La-Z-Boy Incorporated (LZB), Hooker Furniture Corporation (HOFT): The Housing Rebound Is Benefiting These Furniture Companies

In looking forward, Ethan Allen Interiors Inc. (NYSE:ETH) has a series of new products that it is rolling out into its design centers. The new products have new styles, colors and finishes to attract a younger buyer. In addition to new product offerings, international expansion is in the cards. Ethan Allen Interiors Inc. (NYSE:ETH) just opened its second European location in Antwerp, Belgium, and its other location is in Brussels. The company has plans in place to open stores in Saudi Arabia, Jordan, Korea, Romania, and China.

To boost brand awareness, the company plans to increase ad spending to capture the strong fall market. Starting in September, Ethan Allen Interiors Inc. (NYSE:ETH) is going to spend 10% to 20% more than it did last September to reach 3 million to 4 million more households than last year. The company is hoping the increased ad spending boosts sales.

The south’s furniture maker

For the first quarter, Hooker Furniture Corporation (NASDAQ:HOFT) reported net sales of $56.3 million and net income of $2.1 million. This compares to net sales of $51.7 million and net income of $1.0 million in the prior year. The strength in the latest quarter was the result of higher sales across all operating units and increased operating margins.

To achieve higher levels of growth going forward, the company is expanding its product line outside its core demographic. Its new Homeware product line is being launched to target young people just getting started and entering the workplace. This new line will be sold online and is easily assembled in the home without any tools. The second new product line is geared towards retirees moving into senior living facilities, which is a rapidly growing market.

Hooker Furniture Corporation (NASDAQ:HOFT) is also getting active in e-commerce with its P3 initiative. Hooker Furniture Corporation (NASDAQ:HOFT) is building out e-commerce sites with its independent dealers to offer brands from Hooker Furniture Corporation (NASDAQ:HOFT). As more buying is done online, the growth prospects for Hooker in this arena are tremendous. By setting the e-commerce site as a partnership with its dealers, the likelihood for success is much greater as both parties have a vested interest in achieving results.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Mark is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article The Housing Rebound Is Benefiting These Furniture Companies originally appeared on Fool.com is written by Mark Yagalla.

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