HOFT's fiscal third-quarter results are expected to have been hurt significantly due to weak demand trends, higher product and under-absorbed indirect costs. Sluggish demand for home furnishings space is mainly attributable to high interest rates, subdued housing activity and other macroeconomic uncertainties. The top line is likely to have reflected the soft performance of its Hooker Branded and Domestic Upholstery segments. Also, absence of the Accentrics Home product line, which accounted for approximately 35% of the consolidated sales in fiscal 2024, is likely to have pushed down the sales of the Home Meridian segment. Nevertheless, the company's strategic investments in sales channels, people, systems and products are likely to have partially aided its performance. Hooker Furnishings emphasizes strengthening its balance sheet and variable cost business model to navigate the current economic volatility until consumer confidence improves and demand normalizes.