Hooker Furniture to exit Georgia distribution center

Hooker Furnishings announced its decision to exit its Savannah, Georgia distribution center and consolidate operations in its existing facilities. The Company commenced operations at the Savannah facility in October 2021 for its Home Meridian segment’s Accentrics Home brand. However, shortly after opening the facility, ACH’s competitive position was severely eroded by a sharp rise in post-COVID container freight rates from Asia, which jumped from approximately $4,000 to over $25,000 per container in some cases at the time. The Company is finalizing estimates of the potential financial impacts of the DC exit and expects to provide additional information in its earnings release and subsequent conference call on April 17, 2025, and in its Annual Report on Form 10-K, expected to be filed on April 18, 2025. Currently, the Company preliminarily expects to record net charges of between $1.6 and $2.0 million in fiscal 2025 and between $3.0 million to $4.0 million in fiscal 2026, related to the Savannah exit. It further expects preliminary savings of between $750,000-$1.0 million in net operating expenses in fiscal 2026. Also preliminarily, the Company expects to realize annualized savings of between $4.0 million to $4.5 million beginning in fiscal 2027. These costs and benefits are largely dependent on the timing of the completion of the exit and could differ from these preliminary estimates.