and Paul, everyone. afternoon good you, Thank
for HMI conditions the dip, quarter. drove consolidated issues several was quarter and home furnishings earnings driven weighed soft in the sales retail earnings by across disappointing Our first demand the X% also our our Meridian Home Reduced in on cost-related industry which the Segment. performance primarily
the well sales All furniture impact Hooker performed Segment reasonably quarter. parts tariff decline and and Branded and of Other China, component furniture the from the for XX% on a imported our Given
So, in all of improvement businesses. we have our strategies for
demurrage at well large costs Meridian with issues and associated costs as included higher freight, cost-related a as inventories. The Home quality chargeback, our
Meridian's of the imports In of customers margins base in nature our from due the HMI's Home already addition, had more tariff large affected many prices. other customer pre-tariff pipeline XX% business China to its the as at orders on were units and by lower
However, increased in pricing resourcing and strategies are place.
out planned of countries China non-tariff mostly shift is production of on to Our schedule.
expected of In the shift third is accelerating to during by quarter, the fact, mostly the the end is complete current and fiscal be quarter.
companies receipt and furniture backlogs earnings public across our we all down reporting heard from with what the and release As in were quarter impacted negatively and February industry most our retail experienced was the throughout units business to however orders period in the early due Reduced and be single-digit in their year. our below mid conversations believe encouraged fiscal placement in the part delaying orders the faced of Hooker Meridian's remain uptick in been to retail the by We've prior We Segment. shipments in larger customers in reorders the our Home environment of down across reported mid-April, sales to rates of and softer we've fourth April. of year March, continue of Branded demand many according consistently to still response order during and customers. May
second orders to Meridian for this be to quarter, during performance second-half better for to Home much start XXXX see expect We improve our and the fiscal segment.
challenges lower million addressing businesses. both net decreased in loss to was gross our these the of sales. quarter. all margin to approximately mainly operating Segment, with in profit Hooker Branded each The and improve attributable the We're $X.X primarily in decreased the profit in of Segment Due strategies profitability operating HMI income to
confined fall throughout believe selling the expect issues These are While challenges that recur. of do negatively chargeback, to to impacting about customer tariff-prompted quality-related many few postponed persist year-end, Meridian at shipments retailers. which limited the to price season. and large at the implementation a unlikely increases, profitability we're includes to excess We product, single Home optimistic we the and delayed a of was freight summer, large demurrage costs these costs, more
units, operating had with channels year, doubled, the along units lion increase during and sales such in well Meridian the Hooker XX% e-commerce nearly by H higher Home, the to increase H a and with sales the included incoming orders Contract Hospitality both as year X% than quarter XX%. is sales of business dedicated XX% units than sales a higher are improved margins quarter increases reported more had last Other In backlog period our Upholstery, While ago. Home emerging the gross share residential industry, approximate non-residential profits. and the a that SLH our X% an of which sales it's Contract Accentrics and Segment, operating the that performed furniture in ended significant noteworthy grew than Lawrence which nearly during same business quarter. Samuel
significant additional from Turning furniture component furniture amount brings XX%. on shipped tariff China far total the components imported China XX, furniture imports a imposed XXXX Finished to XX% macroeconomic furniture after as and became tariff. most from The and subject May now this the an the parts increased year on to so to additional tariff has development whole, economy been from the China.
projecting in Corporation Home a customers is from prices from to XX% over vendor receiving increased segment, also from As divisions non-tariff to value By of production in the moving degree. lesser the production priced strategies production XX% Other our many upholstery price that address line by be countries will the China. company's at and producers is concessions are non-tariff imported where fall. February raising Home include our XXXX, possible. PRI Meridian product division tariffs Meridian away Chinese of countries of Hooker China Furniture resourcing to
can form and when amount the concessions and At by coming be tariff vendor Casegoods, our the beyond China Hooker from significant away Hooker Hooker Upholstery moving outside long-term dropped desirable costs or vendor of portion craftsmanship makes that a most if on entirely are Chinese the months. is Upholstery a offset during Casegoods in of and reversed surcharge tariffs reduced. moving Hooker the a are passing increased their action. relationship the main of of less China specialized company's production six the of
increases in component Chinese all China. parts is However, receiving Vietnam, mitigate company help from Domestically-produced and in tariffs included the can tariffs priced vendor receiving be to concessions upholstery factory will and selected alternative impact vendor some of be shifted. develop vendor new countries, in into imported price on to production opening all from is items, is enacting are The a divisions continuing price and concessions production producers. other the where
the Taking our Hooker Segment. a closer I'll begin Branded segments, of look with at each
As and business from mentioned, the XX% given sales decline initial this tariff, disruptions the segment well. the performed
profitable $X.X the Hooker segment still upper or down partially Hooker segment offset Casegoods X% increase. highly increase sales margin Our net during this This sales X.X%. XX% quarter, Upholstery's and by was million in was with operating were single-digit sales in
sales offset resource Profitability $XX.X for H segment retirement shortly the Lower of income in new our was includes and reporting Division Moore manufacturing performance operating Sam top growing in $XX.X living approximately sales divisions, company $X.X President the first through Contract, end which domestic to continued of communities. A quarter. programs. line the partially and upholstery Other, reduced first will line quarter and which growth solid current upholstery by joined the quarter, senior furnishings All after driven H shipments were and margin segment reported X.X%, with more divisions, on with domestically-produced XX%. or year's the million and Moore million, in Sam selection of focus by at Sam decrease the upholstery in better the a in specializes Contract, last million a with broader transition into robust full from selling Bradington-Young, Moore, helping net a Shenandoah, along
the At Boone call this to turn on the quarter. to this I'd Lee point, more detail over HMI give segment to like
