Hooker Furnishings reported Q2 2025 net sales of $95.1 million, down 2.8% year over year, with a consolidated operating loss of $3.15 million and a net loss of $1.95 million ($0.19 per diluted share). The quarterly deterioration was modest relative to the prior quarter’s deeper losses, signaling stabilization in a still-challenging macro furniture market. Management attributes the six-month revenue decline (down 14% vs. the prior year) primarily to the absence of ACH liquidation sales and ongoing weak demand, while highlighting resilience in Home Meridian (HMI) hospitality-driven revenue and a meaningful margin inflection for HMI (gross margin 19.5% in Q2, among the highest since 2016). The company is implementing a targeted cost-reduction program aimed at $10 million in annualized savings, with management asserting it will exceed that target and begin realizing savings in fiscal 2025 Q3 and Q4. In parallel, Hooker is pursuing financing optimization (credit facility refinancing) and a near-term debt payoff plan ($22 million of term debt in Q3) to strengthen liquidity. Strategic initiatives around merchandising, product speed-to-market, and channel realignment (notably Sunset West’s bi-coastal approach) are designed to support a recoverable pathway once demand improves. The balance sheet remains solid, with cash and cash equivalents at $42.1 million and total stockholders’ equity of $215.3 million, providing a buffer to navigate the downturn and fund selective investments as the market recovers. Key takeaway: HOFT is navigating a cyclical downturn with a credible plan to restore profitability through margin discipline (notably at HMI), selective growth initiatives, and substantial fixed-cost reductions, while maintaining liquidity and dividend integrity for the foreseeable future.