Hooker Furnishings Corp (HOFT) 2024 Q2 法說會逐字稿

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

美好的一天，感謝您的支持。歡迎收看 Hooker Furnishings 2024 年第二季度收益網絡廣播。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Paul Huckfeldt, Chief Financial Officer. Please go ahead.

現在我想將會議交給今天的發言人、首席財務官保羅·哈克菲爾德 (Paul Huckfeldt)。請繼續。

Thanks, Catherine. Good morning, and welcome to our quarterly conference call to review our financial results for the fiscal 2024 second quarter, which began May 1 and ended on July 30, 2023. Joining me this morning is Jeremy Hoff, our Chief Executive Officer. We certainly appreciate your participation today. During our call, we may make forward-looking statements, which are subject to risks and uncertainties.

謝謝，凱瑟琳。早上好，歡迎參加我們的季度電話會議，回顧我們2024 財年第二季度的財務業績，該季度從5 月1 日開始，到2023 年7 月30 日結束。今天早上加入我的是我們的首席執行官Jeremy Hoff。我們當然感謝您今天的參與。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。

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 second 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.

我們宣布 2024 財年第二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 second quarter of $97.8 million, a decrease of $55 million or 36% as compared to last year's second quarter, driven by industry-wide weak demand for home furnishings and the planned exit of unprofitable operations within our Home Meridian segment.

今天上午，我們公佈了2024 財年第二季度的綜合淨銷售額為9780 萬美元，與去年第二季度相比減少了5500 萬美元，即36%，這是由於全行業對家居用品的需求疲軟以及計劃退出不盈利的企業所致。我們的 Home Meridian 部門內的運營。

Net sales decreased by $30 million in the Home Meridian segment and $18 million in our Hooker Branded segment as well as $7.4 million in the Domestic Upholstery segment. Consolidated net income was $785,000 or $0.07 per diluted share for the quarter compared to $5.5 million or $0.46 per diluted share in the prior year period. For the fiscal 2024 first half, consolidated net sales were $219 million, down $80 million or 26.8% compared to last year's first half. Consolidated net income was $2.2 million or $0.20 per diluted share compared to $8.7 million or $0.73 per diluted share in the prior year 6-month period.

Home Meridian 細分市場的淨銷售額減少了 3000 萬美元，Hooker 品牌細分市場的淨銷售額減少了 1800 萬美元，國內室內裝飾細分市場的淨銷售額減少了 740 萬美元。本季度合併淨利潤為 785,000 美元，即稀釋後每股收益 0.07 美元，而去年同期為 550 萬美元，即稀釋後每股收益 0.46 美元。 2024 財年上半年，合併淨銷售額為 2.19 億美元，比去年上半年減少 8000 萬美元，即 26.8%。合併淨利潤為 220 萬美元，即稀釋後每股收益 0.20 美元，而去年 6 個月期間的合併淨利潤為 870 萬美元，即稀釋後每股收益 0.73 美元。

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

現在我將把電話轉給 Jeremy，請其對 2024 財年第二季度業績發表評論。

Thank you, Paul, and good morning, everyone. On our call today, we'll discuss second quarter and first half results. In addition, we will report on our progress in strengthening our financial position in this challenging environment and strategically deploying capital and other resources to invest in future growth and higher visibility with potential customers.

謝謝你，保羅，大家早上好。在今天的電話會議上，我們將討論第二季度和上半年的業績。此外，我們將報告在這個充滿挑戰的環境中加強我們的財務狀況的進展，並戰略性地部署資本和其他資源以投資於未來的增長和提高潛在客戶的知名度。

We believe the current industry-wide softer demand is driven by retailers continuing to sell through over inventory positions and a glut of heavily discounted home furnishings in the market. In addition, the year-over-year comparisons reflect our exit from the higher-risk unprofitable operations in the Home Meridian segment. We are encouraged that incoming orders have trended higher each month through the summer compared to prior year and consolidated orders are up by double digits versus a year ago.

我們認為，當前全行業的需求疲軟是由零售商繼續通過庫存過剩和市場上大量打折的家居用品進行銷售推動的。此外，同比比較反映了我們退出了 Home Meridian 領域高風險、不盈利的業務。令我們感到鼓舞的是，與去年同期相比，整個夏季每個月的新訂單量都呈上升趨勢，並且合併訂單量比去年同期增長了兩位數。

During the quarter, we bolstered our financial position, generating over $51 million in cash from operations and ending the quarter with cash and cash equivalents of $50 million. Additionally, we reduced inventory levels by $70 million from a year ago and completed most of our targeted liquidation sales at the Home Meridian segment's discontinued inventories. The quality of our inventories is much better than it was at the end of last year and is aligned with expected demand.

本季度，我們增強了財務狀況，從運營中產生了超過 5100 萬美元的現金，本季度末現金和現金等價物為 5000 萬美元。此外，我們的庫存水平比一年前減少了 7000 萬美元，並完成了 Home Meridian 部門停產庫存的大部分目標清算銷售。我們的庫存質量比去年年底好得多，並且與預期需求相符。

In addition, our investments focused on building a larger customer base are working. For example, the collective impact of our new showrooms in High Point, Atlanta and Las Vegas increased our customer contacts from about 3,000 to around 14,000 annually, quadrupling our interactions with existing and potential customers. While we expect that the full impact of this investment will be mostly longer term, we've already opened 1,000 new accounts in the first half of the year as visibility and engagement have increased.

此外，我們致力於建立更大客戶群的投資正在發揮作用。例如，我們在海波因特、亞特蘭大和拉斯維加斯的新陳列室的集體影響使我們的客戶聯繫人數從每年約3,000 人增加到約14,000 人，使我們與現有客戶和潛在客戶的互動量增加了四倍。雖然我們預計這項投資的全面影響將主要是長期的，但隨著知名度和參與度的提高，我們已經在今年上半年開設了 1,000 個新賬戶。

The transformation of the Home Meridian segment to a sustainably profitable business model is well underway. Most of the excess inventories connected to the business unit closures at the end of the last fiscal year have been sold and the related cost reduction efforts are paying off.

Home Meridian 業務向可持續盈利商業模式的轉型正在順利進行。上一財年末與業務部門關閉相關的大部分過剩庫存已售出，相關成本削減努力正在取得成效。

In addition, we reduced our Georgia warehouse footprint by 200,000 square feet during the quarter and expect to reduce another 100,000 to 200,000 square feet in early calendar '24. Rightsizing our footprint to align with our current demand when we no longer stock significant volumes of inventory for Accentrics Home will not only reduce cost, it will improve liquidity and working capital levels.

此外，我們在本季度將佐治亞州倉庫佔地面積減少了 200,000 平方英尺，並預計在 24 年初再減少 100,000 至 200,000 平方英尺。當我們不再為 Accentrics Home 儲存大量庫存時，調整我們的足跡以適應當前的需求不僅會降低成本，還會提高流動性和營運資本水平。

HMI recorded a small operating income in fiscal July. And while we continue to expect some short-term volatility in sales and earnings, we expected to achieve profitability in the second half of this fiscal year. The hard work and difficult decisions we've made over the past 18 months are beginning to show benefits. We have reduced our overhead run rate from a high of over $40 million to about $32 million now and expect to be below $30 million by year's end. Coupled with improvements in contribution margin, we believe we will have lowered Home Meridian's breakeven point by over $150 million, and we'll be able to focus on building stable, profitable volume for the segment.

HMI 在 7 財年錄得少量營業收入。儘管我們繼續預計銷售和盈利會出現一些短期波動，但我們預計將在本財年下半年實現盈利。過去 18 個月裡我們所做的艱苦工作和做出的艱難決定已開始顯現成效。我們已將間接費用從 4000 萬美元以上的高位降低至目前的約 3200 萬美元，預計到年底將低於 3000 萬美元。加上邊際收益的提高，我們相信我們將把 Home Meridian 的盈虧平衡點降低超過 1.5 億美元，並且我們將能夠專注於為該部門建立穩定、盈利的銷量。

During the quarter, we were pleased to have completed the acquisition of Atlanta-based decorative accessories specialists, BOBO Intriguing Objects. This acquisition broadens our product diversity to include lighting, decor, textiles and wall art. Adding BOBO to our brand portfolio positions us as an even more valuable and comprehensive partner for our customer base. Like last year's Sunset West acquisition, we intend to scale BOBO using our existing sales, marketing and operations teams to make it a material part of our consolidated sales in the medium to longer term.

本季度，我們很高興完成了對亞特蘭大裝飾配件專家 BOBO Intriguing Objects 的收購。此次收購擴大了我們的產品多樣性，包括照明、裝飾、紡織品和牆壁藝術。將 BOBO 添加到我們的品牌組合中，使我們成為客戶群更有價值、更全面的合作夥伴。與去年收購 Sunset West 一樣，我們打算利用現有的銷售、營銷和運營團隊來擴大 BOBO 的規模，使其成為我們中長期合併銷售的重要組成部分。

Now I want to turn the discussion over to Paul, who will discuss highlights in each of our segments.

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 Hooker Branded. Net sales in the segment decreased by $18 million or 34% in the fiscal 2024 second quarter due to decreased unit volume. Furthermore, discounting was 240 basis points higher than the prior year quarter, which was unusually low. For the fiscal 2024 first half, Hooker Branded sales decreased by $18.5 million or 19% compared to the prior year 6-month period.

謝謝，傑里米。從胡克品牌開始。由於單位數量減少，該部門的淨銷售額在 2024 財年第二季度減少了 1800 萬美元，即 34%。此外，貼現率比去年同期高出 240 個基點，異常低。 2024 財年上半年，Hooker Branded 銷售額與去年 6 個月相比減少了 1,850 萬美元，即 19%。

Sales decreases in both periods underscore the softer demand for home furnishings. Despite a decrease in net sales, gross margin increased due primarily to favorable product costs from lower freight rates and to a lesser extent, decreased warehousing costs. The segment reported operating income of $3.2 million and an operating margin of 9.3% compared to $6.1 million and 11.5% in the prior year second quarter.

這兩個時期的銷量下降凸顯了家居用品需求的疲軟。儘管淨銷售額下降，但毛利率有所上升，這主要是由於運費下降帶來的有利產品成本以及倉儲成本的下降。該部門報告營業收入為 320 萬美元，營業利潤率為 9.3%，而去年第二季度為 610 萬美元，營業利潤率為 11.5%。

While the order backlog was lower than the prior year quarter end, it remains 40% higher than pre-pandemic levels at the end of fiscal 2020 second quarter. Incoming orders increased by almost 19% compared to the prior year quarter. A significant portion of Hooker Branded's backlog consists of orders from new products received late last year and earlier this year, which are expected to ship in the second half of this year and position the segment positively for upcoming quarters.

儘管積壓訂單低於上年季度末，但仍比 2020 財年第二季度末大流行前的水平高出 40%。與去年同期相比，收到的訂單增加了近 19%。 Hooker Branded 的積壓訂單中很大一部分來自去年年底和今年早些時候收到的新產品訂單，預計將在今年下半年發貨，並為該領域未來幾個季度的發展奠定積極的基礎。

Turning to Home Meridian. Net sales decreased by $30 million or 51% in the fiscal 2024 second quarter due to reduced demand for home furnishings and the absence of sales from exited higher-risk unprofitable operations.

轉向家庭子午線。由於家居用品需求減少以及退出的高風險無利可圖業務缺乏銷售，2024 財年第二季度的淨銷售額減少了 3000 萬美元，即 51%。

Sales decreases in the major furniture chains accounted for about 70% of the decline and e-commerce -- the e-commerce channel accounted for about 15% of the decrease. Gross profit and margin both decreased in the 2024 second quarter resulting from the net sales decline and underabsorbed operating costs. Product costs decreased as a percentage of net sales due to lower freight costs but fixed costs due to warehousing rent and labor expenses adversely impacted the gross margin due to significantly lower net sales.

主要家具連鎖店的銷售額下降約佔下降量的70%，電商渠道約佔下降量的15%。由於淨銷售額下降和運營成本吸收不足，2024 年第二季度毛利潤和利潤率雙雙下降。由於運費下降，產品成本占淨銷售額的百分比有所下降，但由於淨銷售額大幅下降，倉儲租金和人工費用導致的固定成本對毛利率產生了不利影響。

For the 6-month period, Home Meridian sales decreased due to these same factors.

在 6 個月期間，Home Meridian 的銷售額由於這些相同的因素而下降。

As Jeremy mentioned earlier, we reduced our Georgia warehouse footprint by 200,000 square feet during the quarter and expect to further reduce that in the future, bringing total square footage to around 500,000 square feet in early calendar 2024 versus 1 million square feet a year ago. This rightsizing will reduce costs and improve liquidity and working capital.

正如Jeremy 之前提到的，本季度我們將佐治亞州倉庫佔地面積減少了200,000 平方英尺，並預計未來會進一步減少，到2024 年初，總面積將達到500,000 平方英尺左右，而一年前為100 萬平方英尺。這種規模調整將降低成本並改善流動性和營運資金。

Due to the significant sales decline, underabsorbed operating costs, Home Meridian reported a $3.3 million operating loss for the quarter. However, its first half operating loss was consistent with management's expectations.

由於銷售額大幅下降、運營成本未能充分吸收，Home Meridian 報告本季度運營虧損 330 萬美元。然而，其上半年經營虧損與管理層的預期一致。

Quarter-end backlog was lower than the previous year's quarter and fiscal 2020 second quarter. This decline is attributed to the absence of orders from the exited operations as well as a reduction in incoming orders from our retail customers, who are still carrying excess inventories ordered during the previous year.

季末積壓訂單低於去年同期和 2020 財年第二季度。這一下降歸因於已退出業務的訂單缺失以及零售客戶的新訂單減少，這些客戶仍持有上一年訂購的過剩庫存。

In Domestic Upholstery, net sales decreased by $7.4 million or 19% in the second quarter due to sales decreases at Shenandoah and HF Custom, formally known as Sam Moore, partially offset by a 10% increase at Sunset West. Bradington-Young net sales were about the same as the prior year second quarter. Despite the sales decrease, gross margin was 200 basis points higher than the prior year due to decreased direct costs, including more stable raw material costs and lower direct labor costs due to reduced production at HF Custom in Shenandoah, partially offset by underabsorbed indirect costs.

在國內室內裝飾領域，第二季度淨銷售額下降了 740 萬美元，即 19%，原因是 Shenandoah 和 HF Custom（正式名稱為 Sam Moore）銷售額下降，但被 Sunset West 10% 的增長部分抵消。 Bradington-Young 淨銷售額與去年第二季度大致相同。儘管銷售額下降，但由於直接成本下降，毛利率仍比上年高出200 個基點，其中包括原材料成本更加穩定，以及謝南多厄HF Custom 產量減少導致直接勞動力成本下降，但部分被未充分吸收的間接成本所抵消。

For the fiscal 2024 first half, net sales decreased at HF Custom, Shenandoah and Sunset West. Bradington-Young reported a small sales increase in the 6-month period. Incoming orders increased by 36% compared to the prior year quarter. However, orders in the prior year period were relatively low due to higher backlog and longer lead times.

2024 財年上半年，HF Custom、Shenandoah 和 Sunset West 的淨銷售額有所下降。 Bradington-Young 報告 6 個月期間銷售額小幅增長。與去年同期相比，新收到的訂單增加了 36%。然而，由於積壓較多和交貨時間較長，去年同期的訂單相對較低。

Quarter-end backlog for Bradington-Young remains 3x that of pre-pandemic levels at the fiscal 2020 second quarter while the backlog at HF Custom and Shenandoah decreased to levels similar to fiscal 2020. While other net sales increased in both the second quarter and first half, driven by higher sales at H Contract as the senior living industry continues to recover after the COVID pandemic and to a lesser extent, the addition of BOBO net sales. Gross profit and margin also increased in the all other segments.

Bradington-Young 的季度末積壓訂單仍是2020 財年第二季度大流行前水平的3 倍，而HF Custom 和Shenandoah 的積壓訂單減少至與2020 財年相似的水平。而其他淨銷售額在第二季度和第一季度均有所增加一半的推動因素是，隨著新冠疫情大流行後老年生活行業繼續復甦，H Contract 的銷售額增加，並且在較小程度上受到 BOBO 淨銷售額增加的推動。所有其他部門的毛利潤和利潤率也有所增加。

On the balance sheet, we made considerable progress in our cash and inventory position and in strategic capital investments. Cash and cash equivalents stood at $50 million at the fiscal 2024 quarter end, an increase of $31 million from the prior year. Inventory levels decreased by $35 million from year-end and $70 million from a year ago.

在資產負債表上，我們在現金和庫存狀況以及戰略資本投資方面取得了長足進步。截至 2024 財年季度末，現金和現金等價物為 5000 萬美元，比上年增加 3100 萬美元。庫存水平較年底減少 3,500 萬美元，較去年同期減少 7,000 萬美元。

During the 6-month period, $51 million of cash generated from operating activities funded $8.7 million in share repurchases, $4.9 million in cash dividends, $4 million in capital expenditures including investments in our new showrooms, $2.6 million for the development of our cloud-based ERP system as well as $2.4 million for the BOBO acquisition.

在這6 個月期間，經營活動產生的5100 萬美元現金用於資助870 萬美元的股票回購、490 萬美元的現金股息、400 萬美元的資本支出（包括新展廳的投資）、260 萬美元用於開發基於雲的ERP 系統以及 240 萬美元用於收購 BOBO。

Since the share repurchase program began in the second quarter of last year, we spent approximately $22 million to purchase and retire 1.3 million shares of our common stock as of the end of this quarter. In addition to cash balances, an aggregate $27 million was available under our existing revolver at quarter end. For the remainder of the year, we plan to continue to strengthen our balance sheet, continue our share repurchase program as appropriate and continue to invest in organic growth opportunities, which we believe will position us favorably as business continues to improve.

自去年第二季度開始股票回購計劃以來，截至本季度末，我們花費了約 2200 萬美元購買並退役了 130 萬股普通股。除現金餘額外，截至季度末，我們現有左輪手槍的可用資金總額為 2700 萬美元。在今年剩下的時間裡，我們計劃繼續加強我們的資產負債表，繼續適當的股票回購計劃，並繼續投資於有機增長機會，我們相信隨著業務的持續改善，這將使我們處於有利地位。

Now I'll turn the discussion back to Jeremy for his outlook.

現在我將討論轉回到傑里米身上，看看他的觀點。

We believe there are mixed signals in the economy, a housing shortage and the over 20-year high on fixed mortgage rates has slowed down housing activity. The continued rise in interest rates has suppressed customer -- consumer confidence.

我們認為，經濟中存在混合信號，住房短缺和固定抵押貸款利率20多年來的高點已經減緩了住房活動。利率的持續上升抑制了客戶——消費者的信心。

However, overall retail spending and activity in the manufacturing sector and new business startups is healthy while the unemployment rate remains near a 30-year low. As we anticipated, the first half of the year was difficult as the industry worked through bloated inventories and changing consumer spending habits. We expect demand and business to pick up in the second half for several reasons.

然而，製造業和新企業的整體零售支出和活動健康，而失業率仍接近 30 年來的低點。正如我們預期的那樣，今年上半年是困難的，因為該行業正在經歷庫存膨脹和消費者消費習慣改變的問題。我們預計需求和業務將在下半年回升，原因有幾個。

First, consolidated orders are up in the mid-double digits over this time a year ago, with orders trending up in each segment for the past few months. Secondly, a significant portion of Hooker Branded's backlog consists of orders for new products launched at the High Point market and are expected to ship in the second half of this year. Thirdly, in the second half, Home Meridian expects to ship over 1,000 retail floors, what we believe to be the largest number of new product placements in its history.

首先，與一年前同期相比，合併訂單量增長了兩位數，過去幾個月各細分市場的訂單量均呈上升趨勢。其次，Hooker Branded 的積壓訂單中很大一部分是在 High Point 市場推出的新產品訂單，預計將於今年下半年發貨。第三，下半年，Home Meridian 預計將出貨超過 1,000 個零售樓層，我們認為這是其歷史上新產品植入數量最多的一次。

We believe all the right pieces are in place to return Home Meridian to profitability in the second half of the year. While we are focused on reducing overhead cost, keeping our balance sheet strong and judiciously deploying capital, we have continued to invest significantly in initiatives that promote higher visibility with potential customers and ensure future growth and believe these things will put us in the strongest position as demand continues to improve.

我們相信，所有正確的措施都已到位，Home Meridian 將在今年下半年恢復盈利。雖然我們專注於降低管理成本、保持資產負債表強勁並明智地部署資本，但我們繼續大力投資於提高潛在客戶知名度並確保未來增長的舉措，並相信這些事情將使我們處於最有利的地位需求持續改善。

This ends the formal part of our discussion. And at this time, I will turn the call back over to our operator, Catherine, for questions.

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凱瑟琳，詢問問題。

(Operator Instructions)

（操作員說明）

And our first question comes from Anthony Lebiedzinski from Sidoti & Company.

我們的第一個問題來自 Sidoti & Company 的 Anthony Lebiedzinski。

So first -- first, just curious about the cadence of sales from May through July, if you could comment on that. And then can you give us an early read on Q3? And I'm curious to hear your thoughts as far as how -- what are you hearing from your retail customers about Labor Day, which is an important holiday for the furniture industry?

首先，我只是好奇從五月到七月的銷售節奏，如果你能對此發表評論的話。那麼您能給我們先介紹一下第三季度的情況嗎？我很想听聽您的想法——您從零售客戶那裡聽到了關於勞動節的看法，勞動節對於家具行業來說是一個重要的節日？

Sure. When you say cadence of sales, you mean shipments or orders?

當然。當您說銷售節奏時，您指的是發貨量還是訂單？

The shipments.

出貨量。

Okay. Just making sure we're on the same page. So as far as shipments, obviously, our backlogs got to a level that wasn't really great for sustainable shipments throughout the quarter is how I would summarize it. As the quarter progressed, orders increased, as we mentioned, and our backlogs are improving, but that's the timing issue and all of that definitely affected us for the quarter.

好的。只是確保我們在同一頁面上。就出貨量而言，顯然，我們的積壓訂單達到了一個對於整個季度的可持續出貨量來說並不是很好的水平，我是這樣總結的。正如我們所提到的，隨著本季度的進展，訂單增加，我們的積壓訂單也在改善，但這是時間問題，所有這些肯定會影響我們本季度。

Our feedback from Labor Day has been really positive. I would say, in almost every area that we've checked, the reports back were either they were above last year or they were just barely -- they were either at it or just below last year, which last year was really big. So we think that's really a positive sign for us overall.

我們對勞動節的反饋非常積極。我想說，在我們檢查過的幾乎每個領域，返回的報告要么高於去年，要么只是勉強——要么達到去年水平，要么略低於去年，去年的水平非常高。所以我們認為這對我們整體來說確實是一個積極的信號。

That's good to hear, Jeremy. And then so nice job with your own balance sheet improvements with lower inventories and improved cash position. So do you think you can make further progress with inventories? Or do you think that as quarters pick up further that you're kind of -- this is maybe the low point of inventories. Just maybe if you could just help us understand like where do we -- where do you think inventories go from here?

很高興聽到這個消息，傑里米。然後，您自己的資產負債表得到了改善，庫存減少了，現金狀況也改善了，這真是太好了。那麼您認為庫存方面還能取得進一步的進展嗎？或者你認為隨著季度的進一步回升，這可能是庫存的低點。也許如果你能幫助我們理解我們該去哪裡——你認為庫存會去哪裡？

We think inventories are going to stabilize from here. We believe we -- this is as healthy of an inventory position that we've been in since I started, particularly with the ACH that we've gone through the Accentrics Home and everything that's been public. But from our standpoint, what I would really say is I feel the best about all of our controllables as an overall company as I have since I started.

我們認為庫存將從此穩定下來。我們相信，自我開始以來，我們一直處於健康的庫存狀況，特別是我們已經瀏覽過 Accentrics Home 的 ACH 和所有公開的內容。但從我們的角度來看，我真正想說的是，自從我成立以來，我對整個公司的所有可控因素感覺最好。

So -- and it has a lot to do with the balance sheet. It has a lot to do with the inventories. We're in a great position from a demand standpoint as it relates to our inventories and our order rates are significantly up. So all the things we believe we can actually affect, I feel really good about.

所以——這與資產負債表有很大關係。和庫存有很大關係。從需求的角度來看，我們處於有利地位，因為這與我們的庫存有關，而且我們的訂單率顯著上升。因此，我們相信我們能夠真正影響的所有事情，我都感覺很好。

Got you. Okay. And then so as order rates improve, as you talked about double-digit order increases that you've seen, does that imply that you'll see shipment and sales increases in the back half of the year? Or do you think there will still be somewhat of a disconnect there? And my question is on a year-over-year basis, by the way.

明白你了。好的。那麼，隨著訂單率的提高，正如您談到的兩位數的訂單增長，這是否意味著您將在今年下半年看到出貨量和銷售額的增長？或者你認為那裡仍然會有一些脫節嗎？順便說一句，我的問題是逐年計算的。

I would say year-over-year, we're going to compete pretty well in the second half versus what we did in the first half.

我想說，與去年同期相比，我們在下半年的競爭將比上半年表現得更好。

I'm not ready to say that we'll beat the second half last year because it was a pretty substantial shipping half because we were still somewhat inflated from sales from pandemic. But I do feel like it's going to be a little bit a tale of 2 halves for us, and we're going to have a lot more positive shipping and order rate throughout the second half.

我還沒有準備好說我們將擊敗去年下半年，因為這是一個相當可觀的運輸一半，因為我們仍然因流行病的銷售而有些膨脹。但我確實覺得這對我們來說將是一個兩半的故事，我們在整個下半年將有更多積極的運輸和訂單率。

And we've reduced operating costs in the same time period.

同時我們還降低了運營成本。

Right. So we're really going against a whole different denominator throughout that half as well.

正確的。因此，我們在整個半程中也確實面臨著完全不同的分母。

Understood. Okay. Got you. Yes. I know it looks like you're making further progress with Home Meridian overhead and in their warehousing space.

明白了。好的。明白你了。是的。我知道您似乎在 Home Meridian 的管理和倉儲空間方面取得了進一步的進展。

So it looks like Sunset West was one of the key highlights in the quarter here. What's driving that? And do you think that growth is sustainable?

因此，日落西區似乎是本季度的主要亮點之一。是什麼推動了這一點？您認為這種增長是可持續的嗎？

We do. It's actually one of our larger growth initiatives with that throughout the whole company. And we see it as on several levels, a big opportunity. One is when we bought the company, they're very West Coast centric. So our ability to expand their distribution throughout the U.S. with our sales team throughout our territories, as you know, whether you're talking Florida, South Carolina, Texas, anywhere throughout the U.S., we definitely have more representation and stronger relationships than what they had before we bought them.

我們的確是。這實際上是我們在整個公司範圍內更大的增長計劃之一。我們在多個層面上都認為這是一個巨大的機會。一是當我們購買該公司時，他們非常以西海岸為中心。因此，我們有能力通過我們的銷售團隊在整個美國范圍內擴大其分銷範圍，如您所知，無論您是在佛羅里達州、南卡羅來納州、德克薩斯州還是美國的任何地方，我們肯定比他們擁有更多的代表性和更牢固的關係我們買之前就有過。

Number two, being able to position Savannah with Sunset West also doing some cuts so cushion stuff and things we need to do out of our HF Custom facility in Bedford. We've created the supply chain really on both sides of the U.S., which is going to really feed growth in the eastern half of the United States due to the cost savings of freight and really just the visibility, again.

第二，能夠將薩凡納與日落西區一起定位，同時也進行一些剪輯，以便緩沖我們在貝德福德的 HF 定制設施中需要做的事情。我們已經在美國兩側創建了供應鏈，由於貨運成本的節省以及可見性的提高，這將真正促進美國東半部的增長。

Before we bought them, they didn't have a High Point showroom. Now they're in, of course, our show place. They were in Chicago for the casual show there. Now they're in Atlanta. Their visibility has gone up exponentially and their ability to ship from both sides of the country. So all those factors are going to contribute in a pretty major way to their growth.

在我們購買它們之前，他們沒有 High Point 陳列室。當然，現在他們就在我們的表演場地了。他們在芝加哥參加那裡的休閒表演。現在他們在亞特蘭大。他們的知名度呈指數級增長，並且能夠從該國兩側發貨。因此，所有這些因素都將對它們的增長做出重大貢獻。

That's good to hear. And then so you made a small acquisition in the quarter. Just curious about your appetite for additional acquisitions.

聽起來還不錯。然後您在本季度進行了一項小型收購。只是好奇您對額外收購的興趣。

We're always open-minded in what comes along. We're pretty -- candidly, we're pretty particular at this point. It has to really be a white space.

我們對發生的事情始終保持開放的態度。我們很漂亮——坦白說，我們在這一點上非常特別。它必須確實是一個空白。

We don't want anything that will cannibalize what we currently are focused on within our -- throughout our portfolio. However, in this instance, for example, BOBO, our #1 question when our customers look at Hooker Casegoods is who did this lighting? Can I buy the lighting? And the #1 reason we bought BOBO is so that we can change the no to a yes on that question.

我們不希望任何事情會蠶食我們目前在整個投資組合中關注的重點。然而，在這種情況下，例如，BOBO，當我們的客戶查看 Hooker Casegoods 時，我們的第一個問題是誰製作了這個照明？可以買燈嗎？我們購買 BOBO 的第一個原因是我們可以在這個問題上將“否”改為“是”。

That makes a lot of sense. Okay. I guess -- and then my last question as far as the buyback, so you guys have certainly done a good job of having a well balanced, I think, capital allocation between dividends and buybacks. So do you guys have much left on the buyback? Or have you exhausted the repurchase authorization? If you can give us an update on that, that would be very helpful.

這很有意義。好的。我想 - 然後是我關於回購的最後一個問題，所以我認為你們在股息和回購之間的資本分配方面確實做得很好。那麼大家回購的錢還剩多少嗎？或者回購授權已經用完了嗎？如果您能給我們提供最新情況，那將非常有幫助。

We have -- as of the end of the quarter, I think we had about $2 million -- $2 million, $2.5 million left. It's -- since then, we purchased another $1 million or so. So it's -- we have just a fairly small amount left on that repurchase, which will continue -- we'll continue to execute that in a 10b5-1 plan. I think it's worked really well. But we have to balance that with bolstering the balance sheet. The economy is still a little bit uncertain. So we're trying to balance that -- our capital allocation strategy along with maintaining a strong balance sheet.

截至本季度末，我認為我們還有大約 200 萬美元、200 萬美元、250 萬美元。從那時起，我們又購買了大約 100 萬美元。所以，我們的回購只剩下相當少的金額，這將繼續下去，我們將繼續在 10b5-1 計劃中執行這一計劃。我認為效果非常好。但我們必須通過加強資產負債表來平衡這一點。經濟仍存在一些不確定性。因此，我們正在努力平衡我們的資本配置策略和保持強勁的資產負債表。

Our next question comes from Dave Storms with Stonegate.

我們的下一個問題來自 Stonegate 的 Dave Storms。

Just wanted to start towards the top of the balance sheet. It looks like gross profit margin is up about 350, 355 basis points or so. Can you just talk about what the drivers are of that on a year-over-year basis?

只是想從資產負債表的頂部開始。看起來毛利率上升了大約350、355個基點左右。您能否談談同比的驅動因素是什麼？

Right now, we're benefiting from lower costs. We -- well, as mentioned on the call, our Upholstery margins are up because costs have stabilized, and we've been able to balance our labor better. On the imported product side, we're benefiting from somewhat reduced factory cost, but mostly from the benefit of freight costs and increased the last of our higher prices, as we've had -- we've reduced prices in corresponding with these freight decreases.

目前，我們正受益於成本的降低。正如電話中提到的，我們的室內裝飾利潤率上升是因為成本已經穩定，而且我們能夠更好地平衡我們的勞動力。在進口產品方面，我們受益於工廠成本的略微降低，但主要受益於運費成本的好處，並提高了最後一個較高的價格，正如我們所做的那樣——我們降低了與這些運費相對應的價格減少。

But the last of the higher-priced inventories are less the higher costs are now rolling out. So all those combined with exiting some difficult businesses. This time last year, we were burdened with the upside down cost structure of the ACH business, which is why we chose to exit it. So I think these margins are probably -- the gross margins are probably a little bit high compared to what we'll see going forward, but more normal than they were this time last year.

但最後的高價庫存較少，因為成本較高。因此，所有這些都與退出一些困難的業務相結合。去年這個時候，我們承受著ACH業務成本結構顛倒的負擔，這就是我們選擇退出的原因。所以我認為這些利潤率可能比我們未來看到的毛利率可能有點高，但比去年這個時候更正常。

Would it be fair to say that it's more a factor of pricing as opposed to volumes at this point?

可以公平地說，目前這更多是定價因素而不是銷量因素嗎？

Yes.

是的。

That's perfect. That's very helpful. And then just looking downstream, you've mentioned that orders are really starting to increase, but downstream suppliers are still working through some of their inventory. Are you seeing that come to some sort of turning point just with the orders increasing? Or do you expect destocking to continue going forward?

那很完美。這非常有幫助。然後看看下游，您提到訂單確實開始增加，但下游供應商仍在處理部分庫存。您是否認為隨著訂單的增加，情況會出現某種轉折點？或者您預計去庫存會繼續進行嗎？

Yes. We're actually seeing some of that loosening up, but it definitely has been a factor, and it's continued to be a factor. And that situation seems to be a little different with each retailer. So it's not really a -- it's hard to give a blanket answer. One retailer is dealing with this and another retailer may have bought differently during that time. And -- so -- but overall, we definitely are feeling now a little bit looser environment with regards to inventory for sure.

是的。我們實際上看到了一些放鬆，但這絕對是一個因素，而且仍然是一個因素。每個零售商的情況似乎都有些不同。所以這並不是一個——很難給出一個籠統的答案。一家零售商正在處理這個問題，而另一家零售商在那段時間可能採取了不同的購買方式。所以，但總的來說，我們現在確實感覺到庫存方面的環境有點寬鬆。

And I think the strong Labor Day sales are going to help us, although I can't say that to this point because we're -- we'll see that in the next few weeks.

我認為強勁的勞動節銷售將對我們有所幫助，儘管我現在還不能這麼說，因為我們將在接下來的幾週內看到這一點。

Very helpful. And then just going back to -- Paul, I think you mentioned about maintaining a strong balance sheet and how that's very important for you guys. Can you just talk about your comfortability with your current debt position and the revolver availability that you have?

很有幫助。然後回到保羅，我想你提到了保持強勁的資產負債表以及這對你們來說非常重要。您能否談談您對當前債務狀況以及您擁有的左輪手槍可用性的舒適度？

Well, this company has always managed the balance sheet pretty conservatively. And I think it served us very well over the almost 100-year history in the company. And so that's -- it's a core value to try to maintain a strong balance sheet. We have, at this point, $27 million of availability on our revolver. We've got $7 million tied up above that. We've got a $35 million revolver, $7 million is tied up in letters of credit.

嗯，這家公司的資產負債表管理一直相當保守。我認為它在公司近 100 年的歷史中為我們提供了很好的幫助。因此，努力維持強勁的資產負債表是一個核心價值。目前，我們的左輪手槍還有 2700 萬美元的可用資金。除此之外我們還有 700 萬美元。我們有一把價值 3500 萬美元的左輪手槍，其中 700 萬美元是用信用證支付的。

But we've got $27 million available there. We've got $22 million in debt. So it's a pretty low level of debt. I know this industry is pretty dead averse, but I think still fairly comfortable with that level of debt. We've got $50 million in cash. So I think that's a pretty comfortable level. And -- that's a pretty comfortable level. So -- but we'd like to -- as we see the economy develop over this next year -- the rest of this year, I think we're going to try to manage things cautiously and then make our capital allocation decisions for next year as we see what happens the remainder of this year.

但我們有 2700 萬美元可用。我們有 2200 萬美元的債務。所以債務水平相當低。我知道這個行業非常厭惡，但我認為對這種債務水平仍然相當滿意。我們有 5000 萬美元現金。所以我認為這是一個相當舒適的水平。而且——這是一個相當舒適的水平。所以，但我們希望，當我們看到明年經濟發展時，今年剩下的時間裡，我認為我們將嘗試謹慎管理事情，然後為明年做出資本配置決策今年剩下的時間裡會發生什麼，我們拭目以待。

And we always mentioned we have an over 50-year history of paying our dividend as well.

我們總是提到我們也有 50 多年支付股息的歷史。

Right. Right, which dividend yield is just under 4% right now.

正確的。是的，目前股息收益率略低於 4%。

Right, right.

是的是的。

We think that's important...

我們認為這很重要...

That's the priority.

這是當務之急。

Yes.

是的。

Understood. One more for me, if I could. Just from a modeling perspective, CapEx budgets running around $4 million to $5 million a quarter. Is that fair to extrapolate for the foreseeable -- excuse me, for the remainder of 2023?

明白了。如果可以的話，再給我一份。僅從建模角度來看，每季度資本支出預算約為 400 萬至 500 萬美元。對於可預見的情況（請問，2023 年剩餘時間）進行推斷是否公平？

CapEx for the remainder of this year is probably $1 million-ish. In a normal year, our CapEx is probably $5 million or $6 million. This one -- this year has been a little bit bigger with new showrooms with our ERP project. So if you're modeling going forward, I would probably put $6 million a year just for CapEx.

今年剩餘時間的資本支出可能約為 100 萬美元。在正常年份，我們的資本支出可能是 500 萬美元或 600 萬美元。今年，我們的 ERP 項目有了新的展廳，規模更大了一些。因此，如果您要繼續建模，我可能每年會投入 600 萬美元用於資本支出。

We have a question from Budd Bugatch from Water Tower Research.

我們有來自 Water Tower Research 的巴德·布加奇 (Budd Bugatch) 提出的問題。

Congratulations. I want to echo the congratulations on the way you've maintained your balance sheet and your financial condition and what's got to have been I think the most volatile time we've ever seen in the industry and maybe in society.

恭喜。我想對你們維持資產負債表和財務狀況的方式表示祝賀，我認為這肯定是我們在行業乃至社會上見過的最動蕩的時期。

We appreciate that. Thank you.

我們對此表示讚賞。謝謝。

You're welcome, and well deserve. When I think about Hooker, Hooker has the widest diversity of customers in terms of geography, number of customers and type of business model. And I was wondering, Jeremy, if you could give us maybe a read on what you're hearing from various levels of customers and maybe delve down. I know the majors, who had a big -- or seemed to have had a big problem with the order book in HMI. So what are you seeing as you look around the country and hearing from the retailers, what's their -- what are they talking about?

不客氣，你值得。當我想到胡克時，胡克在地理位置、客戶數量和商業模式類型方面擁有最廣泛的客戶多樣性。傑里米，我想知道您是否可以讓我們讀一下您從不同級別的客戶那裡聽到的內容，然後進行深入研究。我認識一些專業人士，他們對 HMI 的訂單簿有很大的問題，或者似乎有很大的問題。那麼，當你環顧全國並聽到零售商的消息時，你看到了什麼？他們在談論什麼？

So it's interesting, Budd. It's a really good question. So what I've observed and what I've -- things I've heard is, it seems like the type of model that each customer is really flowing their inventories through has a lot to do with what position they've been in from an inventory standpoint.

所以這很有趣，巴德。這是一個非常好的問題。因此，我觀察到的以及我聽到的情況是，似乎每個客戶真正流動庫存的模型類型與他們所處的位置有很大關係。庫存的角度。

So the larger customers, of course, they're bringing in containers. They're bringing in larger positions of inventory. So those are more difficult to just turn around quickly. So the model of container and Casegoods, I would say, has been the toughest model across our industry. As you get into domestically inventory position by manufacturers where they can buy anything kind of one at a time, that model has been less disruptive because you could fit -- you could actually get some orders into some places that didn't have the situation I just described, which was typically probably more of a medium to smaller customer, also interior designers and of course, e-commerce.

因此，當然，較大的客戶會引入集裝箱。他們正在增加庫存。因此，要快速扭轉局面就更加困難。因此，我想說，集裝箱和箱包的模型是我們行業中最困難的模型。當製造商進入國內庫存位置時，他們可以一次購買任何一種產品，這種模式的破壞性較小，因為你可以適應 - 你實際上可以在一些沒有這種情況的地方獲得一些訂單。剛才描述的，通常可能更多的是中小型客戶，還有室內設計師，當然還有電子商務。

Then if you get into another segment, which is domestically made Upholstery, that again, that was probably, in my opinion, the most advantaged place to be throughout the situation we've all been in, for all the reasons I just stated from an inventory position. It's -- a lot of it's custom order, a lot of it's one at a time. So really, the different models, kind of, in my opinion, determined what type of position each retailer was in.

然後，如果你進入另一個細分市場，即國內製造的室內裝飾，那麼在我看來，這可能是在我們所處的整個情況下最有利的地方，出於我剛才在一個案例中所述的所有原因。庫存位置。很多都是定制訂單，很多都是一次一個。事實上，在我看來，不同的模式決定了每個零售商所處的位置。

And going -- digging down on that in Labor Day, which you may have heard, and I realize it's only anecdotal at this time. What are you -- are you hearing any differences in how the demand is coming back to these retailers and to the various classes of retailers and the health of the inventories you mentioned, I think that the inventory seems to be -- do you think you've seen the end of destocking? So how are inventories at retail and among the majors, obviously, because the smaller guys would offer, as you said, order one by one. So when we...

在勞動節深入挖掘這一點，你可能已經聽說過，我意識到這只是軼事。你在說什麼——你是否聽到需求如何回到這些零售商和不同類別的零售商以及你提到的庫存健康狀況的任何差異，我認為庫存似乎是——你認為你去庫存已經結束了嗎？那麼，顯然，零售業和大型企業的庫存情況如何，因為正如您所說，較小的企業會提供一一訂購。所以當我們...

We believe they're getting in a much better position, but I think Labor Day, we're going to find out if that really put them over the -- over that line of feeling better about ordering more products. I think a lot of that has affected producers overseas. Of course, it's been slow. And in my opinion, and it's just strictly my opinion, I think that there will be some maybe overreaction in letting inventories get possibly too low.

我們相信他們的處境要好得多，但我認為在勞動節，我們將看看這是否真的讓他們對訂購更多產品感覺更好。我認為這在很大程度上影響了海外生產商。當然，進展很慢。在我看來，這只是我的觀點，我認為讓庫存可能過低可能會出現一些過度反應。

And then there might be, okay, how do I get things quick enough and we may be in a little bit of a bottleneck towards the end of the year? I don't know this, by the way, I'm just telling you what I think may happen.

然後可能會出現這樣的問題：好吧，我如何才能足夠快地完成任務，而到年底我們可能會遇到一些瓶頸？順便說一句，我不知道這一點，我只是告訴你我認為可能會發生的事情。

We've seen it before in the industry. That's happened before...

我們以前在行業中已經看到過這種情況。以前也發生過這樣的事...

Right, right. Exactly.

是的是的。確切地。

When you look at sales on a comparable basis, I realize we've got the ACH discontinuation. We've got some other things. How does it look on a same kind of same location basis, segment by segment or overall company?

當您查看可比基礎上的銷售額時，我意識到我們已經停止了 ACH。我們還有一些其他的事情。在相同地點、不同細分市場或整個公司的情況下，情況如何？

So I want to make sure I understand your question. Are you are you asking how we'll look across the different businesses now that ACH and the clubs business and whatnot are gone?

所以我想確保我理解你的問題。您是在問既然 ACH 和俱樂部業務等等都消失了，我們將如何看待不同的業務？

Well, I'm not looking at the future, looking at the quarter or at year-to-date, how was it on that basis with taking out the discontinued operations or the things that you -- the initiatives that you are paring back? So I'm sure you look at it on a kind of a comparable basis as well as an overall consolidated basis.

好吧，我不是著眼於未來，而是著眼於本季度或年初至今，在此基礎上，取消已終止的業務或您正在削減的舉措的情況如何？因此，我確信您會在可比較的基礎上以及整體綜合的基礎上看待它。

Yes. So ACH would have been $8 million to $10 million of that picture. I don't have the exact number you're looking for, but we'd be happy to jump on a call and figure that number out and give it to you later.

是的。所以這張照片的 ACH 價值為 800 萬至 1000 萬美元。我沒有您要查找的確切號碼，但我們很樂意接聽電話並找出該號碼並稍後提供給您。

That would be great. And when you look at -- you've talked about the destocking with the majors and the way you flow goods. You've got probably maybe the largest -- one of the larger import businesses as well. So what are you seeing -- you talked about, I think, before you're going to try and move away from your sourcing from China. And obviously, that's a big issue in society in the country. What are you seeing -- what's your progress on that? And what's the health of your suppliers in the Pacific rim?

那太好了。當你看時，你已經談到了與各大公司的去庫存以及貨物流通的方式。你們可能擁有最大的——也是較大的進口企業之一。那麼你看到了什麼——我想，在你打算嘗試放棄從中國採購之前，你談到了這一點。顯然，這是該國社會的一個大問題。你看到了什麼——你在這方面有什麼進展？您在環太平洋地區的供應商的健康狀況如何？

We feel really good about the health of our suppliers overseas. We're less than 10% now in China. We were as much as, I believe, I think we're around 35% at one point in China. So we've made a significant reduction in that. Also, a major improvement for us that we haven't talked about is the number of factories we used to deal with when we had the clubs business, when we had Accentrics Home, when we had RTA. I mean just to give you an idea, just Accentrics Home at over 60 factories.

我們對海外供應商的健康狀況感到非常滿意。我們現在在中國還不到10%。我相信，在中國，我們一度達到了 35% 左右。所以我們已經大幅減少了這一點。此外，我們還沒有談到的一個重大改進是，當我們擁有俱樂部業務時，當我們擁有 Accentrics Home 時，當我們擁有 RTA 時，我們曾經與工廠的數量打交道。我只是想給你一個想法，Accentrics Home 遍布 60 多家工廠。

So when you think about the people we have overseas, which is a really pretty substantial team, but them being able to focus on the number of factors we have now, which is we feel the correct number for our business, and it's not spreading out our team because we have quality and other individuals that have to be in those factories. So as you do that, you lose sight and focus on the things that actually matter, which is a big benefit to what we've done as well.

因此，當你想到我們在海外擁有的人員時，這是一個非常龐大的團隊，但他們能夠專注於我們現在擁有的許多因素，即我們認為對我們的業務來說正確的數字，並且它並沒有分散我們的團隊，因為我們擁有這些工廠必須具備的素質和其他人員。因此，當您這樣做時，您會忘記並專注於真正重要的事情，這對我們所做的事情也是一個很大的好處。

So Vietnam now the largest of supply countries?

那麼越南現在是最大的供應國嗎？

Yes.

是的。

Okay. And last for me would be HMI. Any other actions you're contemplating here that you can talk about? Obviously, if you've got some that may affect people, you probably can't talk about it, but any other things strategically that you see do you think they need to do with Home Meridian?

好的。對我來說最後一個是人機界面。您正在考慮的任何其他行動可以談談嗎？顯然，如果你有一些可能影響人們的事情，你可能無法談論它，但你認為從戰略上看，你認為它們需要與 Home Meridian 相關嗎？

No -- the nice thing about Home Meridian at this point is it's just we need to grow, and we're focused on growing Pulaski, growing Samuel Lawrence, PRI and also our hospitality division. And we have a lot of things, as we mentioned, over 1,000 store placements going out between -- right before this call and after which is going to, we believe, feed a lot of future revenues for HMI. And because as we mentioned, the overhead -- the breakeven point for HMI is such a different place now, that's why we feel so confident about how we're going to do within that business for the future.

不，Home Meridian 目前的好處是我們需要成長，我們專注於成長 Pulaski、Samuel Lawrence、PRI 以及我們的酒店部門。正如我們所提到的，我們有很多東西，在這次電話會議之前和之後進行了 1,000 多個商店安置，我們相信，這將為 HMI 帶來大量未來收入。因為正如我們所提到的，HMI 的管理費用——盈虧平衡點現在已經發生了很大的變化，這就是為什麼我們對未來在該業務中的表現如此有信心。

And I would have (inaudible) would have been a real strong point during the quarter with what's going on in the country. Is that true?

我本來（聽不清）會是本季度該國正在發生的事情的真正優勢。真的嗎？

I missed the first part of your question, I'm sorry.

我錯過了你問題的第一部分，抱歉。

I would say hospitality should have been -- I would think, would have been very strong during the quarter.

我想說，本季度的熱情好客應該非常強烈。

Yes, definitely bright spot. It was definitely a bright spot for us. Also the H Contract, which is focused on senior living was another bright spot for us throughout the quarter.

是的，絕對是亮點。這對我們來說絕對是一個亮點。此外，專注於老年生活的 H 合同是我們整個季度的另一個亮點。

I'm sorry about the remaining cost reductions of those warehouse reductions that we've got planned, we don't have any personnel related -- actively say we don't have any personnel related...

我對我們計劃的那些倉庫削減的剩餘成本削減感到抱歉，我們沒有任何相關的人員 - 積極地說我們沒有任何相關的人員......

No, we feel really good about our overhead position and also the cost -- the next cost reductions all have to do with more space in Savannah -- getting out of more space in Savannah to get to the 500,000 we talked about.

不，我們對我們的管理費用和成本感到非常滿意 - 下一次成本削減都與薩凡納的更多空間有關 - 騰出薩凡納的更多空間以達到我們談到的 500,000 人。

And also, we believe there's labor efficiency that will save us down there as well. So -- but most of our cost reductions have been taken care of. And our plan moving forward is just run a solid, sustainable business that is actually predictable and we don't have the surprises we've had to report in the past.

而且，我們相信勞動力效率也將拯救我們。所以——但我們的大部分成本削減已經得到解決。我們前進的計劃只是經營一個可靠、可持續的業務，這實際上是可以預測的，我們不會遇到過去必須報告的意外情況。

Okay. Paul, I would have thought one thing you did say is that the higher freight costs, is that out of the inventory now? Has impacted inventory it had to flow in there? Do you think all those excess of container freight costs are gone?

好的。保羅，我以為你確實說過一件事，那就是運費更高，現在缺貨了嗎？是否影響了必須流入那裡的庫存？您認為所有多餘的集裝箱運費都消失了嗎？

Yes. I think through the summer, we worked our way out of it. By the end of the summer, I think most of the excess costs were gone.

是的。我想整個夏天我們都在努力擺脫困境。到夏末，我認為大部分超額成本都消失了。

Our next question comes from Barry Haimes with Sage Asset Management.

我們的下一個問題來自 Sage 資產管理公司的巴里·海姆斯 (Barry Haimes)。

I had a couple of questions. First is could you give the backlog number at the end of the quarter and then what the comparison was both a quarter ago and a year ago?

我有幾個問題。首先，您能否給出季度末的積壓數量，然後比較一個季度前和一年前的情況？

End of July, the backlog was $88 million versus $201 million a year ago.

截至 7 月底，積壓訂單為 8,800 萬美元，而一年前為 2.01 億美元。

And what was it at the end of the first quarter?

第一季度末的情況如何？

End of the first quarter, it was $87 million versus $282 million the prior year.

第一季度末，該數字為 8700 萬美元，而上年同期為 2.82 億美元。

Got it. That's very helpful. And then just on BOBO, it seems like the acquisition certainly makes sense. But could you give us -- is it already closed? And if so, what was the closing date? And could you give us the price that you paid for it?

知道了。這非常有幫助。就 BOBO 而言，這次收購似乎確實有意義。但你能否告訴我們——它已經關閉了嗎？如果是的話，截止日期是哪一天？您能告訴我們您為此支付的價格嗎？

It was mid-June, June 12, and we paid $2.4 million. It was a small acquisition.

那是六月中旬，6月12日，我們支付了240萬美元。這是一次小型收購。

Our last question comes from John Deysher with Pinnacle Value Fund.

我們的最後一個問題來自 Pinnacle Value Fund 的 John Deysher。

Just back to BOBO for a second. Can you share with us what the revenue run rate was when you bought it?

回到 BOBO 來。您能與我們分享一下您購買時的收入運行率是多少嗎？

When we bought it, the revenue run rate was around $5 million. It's been in...

當我們購買它時，營業收入約為 500 萬美元。它已經在...

Okay. And obviously, you have growth expectations for it. How soon before that product line is integrated in terms of your sales force and distribution capabilities? When will that be accomplished?

好的。顯然，你對其有增長預期。就您的銷售隊伍和分銷能力而言，該產品線多久才能整合？什麼時候才能實現呢？

So it will be fully integrated with our sales force and distribution as of the October market coming up.

因此，從即將到來的 10 月份市場來看，它將與我們的銷售隊伍和分銷完全整合。

Okay. What is that -- at the end of October?

好的。十月底那是什麼？

I believe...

我相信...

Mid October.

十月中旬。

It's second or third week of October.

現在是十月的第二週或第三週。

Okay. All right. Good. And what do you think that business is capable of? I mean what is fully integrated? What would the dream be in terms of revenue for that business?

好的。好的。好的。您認為該業務有什麼能力？我的意思是完全集成是什麼？該業務的收入夢想是什麼？

We believe it will be a smaller brand for us on the top line. So $15-ish million is what we believe it can do fairly in a couple of years -- 2 to 3 years. But the bottom line, the margins and whatnot in those categories are different from kind of anything we do now. So it is -- it's somewhat impactful for us even at that volume level.

我們相信這對我們來說將是一個較小的品牌。因此，我們相信它可以在幾年（兩到三年）內實現 1500 萬美元左右的目標。但這些類別的底線、利潤以及其他內容與我們現在所做的任何事情都不同。確實如此——即使在這樣的音量水平上，它對我們也有一定的影響。

And it's supporting our sales, our brand.

它支持我們的銷售和品牌。

Right. It helps us complete a more whole home picture, and we can sell really the entire room in many ways.

正確的。它幫助我們完成更完整的家居圖片，我們可以通過多種方式出售真正的整個房間。

Yes. No, I mean it makes total sense. So you would say the margin profile is better than the core business?

是的。不，我的意思是這完全有道理。所以你會說利潤率狀況比核心業務更好？

Correct.

正確的。

Okay. Fair enough. Good. Then one final minor question. What were the orders for the quarter?

好的。很公平。好的。然後是最後一個小問題。該季度的訂單有多少？

$96 million.

9600萬美元。

I would now like to turn the conference over to Jeremy Hoff for closing remarks.

現在我想請傑里米·霍夫 (Jeremy Hoff) 致閉幕詞。

I would like to thank everyone on the call for their interest in Hooker Furnishings. We look forward to sharing our fiscal '24 third quarter results in December. 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 12 月份分享我們的 24 財年第三季度業績。小心。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。