Day, going think that I position, better over put products. them feeling more -- find out much of believe but about over really they're a getting that

think I of has a lot that overseas. producers affected

we maybe think then possibly low. be in a know the year? I'm there and inventories the be enough some get quick things think my you way, how might towards And it's do that get may the of in in And a strictly my what there little bit opinion, it's overreaction may I be, Of opinion, by too slow. I telling okay, course, bottleneck end this, I and of just letting I been will happen. just don't

before before... Oh, the industry. in happened That's well, it seen we've

right. Exactly. Right,

comparable at it overall look discontinuation. on sales you the How segment location same a of basis, realize or same a We've got other I When we've ACH some by look on does segment company? things. kind got basis

I you different whatnot make that So ACH now sure gone? how to I look the the business asking want understand your businesses and are clubs we'll are question. Are you across and

the not are Well, operations you that the future, I'm it paring back. the looking basis the year-to-date, looking at was at out or that -- the things you that how or initiatives with at taking on quarter discontinued

So of a at as an I'm kind basis, look a as you comparable overall sure well on it basis. consolidated

Yes.

and be you're don't we'd would number to jump that to exact the out for, later. number give to that million a ACH I have it call So been you of picture. but $XX have looking $X figure happy on million and

-- That great. you the goods. would you've destocking talked the with at the you And way majors be and about flow look when

as probably got largest well. larger the of the X import You've -- maybe businesses

what's Pacific China. the And in your big are health of that? try issue seeing rim? the What are think, what's what progress society your in from on the about, you're you talked -- your suppliers that's sourcing and before away you So you And move a from going -- obviously, seeing in I to country.

as, feel overseas. X at point really now the We We're of XX% think believe, in we're much in China. suppliers less than about I as good We were China. XX% around health our I

that Also, the is with number business had had Accentrics reduction deal mean, a when for to you talked us we've when used Home factories about an when to haven't had we major in factories. I the Accentrics give had over that. RTA, of we idea, just XX at significant we we So Home just a made improvement we clubs we

we we in team our which really we number but able our is out other correct it's the individuals of think a business, we and because factories. being you spreading have feel the focus is about to pretty and on which people that now, team, the for have factors overseas, substantial when So be to number quality have not those them have

well. do big we've as you the lose things that, as So benefit you what that which actually a matter, and sight on to focus is done

now Vietnam the largest supply of your countries? So

Yes.

would need for you be think Any Okay. And affect things you contemplating some can't people, last talk about you you've any strategically other do actions can but that about? do that Obviously, you that see you're here probably if HMI. other with Meridian? it, -- to me may got talk they Home

HMI Samuel No X,XXX our placements focused and this out -- growing going we -- of PRI growing Meridian it's as to, so confident the and revenues between Home why store a we're -- before on to mentioned, the feel the call our believe, And Lawrence, nice over now -- right grow, the we how overhead different lot and for mentioned, division. for need within going breakeven going business HMI. at as a because lot we this place feed is have Pulaski, point after that's we such is just that is we future thing a about do future. which also about of to things, for we're hospitality And we point

the point have during in thought been with hospitality would going strong true? country. Is what's a I the that would real quarter have on And

I your first Budd, of I'm question, the part sorry. missed

during very quarter. would -- think, I have been I hospitality say strong been should would would the have

us a Contract, the spot was spot. bright for another throughout quarter. was bright H definitely us. living definitely bright senior spot It which Also for Yes, the on is focused

Thank sorry very you much. I’m [Indiscernible]

warehouse reductions cost actively we don't personnel remaining related have personal of those any have related… reductions the planned, Budd we sorry any I'm we've that don't say got

there the more with will cost overhead believe next in about. space No, our in efficiency out we as also, $XXX,XXX cost we about getting really Savannah, save And there's do to reductions -- talked get and we to feel labor more well. of down all us also good position that to have space the the Savannah

care So reductions in we've our have -- past. forward moving is And our have report had taken and run actually solid, surprises of just but to sustainable the plan been cost business is don't we that most the a of. predictable

Okay. Paul, I costs would had inventory in flow of to now, out think the there. you impacted are rate have it thought is did Do the one that freight thing that costs has excess say container all gone? you higher inventory of those is

Yes.

the by way summer. out worked the summer, it of of through end think I we our the

were costs I gone. think the most excess of

year. Thank of you. Well, congratulations, good luck on the next the part

it. you, appreciate Budd. We Thank

next with question comes Sage Barry Asset from Instructions] Management. [Operator Our Haimes

line is Your open.

Thanks very a I questions. had of much. couple

of -- the is number and was quarter at ago? a the year give end and you quarter both comparison ago the then what the could backlog First a

End was of ago. $XXX a million year million the versus $XX July, backlog

And what quarter? of at first the the it end was

of the quarter, in versus it first year. million End $XX $XXX was prior the million

sense. Got the it. Thanks. that then if date? us Thank give And what BOBO, closing paid it acquisition you you just very so, us you for the And And helpful. That's seems closed? so was could already price could makes on But like certainly you much. the is give it? it --

a was XX, acquisition. and was million. small we It paid June It mid-June, $X.X

it. it. Got so appreciate Thanks much,

Thank you.

Value comes Pinnacle with Fund. question And from John you. last Thank our Deysher

Your line is open.

morning. my questions. Thanks for good Hi, taking

share Just BOBO second. back rate the what revenue bought was with Can you it? for you to run a us when

been $X bought million. we run in… It's the it, rate was revenue When around

Yes.

product expectations How of When Okay. be capabilities. line is integrated force accomplished? growth And you and soon in distribution that it. before will that your have obviously, terms sales for

force will up. and as be integrated fully it of our distribution market So the October sales coming with

October? that What at of Okay. is the -- end

believe... I

Mid-October.

It's second October. of or third week

-- fully what of? business? terms I the is is what that you be And Good. would what right. All mean dream do think for that revenue business in of integrated Okay. capable

smaller the believe for brand a be it line. We will on us top

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us even that So it is volume it's somewhat impactful at for level.

And it's our brand. our sales, supporting

and helps us the picture, more we many home can entire sell complete It Right. in whole a room ways. really

sense. total makes it mean, I No, Yes.

core the profile the business? So you margin than would better say is

Correct.

Fair final question. Good, one the enough. orders then were What minor quarter? for Okay. the

$XX million.

very good luck. Thanks great. and much Okay,

Okay, thank you.

you. Thank

to Jeremy Thank closing you. conference remarks. turn over the I like to for now Hoff would

like for in December. look in sharing to their quarter care. 'XX We our the Furnishings. call thank would to Take third interest I everyone forward on results Hooker fiscal

call. This participating. Thank you concludes for conference today's

You may disconnect. now