Hooker Furnishings Corp (HOFT) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Hooker Furnishings Corporation First Quarter 2024 Earnings Webcast. (Operator Instructions) Please be advised that today's conference is being recorded.

女士們先生們，感謝你們的支持。歡迎收看 Hooker Furnishings Corporation 2024 年第一季度收益網絡廣播。 （操作員指示）請注意，今天的會議正在錄製中。

I will now hand the conference over to your speaker host, Mr. Paul Huckfeldt, Chief Financial Officer. Please go ahead, sir.

我現在將會議交給演講主持人、首席財務官 Paul Huckfeldt 先生。請繼續，先生。

Thank you, Olivia. Good morning, and welcome to our quarterly conference call to review our financial results for our fiscal 2024 first quarter, which ended on April 30, 2023.

謝謝你，奧利維亞。早上好，歡迎參加我們的季度電話會議，回顧我們截至 2023 年 4 月 30 日的 2024 財年第一季度的財務業績。

Joining me this morning is Jeremy Hoff, our Chief Executive Officer. We appreciate your participation.

今天早上與我一起出席的是我們的首席執行官傑里米·霍夫 (Jeremy Hoff)。我們感謝您的參與。

During our call, we may make forward-looking statements, which are subject to risks and uncertainties. A discussion of factors that could cause our actual results to differ materially from management's expectations is contained in our press release and SEC filing announcing our fiscal 2024 first quarter results. Any forward-looking statement speaks only as of today, and we undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances after today's call.

在我們的電話會議中，我們可能會做出前瞻性陳述，這些陳述存在風險和不確定性。我們在宣布 2024 財年第一季度業績的新聞稿和 SEC 文件中包含了對可能導致我們的實際業績與管理層預期存在重大差異的因素的討論。任何前瞻性聲明僅代表今天的情況，我們不承擔更新或修改任何前瞻性聲明以反映今天電話會議後發生的事件或情況的義務。

This morning, we reported consolidated net sales for the fiscal 2024 first quarter of $121.8 million, a decrease of $25.5 million or 17% and compared to last year's first quarter. The revenue decline was driven by a $20 million sales decrease in the Home Meridian segment due to lower sales with major furniture chains and mass merchants, and to a lesser extent, a 15% decrease in Domestic Upholstery after 2 years of sales growth in this segment.

今天上午，我們報告了 2024 財年第一季度的合併淨銷售額為 1.218 億美元，與去年第一季度相比減少了 2550 萬美元，即 17%。收入下降的原因是 Home Meridian 細分市場的銷售額減少了 2000 萬美元，原因是主要家具連鎖店和大眾商家的銷售額下降，以及在較小程度上，國內室內裝飾在該細分市場的銷售額增長了 2 年之後下降了 15% 。

Net sales in the Hooker Branded segment remained relatively flat compared to the prior year. Consolidated net income was $1.5 million or $0.13 per diluted share this quarter, compared to $3.2 million or $0.26 per diluted share in the prior year period.

與上一年相比，Hooker 品牌業務的淨銷售額仍相對持平。本季度合併淨利潤為 150 萬美元，即稀釋後每股收益 0.13 美元，而去年同期為 320 萬美元，即稀釋後每股收益 0.26 美元。

Now I'll turn the call over to Jeremy to comment on our fiscal 2024 first quarter results.

現在我將把電話轉給傑里米，請他對我們 2024 財年第一季度的業績發表評論。

Thank you, Paul, and good morning, everyone.

謝謝你，保羅，大家早上好。

On our call today, we'll discuss our quarterly results and several of our long-term strategic initiatives, which are positioned to begin delivering organic growth. Considering the softer retail environment, economic uncertainties and our recent exit from the Accentrics Home line, we're pleased to have exceeded external expectations for sales and earnings during the quarter.

在今天的電話會議上，我們將討論我們的季度業績和幾項長期戰略舉措，這些舉措旨在開始實現有機增長。考慮到零售環境疲軟、經濟不確定性以及我們最近退出 Accentrics Home 系列，我們很高興本季度的銷售和收益超出了外部預期。

Our liquidation of ACH inventories and other obsolete inventories at HMI is about 80% complete, which is helping us reduce our domestic warehousing footprint and make progress towards getting profitability back on track at HMI.

我們對 HMI 的 ACH 庫存和其他過時庫存的清算已完成約 80%，這有助於我們減少國內倉儲足跡，並在使 HMI 的盈利能力重回正軌方面取得進展。

This quarter, we were able to strengthen our balance sheet, we generated about $22 million in cash from operating activities, which contributed to a $12 million increase in our cash position for the quarter and funded $4.3 million in share repurchases along with our typical cash requirements.

本季度，我們能夠加強我們的資產負債表，我們從經營活動中產生了約 2200 萬美元的現金，這使我們本季度的現金頭寸增加了 1200 萬美元，並為股票回購提供了 430 萬美元以及我們典型的現金需求。

As we moved into May and now June, we are continuing to build cash and further reduce inventories. As of yesterday, we have generated almost $16 million more in cash since the end of our first quarter bringing our cash balance to $46 million. Inventory levels decreased by $23 million during the quarter, well on our way towards our goal of reducing inventories by $30 million before fiscal year-end.

隨著進入五月和現在的六月，我們正在繼續積累現金並進一步減少庫存。截至昨天，自第一季度末以來，我們已經增加了近 1600 萬美元的現金，使我們的現金餘額達到 4600 萬美元。本季度庫存水平減少了 2,300 萬美元，朝著我們在財政年度結束前減少庫存 3,000 萬美元的目標邁進了。

Our new Hooker legacy showroom grand opening at the April High Point Market met our expectations as we nearly doubled our attendance from a year ago, attracting new customers and providing a much more meaningful presentation of our legacy brands and the launch of our new brand, M. Many of our strategic organic growth initiatives that will enable us to increase our share of total addressable market and visibility are tied to the new showroom and the Hooker Legacy Brands.

我們新的 Hooker 傳統陳列室在四月高點市場盛大開幕，達到了我們的預期，我們的出席人數比一年前增加了近一倍，吸引了新客戶，並為我們的傳統品牌提供了更有意義的展示，並推出了我們的新品牌 M我們的許多戰略性有機增長舉措將使我們能夠增加我們在總目標市場中的份額和知名度，這些舉措都與新陳列室和胡克傳統品牌息息相關。

One of those strategic growth initiatives, the High Point Market launch of M domestically produced upholstery and imported occasional furniture brand surpassed our expectations. This new brand combining the unique capabilities of HF Custom, Shenandoah, Bradington-Young and Hooker Casegoods, will enable us to compete in a modern lifestyle aesthetic without disrupting any of those core businesses.

作為這些戰略增長舉措之一，M 國產室內裝飾和進口休閒家具品牌在 High Point Market 的推出超出了我們的預期。這個新品牌結合了 HF Custom、Shenandoah、Bradington-Young 和 Hooker Casegoods 的獨特能力，將使我們能夠在現代生活方式美學中競爭，而不會干擾任何這些核心業務。

Retailers affirmed to us that the new M brand is very much on point with the up-and-coming casual modern lifestyle that today's younger consumer is gravitating towards. The rebranding of Sam Moore to HF Custom at the Spring High Point Market came at an ideal time as the timing allowed us to elevate the look at the product with new cover treatments and silhouette and unveil the brand within a highly updated presentation in showplace. Just prior to the April High Point Market, we completed the transition to a new ERP system for our outdoor furnishings line, Sunset West.

零售商向我們證實，新的 M 品牌非常契合當今年輕消費者所青睞的新興休閒現代生活方式。 Sam Moore 在春季高點市場上將品牌更名為 HF Custom 恰逢其時，因為這個時機使我們能夠通過新的封面處理和輪廓提升產品的外觀，並在展會上以高度更新的展示形式推出該品牌。就在四月高點市場之前，我們完成了戶外家具系列 Sunset West 向新 ERP 系統的過渡。

In addition, we completed our positioning of the brand for East Coast distribution by stocking the line, both in its current West Coast warehouse and now adding Sunset West inventory to our East Coast Savanna warehouse. At the Spring High Point Market, Sunset West debuted its first comprehensive display in our industry's major East Coast market. We believe that Sunset West's expansion to a national distribution offers a double-digit organic growth opportunity over multiple years.

此外，我們通過在其當前的西海岸倉庫中庫存該產品線，並在我們的東海岸 Savanna 倉庫中添加 Sunset West 庫存，完成了該品牌在東海岸分銷的定位。在春季高點市場上，Sunset West首次在我們行業的主要東海岸市場進行了全面展示。我們相信《Sunset West》向全國發行的擴張將在多年內提供兩位數的有機增長機會。

Also in April, we announced Hooker Furnishings and leading lifestyle and entertainment company, Scott Brothers Global, have renewed the multiyear licensing agreement with HMI's Pulaski and Samuel Lawrence Furniture divisions serve as the exclusive bedroom, dining and occasional furniture suppliers for the Drew & Jonathan Home brand.

同樣在四月，我們宣布 Hooker Furnishings 和領先的生活方式和娛樂公司 Scott Brothers Global 與 HMI 的 Pulaski 和 Samuel Lawrence 家具部門續簽了多年許可協議，成為 Drew & Jonathan Home 的獨家臥室、餐廳和臨時家具供應商品牌。

At the High Point Market, HMI introduced a 26 piece Drew & Jonathan collection in a California casual to further expand the product line. After initial delay due to the pandemic, the Drew & Jonathan Home line now has the retail placements and demand momentum benefiting shipments in the short and long term.

在 High Point Market 上，HMI 推出了 26 件加州休閒裝 Drew & Jonathan 系列，進一步擴大了產品線。在最初因疫情而延遲之後，Drew & Jonathan Home 系列現在的零售佈局和需求勢頭有利於短期和長期的出貨量。

Our transition to a new leaner business model at HMI will continue into this year as we move away from higher-risk businesses to focus on our core strength in businesses. Pulaski Furniture, Samuel Lawrence Furniture, Samuel Lawrence Hospitality and Prime Resources International, we believe are still on track to achieve profitability in this segment by the end of the fiscal year.

隨著我們從高風險業務轉向專注於業務的核心優勢，HMI 向新的精簡業務模式的過渡將持續到今年。我們相信，Pulaski Furniture、Samuel Lawrence Furniture、Samuel Lawrence Hospitality 和 Prime Resources International 仍有望在本財年末實現該領域的盈利。

Importantly, the HMI team is focused on our core competencies as we direct our support and resources behind our key businesses while reducing cost. Now I want to turn the discussion over to Paul, who will discuss highlights in each of our segments.

重要的是，HMI 團隊專注於我們的核心競爭力，因為我們將支持和資源用於關鍵業務，同時降低成本。現在我想把討論交給保羅，他將討論我們每個部分的亮點。

Thanks, Jeremy. Beginning with our Hooker Branded segment. Net sales remained relatively unchanged, decreasing slightly by 0.8% or $339,000 compared to the prior's year first quarter.

謝謝，傑里米。從我們的 Hooker 品牌部分開始。淨銷售額保持相對不變，與去年第一季度相比略有下降 0.8%，即 339,000 美元。

Gross profit and gross margin remained relatively flat. Net sales were negatively impacted by higher discounting compared to abnormally low levels of discounting in the prior year period. While we benefited from price increases implemented in the prior year to mitigate product cost inflation, discounting increased by 230 basis points from the prior year due to somewhat softer demand in the current quarter.

毛利潤和毛利率保持相對平穩。與去年同期異常低水平的折扣相比，較高的折扣對淨銷售額產生了負面影響。雖然我們受益於上一年為緩解產品成本通脹而實施的提價，但由於本季度需求有所疲軟，折扣比上年增加了 230 個基點。

Higher demurrage and drayage expenses, which heavily impacted the gross margin in previous quarters were still higher than prior year first quarter but are trending down. At the end of the first quarter, Hooker Branded inventory levels decreased by $14 million compared to the fiscal 2023 year-end. Inventories are still elevated at quarter end and are higher than pre-pandemic levels in calendar 2019. So we continue to work to align our inventory levels with current demand.

較高的滯期費和拖運費用嚴重影響了前幾個季度的毛利率，但仍高於去年第一季度，但呈下降趨勢。與 2023 財年末相比，第一季度末，Hooker Branded 的庫存水平減少了 1,400 萬美元。季度末庫存仍然較高，並且高於 2019 年大流行前的水平。因此，我們將繼續努力使我們的庫存水平與當前需求保持一致。

We're pleased that our inventory management process is working well, so we're in stock on most best-selling items and inventory obsolescence has not been an issue. Quarter-end backlog for Hooker Branded was lower than the prior year first quarter end, but remained 50% higher than pre-pandemic levels. Incoming orders decreased by about 16% compared to the prior year quarter and approached levels similar to fiscal 2020 first quarter, reflecting more normalized post-pandemic demand.

我們很高興我們的庫存管理流程運行良好，因此我們大多數暢銷商品都有庫存，而且庫存過時也不是問題。 Hooker Branded 的季度末積壓訂單低於去年第一季度末，但仍比大流行前的水平高出 50%。與去年同期相比，新收到的訂單減少了約 16%，接近 2020 財年第一季度的水平，反映出疫情后需求更加正常化。

Turning to the Home Meridian segment. As Jeremy noted, the sales decrease was better than our expectations, and the operating loss of $2.1 million was a $1 million improvement compared to the prior year first quarter. Net sales at HMI decreased by $20 million or 32%, compared to the prior year first quarter, driven by sales decreases with some major furniture chains and mass merchants in a slower retail environment for home furnishings.

轉向本家子午線部分。正如 Jeremy 指出的那樣，銷售額下降幅度好於我們的預期，並且與去年第一季度相比，運營虧損 210 萬美元減少了 100 萬美元。與去年同期相比，HMI 的淨銷售額下降了 2000 萬美元，即 32%，原因是一些主要家具連鎖店和大型商家在家居零售環境放緩的情況下銷售額下降。

Other factors contributing to the lower sales include delayed orders from retail customers as they continue to reduce their inventory and the absence of the Clubs and ACH sales businesses since we've exited those divisions. Inventories decreased $9 million from the end of fiscal 2023 due to the liquidation of obsolete inventories and our efforts to align inventory levels with current demand. On an encouraging note, SLH, our hospitality division's net sales more than doubled compared to the prior year first quarter, indicating a strong recovery in the hospitality industry after the COVID pandemic. Additionally, freight costs have improved due to the stabilization of ocean freight rates.

導致銷售額下降的其他因素包括零售客戶因繼續減少庫存而延遲訂單，以及俱樂部和 ACH 銷售業務自我們退出這些部門以來的缺席。由於清理過時庫存以及我們努力使庫存水平與當前需求保持一致，庫存較 2023 財年末減少了 900 萬美元。令人鼓舞的是，我們的酒店部門 SLH 的淨銷售額比去年第一季度增長了一倍多，這表明酒店業在新冠疫情大流行後強勁復甦。此外，由於海運費率穩定，運費成本有所改善。

Incoming orders and quarter-end backlog at HMI were lower than the prior year quarter and fiscal 2020 first quarter, due to the absence of orders from the Clubs channel, which HMI exited during fiscal 2022 and the ACH business, as well as decreased incoming orders from retail customers.

HMI 的新訂單和季末積壓量低於去年同期和 2020 財年第一季度，原因是缺少來自 HMI 在 2022 財年退出的俱樂部渠道和 ACH 業務的訂單，以及新訂單減少來自零售客戶。

In the Domestic Upholstery segment, we experienced first quarterly sales decline in over 2 years after 10 consecutive quarters of year-over-year sales increases. Sales decreased by $6 million or about 15%. And compared to prior -- the last year's first quarter. Sales reductions at HF Custom, Sunset West and Shenandoah were partially offset by increased net sales at Bradington-Young. Sales decreases at Sunset West are attributed to nonrecurring factors, including slowed shipments in February and March caused by the December conversion to our new ERP system as well as the expansion of the outdoor brands to our East Coast warehouse, which involve transition costs and startup delays at the Georgia Distribution Center.

在國內室內裝飾領域，繼連續 10 個季度銷售額同比增長後，我們經歷了兩年多來首次出現季度銷售額下降。銷售額減少了 600 萬美元，即約 15%。與之前相比——去年第一季度。 HF Custom、Sunset West 和 Shenandoah 的銷售額減少被 Bradington-Young 淨銷售額的增加部分抵消。 Sunset West 的銷售額下降歸因於非經常性因素，包括由於 12 月轉換為新 ERP 系統而導致 2 月和 3 月發貨放緩，以及戶外品牌擴展到東海岸倉庫（涉及過渡成本和啟動延遲）在佐治亞州配送中心。

These issues were largely resolved by the end of the quarter. We believe that much of the domestic inventory sales dip was driven by the fact that we worked through our large backlogs in these divisions, and then experienced somewhat softer demand, which we don't think is a long-term situation. Despite the sales decline and disruption, Domestic Upholstery segment reported operating income of $1.3 million and an operating margin of 3.8%.

這些問題在本季度末基本得到解決。我們認為，國內庫存銷售下降的主要原因是我們解決了這些部門的大量積壓訂單，然後需求有所疲軟，我們認為這不是長期情況。儘管銷量下降和中斷，國內室內裝飾部門仍報告營業收入為 130 萬美元，營業利潤率為 3.8%。

Quarter-end backlog for Bradington-Young remains 3x higher than pre-pandemic levels at the fiscal 2020 first quarter-end. While backlogs at HF Custom and Shenandoah decreased to levels similar to fiscal 2020. Incoming orders of Bradington-Young and Shenandoah were at similar levels to fiscal 2020, while HF Custom experienced lower orders compared to that period. And while it represents a smaller part of our overall business, all other, which includes our H Contract, Senior Living Furniture division, contributed $1.1 million sales increase.

2020 財年第一季度末，Bradington-Young 的季度末積壓訂單仍是疫情前水平的 3 倍。雖然 HF Custom 和 Shenandoah 的積壓訂單減少至與 2020 財年相似的水平。Bradington-Young 和 Shenandoah 的新訂單與 2020 財年的水平相似，而 HF Custom 的訂單量與同期相比有所下降。雖然它只占我們整體業務的一小部分，但所有其他業務，包括我們的 H Contract、高級生活家具部門，都貢獻了 110 萬美元的銷售額增長。

Turning now to cash, debt, inventory and capital allocation. Cash and cash equivalents stood at $31 million at the end of the fiscal 2024 first quarter, an increase of $12 million from the prior year-end. As Jeremy reported earlier, we generated $22 million of cash from operations in the quarter, which we used to fund $4.3 million of share repurchases, $4.5 million of capital expenditures, including investments in our new showroom and our new ERP system, and $2.4 million in cash dividends to our shareholders, which helped bolster our cash position.

現在轉向現金、債務、庫存和資本配置。截至 2024 財年第一季度末，現金和現金等價物為 3100 萬美元，比上年末增加 1200 萬美元。正如傑里米早些時候報導的那樣，我們在本季度從運營中產生了 2200 萬美元的現金，我們用這些現金來資助 430 萬美元的股票回購、450 萬美元的資本支出（包括對新陳列室和新 ERP 系統的投資）以及 240 萬美元的資本支出。向股東派發現金股息，這有助於增強我們的現金狀況。

We're pleased with the progress we've made reducing inventories, which is a large part of the cash we generated during the quarter. Since the repurchase programs announcement around this time last year, we've generated -- we've returned approximately $20 million to our shareholders and retired just under 1.2 million shares. And earlier this week, our Board approved an additional $5 million authorization as part of our capital allocation plan for the year. In addition to continuing to execute with the share repurchase plan, our capital allocation priorities for the year, including building cash reserves, funding the organic growth initiatives, Jeremy noted earlier, continuing our streak -- 54-year streak of paying dividend and funding our typical capital expenditure requirements.

我們對減少庫存所取得的進展感到滿意，庫存是我們本季度產生的現金的很大一部分。自從去年這個時候宣布回購計劃以來，我們已經向股東返還了大約 2000 萬美元，並退役了近 120 萬股股票。本週早些時候，我們的董事會批准了額外 500 萬美元的授權，作為我們今年資本分配計劃的一部分。傑里米早些時候指出，除了繼續執行股票回購計劃外，我們今年的資本分配優先事項包括建立現金儲備、為有機增長計劃提供資金，繼續我們的連續 54 年連續支付股息和為我們的公司提供資金。典型的資本支出要求。

In addition to our cash balance, we have an aggregate $27.2 million available under our existing revolver at year-end to fund other working capital needs should that become necessary. We believe that our liquidity and capital requirements will be further improved through the liquidation sales of the remaining excess HMI inventories. Now I'll turn the discussion back to Jeremy for his outlook.

除了我們的現金餘額之外，年底我們現有的循環資金下還有總計 2720 萬美元的可用資金，可以在必要時為其他營運資金需求提供資金。我們相信，通過剩餘過剩HMI庫存的清算銷售，我們的流動性和資金需求將得到進一步改善。現在我將討論轉回到傑里米身上，看看他的觀點。

Thank you, Paul. While retail conditions remain mixed along with some economic uncertainties, we have begun to see more positive trends for consolidated incoming orders in May, and that is holding up so far in June. We believe the industry is getting through some of the elevated inventory challenges, and we may be seeing some breakthrough in that area.

謝謝你，保羅。儘管零售狀況仍然好壞參半，並且存在一些經濟不確定性，但我們已經開始看到 5 月份合併收到的訂單出現更多積極趨勢，並且 6 月份迄今為止一直保持這種趨勢。我們相信，該行業正在克服一些庫存上升的挑戰，並且我們可能會在該領域看到一些突破。

Following our successful new showroom grand opening at the Spring High Point Market, Hooker Furnishings will continue initiatives to enhance visibility and addressable market reach this summer, debuting a new showroom at Atlanta market for Hooker Legacy Brands. In addition to opening the new showroom for Legacy Brands, Sunset West also will debut a new showroom at the Atlanta market, which is the new sponsor of the casual market for outdoor furniture relocating from Chicago.

繼我們在春季高點市場成功隆重開設新展廳後，Hooker Furnishings 今年夏天將繼續採取舉措，提高知名度和潛在市場覆蓋範圍，在亞特蘭大市場為 Hooker Legacy Brands 開設新展廳。除了為Legacy Brands開設新展廳外，Sunset West還將在亞特蘭大市場開設新展廳，該市場是從芝加哥搬遷的戶外家具休閒市場的新贊助商。

Hooker Legacy Brands will show at its fourth Las Vegas market this summer as well. At HMI, we expect the previously announced inventory liquidations to be substantially completed by the end of fiscal '24 second quarter. While we expect some short-term volatility in sales and earnings at HMI, we continue to expect the segment to achieve quarterly profitability by the end of the 2024 fiscal year.

Hooker Legacy Brands 也將於今年夏天在其第四個拉斯維加斯市場上展示。在 HMI，我們預計之前宣布的庫存清算將在 24 財年第二季度末基本完成。雖然我們預計 HMI 的銷售和盈利會出現一些短期波動，但我們仍然預計該部門將在 2024 財年末實現季度盈利。

The Hooker Furnishings team continues to focus on organic growth opportunities through expanded visibility, strategic product development, operational improvements and cost reductions. By focusing on these controllables, we will be in the strongest position possible as the demand environment continues to improve. This ends the formal part of our discussion. And at this time, I will turn the call back over to our operator, Olivia, for questions.

Hooker Furnishings 團隊繼續通過擴大知名度、戰略產品開發、運營改進和降低成本來關注有機增長機會。通過關注這些可控因素，隨著需求環境的不斷改善，我們將處於最有利的位置。我們討論的正式部分到此結束。此時，我會將電話轉回給我們的接線員 Olivia，詢問問題。

(Operator Instructions) And our first question coming from the line of Anthony Lebiedzinski.

（操作員說明）我們的第一個問題來自 Anthony Lebiedzinski。

So first, just a couple of questions on the quarter then on your outlook. So as far as for the quarter, I know you'll have some of this information in your 10-Q, but can you just first comment on unit volumes versus pricing? I know you guys talked about the discounting. So just wondering about just volumes in general versus pricing.

首先，我想問幾個關於本季度的問題，然後是關於您的前景的問題。就本季度而言，我知道您會在 10-Q 中獲得一些此類信息，但您能否首先評論一下單位數量與定價？我知道你們談論過折扣。所以只是想知道總體銷量與定價的關係。

I'm going to pull up our draft in the queue. If you want to continue another question. Let's go back to that.

我要把我們的草稿放到隊列中。如果你想繼續另一個問題。讓我們回到那個話題。

Sure. No problem, okay. And then -- oh, you got it? Okay.

當然。沒問題，好吧。然後——哦，你明白了嗎？好的。

I've got it. So for Hooker, unit volume is down about 6%, but ASP is up about 8%.

我懂了。因此，對於 Hooker 來說，單位銷量下降了約 6%，但平均售價上漲了約 8%。

For HMI, unit volume is down 10%. [Domestic Upholstery] unit volume is down about 25% and ASP is up 13%.

對於HMI，單位體積下降了10%。 [國內室內裝飾]單位銷量下降約25%，平均售價上漲13%。

Got you. Okay.

明白你了。好的。

So we are (inaudible) overall, but...

所以我們總體上（聽不清），但是......

Got it. Okay. And then just -- it was nice to see overall gross margin increase of nearly 3 percentage points on a consolidated basis. I know you guys talked about the discounting as well as higher demurrage cost. But obviously, we have lower ocean freight costs as well. So kind of -- can you just talk about the various puts and takes as to what drove the gross margin increase?

知道了。好的。然後，很高興看到整體毛利率在合併基礎上增長了近 3 個百分點。我知道你們談論了折扣以及更高的滯期費。但顯然，我們的海運成本也較低。那麼，您能談談推動毛利率增長的各種看跌期權和看跌期權嗎？

Anthony, really, we're starting to experience costs just continually starting to come down versus what we were experiencing during the pandemic. As far as the discounting line, we're really getting back to a little more normalized discount line. We went to an unusual very low or almost 0 discount line during the pandemic for obvious reasons. With all the supply chain challenges and everything that was going on, and the demand at the level that we saw, there wasn't -- it changed our entire approach, and I think the industry is approached from a discount standpoint. Paul, do you want to add to some of the other?

安東尼，真的，與大流行期間相比，我們開始經歷成本不斷下降。就折扣線而言，我們確實回到了更加標準化的折扣線。出於顯而易見的原因，我們在大流行期間採取了不尋常的非常低或幾乎為 0 的折扣線。面對所有的供應鏈挑戰和正在發生的一切，以及我們所看到的需求水平，沒有——它改變了我們的整個方法，我認為這個行業是從折扣的角度來對待的。保羅，你想補充一些嗎？

So Domestic Upholstery, despite the sales decline, Domestic Upholstery was more efficient. We've seen price increases have taken effect for -- during the pandemic, we didn't -- even as prices were increasing pretty dramatically, we didn't raise prices on backlog. So our new price lists have come into effect, and that's all helped. I think the strategic decision was made not to raise prices on existing backlog. And so it took a long time to cycle through because the backlogs were so big.

因此，儘管銷量下降，但國內室內裝飾的效率更高。我們已經看到價格上漲已經生效——在大流行期間，我們沒有——即使價格大幅上漲，我們也沒有針對積壓訂單提高價格。所以我們的新價目表已經生效，這一切都有幫助。我認為戰略決策是不對現有積壓訂單提高價格。由於積壓量太大，所以需要很長時間才能循環。

And lastly, we've eliminated a lot of surprises we were experiencing on HMI side of our businesses, which obviously affected our overall gross margin negatively when we were going through that.

最後，我們消除了在業務的 HMI 方面遇到的許多意外情況，這顯然對我們的整體毛利率產生了負面影響。

Got you. Okay. All right. So it's good to see some better predictability with HMI. So as far as HMI, so I know you guys talked about reducing the warehousing footprint. Where are you guys with that as of today? And kind of where do you think that you'll be by the end of the fiscal year with that initiative?

明白你了。好的。好的。因此，很高興看到 HMI 具有更好的可預測性。就 HMI 而言，我知道你們談到了減少倉儲足跡。截至今天，你們在哪裡？您認為到本財年結束時您的這一舉措將會達到什麼程度？

So on Savannah, as we continue to -- like we said, we're 80% of the way through getting out of the products we're trying to get out of. As we do that, the requirement for the footprint in Savannah goes to much less than we needed before.

因此，在薩凡納，正如我們所說，我們已經完成了 80% 的工作，擺脫了我們試圖擺脫的產品。當我們這樣做時，薩凡納的足跡要求比我們以前需要的要少得多。

So we've already made arrangements to hand over 200,000 of 1 million square feet that will happen on July 1 of this year -- this fiscal year. We're working on some other plans that our goal would be to get that down to 500,000 square feet, we're hoping by fiscal year-end. If it's not, then it would be shortly after, but that's our focus. And all the other cost reduction activities that we talked about are on track for this fiscal year to again return HMI to quarterly profitability by the end of fiscal year.

因此，我們已經做出安排，將於今年（本財年）7 月 1 日移交 100 萬平方英尺的 20 萬平方英尺。我們正在製定一些其他計劃，我們的目標是在財年年底前將面積減少到 500,000 平方英尺。如果不是，那麼不久之後就會發生，但這就是我們的重點。我們談到的所有其他成本削減活動都將在本財年按計劃進行，以便在財年末再次使 HMI 恢復季度盈利。

Got it. Yes. And then do you guys have the consolidated backlog number, by any chance, handy?

知道了。是的。那麼你們手頭上有合併的積壓訂單數量嗎？

Yes. Consolidated backlog right now or at the end of the quarter was at $87 million.

是的。目前或本季度末的合併積壓訂單為 8700 萬美元。

Got it. Okay. And then I know you touched on this a little bit on your last call in April. But as far as Sunset West, that was impacted by the ERP system rollout. I believe you had said it was a couple of million dollars, but just correct me if I'm wrong. And then overall, where do you stand with the ERP rollout? And if it's -- I know it's work in progress, but could there be potential other issues with other brands as you go through this process?

知道了。好的。然後我知道你在四月份的最後一次電話會議上談到了這個問題。但就 Sunset West 而言，這是受到 ERP 系統推出的影響。我相信你說過這是幾百萬美元，但如果我錯了，請糾正我。總體而言，您對 ERP 的推出有何看法？如果是——我知道它正在進行中，但是在您經歷這個過程時，其他品牌是否可能存在其他潛在問題？

So first, your number was close on the Sunset West, what we refer to as far as the disruption. They're pretty much through that at this point, and they're through a lot of the transition of creating the East Coast distribution for them as well. So it's going really well. We're optimistic about Sunset West for the rest of the year. Regarding the ERP for the rest of the company, we will have -- we have a go-live date in early July for our Hooker Legacy portion of our business. We feel very good about it. One reason we candidly did Sunset West first is we wanted to make sure a lot of those systems that we were needing to work for the rest of the company would work the way we thought they would work. So we did a test on one of our smaller parts of our company, which we saw the issues and we're able to fix them, but we're aware of those going into the larger go-live. So we feel confident and feel good about where we're headed with our ERP system.

首先，你的數字接近日落西線，即我們所說的干擾。他們現在已經基本完成了這一過程，並且還經歷了為他們創建東海岸發行版的大量過渡。所以一切進展順利。我們對今年餘下時間的日落西區持樂觀態度。關於公司其他部門的 ERP，我們將在 7 月初為我們的 Hooker Legacy 業務部分確定上線日期。我們對此感覺非常好。坦率地說，我們首先進行 Sunset West 的一個原因是，我們希望確保我們需要為公司其他部門工作的許多系統能夠按照我們認為的方式工作。因此，我們對公司的一個較小部分進行了測試，我們發現了問題並且能夠解決它們，但我們知道這些問題將進入更大的上線階段。因此，我們對 ERP 系統的發展方向充滿信心並感到良好。

And if we don't...

如果我們不...

Yes, that's another good point. We track it weekly where we are with any issues and there's a lot of visibility, and we will not go live if we see a disruption that's going to be negative for our company.

是的，這是另一個優點。我們每週都會跟踪有任何問題的地方，並且有很多可見性，如果我們看到對我們公司產生負面影響的中斷，我們就不會上線。

That's great to hear. And then can you also share some more details about the higher incoming orders that you saw in the month of May? And just curious as to what you heard from retailers about the important Memorial Day weekend?

聽到這個消息我很高興。那麼您能否分享一些有關 5 月份收到的訂單增加的更多詳細信息？只是想知道您從零售商那裡聽到了關於重要的陣亡將士紀念日週末的消息嗎？

Yes. So it's actually really encouraging, I think, really for our industry. The order rates have consistently been better and as the second quarter has -- or excuse me, as the second quarter has started, we've seen really good order trends. And really, if you look at throughout our brands, it's somewhat across the board. If you look at HMI, their order rate has been up. If you look at the Hooker Legacy Brands, their order rate has been up, and then Sunset is seeing the same thing.

是的。所以我認為這對於我們的行業來說確實非常令人鼓舞。訂單率一直比較好，正如第二季度那樣——或者對不起，隨著第二季度的開始，我們看到了非常好的訂單趨勢。事實上，如果你看看我們的整個品牌，就會發現它有點全面。如果你看看HMI，他們的訂單率已經上升。如果你看看 Hooker Legacy Brands，他們的訂單率一直在上升，然後 Sunset 也看到了同樣的情況。

So Memorial Day feedback from a lot of our partners was positive. So if you think back to pre-pandemic many times, our industry was not that happy before Memorial Day from an order rate standpoint. And I think all of us kind of saw a similar trend recently and then Memorial Day hits, and so we seem to be in a more normalized cycle from what we used to be in.

因此，我們許多合作夥伴在陣亡將士紀念日的反饋都是積極的。因此，如果您多次回​​想大流行前，從訂單率的角度來看，我們的行業在陣亡將士紀念日之前並不那麼高興。我認為我們所有人最近都看到了類似的趨勢，然後陣亡將士紀念日到來，所以我們似乎處於一個比以前更加正常化的周期。

(Operator Instructions) And our next question coming from the line of Barry Haimes with Sage Asset Management.

（操作員說明）我們的下一個問題來自 Sage Asset Management 的 Barry Haimes。

Good quarter. I had a question, one on Sunset West. As you go to the national distribution, do they have an inventory build that would either help your overhead absorption or your revenue either this quarter or next quarter? So just a little help on how that works. And how seasonal are their orders?

好季度。我有一個問題，一個關於《西日落》的問題。當您進行全國分銷時，他們是否有庫存建設可以幫助您吸收管理費用或本季度或下季度的收入？所以只是對它的工作原理有一點幫助。他們的訂單季節性如何？

Are we kind of past the season there for them and the bigger benefit would be next year? Or maybe just a little feel for the seasonality on their business? And then last question, you just mentioned orders being better. I presume that's sequentially and is it still down year-over-year? Or are we talking better year-over-year as well?

對於他們來說，我們是否已經過去了這個賽季，而更大的好處將是明年？或者只是對他們業務的季節性有一點感覺？最後一個問題，您剛剛提到訂單更好。我認為這是連續下降的，而且同比仍然下降嗎？或者我們的談論是否也逐年好轉？

I'm going to start with the cyclical nature of outdoor. That's become less and less the case in that category. It's more of a year-round than it's ever been before. But really, you asked about the inventory build. I mean we obviously had a little -- some build on the East Coast to be able to supply those customers. And our -- we do see a big opportunity for growth of Sunset because all of a sudden, the distribution that we're gaining East versus just being more of a West Coast-centric company, gives us a lot of opportunity really in pretty major revenue portions of our -- of the country that we can take advantage of. So -- and then the other part of your question, Paul, do you want to answer that on the orders?

我將從戶外的周期性開始。在這一類別中，這種情況已經越來越少了。這比以往任何時候都更加全年無休。但實際上，您詢問了庫存建設。我的意思是，我們顯然有一些在東海岸建造的設施，能夠為這些客戶提供服務。我們確實看到了 Sunset 的巨大發展機會，因為突然之間，我們在東部獲得的分銷而不是更多以西海岸為中心的公司，這給我們帶來了很多機會，真正在相當大的領域我們可以利用國家的收入部分。那麼，保羅，你問題的另一部分，你想根據命令回答這個問題嗎？

Orders, that's a year -- the improvement is year-over-year.

訂單，那是一年——逐年改善。

And our next question coming from the line of John Deysher with Pinnacle Value.

我們的下一個問題來自 Pinnacle Value 的 John Deysher。

On the inventory reduction, I would guess that was sold at a loss, I think. Could you put a number on that? In other words, without the inventory reduction, how much higher would the gross profit have been for the quarter?

關於庫存減少，我認為是虧本出售的。你能給出一個數字嗎？換句話說，如果不減少庫存，該季度的毛利潤會高出多少？

We took that big charge at the end of Q4 -- at the end of last fiscal year, that (inaudible). So the impact of actually selling that stuff off was nominal. We reserved against it and then we took the reserves back. So there was not much impact of that.

我們在第四季度末——上個財年末——（聽不清）收取了這筆巨額費用。因此，實際出售這些東西的影響是微不足道的。我們保留了它，然後我們收回了儲備金。所以這並沒有太大的影響。

Okay. So no impact. What were the orders for the first quarter?

好的。所以沒有影響。第一季度的訂單有多少？

Orders were $111 million.

訂單金額為 1.11 億美元。

Sorry, $111 million?

抱歉，1.11 億美元？

$111 million, compared to $81 million last year.

1.11 億美元，去年為 8100 萬美元。

Okay. Good. That's going in the right direction. And finally, what would be the CapEx budget for this fiscal year?

好的。好的。這正朝著正確的方向發展。最後，本財年的資本支出預算是多少？

About $6 million.

大約600萬美元。

$6 million for the year. Okay. Great.

當年600萬美元。好的。偉大的。

And I'm not showing any further questions in the queue at this time. I will now turn the call back over to Mr. Jeremy Hoff.

目前我不會在隊列中顯示任何其他問題。我現在將把電話轉回傑里米·霍夫先生。

I would like to thank everyone on the call for their interest in Hooker Furnishings. We look forward to sharing our fiscal '24 second quarter results in September. Take care.

我要感謝所有參加電話會議的人對胡克家具的興趣。我們期待在 9 月份分享我們 24 財年第二季度的業績。小心。

Ladies and gentlemen, that does conclude the conference for today. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連接。