Hooker Furnishings Corporation (NASDAQ:HOFT) Q1 2024 Earnings Call Transcript

Jeremy Hoff: 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. So, we’ve already made arrangements to hand over 200,000 of the 1 million square feet that will happen July 1st this year — this fiscal year. We’re working on some other plans that our goal would be to get that down to 500,000. 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 profitable — quarterly profitability by the end of fiscal year.

Anthony Lebiedzinski: Got it. Yes. Thanks Jeremy. And then do you guys have the consolidated backlog number by any chance handy?

Paul Huckfeldt: Yes. Consolidated backlog right now was — at the end of the quarter was at $87 million.

Anthony Lebiedzinski: 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?

Jeremy Hoff: So first, your number was close on the Sunset West, what we referred to as far as the disruption. They are 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, there — 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 in the larger go-lives. So, we feel confident and feel good about where we’re headed with our ERP system.

Paul Huckfeldt: And if we don’t–

Anthony Lebiedzinski: Got it. Okay.

Jeremy Hoff: 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.

Anthony Lebiedzinski: 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 the see — heard from retailers about the important Memorial Day weekend?