Hooker Furniture said sales rose 9.7% in the fourth quarter, as the company finished its fiscal year with solid performances by its case goods and upholstery segments, according to ‘Furniture Today,’ a trade journal that covers the furniture industry. Profits also jumped to $3.7 million, or 34 cents per share, in the 14-week quarter ended Feb. 3, due largely to higher average selling prices and reduced sales discounting.
“After some challenges at the beginning of the year, we finished the second half with considerable momentum,” said Paul Toms, chairman and CEO. “By year-end, we had solid performances by all of our operating units, healthy orders, good inventory availability increased efficiencies and a strong product lineup.”
Of course, many people are buying furniture for houses they are buying.
“With the improving economy and initial recovery of the housing market, we believe we’re positioned to see continued improvement in orders, sales and profitability versus the prior year,” he said. “We’re encouraged by the sustained improvement in housing sales, new home construction, rising housing prices, reduced housing inventories, historically low mortgage rates and the best housing affordability in years.”
In fact, Hooker Furniture isn’t the only one seeing a jump – Bassett Furniture industries said the company reported net sales of more than $79 million in the first quarter of 2013, a 31% increase over the first quarter of this time last year, according to Wood Working Network.
House-price appreciation is creating wealth, as is the run-up in stocks,” said Morgan Stanley’s chief economist Vincent Reinhart, according to an interview with Bloomberg. “That is also helping buoy household spending, he said. In addition, “there is a lot of business activity that is tied to housing,” he said, including sales of furniture, appliances and automobiles.”