{"url_path":"/sec/hoft/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Financial Statements**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-06-12","source_url":"https://www.sec.gov/Archives/edgar/data/1077688/0001185185-26-002495-index.html","accession_number":"0001185185-26-002495","cik":"0001077688","ticker":"HOFT","issuer_name":"HOOKER FURNISHINGS Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/1077688/0001185185-26-002495-index.html","primary_entity_key":"0001077688","primary_entity_name":"HOOKER FURNISHINGS Corp"},"word_count":6148,"has_tables":true,"body_markdown":"**Item 1. Financial Statements**\n\n \n\n**HOOKER FURNISHINGS CORPORATION AND\nSUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED BALANCE SHEETS**\n\n(In thousands)\n\n \n\n \nMay 3,  \n \n\n \n2026  \nFebruary 1, \n\n**As of** \n(unaudited)  \n2026 \n\nAssets \n   \n  \n\nCurrent assets \n   \n  \n\nCash and cash equivalents \n$10,618  \n$1,112 \n\nTrade accounts receivable, net \n 30,933  \n 37,786 \n\nInventories \n 45,032  \n 48,684 \n\nIncome tax recoverable \n -  \n 30 \n\nPrepaid expenses and other current assets \n 5,269  \n 5,283 \n\nTotal current assets \n 91,852  \n 92,895 \n\nProperty, plant and equipment, net \n 22,208  \n 25,207 \n\nCash surrender value of life insurance policies \n 31,291  \n 30,422 \n\nDeferred taxes \n 24,767  \n 24,941 \n\nOperating leases right-of-use assets \n 21,653  \n 23,015 \n\nIntangible assets, net \n 12,449  \n 12,994 \n\nGoodwill \n 575  \n 575 \n\nOther assets \n 18,422  \n 15,842 \n\nTotal non-current assets \n 131,365  \n 132,996 \n\nTotal assets \n$223,217  \n$225,891 \n\n  \n    \n   \n\nLiabilities and Shareholders’\nEquity \n    \n   \n\nCurrent liabilities \n    \n   \n\nTrade accounts payable \n$12,113  \n$11,002 \n\nAccrued salaries, wages and benefits \n 4,666  \n 3,730 \n\nAccrued income taxes \n 158  \n 42 \n\nCustomer deposits \n 5,151  \n 5,291 \n\nCurrent portion of operating lease liabilities \n 5,359  \n 5,445 \n\nOther accrued expenses \n 2,320  \n 2,083 \n\nTotal current liabilities \n 29,767  \n 27,593 \n\nLong term debt \n -  \n 3,223 \n\nDeferred compensation \n 6,149  \n 6,365 \n\nOperating lease liabilities \n 18,207  \n 19,468 \n\nTotal long-term liabilities \n 24,356  \n 29,056 \n\nTotal liabilities \n 54,123  \n 56,649 \n\n  \n    \n   \n\nShareholders’ equity \n    \n   \n\nCommon stock, no par value, 20,000 shares authorized,10,770 and 10,764 shares issued and outstanding on each date \n 51,479  \n 51,361 \n\nRetained earnings \n 117,352  \n 117,603 \n\nAccumulated other comprehensive income \n 263  \n 278 \n\nTotal shareholders’ equity \n 169,094  \n 169,242 \n\nTotal liabilities and shareholders’ equity \n$223,217  \n$225,891 \n\n \n\nThe accompanying notes are an integral part of\nthe unaudited condensed consolidated financial statements.\n\n \n\n1\n\n[Table of Contents](#toc_001)\n\n \n\n**HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**\n\n(In thousands, except per share data)\n\n(Unaudited)\n\n \n\n  \nFor the \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,  \nMay 4, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nNet sales \n$69,452  \n$71,184 \n\n  \n    \n   \n\nCost of sales \n 48,860  \n 53,249 \n\n  \n    \n   \n\nGross profit \n 20,592  \n 17,935 \n\n  \n    \n   \n\nSelling and administrative expenses \n 18,469  \n 17,766 \n\nIntangible asset amortization \n 545  \n 667 \n\n  \n    \n   \n\nOperating income / (loss) \n 1,578  \n (498)\n\n  \n    \n   \n\nOther (expense) / income \n (70) \n 98 \n\nInterest expense, net \n 121  \n 378 \n\n  \n    \n   \n\nIncome / (Loss) from continuing operations before income taxes \n 1,387  \n (778)\n\n  \n    \n   \n\nIncome tax expense / (benefit) \n 326  \n (164)\n\n  \n    \n   \n\nNet income / (loss) from continuing operations \n 1,061  \n (614)\n\n  \n    \n   \n\nNet income / (loss) from discontinued operations, net of taxes \n -  \n (2,438)\n\n  \n    \n   \n\nNet income / (loss) \n$1,061  \n$(3,052)\n\n  \n    \n   \n\nBasic: \n    \n   \n\nEarnings / (Loss) from continuing operations per share \n$0.10  \n$(0.06)\n\nEarnings / (Loss) from discontinued operations per share \n -  \n (0.23)\n\nBasic earnings / (loss) per share \n$0.10  \n$(0.29)\n\n  \n    \n   \n\nDiluted: \n    \n   \n\nEarnings / (Loss) from continuing operations per share \n$0.10  \n$(0.06)\n\nEarnings / (Loss) from discontinued operations per share \n -  \n (0.23)\n\nDiluted loss per share \n$0.10  \n$(0.29)\n\n  \n    \n   \n\nWeighted average shares outstanding: \n    \n   \n\nBasic \n 10,644  \n 10,563 \n\nDiluted \n 10,778  \n 10,563 \n\n  \n    \n   \n\nCash dividends declared per share \n$0.115  \n$0.23 \n\n \n\nThe accompanying notes are an integral part of\nthe unaudited condensed consolidated financial statements.\n\n \n\n2\n\n[Table of Contents](#toc_001)\n\n \n\n**HOOKER FURNISHINGS CORPORATION AND\nSUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS\nOF COMPREHENSIVE INCOME / (LOSS)**\n\n(In thousands)\n\n(Unaudited)\n\n \n\n  \nFor the \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,  \nMay 4, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nNet income / (loss) \n$1,061  \n$(3,052)\n\nOther comprehensive income: \n    \n   \n\nActuarial adjustments \n (19) \n (45)\n\nIncome tax effect on adjustments \n 4  \n 11 \n\nAdjustments to net periodic benefit cost \n (15) \n (34)\n\n  \n    \n   \n\nTotal comprehensive income / (loss) \n$1,046  \n$(3,086)\n\n** **\n\nThe accompanying notes are an integral part of\nthe unaudited condensed consolidated financial statements.\n\n \n\n3\n\n[Table of Contents](#toc_001)\n\n** **\n\n**HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES**\n\n**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**\n\n(In thousands)\n\n(Unaudited)\n\n \n\n  \nFor the \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,  \nMay 4, \n\n  \n2026  \n2025 \n\nOperating Activities: \n   \n  \n\nNet income / (loss) \n$1,061  \n$(3,052)\n\nLess: Loss from discontinued operations, net of taxes \n -  \n (2,438)\n\n  \n    \n   \n\nAdjustments to reconcile net income to net cash provided by operating activities: \n    \n   \n\nDepreciation and amortization \n 1,816  \n 1,766 \n\nDeferred income tax expense / (benefit) \n 179  \n (1,052)\n\nNoncash restricted stock and performance awards \n 155  \n 357 \n\nProvision for / (benefit from) doubtful accounts and sales allowances \n 476  \n (247)\n\nGain on life insurance policies \n (770) \n (679)\n\n(Gain) / loss on disposal of assets \n (2) \n 15 \n\nChanges in assets and liabilities: \n    \n   \n\nTrade accounts receivable \n 6,377  \n 12,844 \n\nInventories \n 3,651  \n 5,312 \n\nIncome tax recoverable \n 30  \n 521 \n\nPrepaid expenses and other assets \n (430) \n (1,127)\n\nTrade accounts payable \n 1,061  \n 1,375 \n\nAccrued salaries, wages, and benefits \n 936  \n 155 \n\nAccrued income taxes \n 116  \n 242 \n\nCustomer deposits \n (140) \n 731 \n\nOperating lease assets and liabilities \n 14  \n 77 \n\nOther accrued expenses \n 114  \n (270)\n\nDeferred compensation \n (235) \n (190)\n\nNet cash provided by operating activities \n$14,409  \n$19,216 \n\n  \n    \n   \n\nInvesting Activities: \n    \n   \n\nPurchases of property and equipment \n (403) \n (727)\n\nPremiums paid on life insurance policies \n (116) \n (116)\n\nProceeds received on life insurance policies \n 540  \n - \n\nNet cash provided by / (used in) investing activities \n$21  \n$(843)\n\n  \n    \n   \n\nFinancing Activities: \n    \n   \n\nProceeds from revolving credit facility \n 3,156  \n 534 \n\nPayments for long-term loans \n (6,730) \n - \n\nCash dividends paid \n (1,254) \n (2,497)\n\nPurchase and retirement of common stock \n (96) \n - \n\nDebt issuance cost \n -  \n (17)\n\nNet cash used in financing activities \n$(4,924) \n$(1,980)\n\n  \n    \n   \n\nDiscontinued Operations \n    \n   \n\nCash used in operating activities \n -  \n (4,553)\n\nCash used in investing activities \n -  \n (124)\n\nCash used in discontinued operations \n$-  \n$(4,677)\n\n  \n    \n   \n\nNet increase in cash and cash equivalents \n 9,506  \n 11,716 \n\nCash and cash equivalents - beginning of year \n 1,112  \n 6,295 \n\nCash and cash equivalents - end of quarter \n$10,618  \n$18,011 \n\n  \n    \n   \n\nSupplemental schedule of cash flow information: \n    \n   \n\nInterest paid, net \n$6  \n$466 \n\nIncome taxes paid / (refund), net \n -  \n (475)\n\n  \n    \n   \n\nSupplemental schedule of noncash investing activities: \n    \n   \n\nIncrease / (Decrease) in lease liabilities arising from obtaining right-of-use assets \n$-  \n$10 \n\nIncrease in property and equipment through accrued purchases \n 50  \n 30 \n\n \n\nThe accompanying notes are an integral part of\nthe unaudited condensed consolidated financial statements.\n\n** **\n\n4\n\n[Table of Contents](#toc_001)\n\n** **\n\n**HOOKER FURNISHINGS CORPORATION AND\nSUBSIDIARIES**\n\n**CONSOLIDATED STATEMENTS OF SHAREHOLDERS’\nEQUITY**\n\n(In thousands, except per share data)\n\n(Unaudited)\n\n \n\n  \n   \n   \n   \nAccumulated  \n  \n\n  \n   \n   \n   \nOther  \nTotal \n\n  \nCommon Stock  \nRetained  \nComprehensive  \nShareholders’ \n\n  \nShares  \nAmount  \nEarnings  \nIncome  \nEquity \n\nBalance at February 2, 2025 \n 10,703  \n$50,474  \n$153,336  \n$573  \n$204,383 \n\nNet loss for the 13 weeks ended May 4, 2025 \n    \n    \n (3,052) \n    \n (3,052)\n\nActuarial adjustments on defined benefit plan, net of tax of $11 \n    \n    \n    \n (34) \n (34)\n\nCash dividends paid and accrued ($0.23 per share) \n    \n    \n (2,497) \n    \n (2,497)\n\nRestricted stock grants, net of forfeitures \n 9  \n (212) \n    \n    \n (212)\n\nRestricted stock compensation cost \n    \n 417  \n    \n    \n 417 \n\nPerformance-based restricted stock units cost \n    \n 152  \n    \n    \n 152 \n\nBalance at May 4, 2025 \n 10,712  \n$50,831  \n$147,787  \n$539  \n$199,157 \n\n  \n    \n    \n    \n    \n   \n\nBalance at February 1, 2026 \n 10,764  \n$51,361  \n$117,603  \n$278  \n$169,242 \n\nNet income for the 13 weeks ended May 3, 2026 \n    \n    \n 1,061  \n    \n 1,061 \n\nActuarial adjustments on defined benefit plan, net of tax of $4 \n    \n    \n    \n (15) \n (15)\n\nCash dividends paid and accrued ($0.115 per share) \n    \n    \n (1,254) \n    \n (1,254)\n\nPurchase and retirement of common stock \n (8) \n$(38) \n (58) \n    \n (96)\n\nRestricted stock grants, net of forfeitures \n 14  \n (351) \n    \n    \n (351)\n\nRestricted stock compensation cost \n    \n 344  \n    \n    \n 344 \n\nPerformance-based restricted stock units cost \n    \n 163  \n    \n    \n 163 \n\nBalance at May 3, 2026 \n 10,770  \n$51,479  \n$117,352  \n$263  \n$169,094 \n\n \n\nThe accompanying notes are an integral part of\nthe unaudited condensed consolidated financial statements.\n\n \n\n5\n\n[Table of Contents](#toc_001)\n\n \n\n**HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES**\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n(Dollar and share amounts in tables, except per\nshare amounts, in thousands unless otherwise indicated)\n\n(Unaudited)\n\nFor the Thirteen Weeks Ended May 3, 2026\n\n \n\n**1. Preparation of Interim Financial Statements**\n\n \n\nThe condensed consolidated financial statements\nof Hooker Furnishings Corporation and subsidiaries (referred to as “we,” “us,” “our,” “Hooker”\nor the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission\n(“SEC”). In the opinion of management these statements include all adjustments necessary for a fair statement of the results\nof all interim periods reported herein. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures\nprepared in accordance with U.S. generally accepted accounting principles (“GAAP”) are condensed or omitted pursuant to SEC\nrules and regulations. However, we believe that the disclosures made are adequate for a fair presentation of our results of operations\nand financial position. These financial statements should be read in conjunction with the audited consolidated financial statements and\naccompanying notes included in our annual report on Form 10-K for the fiscal year ended February 1, 2026 (“2026 Annual Report”).\nThe preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect both the reported\namounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the\nreporting period. Actual results could differ from our estimates. Operating results for the interim periods reported herein may not be\nindicative of the results expected for the fiscal year.\n\n \n\nThe financial statements contained herein are\nbeing filed as part of a quarterly report on Form 10-Q covering the 2027 fiscal year thirteen-week period (also referred to as “three\nmonths,” “three-month period,” “quarter,” “first quarter” or “quarterly period”)\nthat began February 2, 2026 and ended May 3, 2026. This report discusses our results of operations for this period compared to the 2026\nfiscal year thirteen-week period that began February 3, 2025 and ended May 4, 2025; and our financial condition as of May 3, 2026 compared\nto February 1, 2026.\n\n \n\nReferences in these notes to the condensed consolidated\nfinancial statements of the Company to:\n\n \n\n◾the 2027 fiscal year and comparable terminology\nmean the fifty-two-week fiscal year that began February 2, 2026 and will end January 31, 2027; and\n\n \n\n◾the 2026 fiscal year and comparable\nterminology mean the fifty-two-week fiscal year that began February 3, 2025 and ended February 1, 2026.\n\n** **\n\n**2. Recently\nAdopted Accounting Policies**\n\n \n\nIn November 2024, the FASB issued ASU 2024-03,\n“Disaggregation of income statement expenses”. The new guidance requires new tabular disclosures to disaggregate prescribed\nnatural expenses underlying any income statement caption. ASU 2024-03 is effective for annual periods beginning after December 15, 2026\n(our fiscal 2028). We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial\nstatements and will add necessary disclosures upon adoption.\n\n \n\nWe reviewed all other newly issued accounting\npronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our\nconsolidated financial statements as a result of future adoption.\n\n \n\n**3. Discontinued\nOperations**\n\n** **\n\nDuring the third quarter of fiscal 2026, we determined\nthat the Home Meridian segment no longer aligned with our long-term strategy to streamline our portfolio and enhance profitability by\nfocusing on brands that generate consistent earnings. As a result, we initiated a process to sell two brands in the segment. On December\n1, 2025, we entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with a buyer to sell the Company’s\nPulaski Furniture (“PFC”) and Samuel Lawrence (“SLF”) casegoods brands, including specified assets and liabilities\nassociated with those brands. We retain the Samuel Lawrence brand in connection with the operation of its hospitality business.\n\n \n\n6\n\n[Table of Contents](#toc_001)\n\n \n\nOn December 12, 2025, the Company completed the\nsale and received cash proceeds of approximately $5.5 million, representing the estimated net book value of the assets at closing, less\na holdback amount of approximately $0.6 million, in accordance with the terms of the purchase agreement. Final transaction pricing, including\nworking capital adjustments, resulted in a difference of approximately $0.3 million between the estimated fair value less costs to sell\ndetermined at the measurement date and the final net proceeds received.\n\n \n\nFollowing the sale, the Home Meridian segment\nwas eliminated, with its remaining Samuel Lawrence Hospitality brand reclassified into the “All Other” category.\n\n \n\nWe believe this transaction represented a single disposal plan that\nconstituted a strategic shift that materially affects our operations and financial results. Accordingly, the financial results of the\nPFC and SLF businesses are reflected in our consolidated financial statements as discontinued operations for all periods presented.\n\n \n\nThe following table represents summarized statements\nof operations information of carrying amounts of major classes of line items constituting pretax loss of discontinued operations included\nas part of discontinued operations for the first quarter of fiscal 2026:\n\n \n\n  \nFor the \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,  \nMay 4, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nNet sales \n$     -  \n$14,133 \n\n  \n    \n   \n\nCost of sales \n -  \n 12,850 \n\n  \n    \n   \n\nGross profit \n -  \n 1,283 \n\n  \n    \n   \n\nSelling and administrative expenses \n -  \n 4,102 \n\nTrade name impairment charges \n -  \n - \n\nIntangible asset amortization \n -  \n 246 \n\nOther income items that are not major \n -  \n (28)\n\n  \n    \n   \n\nLoss from discontinued operations before income taxes \n -  \n (3,037)\n\n  \n    \n   \n\nIncome tax benefit \n -  \n (599)\n\n  \n    \n   \n\nNet loss from discontinued operations \n -  \n (2,438)\n\n \n\n7\n\n[Table of Contents](#toc_001)\n\n \n\nThe significant components included in our condensed consolidated statements\nof cash flows for the discontinued operations are as follows:\n\n \n\n  \nFor the \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,  \nMay 4, \n\n  \n2026  \n2025 \n\nOperating Activities: \n   \n  \n\nLoss from discontinued operations, net of tax \n$          -  \n$(2,438)\n\nDepreciation and amortization \n -  \n 436 \n\nChanges in assets and liabilities: \n    \n   \n\nTrade accounts receivable, net \n -  \n 6,004 \n\nInventories \n -  \n 1,128 \n\nTrade accounts payable \n -  \n (9,873)\n\nOther assets and liabilities \n -  \n 190 \n\nCash used in operating activities from discontinued operations \n$-  \n$(4,553)\n\n  \n    \n   \n\nInvesting Activities: \n    \n   \n\nPurchase of properties and equipment \n -  \n (124)\n\nCash used in investing activities from discontinued operations \n$-  \n$(124)\n\n \n\n**4. Accounts\nReceivable**\n\n \n\n  \nMay 3,  \nFebruary 1, \n\n  \n2026  \n2026 \n\n  \n   \n  \n\nGross accounts receivable \n$36,445  \n$43,327 \n\nCustomer allowances \n (495) \n (354)\n\nAllowance for doubtful accounts \n (5,017) \n (5,187)\n\nTrade accounts receivable \n$30,933  \n$37,786 \n\n \n\n**5. Inventories**\n\n** **\n\n  \nMay 3,  \nFebruary 1, \n\n  \n2026  \n2026 \n\nFinished furniture \n$57,813  \n$61,178 \n\nFurniture in process \n 1,652  \n 1,497 \n\nMaterials and supplies \n 11,459  \n 11,879 \n\nInventories at FIFO \n 70,924  \n 74,554 \n\nReduction to LIFO basis \n (25,892) \n (25,870)\n\nInventories \n$45,032  \n$48,684 \n\n \n\n8\n\n[Table of Contents](#toc_001)\n\n \n\n**6. Property, Plant and\nEquipment**\n\n \n\n  \nDepreciable\nLives \nMay 3,  \nFebruary 1, \n\n  \n(In years) \n2026  \n2026 \n\n  \n  \n   \n  \n\nBuildings and land improvements \n15 - 30 \n$34,566  \n$34,566 \n\nMachinery and equipment \n10 \n 11,852  \n 11,852 \n\nComputer software and hardware \n3 - 10 \n 8,265  \n 8,286 \n\nLeasehold improvements \nTerm of lease \n 7,630  \n 7,630 \n\nFurniture and fixtures \n3 - 8 \n 3,070  \n 3,067 \n\nOther \n5 \n 701  \n 701 \n\nTotal depreciable property at cost \n  \n 66,084  \n 66,102 \n\nLess accumulated depreciation \n  \n (46,736) \n (46,060)\n\nTotal depreciable property, net \n  \n 19,348  \n 20,042 \n\nLand \n  \n 1,077  \n 1,077 \n\nConstruction-in-progress \n  \n 1,783  \n 4,088 \n\nProperty, plant and equipment, net \n  \n$22,208  \n$25,207 \n\n** **\n\n**7. Internal-Use Software**\n\n \n\nOur internal-use software includes our Enterprise Resource\nPlanning (“ERP”) system across all divisions, as well as our new website and integrated B2B online marketplace, which was\nplaced into service at the beginning of fiscal 2027. The gross carrying amount of capitalized implementation costs related to our cloud\ncomputing hosting arrangements increased by $2.7 million during the first quarter of fiscal 2027, primarily due to the reclassification\nof costs associated with our new digital platform from implementation costs in process upon being placed into service. Based on the provisions\nof ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use Software, we capitalize implementation costs associated with\nhosting arrangements that are service contracts. These costs are recorded in “other noncurrent assets” of our condensed consolidated\nbalance sheets. We amortize these costs on a straight-line basis over a 10-year term. The amortization expenses are recorded as a component\nof selling and administrative expenses in our condensed consolidated statements of operations.\n\n \n\nNo material implementation costs or interest expense\nwere capitalized in fiscal 2027 first quarter. Implementation costs of $203,000 and interest expense of $62,000 were capitalized in fiscal\n2026 first quarter. Amortization expenses of $533,000 and $368,000 were recorded in the first quarters of fiscal 2027 and 2026, respectively.\nThe capitalized implementation costs at May 3, 2026 and February 1, 2026 were as follows:\n\n \n\n  \nMay 3, 2026  \nFebruary 1, 2026 \n\n  \nGross\ncarrying\namount  \nAccumulated\namortization  \nGross\ncarrying\namount  \nAccumulated\namortization \n\nImplementation Costs \n$20,192  \n$(3,472) \n$17,479  \n$(2,963)\n\nInterest Expenses \n 783  \n (73) \n 782  \n (49)\n\n ** **\n\n**8. Fair Value Measurements**\n\n** **\n\nFair value is the price that would be received\nupon the sale of an asset or paid upon the transfer of a liability (an exit price) in an orderly transaction between market participants\non the applicable measurement date. We use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.\nThese tiers include:\n\n \n\n◾Level 1, defined as observable inputs such as\nquoted prices in active markets for identical assets and liabilities;\n\n \n\n◾Level 2, defined as inputs other than quoted\nprices in active markets that are either directly or indirectly observable; and\n\n \n\n◾Level 3, defined as unobservable inputs for which\nlittle or no market data exists, therefore requiring an entity to develop its own assumptions.\n\n \n\n9\n\n[Table of Contents](#toc_001)\n\n \n\nAs of May 3, 2026 and February 1, 2026, Company-owned\nlife insurance was measured at fair value on a recurring basis based on Level 2 inputs. The fair value of the Company-owned life insurance\nis determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets.\nAdditionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value\nis reflected in income for that period.\n\n \n\nOur assets measured at fair value on a recurring\nbasis at May 3, 2026 and February 1, 2026, were as follows:\n\n \n\n  \nFair value at May 3, 2026  \nFair value at February 1, 2026 \n\nDescription \nLevel 1  \nLevel 2  \nLevel 3  \nTotal  \nLevel 1  \nLevel 2  \nLevel 3  \nTotal \n\n  \n(In thousands) \n\nAssets measured at fair value \n    \n    \n    \n    \n    \n    \n    \n   \n\nCompany-owned life insurance \n$-  \n$31,291  \n$-  \n$31,291  \n$-  \n$30,422  \n$-  \n$30,422 \n\n** **\n\n**9. Intangible Assets**\n\n** **\n\nOur intangible assets with indefinite lives consist\nof: goodwill related to the Shenandoah and BOBO Intriguing Objects acquisitions; and trademarks and tradenames related to the acquisitions\nof Bradington-Young, Home Meridian and BOBO Intriguing Objects. Our intangible assets with definite lives are recorded in the Domestic\nUpholstery segment, consisting of Shenandoah and Sunset West trade names and customer relations. Details of our intangible assets are\nas follows:\n\n \n\n  \nMay 3, 2026  \nFebruary 1, 2026 \n\n  \nGross\ncarrying\namount  \nImpairment /\nAccumulated\nAmortization  \nGross\ncarrying\namount  \nImpairment /\nAccumulated\nAmortization \n\nIntangible assets with indefinite lives: \n   \n   \n   \n  \n\nGoodwill \n   \n   \n   \n  \n\nDomestic Upholstery - Shenandoah * \n 490  \n -  \n 490  \n - \n\nAll Other - BOBO Intriguing Objects \n 85  \n -  \n 85  \n - \n\nGoodwill \n 575  \n -  \n 575  \n - \n\n  \n    \n    \n    \n   \n\nTrademarks and Trade names * \n 2,019  \n (1,114) \n 2,019  \n (1,114)\n\n  \n    \n    \n    \n   \n\nIntangible assets with definite lives: \n    \n    \n    \n   \n\nCustomer Relationships \n 23,601  \n (13,134) \n 23,601  \n (12,620)\n\nTrademarks and Trade names \n 2,334  \n (1,256) \n 2,334  \n (1,225)\n\nIntangible assets, net \n 27,954  \n (15,504) \n 27,954  \n (14,959)\n\n \n\n*:The amounts are net of impairment charges of $16.4 million related\nto Shenandoah goodwill; $14.5 million related to Sunset West goodwill; $5.7 million related to certain Home Meridian trade names unrelated\nto PFC and SLF, including $2.6 million recorded in fiscal 2021, $2.5 million recorded in fiscal 2025, and $558,000 recorded in fiscal\n2026; and $556,000 related to the Bradington-Young trade name in the Domestic Upholstery segment.\n\n \n\nAmortization expenses for intangible assets with\ndefinite lives were $545,000 and $667,000 for the first quarters of fiscal 2027 and 2026, respectively. For the remainder of fiscal 2027,\namortization expense is expected to be approximately $1.6 million\n\n \n\n**10. Leases**\n\n \n\nWe have operating leases for warehouses, showrooms,\nmanufacturing facilities, offices and equipment. We recognized sublease income of $64,000 and $18,000 in the first quarters of fiscal\n2027 and 2026, respectively.\n\n \n\n10\n\n[Table of Contents](#toc_001)\n\n \n\nThe components of lease cost and supplemental\ncash flow information for leases for the first quarters of fiscal 2027 and 2026 were:\n\n** **\n\n  \nThirteen Weeks Ended \n\n  \nMay 3,\n\n2026  \nMay 4,\n\n2025 \n\nOperating lease cost \n$1,659  \n$2,172 \n\nVariable lease cost \n 79  \n 88 \n\nShort-term lease cost \n 46  \n 49 \n\nTotal operating lease cost \n$1,784  \n$2,309 \n\n  \n    \n   \n\nOperating cash outflows \n$1,769  \n$2,233 \n\n \n\nThe right-of-use assets and lease liabilities\nrecorded on our condensed consolidated balance sheets as of May 3, 2026 and February 1, 2026 were as follows:\n\n \n\n  \nMay 3,\n\n2026  \nFebruary 1,\n\n2026 \n\nReal estate \n$21,031  \n$22,328 \n\nProperty and equipment \n 622  \n 687 \n\nTotal operating leases right-of-use assets \n$21,653  \n$23,015 \n\n  \n    \n   \n\nCurrent portion of operating lease liabilities \n$5,359  \n$5,445 \n\nLong term operating lease liabilities \n 18,207  \n 19,468 \n\nTotal operating lease liabilities \n$23,566  \n$24,913 \n\n \n\nThe weighted-average discount rate is 4.97%. The\nweighted-average remaining lease term is 5.4 years as of May 3, 2026.\n\n \n\nThe following table reconciles the undiscounted\nfuture lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on\nMay 3, 2026:\n\n** **\n\n  \nUndiscounted\n\nFuture\n\nOperating\n\nLease\n\nPayments \n\nRemainder of fiscal 2027 \n$4,904 \n\n2028 \n 4,685 \n\n2029 \n 3,915 \n\n2030 \n 3,881 \n\n2031 \n 3,913 \n\n2032 and thereafter \n 5,833 \n\nTotal lease payments \n$27,131 \n\nLess: impact of discounting \n (3,565)\n\nPresent value of lease payments \n$23,566 \n\n** **\n\nAs of February 1, 2026, the Company had an additional\nlease for an administrative office in High Point, North Carolina. This lease commenced in May of calendar 2026 with an initial lease term\nof seven years and estimated future minimum rental commitments of approximately $2.2 million. Since the lease had not commenced as of\nthe quarter-end, the undiscounted amounts are not included in the table above.\n\n \n\n**11. Long-Term\nDebt**\n\n \n\nOn December 5, 2024, the Company and its wholly\nowned subsidiaries, Bradington-Young, LLC, Sam Moore Furniture LLC and Home Meridian Group, LLC (together with the Company, the “Borrowers”),\nentered into an Amended and Restated Loan and Security Agreement (the “Amended and Restated Loan Agreement”) with Bank of\nAmerica, N.A. (“BofA”), as lender. The Amended and Restated Loan Agreement amends, restates and replaces the Second Amended\nand Restated Loan Agreement, dated as of September 29, 2017, between the Borrowers and BofA, as amended (the “Existing Loan Agreement”).\nThe outstanding principal amount of loans and letters of credit issued under the Existing Loan Agreement and used to collateralize certain\ninsurance arrangements and for imported product purchases will remain outstanding as loans and letters of credit under the Amended and\nRestated Loan Agreement.\n\n \n\n11\n\n[Table of Contents](#toc_001)\n\n \n\nThe Amended and Restated Loan Agreement provides\nfor a revolving credit facility in a committed principal amount of up to $70,000,000 (the “Revolving Commitment”), including\nsubline of $8,000,000 for letters of credit, and an option to increase the Revolving Commitment by up to $30,000,000 upon meeting certain\nconditions, including agreement by BofA to increase the Revolving Commitment by such amount. Proceeds of loans and letters of credit under\nthe Amended and Restated Loan Agreement will be available for general working capital and other corporate purposes of the Borrower.\n\n \n\nAvailability of loans and letters of credit under the Revolving Commitment\nis capped by a borrowing base formula calculated as of any date as the sum for the Borrowers of (a) the value of their accounts receivable,\n(b) the value of their inventory, (c) the value of their in-transit inventory and (d) the life insurance cash surrender value of Company-owned\nlife insurance policies, in each case subject to eligibility requirements, advance rates, valuation metrics, reductions for write-offs\nand other dilutive items and reserves (the “Borrowing Base”). The lesser of the Revolving Commitment and the Borrowing Base,\nin each case net of the principal amount of outstanding loans and the face amount of letters of credit, constitutes “Availability”\nunder the Amended and Restated Credit Agreement.\n\n \n\nOutstanding loans under the Amended and Restated\nLoan Agreement will bear interest at a rate per annum equal to the then-current Term SOFR Rate for a period of one month plus 0.10% plus\na margin of 1.75%. The Term SOFR Rate will be adjusted on a monthly basis. Letters of credit are subject to a letter of credit fee equal\nto the actual daily amount of undrawn letters of credit multiplied by a per annum rate of 1.75% and a fronting fee equal to the actual\ndaily amount of undrawn letters of credit multiplied by a per annum rate of 0.125%. We must also pay a monthly unused commitment fee that\nis based on the average daily unused amount of Revolving Commitment multiplied by a per annum rate of 0.25%. All accrued interest and\nfees are payable in cash monthly in arrears.\n\n \n\nWe may prepay any outstanding principal amounts\nborrowed under the Amended and Restated Loan Agreement at any time, without penalty provided that any payment is accompanied by all accrued\ninterest owed. Subject to the Borrowers having sufficient borrowing base capacity and customary conditions precedent to borrowing, amounts\nrepaid may be reborrowed. The Revolving Commitment will terminate, and all amounts outstanding thereunder will be due and payable, on\nDecember 5, 2029.\n\n \n\nThe obligations under the Amended and Restated\nLoan Agreement are secured by a first priority security interest in substantially all of the assets of the Borrowers, other than real\nestate, including all Company-owned life insurance policies, all accounts receivable, all inventory, all intellectual property, all equipment\nand all other personal property.\n\n \n\nThe Amended and Restated Loan Agreement includes\ncustomary representations and warranties and requires the Borrowers to comply with customary affirmative and negative covenants, including,\namong other things, a financial covenant requiring the maintenance of a ratio of (x) EBITDA net of capital expenditures (to the extent\nnot paid using Borrowed Money) to (y) the sum of debt service and dividends paid, in each case as of the last day of each month for the\ntrailing twelve-month period ending on such day, of at least 1.0 to 1.0, if an event of default has occurred and is continuing or Availability\nhas fallen below 10% of the Revolving Commitment at any time (until such time as both Availability is 10% or greater and no event of default\nexists, for the 30 consecutive days prior to such month end).\n\n \n\nThe Amended and Restated Loan Agreement also limits\nthe Borrowers’ right to incur other indebtedness, make certain investments and create liens upon our assets, subject to certain\nexceptions, among other restrictions. The Amended and Restated Loan Agreement does not restrict the Company’s ability to pay cash\ndividends on, or repurchase, shares of its common stock, subject to (a) no default existing prior to or resulting from such dividend or\nrepurchase, (b) Availability is not less than 15% of the Revolving Commitment for each of the preceding 45 days prior to announcement\nof such dividend or repurchase and after giving pro forma effect to such dividend or repurchase and (c) if Availability is less than 20%\nof the Revolving Commitment on any day in such 45-day period, the Borrowers are in compliance with the financial covenant described above\nafter giving effect to such dividend or repurchase.\n\n \n\n12\n\n[Table of Contents](#toc_001)\n\n \n\nWe incurred $598,000 in previous fiscal years\nin debt issuance costs in connection with our term loans. As of May 3, 2026, unamortized loan costs of $444,000 were recorded in other\nassets on our condensed consolidated balance sheets.\n\n \n\nAs of May 3, 2026, there were no outstanding loans,\nother than $3.2 million face amount of letters of credit. We had $54.2 million of Availability based on the current Borrowing Base. There\nwere no additional borrowings outstanding under the Amended and Restated Loan Agreement as of May 3, 2026.\n\n \n\n**12. Earnings\nPer Share**\n\n \n\nWe refer you to the discussion of Earnings Per\nShare in Note 1. Summary of Significant Accounting Policies, in the financial statements included in our 2026 Annual Report, for additional\ninformation concerning the calculation of earnings per share (EPS).\n\n \n\nAll stock awards are designed to encourage retention\nand to provide an incentive for increasing shareholder value. We have issued restricted stock awards to non-employee members of the board\nof directors since 2006 and to certain non-executive employees since 2014. We have issued RSUs to certain senior executives since fiscal\n2012 under the Company’s Stock Incentive Plan. Each RSU entitles an executive to receive one share of the Company’s common\nstock and vests in three equal annual installments, with one-third vesting at the end of each service period, if the executive remains\ncontinuously employed with the Company through the end of a three-year service period. The RSUs may be paid in shares of our common stock,\ncash or both at the discretion of the Compensation Committee of our board of directors. We have issued PSUs to certain senior executives\nsince fiscal 2019 under the Company’s Stock Incentive Plan. Each PSU entitles the executive officer to receive one share of our\ncommon stock based on the achievement of two specified performance conditions if the executive officer remains continuously employed through\nthe end of the three-year performance period, one target is the Company’s annual EPS growth over the performance period and the\nother target is the Company’s total shareholder return during the performance period compared to the Company’s peer group.\nThe payout or settlement of the PSUs will be made in shares of our common stock.\n\n \n\nWe expect to continue to grant these types of\nawards annually in the future. The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net\nof forfeitures and vested shares, as of the fiscal period-end dates indicated:\n\n \n\n  \nMay 3,  \nFebruary 1, \n\n  \n2026  \n2026 \n\n  \n   \n  \n\nRestricted shares \n 109  \n 140 \n\nRSUs and PSUs \n 210  \n 155 \n\n  \n 319  \n 295 \n\n \n\nAll restricted shares, RSUs and PSUs awarded that\nhave not yet vested are considered when computing diluted earnings per share.\n\n \n\nDuring the fiscal 2027 first quarter, we purchased\nand retired 7,615 shares of our common stock (at an average price of $12.53 per share) under the $5 million share repurchase authorization\napproved by our board of directors in fiscal 2026, with approximately $4.9 million remaining available for future purchases under the\nauthorization. These repurchases reduced our total outstanding shares and, consequently, reduced the weighted outstanding shares used\nin our calculation of earnings per share for the fiscal 2027 first quarter shown below.\n\n \n\n13\n\n[Table of Contents](#toc_001)\n\n \n\nThe following table sets forth the computation\nof basic and diluted earnings per share:\n\n \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,  \nMay 4, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nNet income / (loss) from continuing operations \n$1,061  \n$(614)\n\nLess: Unvested participating restricted stock dividends \n 15  \n 33 \n\nNet earnings allocated to unvested participating restricted stock \n 13  \n - \n\nEarnings / (loss) from continuing operations available for common shareholders \n 1,033  \n (647)\n\nEarnings / (loss) from discontinued operations available for common shareholders \n -  \n (2,438)\n\nNet earnings / (loss) available for common shareholders \n 1,033  \n (3,085)\n\n  \n    \n   \n\nWeighted average shares outstanding for basic earnings per share \n 10,644  \n 10,563 \n\nDilutive effect of unvested restricted stock, RSU and PSU awards \n 134  \n - \n\nWeighted average shares outstanding for diluted earnings per share \n 10,778  \n 10,563 \n\n  \n    \n   \n\nBasic earnings / (loss) from continuing operations per share \n$0.10  \n$(0.06)\n\nBasic earnings / (loss) from discontinued operations per share \n -  \n (0.23)\n\nBasic earnings / (loss) per share \n$0.10  \n$(0.29)\n\n  \n    \n   \n\nDiluted earnings / (loss) from continuing operations per share \n$0.10  \n$(0.06)\n\nDiluted earnings / (loss) from discontinued operations per share \n -  \n (0.23)\n\nDiluted earnings / (loss) per share \n$0.10  \n$(0.29)\n\n \n\nDue to net losses in the first quarter of fiscal 2026, approximately\n133,000 shares would have been antidilutive and are therefore excluded from the calculation of earnings per share for such period.\n\n \n\n**13. Income Taxes**\n\n** **\n\nWe recorded income tax expense of $326,000 and\nincome tax benefits of $164,000 for the fiscal 2027 and fiscal 2026 first quarters from continuing operations, respectively, and tax benefits\nof $599,000 on the pretax loss from discontinued operations in fiscal 2026 first quarter. The consolidated effective tax rates for these\nperiods were 23.5% and 21.1%, respectively. The increase in the effective tax rate for the current fiscal quarter was primarily due to\nrelative impact of restricted stock compensation when compared to operating profits in the current year period and operating losses in\nthe prior year period, as well as a change in valuation allowance recorded in the prior year period for a state loss carryforward.\n\n \n\nNo material and non-routine positions have been\nidentified as uncertain tax positions.\n\n \n\nTax years ending January 28, 2024 through February\n1, 2026 remain subject to examination by federal and state taxing authorities.\n\n \n\n14\n\n[Table of Contents](#toc_001)\n\n \n\n**14. Segment Information**\n\n \n\nAs a public entity, we are required to present\ndisaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial\nstatements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The\nmanagement approach requires segment information to be reported based on how management internally evaluates the operating performance\nof the Company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting\nas outlined in ASC 280 *Segments*(“ASC 280”), which are to allow the users of our financial statements to:\n\n \n\n◾better understand our performance;\n\n   \n\n◾better assess our prospects for future net cash\nflows; and\n\n   \n\n◾make more informed judgments about us as a whole.\n\n \n\nWe define our segments as those operations our\nchief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. The Company’s\nCODM is the Chief Executive Officer. The CODM regularly reviews net sales, gross profit, and operating income by segment as the primary\nmeasures of segment performance. The CODM reviews net sales as a primary indicator of operational performance, assessing how much revenue\nis brought in from core business activities, after returns, allowances, and discounts, which reflects demand and execution of each segment’s\nstrategy. Gross profit, which is derived from net sales and cost of sales, is reviewed by the CODM as a diagnostic metric, particularly\nuseful in evaluating margin trends. Operating income is the key profitability metric used to assess performance across segments and make\ndecisions related to resource allocation, including capital expenditures, headcount, and other investment initiatives. Each of these metrics\nare considered in budgeting, forecasting, and operational planning decisions.\n\n \n\nFor financial reporting purposes, we are organized into two reportable\nsegments and “All Other”, which includes the remainder of our businesses. The following tables present segment information\nfor the periods, and as of the dates, indicated.\n\n \n\n◾**Hooker Branded**, consisting of the operations\nof our imported Hooker Casegoods and Hooker Upholstery businesses;\n\n   \n\n◾**Domestic Upholstery**, which includes the\ndomestic upholstery manufacturing operations of Bradington-Young, HF Custom (formerly Sam Moore), Shenandoah Furniture and Sunset West;\nand\n\n   \n\n◾**All Other,** consisting of Samuel Lawrence\nHospitality product line, intercompany eliminations and operating segments that are not individually reportable.\n\n \n\n15\n\n[Table of Contents](#toc_001)\n\n \n\nThe following tables present segment information\nfor the periods, and as of the dates, indicated.\n\n \n\n \n \n**Thirteen Weeks Ended**\n \n\n \n \n**May 3,\n2026**\n \n \n \n \n \nMay 4,\n\n2025\n \n \n \n \n\n**Net Sales**\n \n \n \n \n**% Net\nSales**\n \n \n \n \n \n% Net\n\nSales\n \n\nHooker Branded\n \n**$**\n**35,329**\n \n \n \n**50.9**\n**%**\n \n$\n37,108\n \n \n \n52.1\n%\n\nDomestic Upholstery\n \n \n**28,355**\n \n \n \n**40.8**\n**%**\n \n \n28,913\n \n \n \n40.6\n%\n\nAll Other\n \n \n**5,768**\n \n \n \n**8.3**\n**%**\n \n \n5,163\n \n \n \n7.3\n%\n\n**Consolidated**\n \n**$**\n**69,452**\n \n \n \n**100**\n**%**\n \n$\n71,184\n \n \n \n100\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Cost of Sales**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nHooker Branded\n \n**$**\n**21,412**\n \n \n \n**60.6**\n**%**\n \n$\n26,045\n \n \n \n70.2\n%\n\nDomestic Upholstery\n \n \n**23,389**\n \n \n \n**82.5**\n**%**\n \n \n23,633\n \n \n \n81.7\n%\n\nAll Other\n \n \n**4,059**\n \n \n \n**70.4**\n**%**\n \n \n3,571\n \n \n \n69.2\n%\n\n**Consolidated**\n \n**$**\n**48,860**\n \n \n \n**70.4**\n**%**\n \n$\n53,249\n \n \n \n74.8\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Gross Profit**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nHooker Branded\n \n**$**\n**13,918**\n \n \n \n**39.4**\n**%**\n \n$\n11,065\n \n \n \n29.8\n%\n\nDomestic Upholstery\n \n \n**4,965**\n \n \n \n**17.5**\n**%**\n \n \n5,280\n \n \n \n18.3\n%\n\nAll Other\n \n \n**1,709**\n \n \n \n**29.6**\n**%**\n \n \n1,590\n \n \n \n30.8\n%\n\n**Consolidated**\n \n**$**\n**20,592**\n \n \n \n**29.6**\n**%**\n \n$\n17,935\n \n \n \n25.2\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Selling and Administrative Expenses**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nHooker Branded\n \n**$**\n**12,711**\n \n \n \n**36.0**\n**%**\n \n$\n11,037\n \n \n \n29.7\n%\n\nDomestic Upholstery\n \n \n**5,110**\n \n \n \n**18.0**\n**%**\n \n \n5,290\n \n \n \n18.3\n%\n\nAll Other\n \n \n**648**\n \n \n \n**11.2**\n**%**\n \n \n1,439\n \n \n \n27.9\n%\n\n**Consolidated**\n \n**$**\n**18,469**\n \n \n \n**26.6**\n**%**\n \n$\n17,766\n \n \n \n25.0\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Intangible Asset Amortization**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nDomestic Upholstery\n \n \n**545**\n \n \n \n**1.9**\n**%**\n \n$\n586\n \n \n \n2.0\n%\n\nAll Other\n \n \n**-**\n \n \n \n**0.0**\n**%**\n \n \n81\n \n \n \n1.6\n%\n\n**Consolidated**\n \n**$**\n**545**\n \n \n \n**0.8**\n**%**\n \n$\n667\n \n \n \n0.9\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Operating Income / (Loss)**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nHooker Branded\n \n**$**\n**1,206**\n \n \n \n**3.4**\n**%**\n \n$\n27\n \n \n \n0.1\n%\n\nDomestic Upholstery\n \n \n**(689**\n**)**\n \n \n**-2.4**\n**%**\n \n \n(595\n)\n \n \n-2.1\n%\n\nAll Other\n \n \n**1,061**\n \n \n \n**18.4**\n**%**\n \n \n70\n \n \n \n1.4\n%\n\n**Consolidated**\n \n**$**\n**1,578**\n \n \n \n**2.3**\n**%**\n \n$\n(498\n)\n \n \n-0.7\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Other (Expense) / Income**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nHooker Branded\n \n**$**\n**(59**\n**)**\n \n \n**-0.2**\n**%**\n \n$\n81\n \n \n \n0.2\n%\n\nDomestic Upholstery\n \n \n**-**\n \n \n \n**0.0**\n**%**\n \n \n-\n \n \n \n0.0\n%\n\nAll Other\n \n \n**(11**\n**)**\n \n \n**-0.2**\n**%**\n \n \n17\n \n \n \n0.3\n%\n\n**Consolidated**\n \n**$**\n**(70**\n**)**\n \n \n**-0.1**\n**%**\n \n$\n98\n \n \n \n0.1\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Interest expense - Corporate**\n \n**$**\n**121**\n \n \n \n**0.2**\n**%**\n \n$\n378\n \n \n \n0.5\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Income tax expense / (benefit) - Corporate**\n \n**$**\n**326**\n \n \n \n**0.5**\n**%**\n \n$\n(164\n)\n \n \n-0.2\n%\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Net income / (loss) from continuing operations - Corporate**\n \n**$**\n**1,061**\n \n \n \n**1.5**\n**%**\n \n$\n(614\n)\n \n \n-0.9\n%\n\n** **\n\n16\n\n[Table of Contents](#toc_001)\n\n \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,\n2026  \nMay 4,\n2025 \n\nRestructuring Costs \n   \n  \n\nHooker Branded \n$5  \n$127 \n\nDomestic Upholstery \n 114  \n 113 \n\nAll Other \n 5  \n 40 \n\nConsolidated \n$124  \n$280 \n\n  \n    \n   \n\nCapital Expenditures \n    \n   \n\nHooker Branded \n$336  \n$675 \n\nDomestic Upholstery \n 67  \n 42 \n\nAll Other \n -  \n 10 \n\nConsolidated \n$403  \n$727 \n\n  \n    \n   \n\nDepreciation & Amortization \n    \n   \n\nHooker Branded \n$711  \n$532 \n\nDomestic Upholstery \n 1,016  \n 1,037 \n\nAll Other \n 89  \n 197 \n\nConsolidated \n$1,816  \n$1,766 \n\n \n\nWe recorded $124,000 and $280,000 in restructuring\ncosts in the first quarter of fiscal 2027 and fiscal 2026, respectively, primarily related to severance. As of May 3, 2026 and February\n1, 2026, we had accrued restructuring charges of approximately $211,000 and $298,000, respectively. The balance as of May 3, 2026 is expected\nto be paid during the next 12 months. The restructuring costs were recorded under cost of sales and selling and administrative expenses\nin the condensed consolidated statements of operations.\n\n \n\n  \nAs of\n\nMay 3,\n\n2026  \n%Total  \nAs of\n\nFebruary 1,\n\n2026  \n%Total \n\n  \n  \nAssets  \n  \nAssets \n\nAssets \n   \n   \n   \n  \n\nHooker Branded \n$147,722  \n 70.3% \n$140,732  \n 66.3%\n\nDomestic Upholstery \n 53,115  \n 25.3% \n 55,083  \n 25.9%\n\nAll Other \n 9,356  \n 4.4% \n 16,507  \n 7.8%\n\nConsolidated Assets \n$210,193  \n 100% \n$212,322  \n 100%\n\nConsolidated Goodwill and Intangibles \n 13,024  \n    \n 13,569  \n   \n\nTotal Consolidated Assets \n$223,217  \n    \n$225,891  \n   \n\n \n\nSales by product type are as follows:\n\n \n\n  \nNet Sales (in thousands) \n\n  \nThirteen Weeks Ended \n\n  \nMay 3,\n\n2026  \n%Total  \nMay 4,\n\n2025  \n%Total \n\nCasegoods \n$35,449  \n 51% \n$34,499  \n 48%\n\nUpholstery \n 34,003  \n 49% \n 36,685  \n 52%\n\n  \n$69,452  \n 100% \n$71,184  \n 100%\n\n \n\n**15. Subsequent Events**\n\n \n\nDividends\n\n \n\nOn June 9, 2026, our board of directors declared a\nquarterly cash dividend of $0.115 per share which will be paid on June 30, 2026 to shareholders of record at June 19, 2026.\n\n \n\n17\n\n[Table of Contents](#toc_001)"}