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Item 1. Financial Statements

2026-09-11 compared with 2026-06-12 · 433 added, 394 removed, 215 unchanged (79% of the section changed)

Financial Statements

HOOKER FURNISHINGS CORPORATION AND

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

FURNISHINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

Current assets

10 unchanged sentences

Total non-current assets

Liabilities and Shareholders’

Liabilities and Shareholders’ Equity

Current liabilities

17 unchanged sentences

Total liabilities and shareholders’ equity

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

FURNISHINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

thousands, except per share data)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Cost of sales

2 unchanged sentences

Operating income / (loss)

Other (expense) / income

Other income, net

Interest expense, net

12 unchanged sentences

Cash dividends declared per share

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

HOOKER FURNISHINGS CORPORATION AND

CONDENSED CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME / (LOSS)

(In thousands)

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

FURNISHINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Net income / (loss)

4 unchanged sentences

Total comprehensive income / (loss)

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Thirteen Weeks Ended

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

FURNISHINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Twenty-Six Weeks Ended

Operating Activities:

Net income / (loss)

Loss from discontinued operations, net of taxes

Income / (Loss) from discontinued operations, net of taxes

Adjustments to reconcile net income to net cash provided by operating activities:

4 unchanged sentences

Gain on life insurance policies

(Gain) / loss on disposal of assets

Loss on disposal of assets

Changes in assets and liabilities:

14 unchanged sentences

Proceeds received on life insurance policies

Net cash provided by / (used in) investing activities

Proceeds from sales of assets

Net cash used in investing activities

Financing Activities:

3 unchanged sentences

Purchase and retirement of common stock

Debt issuance cost

Debt issuance costs

Net cash used in financing activities

Discontinued Operations

Cash used in operating activities

Cash provided by / (used in) operating activities

Cash used in investing activities

Cash used in discontinued operations

Net increase in cash and cash equivalents

Cash provided by / (used in) discontinued operations

Net Increase / (decrease) in cash and cash equivalents

Cash and cash equivalents - beginning of year

1 unchanged sentence

Supplemental schedule of cash flow information:

Interest paid, net

Income taxes paid / (refund), net

Interest paid, net

Supplemental schedule of noncash investing activities:

Increase / (Decrease) in lease liabilities arising from obtaining right-of-use assets

Increase in lease liabilities arising from obtaining right-of-use assets

Increase in property and equipment through accrued purchases

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

HOOKER FURNISHINGS CORPORATION AND

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’

(In thousands, except per share data)

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

FURNISHINGS CORPORATION AND SUBSIDIARIES

STATEMENTS OF SHAREHOLDERS’ EQUITY

thousands, except per share data)

Comprehensive

Shareholders’

Balance at February 2, 2025

Net loss for the 13 weeks ended May 4, 2025

Balance at May 4, 2025

Net loss for the 13 weeks ended August 3, 2025

Actuarial adjustments on defined benefit plan, net of tax of $ 11

3 unchanged sentences

Performance-based restricted stock units cost

Balance at August 3, 2025

Balance at May 3, 2026

Balance at February 1, 2026

Net income for the 13 weeks ended May 3, 2026

Net income for the 13 weeks ended August 2, 2026

Actuarial adjustments on defined benefit plan, net of tax of $ 5

4 unchanged sentences

Performance-based restricted stock units cost

Balance at May 3, 2026

The accompanying notes are an integral part of

the unaudited condensed consolidated financial statements.

HOOKER FURNISHINGS CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollar and share amounts in tables, except per

share amounts, in thousands unless otherwise indicated)

For the Thirteen Weeks Ended May 3, 2026

Preparation of Interim Financial Statements

The condensed consolidated financial statements

of Hooker Furnishings Corporation and subsidiaries (referred to as “we,” “us,” “our,” “Hooker”

or the “Company”) have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission

In the opinion of management these statements include all adjustments necessary for a fair statement of the results

of all interim periods reported herein.

All such adjustments are of a normal recurring nature.

Certain information and footnote disclosures

prepared in accordance with U.S.

generally accepted accounting principles (“GAAP”) are condensed or omitted pursuant to SEC

rules and regulations.

However, we believe that the disclosures made are adequate for a fair presentation of our results of operations

and financial position.

These financial statements should be read in conjunction with the audited consolidated financial statements and

accompanying notes included in our annual report on Form 10-K for the fiscal year ended February 1, 2026 (“2026 Annual Report”).

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect both the reported

amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the

reporting period.

Balance at August 2, 2026

accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

FURNISHINGS CORPORATION AND SUBSIDIARIES

STATEMENTS OF SHAREHOLDERS’ EQUITY (CONT.)

thousands, except per share data)

Comprehensive

Shareholders’

at February 2, 2025

loss for the 26 weeks ended August 3, 2025

Actuarial adjustments on defined benefit plan, net of tax of $ 21

Cash dividends paid and accrued ($ 0.46 per share)

stock grants, net of forfeitures

stock compensation cost

Performance-based

restricted stock units cost

at August 3, 2025

at February 1, 2026

income for the 26 weeks ended August 2, 2026

Actuarial adjustments on defined benefit plan, net of tax of $ 9

Cash dividends paid and accrued ($ 0.23 per share)

and retirement of common stock

stock grants, net of forfeitures

stock compensation cost

Performance-based

restricted stock units cost

at August 2, 2026

FURNISHINGS CORPORATION AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

and share amounts in tables, except per share amounts, in thousands unless otherwise indicated)

the Twenty-Six Weeks Ended August 2, 2026

of Interim Financial Statements

condensed consolidated financial statements of Hooker Furnishings Corporation and subsidiaries (referred to as “we,” “us,”

“our,” “Hooker” or the “Company”) have been prepared in accordance with the rules and regulations

of the Securities and Exchange Commission (“SEC”).

In the opinion of management these statements include all adjustments

necessary for a fair statement of the results of all interim periods reported herein.

All such adjustments are of a normal recurring

Certain information and footnote disclosures prepared in accordance with U.S.

generally accepted accounting principles (“GAAP”)

are condensed or omitted pursuant to SEC rules and regulations.

However, we believe that the disclosures made are adequate for a fair

presentation of our results of operations and financial position.

These financial statements should be read in conjunction with the audited

consolidated financial statements and accompanying notes included in our annual report on Form 10-K for the fiscal year ended February

1, 2026 (“2026 Annual Report”).

The preparation of financial statements in conformity with GAAP requires us to make estimates

and assumptions that affect both the reported amounts of assets and liabilities at the date of the financial statements and the reported

amounts of revenues and expenses during the reporting period.

Actual results could differ from our estimates.

Operating results for the interim periods reported herein may not be

indicative of the results expected for the fiscal year.

The financial statements contained herein are

being filed as part of a quarterly report on Form 10-Q covering the 2027 fiscal year thirteen-week period (also referred to as “three

months,” “three-month period,” “quarter,” “first quarter” or “quarterly period”)

that began February 2, 2026 and ended May 3, 2026.

This report discusses our results of operations for this period compared to the 2026

fiscal year thirteen-week period that began February 3, 2025 and ended May 4, 2025;

and our financial condition as of May 3, 2026 compared

to February 1, 2026.

References in these notes to the condensed consolidated

financial statements of the Company to:

◾ the 2027 fiscal year and comparable terminology

mean the fifty-two-week fiscal year that began February 2, 2026 and will end January 31, 2027;

◾ the 2026 fiscal year and comparable

terminology mean the fifty-two-week fiscal year that began February 3, 2025 and ended February 1, 2026.

Operating results for the

interim periods reported herein may not be indicative of the results expected for the fiscal year.

financial statements contained herein are being filed as part of a quarterly report on Form 10-Q covering the 2027 fiscal year thirteen-week

period (also referred to as “three months,” “three-month period,” “quarter,” “second quarter”

or “quarterly period”) that began May 4, 2026, and the twenty-six week period (also referred to as “six months,”

“six-month period” or “first half”) that began February 2, 2026, which both ended August 2, 2026.

discusses our results of operations for these periods compared to the 2026 fiscal year thirteen-week period that began May 5, 2025 and

the twenty-six week period that began February 3, 2025, which both ended August 3, 2025;

and our financial condition as of August 2,

2026 compared to February 1, 2026.

in these notes to the condensed consolidated financial statements of the Company to:

2027 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began

February 2, 2026 and will end January 31, 2027;

2026 fiscal year and comparable terminology mean the fifty-two-week fiscal year that began

February 3, 2025 and ended February 1, 2026.

Adopted Accounting Policies

In November 2024, the FASB issued ASU 2024-03,

“Disaggregation of income statement expenses”.

The new guidance requires new tabular disclosures to disaggregate prescribed

natural expenses underlying any income statement caption.

ASU 2024-03 is effective for annual periods beginning after December 15, 2026

(our fiscal 2028).

We are currently evaluating the impact that the adoption of this new guidance will have on our consolidated financial

statements and will add necessary disclosures upon adoption.

We reviewed all other newly issued accounting

pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on our

consolidated financial statements as a result of future adoption.

During the third quarter of fiscal 2026, we determined

that the Home Meridian segment no longer aligned with our long-term strategy to streamline our portfolio and enhance profitability by

focusing on brands that generate consistent earnings.

As a result, we initiated a process to sell two brands in the segment.

1, 2025, we entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with a buyer to sell the Company’s

Pulaski Furniture (“PFC”) and Samuel Lawrence (“SLF”) casegoods brands, including specified assets and liabilities

associated with those brands.

We retain the Samuel Lawrence brand in connection with the operation of its hospitality business.

On December 12, 2025, the Company completed the

sale and received cash proceeds of approximately $ 5.5 million, representing the estimated net book value of the assets at closing, less

a holdback amount of approximately $ 0.6 million, in accordance with the terms of the purchase agreement.

Final transaction pricing, including

working capital adjustments, resulted in a difference of approximately $ 0.3 million between the estimated fair value less costs to sell

determined at the measurement date and the final net proceeds received.

Following the sale, the Home Meridian segment

was eliminated, with its remaining Samuel Lawrence Hospitality brand reclassified into the “All Other” category.

We believe this transaction represented a single disposal plan that

constituted a strategic shift that materially affects our operations and financial results.

Accordingly, the financial results of the

PFC and SLF businesses are reflected in our consolidated financial statements as discontinued operations for all periods presented.

The following table represents summarized statements

of operations information of carrying amounts of major classes of line items constituting pretax loss of discontinued operations included

as part of discontinued operations for the first quarter of fiscal 2026:

November 2024, the FASB issued ASU 2024-03, “Disaggregation of income statement expenses”.

The new guidance requires new

tabular disclosures to disaggregate prescribed natural expenses underlying any income statement caption.

ASU 2024-03 is effective for

annual periods beginning after December 15, 2026 (our fiscal 2028).

We are currently evaluating the impact that the adoption of this

new guidance will have on our consolidated financial statements and will add necessary disclosures upon adoption.

reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not

expected to have a material effect on our consolidated financial statements as a result of future adoption.

the third quarter of fiscal 2026, we determined that the Home Meridian segment no longer aligned with our long-term strategy to streamline

our portfolio and enhance profitability by focusing on brands that generate consistent earnings.

As a result, we initiated a process

to sell two brands in the segment.

On December 1, 2025, we entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”)

with a buyer to sell the Company’s Pulaski Furniture (“PFC”) and Samuel Lawrence (“SLF”) casegoods brands,

including specified assets and liabilities associated with those brands.

We retain the Samuel Lawrence brand in connection with the operation

of its hospitality business.

December 12, 2025, the Company completed the sale and received cash proceeds of approximately $ 5.5 million, representing the estimated

net book value of the assets at closing, less a holdback amount of approximately $ 0.6 million, in accordance with the terms of the purchase

Final transaction pricing, including working capital adjustments, resulted in approximately $ 0.3 million below the estimated

fair value less costs to sell determined at the measurement date and the final net proceeds received.

the sale, the Home Meridian segment was eliminated, with its remaining Samuel Lawrence Hospitality brand reclassified into the “All

Other” category.

believe this transaction represented a single disposal plan that constituted a strategic shift that materially affects our operations

and financial results.

Accordingly, the financial results of the PFC and SLF businesses are reflected in our consolidated financial statements

as discontinued operations for all periods presented.

Although the divestiture was completed in the

prior fiscal year, current-period activity in discontinued operations primarily reflected tariff recoveries the Company received during

the second quarter of fiscal 2027 associated with the divested business.

Approximately $ 612,000 to be credited to customers were recorded

as a reduction of revenue, while $ 1.6 million recoveries of tariff costs previously recognized in cost of sales were recorded as a reduction

of cost of sales.

The Company also recorded $ 54,000 of interest income.

Current-period activity also included approximately

$ 0.5 million of additional charges arising from the net settlement of various divestiture-related balances with the buyer.

These charges

consisted of a $ 327,000 reduction of revenue for sales allowances, a $ 132,000 increase in cost of sales and a $ 74,000 additional loss

on the divestiture related to final working capital adjustments.

following table represents summarized statements of operations information of carrying amounts of major classes of line items constituting

pretax income or loss of discontinued operations included as part of discontinued operations:

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Cost of sales

Gross profit / (loss)

Selling and administrative expenses

Trade name impairment charges

Intangible asset amortization

Other income items that are not major

Loss from discontinued operations before income taxes

Income tax benefit

Net loss from discontinued operations

The significant components included in our condensed consolidated statements

of cash flows for the discontinued operations are as follows:

Thirteen Weeks Ended

Pretax income / (loss) of discontinued operations related to major classes

Loss on sale of the discontinued operations

Income / (Loss) from discontinued operations before income taxes

Income tax expense / (benefit)

Net income / (loss) from discontinued operations

significant components included in our condensed consolidated statements of cash flows for the discontinued operations are as follows:

Twenty-Six Weeks Ended

Operating Activities:

Loss from discontinued operations, net of tax

Income / (Loss) from discontinued operations, net of tax

Depreciation and amortization

3 unchanged sentences

Other assets and liabilities

Cash used in operating activities from discontinued operations

Cash provided by / (used in) operating activities from discontinued operations

Investing Activities:

10 unchanged sentences

Reduction to LIFO basis

Property, Plant and

Buildings and land improvements

Machinery and equipment

Computer software and hardware

Leasehold improvements

Plant and Equipment

and land improvements

and equipment

software and hardware

Term of lease

Furniture and fixtures

Total depreciable property at cost

Less accumulated depreciation

Total depreciable property, net

depreciable property at cost

accumulated depreciation

depreciable property, net

Construction-in-progress

Property, plant and equipment, net

Internal-Use Software

Our internal-use software includes our Enterprise Resource

Planning (“ERP”) system across all divisions, as well as our new website and integrated B2B online marketplace, which was

placed into service at the beginning of fiscal 2027.

The gross carrying amount of capitalized implementation costs related to our cloud

computing hosting arrangements increased by $ 2.7 million during the first quarter of fiscal 2027, primarily due to the reclassification

of costs associated with our new digital platform from implementation costs in process upon being placed into service.

Based on the provisions

of ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use Software, we capitalize implementation costs associated with

hosting arrangements that are service contracts.

These costs are recorded in “other noncurrent assets” of our condensed consolidated

balance sheets.

We amortize these costs on a straight-line basis over a 10 -year term.

The amortization expenses are recorded as a component

of selling and administrative expenses in our condensed consolidated statements of operations.

No material implementation costs or interest expense

were capitalized in fiscal 2027 first quarter.

Implementation costs of $ 203,000 and interest expense of $ 62,000 were capitalized in fiscal

2026 first quarter.

Amortization expenses of $ 533,000 and $ 368,000 were recorded in the first quarters of fiscal 2027 and 2026, respectively.

The capitalized implementation costs at May 3, 2026 and February 1, 2026 were as follows:

plant and equipment, net

internal-use software includes our Enterprise Resource Planning (“ERP”) system across all divisions, as well as our new website

and integrated B2B online marketplace, which was placed into service at the beginning of fiscal 2027.

The gross carrying amount of capitalized

implementation costs related to our cloud computing hosting arrangements increased by $ 2.7 million during the first quarter of fiscal

2027, primarily due to the reclassification of costs associated with our new digital platform from implementation costs in process upon

being placed into service.

Based on the provisions of ASU 2018-15, Intangibles — Goodwill and Other — Internal-Use Software,

we capitalize implementation costs associated with hosting arrangements that are service contracts.

These costs are recorded in “other

noncurrent assets” in our condensed consolidated balance sheets.

We amortize these costs on a straight-line basis over a 10 -year

The amortization expenses are recorded as a component of selling and administrative expenses in our condensed consolidated statements

of operations.

material implementation costs or interest expense were capitalized in fiscal 2027.

Implementation costs and interest expenses of $ 287,000

and $ 551,000 were capitalized in fiscal 2026 second quarter and first half, respectively.

Amortization expense was $ 555,000 in the second

quarter of fiscal 2027 and $ 368,000 in the second quarter of fiscal 2026, and $ 1.1 million and $ 735,000 for the respective six-month

The capitalized implementation costs at August 2, 2026 and February 1, 2026 were as follows:

August 2, 2026

February 1, 2026

1 unchanged sentence

Interest Expenses

Fair Value Measurements

Fair value is the price that would be received

upon the sale of an asset or paid upon the transfer of a liability (an exit price) in an orderly transaction between market participants

on the applicable measurement date.

We use a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.

Value Measurements

value is the price that would be received upon the sale of an asset or paid upon the transfer of a liability (an exit price) in an orderly

transaction between market participants on the applicable measurement date.

We use a three-tier fair value hierarchy, which prioritizes

the inputs used in measuring fair value.

These tiers include:

◾ Level 1, defined as observable inputs such as

quoted prices in active markets for identical assets and liabilities;

◾ Level 2, defined as inputs other than quoted

prices in active markets that are either directly or indirectly observable;

◾ Level 3, defined as unobservable inputs for which

little or no market data exists, therefore requiring an entity to develop its own assumptions.

As of May 3, 2026 and February 1, 2026, Company-owned

life insurance was measured at fair value on a recurring basis based on Level 2 inputs.

The fair value of the Company-owned life insurance

is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets.

Additionally, the fair value of the Company-owned life insurance is marked to market each reporting period and any change in fair value

is reflected in income for that period.

Our assets measured at fair value on a recurring

basis at May 3, 2026 and February 1, 2026, were as follows:

Fair value at May 3, 2026

1, defined as observable inputs such as quoted prices in active markets for identical assets

and liabilities;

2, defined as inputs other than quoted prices in active markets that are either directly

or indirectly observable;

3, defined as unobservable inputs for which little or no market data exists, therefore requiring

an entity to develop its own assumptions.

of August 2, 2026 and February 1, 2026, Company-owned life insurance was measured at fair value on a recurring basis based on Level 2

The fair value of the Company-owned life insurance is determined by inputs that are readily available in public markets or can

be derived from information available in publicly quoted markets.

Additionally, the fair value of the Company-owned life insurance is

marked to market each reporting period and any change in fair value is reflected in income for that period.

assets measured at fair value on a recurring basis at August 2, 2026 and February 1, 2026, were as follows:

Fair value at August 2, 2026

Fair value at February 1, 2026

2 unchanged sentences

Company-owned life insurance

Intangible Assets

Our intangible assets with indefinite lives consist

intangible assets with indefinite lives consist of:

goodwill related to the Shenandoah and BOBO Intriguing Objects acquisitions;

and trademarks and tradenames related to the acquisitions

of Bradington-Young, Home Meridian and BOBO Intriguing Objects.

Our intangible assets with definite lives are recorded in the Domestic

Upholstery segment, consisting of Shenandoah and Sunset West trade names and customer relations.

Details of our intangible assets are

trademarks and tradenames related to the acquisitions of Bradington-Young, Home Meridian and BOBO Intriguing Objects.

Our intangible

assets with definite lives are recorded in the Domestic Upholstery segment, consisting of Shenandoah and Sunset West trade names and

customer relations.

Details of our intangible assets are as follows:

August 2, 2026

February 1, 2026

7 unchanged sentences

Intangible assets, net

The amounts are net of impairment charges of $ 16.4 million related

to Shenandoah goodwill;

$ 14.5 million related to Sunset West goodwill;

$ 5.7 million related to certain Home Meridian trade names unrelated

to PFC and SLF, including $ 2.6 million recorded in fiscal 2021, $ 2.5 million recorded in fiscal 2025, and $ 558,000 recorded in fiscal

The amounts are net of impairment charges of $ 16.4 million related to Shenandoah goodwill;

$ 5.7 million related to certain Home Meridian trade names unrelated to PFC and SLF, including $ 2.6 million recorded in fiscal 2021, $ 2.5 million recorded in fiscal 2025, and $ 558,000 recorded in fiscal 2026;

and $ 556,000 related to the Bradington-Young trade name in the Domestic Upholstery segment.

Amortization expenses for intangible assets with

definite lives were $ 545 ,000 and $ 667 ,000 for the first quarters of fiscal 2027 and 2026, respectively.

For the remainder of fiscal 2027,

amortization expense is expected to be approximately $ 1.6 million

We have operating leases for warehouses, showrooms,

manufacturing facilities, offices and equipment.

We recognized sublease income of $ 64,000 and $ 18,000 in the first quarters of fiscal

2027 and 2026, respectively.

The components of lease cost and supplemental

cash flow information for leases for the first quarters of fiscal 2027 and 2026 were:

expenses for intangible assets with definite lives were $ 544,000 and $ 625,000 for the second quarters of fiscal 2027 and 2026, and $ 1.1

million and $ 1.3 million for the first half of fiscal 2027 and 2026, respectively.

For the remainder of fiscal 2027, amortization expense

is expected to be approximately $ 1.1 million.

have operating leases for warehouses, showrooms, manufacturing facilities, offices and equipment.

Sub-lease income totaled $ 64,000 in

the second quarter and $ 129,000 for the first half of fiscal 2027, compared with $ 119,000 and $ 200,000 , respectively, in fiscal 2026

components of lease cost and supplemental cash flow information for leases for the second quarters and six-months of fiscal 2027 and

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Operating lease cost

3 unchanged sentences

Operating cash outflows

The right-of-use assets and lease liabilities

recorded on our condensed consolidated balance sheets as of May 3, 2026 and February 1, 2026 were as follows:

right-of-use assets and lease liabilities recorded on our condensed consolidated balance sheets as of August 2, 2026 and February 1,

2026 were as follows:

Property and equipment

3 unchanged sentences

Total operating lease liabilities

The weighted-average discount rate is 4.97 %.

weighted-average remaining lease term is 5.4 years as of May 3, 2026.

The following table reconciles the undiscounted

future lease payments for operating leases to the operating lease liabilities recorded in the condensed consolidated balance sheets on

weighted-average discount rate is 5.1 %.

The weighted-average remaining lease term is 5.4 years as of August 2, 2026.

following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in

the condensed consolidated balance sheets on August 2, 2026:

Remainder of fiscal 2027

3 unchanged sentences

Present value of lease payments

As of February 1, 2026, the Company had an additional

lease for an administrative office in High Point, North Carolina.

This lease commenced in May of calendar 2026 with an initial lease term

of seven years and estimated future minimum rental commitments of approximately $ 2.2 million.

Since the lease had not commenced as of

the quarter-end, the undiscounted amounts are not included in the table above.

On December 5, 2024, the Company and its wholly

owned subsidiaries, Bradington-Young, LLC, Sam Moore Furniture LLC and Home Meridian Group, LLC (together with the Company, the “Borrowers”),

entered into an Amended and Restated Loan and Security Agreement (the “Amended and Restated Loan Agreement”) with Bank of

America, N.A.

December 5, 2024, the Company and its wholly owned subsidiaries, Bradington-Young, LLC, Sam Moore Furniture LLC and Home Meridian Group,

LLC (together with the Company, the “Borrowers”), entered into an Amended and Restated Loan and Security Agreement (the “Amended

and Restated Loan Agreement”) with Bank of America, N.A.

(“BofA”), as lender.

The Amended and Restated Loan Agreement amends, restates and replaces the Second Amended

and Restated Loan Agreement, dated as of September 29, 2017, between the Borrowers and BofA, as amended (the “Existing Loan Agreement”).

The outstanding principal amount of loans and letters of credit issued under the Existing Loan Agreement and used to collateralize certain

insurance arrangements and for imported product purchases will remain outstanding as loans and letters of credit under the Amended and

Restated Loan Agreement.

The Amended and Restated Loan Agreement provides

for a revolving credit facility in a committed principal amount of up to $ 70,000,000 (the “Revolving Commitment”), including

subline 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

conditions, including agreement by BofA to increase the Revolving Commitment by such amount.

Proceeds of loans and letters of credit under

the Amended and Restated Loan Agreement will be available for general working capital and other corporate purposes of the Borrower.

Availability of loans and letters of credit under the Revolving Commitment

is 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,

(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

life insurance policies, in each case subject to eligibility requirements, advance rates, valuation metrics, reductions for write-offs

and other dilutive items and reserves (the “Borrowing Base”).

The lesser of the Revolving Commitment and the Borrowing Base,

in each case net of the principal amount of outstanding loans and the face amount of letters of credit, constitutes “Availability”

under the Amended and Restated Credit Agreement.

Outstanding loans under the Amended and Restated

Loan 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

a margin of 1.75%.

The Amended and Restated Loan Agreement

amends, restates and replaces the Second Amended and Restated Loan Agreement, dated as of September 29, 2017, between the Borrowers and

BofA, as amended (the “Existing Loan Agreement”).

The outstanding principal amount of loans and letters of credit issued

under the Existing Loan Agreement and used to collateralize certain insurance arrangements and for imported product purchases will remain

outstanding as loans and letters of credit under the Amended and Restated Loan Agreement.

Amended and Restated Loan Agreement provides for a revolving credit facility in a committed principal amount of up to $ 70,000,000 (the

“Revolving Commitment”), including subline 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 conditions, including agreement by BofA to increase the Revolving Commitment by such amount.

Proceeds of loans and letters of credit under the Amended and Restated Loan Agreement will be available for general working capital and

other corporate purposes of the Borrower.

of loans and letters of credit under the Revolving Commitment is 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, (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 life insurance policies, in each case subject to eligibility

requirements, advance rates, valuation metrics, reductions for write-offs and other dilutive items and reserves (the “Borrowing

The lesser of the Revolving Commitment and the Borrowing Base, in each case net of the principal amount of outstanding

loans and the face amount of letters of credit, constitutes “Availability” under the Amended and Restated Credit Agreement.

loans under the Amended and Restated Loan 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 a 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

to 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

daily 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

is based on the average daily unused amount of Revolving Commitment multiplied by a per annum rate of 0.25 %.

All accrued interest and

fees are payable in cash monthly in arrears.

We may prepay any outstanding principal amounts

borrowed under the Amended and Restated Loan Agreement at any time, without penalty provided that any payment is accompanied by all accrued

interest owed.

Subject to the Borrowers having sufficient borrowing base capacity and customary conditions precedent to borrowing, amounts

repaid may be reborrowed.

The Revolving Commitment will terminate, and all amounts outstanding thereunder will be due and payable, on

December 5, 2029.

The obligations under the Amended and Restated

Loan Agreement are secured by a first priority security interest in substantially all of the assets of the Borrowers, other than real

estate, including all Company-owned life insurance policies, all accounts receivable, all inventory, all intellectual property, all equipment

and all other personal property.

The Amended and Restated Loan Agreement includes

customary representations and warranties and requires the Borrowers to comply with customary affirmative and negative covenants, including,

among other things, a financial covenant requiring the maintenance of a ratio of (x) EBITDA net of capital expenditures (to the extent

not 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

trailing 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

has 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

exists, for the 30 consecutive days prior to such month end).

The Amended and Restated Loan Agreement also limits

the Borrowers’ right to incur other indebtedness, make certain investments and create liens upon our assets, subject to certain

exceptions, among other restrictions.

The Amended and Restated Loan Agreement does not restrict the Company’s ability to pay cash

dividends on, or repurchase, shares of its common stock, subject to (a) no default existing prior to or resulting from such dividend or

repurchase, (b) Availability is not less than 15% of the Revolving Commitment for each of the preceding 45 days prior to announcement

of such dividend or repurchase and after giving pro forma effect to such dividend or repurchase and (c) if Availability is less than 20%

of the Revolving Commitment on any day in such 45-day period, the Borrowers are in compliance with the financial covenant described above

after giving effect to such dividend or repurchase.

We incurred $ 598,000 in previous fiscal years

in debt issuance costs in connection with our term loans.

As of May 3, 2026, unamortized loan costs of $ 444,000 were recorded in other

assets on our condensed consolidated balance sheets.

As of May 3, 2026, there were no outstanding loans,

other than $ 3.2 million face amount of letters of credit.

We had $ 54.2 million of Availability based on the current Borrowing Base.

were no additional borrowings outstanding under the Amended and Restated Loan Agreement as of May 3, 2026.

We refer you to the discussion of Earnings Per

Share in Note 1.

Summary of Significant Accounting Policies, in the financial statements included in our 2026 Annual Report, for additional

information concerning the calculation of earnings per share (EPS).

All stock awards are designed to encourage retention

and to provide an incentive for increasing shareholder value.

We have issued restricted stock awards to non-employee members of the board

of directors since 2006 and to certain non-executive employees since 2014.

We have issued RSUs to certain senior executives since fiscal

2012 under the Company’s Stock Incentive Plan.

Each RSU entitles an executive to receive one share of the Company’s common

stock and vests in three equal annual installments, with one-third vesting at the end of each service period, if the executive remains

continuously employed with the Company through the end of a three-year service period.

The RSUs may be paid in shares of our common stock,

cash or both at the discretion of the Compensation Committee of our board of directors.

We have issued PSUs to certain senior executives

since fiscal 2019 under the Company’s Stock Incentive Plan.

Each PSU entitles the executive officer to receive one share of our

common stock based on the achievement of two specified performance conditions if the executive officer remains continuously employed through

the end of the three-year performance period, one target is the Company’s annual EPS growth over the performance period and the

other target is the Company’s total shareholder return during the performance period compared to the Company’s peer group.

The payout or settlement of the PSUs will be made in shares of our common stock.

We expect to continue to grant these types of

awards annually in the future.

The following table sets forth the number of outstanding restricted stock awards and RSUs and PSUs, net

of forfeitures and vested shares, as of the fiscal period-end dates indicated:

Letters of credit are

subject to a letter of credit fee equal to 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 daily amount of undrawn letters of credit multiplied by a per annum rate of 0.125 %.

pay a monthly unused commitment fee that is based on the average daily unused amount of Revolving Commitment multiplied by a per annum

rate of 0.25 %.

All accrued interest and fees are payable in cash monthly in arrears.

may prepay any outstanding principal amounts borrowed under the Amended and Restated Loan Agreement at any time, without penalty provided

that any payment is accompanied by all accrued interest owed.

Subject to the Borrowers having sufficient borrowing base capacity and

customary conditions precedent to borrowing, amounts repaid may be reborrowed.

The Revolving Commitment will terminate, and all amounts

outstanding thereunder will be due and payable, on December 5, 2029.

obligations under the Amended and Restated Loan Agreement are secured by a first priority security interest in substantially all of the

assets of the Borrowers, other than real estate, including all Company-owned life insurance policies, all accounts receivable, all inventory,

all intellectual property, all equipment and all other personal property.

Amended and Restated Loan Agreement includes customary representations and warranties and requires the Borrowers to comply with customary

affirmative and negative covenants, including, among other things, a financial covenant requiring the maintenance of a ratio of (x) EBITDA

net of capital expenditures (to the extent not 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 trailing 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 has 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 exists, for the 30 consecutive days prior to such month end).

Amended and Restated Loan Agreement also limits the Borrowers’ right to incur other indebtedness, make certain investments and

create liens upon our assets, subject to certain exceptions, among other restrictions.

The Amended and Restated Loan Agreement does not

restrict the Company’s ability to pay cash dividends on, or repurchase, shares of its common stock, subject to (a) no default existing

prior to or resulting from such dividend or repurchase, (b) Availability is not less than 15% of the Revolving Commitment for each of

the preceding 45 days prior to announcement of such dividend or repurchase and after giving pro forma effect to such dividend or repurchase

and (c) if Availability is less than 20% of the Revolving Commitment on any day in such 45-day period, the Borrowers are in compliance

with the financial covenant described above after giving effect to such dividend or repurchase.

incurred $ 598,000 in previous fiscal years in debt issuance costs in connection with our term loans.

As of August 2, 2026, unamortized

loan costs of $ 415,000 were recorded in other assets on our condensed consolidated balance sheets.

of August 2, 2026, there were no outstanding loans, other than $ 3.2 million face amount of letters of credit.

We had $ 51.8 million of

Availability based on the current Borrowing Base.

There were no additional borrowings outstanding under the Amended and Restated Loan

Agreement as of August 2, 2026.

refer you to the discussion of Earnings Per Share in Note 1.

Summary of Significant Accounting Policies, in the financial statements

included in our 2026 Annual Report, for additional information concerning the calculation of earnings per share (EPS).

stock awards are designed to encourage retention and to provide an incentive for increasing shareholder value.

We have issued restricted

stock awards to non-employee members of the board of directors since 2006 and to certain non-executive employees since 2014.

issued RSUs to certain senior executives since fiscal 2012 under the Company’s Stock Incentive Plan.

Each RSU entitles an executive

to receive one share of the Company’s common stock and vests in three equal annual installments, with one-third vesting at the

end of each service period, if the executive remains continuously employed with the Company through the end of a three-year service period.

The RSUs may be paid in shares of our common stock, cash or both at the discretion of the Compensation Committee of our board of directors.

We have issued PSUs to certain senior executives since fiscal 2019 under the Company’s Stock Incentive Plan.

Each PSU entitles

the executive officer to receive one share of our common stock based on the achievement of one of two specified performance conditions

if the executive officer remains continuously employed through the end of the three-year performance period, one performance condition

is the Company’s annual EPS growth over the performance period and the other performance condition is the Company’s total

shareholder return during the performance period compared to the Company’s peer group.

The payout or settlement of the PSUs will

be made in shares of our common stock.

expect to continue to grant these types of awards annually in the future.

The following table sets forth the number of outstanding restricted

stock awards and RSUs and PSUs, net of forfeitures and vested shares, as of the fiscal period-end dates indicated:

Restricted shares

RSUs and PSUs

All restricted shares, RSUs and PSUs awarded that

have not yet vested are considered when computing diluted earnings per share.

During the fiscal 2027 first quarter, we purchased

and retired 7,615 shares of our common stock (at an average price of $ 12.53 per share) under the $ 5 million share repurchase authorization

approved by our board of directors in fiscal 2026, with approximately $ 4.9 million remaining available for future purchases under the

authorization.

These repurchases reduced our total outstanding shares and, consequently, reduced the weighted outstanding shares used

in our calculation of earnings per share for the fiscal 2027 first quarter shown below.

The following table sets forth the computation

of basic and diluted earnings per share:

Thirteen Weeks Ended

Net income / (loss) from continuing operations

restricted shares, RSUs and PSUs awarded that have not yet vested are considered when computing diluted earnings per share.

the fiscal 2027 first half, we purchased and retired 92,357 shares of our common stock (at an average price of $ 13.68 per share) under

the $ 5 million share repurchase authorization approved by our board of directors in fiscal 2026, with approximately $ 3.7 million remaining

available for future purchases under the authorization.

These repurchases reduced our total outstanding shares and, consequently, reduced

the weighted outstanding shares used in our calculation of earnings per share for the fiscal 2027 second quarter and first half shown

following table sets forth the computation of basic and diluted earnings per share:

income / (loss) from continuing operations

Unvested participating restricted stock dividends

Net earnings allocated to unvested participating restricted stock

Earnings / (loss) from continuing operations available for common shareholders

Earnings / (loss) from discontinued operations available for common shareholders

Net earnings / (loss) available for common shareholders

Weighted average shares outstanding for basic earnings per share

Dilutive effect of unvested restricted stock, RSU and PSU awards

Weighted average shares outstanding for diluted earnings per share

Basic earnings / (loss) from continuing operations per share

Basic earnings / (loss) from discontinued operations per share

Basic earnings / (loss) per share

Diluted earnings / (loss) from continuing operations per share

Diluted earnings / (loss) from discontinued operations per share

Diluted earnings / (loss) per share

Due to net losses in the first quarter of fiscal 2026, approximately

133,000 shares would have been antidilutive and are therefore excluded from the calculation of earnings per share for such period.

We recorded income tax expense of $ 326 ,000 and

income tax benefits of $ 164 ,000 for the fiscal 2027 and fiscal 2026 first quarters from continuing operations, respectively, and tax benefits

of $ 599,000 on the pretax loss from discontinued operations in fiscal 2026 first quarter.

The consolidated effective tax rates for these

periods were 23.5 % and 21.1 %, respectively.

The increase in the effective tax rate for the current fiscal quarter was primarily due to

relative impact of restricted stock compensation when compared to operating profits in the current year period and operating losses in

the prior year period, as well as a change in valuation allowance recorded in the prior year period for a state loss carryforward.

No material and non-routine positions have been

identified as uncertain tax positions.

Tax years ending January 28, 2024 through February

1, 2026 remain subject to examination by federal and state taxing authorities.

Segment Information

As a public entity, we are required to present

disaggregated information by segment using the management approach.

The objective of this approach is to allow users of our financial

statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions.

management approach requires segment information to be reported based on how management internally evaluates the operating performance

of the Company’s business units or segments.

The objective of this approach is to meet the basic principles of segment reporting

as outlined in ASC 280 Segments (“ASC 280”), which are to allow the users of our financial statements to:

◾ better understand our performance;

◾ better assess our prospects for future net cash

◾ make more informed judgments about us as a whole.

We define our segments as those operations our

chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources.

The Company’s

CODM is the Chief Executive Officer.

The CODM regularly reviews net sales, gross profit, and operating income by segment as the primary

measures of segment performance.

The CODM reviews net sales as a primary indicator of operational performance, assessing how much revenue

is brought in from core business activities, after returns, allowances, and discounts, which reflects demand and execution of each segment’s

Gross profit, which is derived from net sales and cost of sales, is reviewed by the CODM as a diagnostic metric, particularly

useful in evaluating margin trends.

Operating income is the key profitability metric used to assess performance across segments and make

decisions related to resource allocation, including capital expenditures, headcount, and other investment initiatives.

Each of these metrics

are considered in budgeting, forecasting, and operational planning decisions.

For financial reporting purposes, we are organized into two reportable

segments and “All Other”, which includes the remainder of our businesses.

The following tables present segment information

for the periods, and as of the dates, indicated.

◾ Hooker Branded , consisting of the operations

of our imported Hooker Casegoods and Hooker Upholstery businesses;

◾ Domestic Upholstery , which includes the

domestic upholstery manufacturing operations of Bradington-Young, HF Custom (formerly Sam Moore), Shenandoah Furniture and Sunset West;

◾ All Other, consisting of Samuel Lawrence

Hospitality product line, intercompany eliminations and operating segments that are not individually reportable.

The following tables present segment information

for the periods, and as of the dates, indicated.

earnings allocated to unvested participating restricted stock

/ (loss) from continuing operations available for common shareholders

/ (loss) from discontinued operations available for common shareholders

earnings / (loss) available for common shareholders

average shares outstanding for basic earnings per share

effect of unvested restricted stock, RSU and PSU awards

average shares outstanding for diluted earnings per share

earnings / (loss) from continuing operations per share

earnings / (loss) from discontinued operations per share

earnings / (loss) per share

earnings / (loss) from continuing operations per share

earnings / (loss) from discontinued operations per share

earnings / (loss) per share

to net losses, approximately 106,000 shares and 115,000 shares for the second quarter and first half of fiscal 2026, would have been

antidilutive and are therefore excluded from the calculation of earnings per share, respectively.

In the fiscal 2027 second quarter, we recorded

income tax expenses of $ 338,000 under continuing operations and $ 122,000 under the discontinued operations.

In the fiscal 2026 second

quarter, we recorded income tax benefits of $ 114,000 under continuing operations and $ 1.1 million under discontinued operations.

The effective

tax rate for continuing operations was 21.3 % for the second quarter of fiscal 2027 compared to 17.3 % for the second quarter of fiscal

The increase was primarily due to a prior-year state net operating loss valuation allowance adjustment, along with the shifting

tax impact of company-owned life insurance gains and restricted stock compensation relative to prior-year pretax losses versus current-year

pretax income.

the fiscal 2027 first half, we recorded income tax expenses of $ 664,000 under continuing operations and $ 122,000 under the discontinued

In the fiscal 2026 first half, we recorded income tax benefits of $ 278,000 under continuing operations and $ 1.7 million under

discontinued operations.

The effective tax rate for continuing operations was 22.3 % for the first six months of fiscal 2027 compared

to 19.3 % for the first six months of fiscal 2026.

The increase in the effective tax rate for the year-to-date period was driven by the

same factors noted above.

material and non-routine positions have been identified as uncertain tax positions.

years ending January 29, 2023 through February 1, 2026 remain subject to examination by federal and state taxing authorities.

a public entity, we are required to present disaggregated information by segment using the management approach.

The objective of this

approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management

reviews performance and makes decisions.

The management approach requires segment information to be reported based on how management

internally evaluates the operating performance of the Company’s business units or segments.

The objective of this approach is to

meet the basic principles of segment reporting as outlined in ASC 280 Segments (“ASC 280”), which are to allow the

users of our financial statements to:

understand our performance;

assess our prospects for future net cash flows;

more informed judgments about us as a whole.

define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance

and allocate resources.

The Company’s CODM is the Chief Executive Officer.

The CODM regularly reviews net sales, gross profit,

and operating income by segment as the primary measures of segment performance.

The CODM reviews net sales as a primary indicator of

operational performance, assessing how much revenue is brought in from core business activities, after returns, allowances, and discounts,

which reflects demand and execution of each segment’s strategy.

Gross profit, which is derived from net sales and cost of sales,

is reviewed by the CODM as a diagnostic metric, particularly useful in evaluating margin trends.

Operating income is the key profitability

metric used to assess performance across segments and make decisions related to resource allocation, including capital expenditures,

headcount, and other investment initiatives.

Each of these metrics are considered in budgeting, forecasting, and operational planning

financial reporting purposes, we are organized into two reportable segments and “All Other”, which includes the remainder

of our businesses.

The following tables present segment information for the periods, and as of the dates, indicated.

Branded , consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery

Upholstery , which includes the domestic upholstery manufacturing operations of Bradington-Young,

HF Custom (formerly Sam Moore), Shenandoah Furniture and Sunset West;

Other, consisting of Samuel Lawrence Hospitality, intercompany eliminations and operating

segments that are not individually reportable.

following tables present segment information for the periods, and as of the dates, indicated.

Thirteen Weeks Ended

Twenty-Six Weeks Ended

August 2, 2026

August 3, 2025

August 2, 2026

August 3, 2025

Hooker Branded

13 unchanged sentences

Domestic Upholstery

Other (Expense) / Income

Other Income, net

Hooker Branded

1 unchanged sentence

Interest expense - Corporate

Income tax expense / (benefit) - Corporate

Income taxes - Corporate

Net income / (loss) from continuing operations - Corporate

the second quarter of fiscal 2027, the Company received $ 7.9 million in recoveries of tariffs imposed under the International Emergency

Economic Powers Act (“IEEPA”) from the implementation of the tariffs through the U.S.

Supreme Court’s decision in early

February 2026.

In continuing operations, the Company recorded $ 4.3 million as a reduction of cost of sales and $ 201,000 as interest income

in the second quarter of fiscal 2027, partially offset by a $ 522,000 reduction of revenue.

In discontinued operations, the Company recorded

$ 1.6 million as a reduction of cost of sales and $ 54,000 interest income, partially offset by a $ 612,000 reduction of revenue.

Additionally,

approximately $ 1.8 million of the tariff recoveries had not yet impacted costs of sales and was recorded as a reduction of the carrying

value of inventories at quarter end.

The Company does not expect to receive material additional tariff recoveries.

following table presents the tariff recoveries recorded by segment during the second quarter of fiscal 2027.

TARIFF RECOVERIES BY SEGMENT

13 Weeks Ended

26 Weeks Ended

Hooker Branded

Domestic Upholstery

Cost of sales

Hooker Branded

Domestic Upholstery

Interest Income

Hooker Branded

Domestic Upholstery

Discontinued Operations

Cost of sales

Interest Income

Hooker Branded

Domestic Upholstery

Discontinued Operations

Thirteen Weeks Ended

Twenty-Six Weeks Ended

August 2, 2026

August 3, 2025

August 2, 2026

August 3, 2025

Restructuring Costs

7 unchanged sentences

Domestic Upholstery

We recorded $ 124,000 and $ 280,000 in restructuring

costs in the first quarter of fiscal 2027 and fiscal 2026, respectively, primarily related to severance.

As of May 3, 2026 and February

1, 2026, we had accrued restructuring charges of approximately $ 211,000 and $ 298,000 , respectively.

The balance as of May 3, 2026 is expected

to be paid during the next 12 months.

The restructuring costs were recorded under cost of sales and selling and administrative expenses

in the condensed consolidated statements of operations.

Restructuring

costs, primarily related to severance, were $ 158,000 and $ 960,000 during the second quarters of fiscal 2027 and fiscal 2026, and $ 282,000

and $ 1.2 million during the first six months of those fiscal years, respectively.

As of August 2, 2026 and February 1, 2026, we had accrued

restructuring charges of approximately $ 157,000 and $ 298,000 , respectively.

The balance as of August 2, 2026 is expected to be paid during

the next 12 months.

The restructuring costs were recorded under cost of sales and selling and administrative expenses in the condensed

consolidated statements of operations.

Hooker Branded

3 unchanged sentences

Total Consolidated Assets

Sales by product type are as follows:

by product type are as follows:

Net Sales (in thousands)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Subsequent Events

On June 9, 2026 , our board of directors declared a

quarterly cash dividend of $ 0.115 per share which will be paid on June 30, 2026 to shareholders of record at June 19, 2026 .

September 3, 2026 , our board of directors declared a quarterly cash dividend of $ 0.115 per share which will be paid on September 30,

2026 to shareholders of record at September 15, 2026 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements