HOOKER FURNISHINGS Corp Leases Disclosure
NOTE 11 – LEASES
In fiscal 2020, we adopted Accounting Standards Codification Topic 842 Leases. See “Leases” under Note 1 for a discussion of our accounting policies and elections under Topic 842. The analysis below includes office space, warehousing facilities, showroom space, and office equipment related to our continuing operations. Leases and sub-leases associated with the discontinued operations of the PFC and SLF businesses, as well as the former Home Meridian segment, have been excluded for all periods presented.
We have a sub-lease at one of our warehouses and we recognized sub-lease income of $252,000 in fiscal 2026.
The components of lease cost and supplemental cash flow information for leases in fiscal 2026, 2025, and 2024 were:
| 52 Weeks Ended | 53 Weeks Ended | 52 Weeks Ended | ||||||||||
| February 1, 2026 | February 2, 2025 | January 28, 2024 | ||||||||||
| Operating lease cost | $ | 6,587 | $ | 6,648 | $ | 6,223 | ||||||
| Variable lease cost | 325 | 354 | 248 | |||||||||
| Short-term lease cost | 193 | 325 | 399 | |||||||||
| Total operating lease cost | $ | 7,105 | $ | 7,327 | $ | 6,870 | ||||||
| Operating cash outflows | $ | 6,956 | $ | 7,007 | $ | 6,360 | ||||||
The right-of-use assets and lease liabilities recorded on our Consolidated Balance Sheets as of February 1, 2026 and February 2, 2025 were:
| February 1, 2026 | February 2, 2025 | |||||||
| Real estate | $ | 22,328 | $ | 38,329 | ||||
| Property and equipment | 687 | 935 | ||||||
| Total operating leases right-of-use assets | $ | 23,015 | $ | 39,264 | ||||
| Current portion of operating lease liabilities | $ | 5,445 | $ | 6,311 | ||||
| Long term operating lease liabilities | 19,468 | 35,331 | ||||||
| Total operating lease liabilities | $ | 24,913 | $ | 41,642 | ||||
The weighted-average discount rate is 4.91% at February 1, 2026. The weighted-average remaining lease term is 5.5 years.
The following table reconciles the undiscounted future lease payments for operating leases to the operating lease liabilities recorded in the consolidated balance sheet at February 1, 2026.
| Fiscal Year | Undiscounted Future Operating Lease Payments | |||
| 2027 | $ | 6,546 | ||
| 2028 | 4,685 | |||
| 2029 | 3,915 | |||
| 2030 | 3,881 | |||
| 2031 | 3,913 | |||
| 2032 and thereafter | 5,833 | |||
| Total lease payments | $ | 28,773 | ||
| Less: impact of discounting | (3,860 | ) | ||
| Present value of lease payments | $ | 24,913 | ||
As of February 1, 2026, the Company had an additional lease for an administrative office in High Point, North Carolina. This lease is expected to commence in April of calendar 2026 with an initial lease term of seven years and estimated future minimum rental commitments of approximately $2.2 million. Since the lease has not yet commenced, the undiscounted amounts are not included in the table above.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 17, 2026 | Showing above |
| 2025 | Apr 18, 2025 | |
| 2024 | Apr 12, 2024 | |
| 2023 | Apr 14, 2023 | |
| 2022 | Apr 15, 2022 | |
| 2021 | Apr 16, 2021 | |
| 2020 | Apr 17, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.