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Hooker Revises Outlook, Shares Go Down

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Hooker Furniture’s stock revised its sales outlook for the second quarter as the company expects its revenues to go down by 5% to 7%. On this news, the company’s stock has tumbled.

“Business at retail has weakened as the quarter unfolded,” said Chairman and CEO, Paul B. Toms Jr. “Since our quick-ship program allows dealers to order as needed to meet demand, soft activity at retail is felt almost immediately in our shipment levels.”

Last year, the company’s second quarter sales totaled $91.5 million, and prior to the new outllook revision, the company expected sales for this year’s second quarter to be close to the same. According to Fool.com,

In the first quarter of 2005, Hooker produced sales of $80.5 million. Combined with the new projections of $86 million (or thereabouts) in sales for Q2, the company’s new sales run-rate for fiscal 2005 is roughly $333 million. Last year, sales totaled $346 million, which translated into profits of $1.56 per diluted share. So in fiscal 2005, we’re probably going to be looking for something in the neighborhood of $1.50 per diluted share in profits, absent significant margin improvement in coming quarters.

Hooker expects sales to come to somewhere between $85.1 million and $86.9 million for the second quarter this year. Analysts are expecting second-quarter profit of 45 cents per share. Last year, they were 47.

In morning trading on the Nasdaq today, Hooker Furniture shares went down $1.95 to $14.55. Over the last five years, Hooker has averaged growth of about 10.5%.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

Hooker Revises Outlook, Shares Go Down
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