Mike Hughes's questions to HG Holdings (STLY) leadership • Q1 2015
Question
Mike Hughes from SGF Capital asked about the revenue timing and margin profile of the new youth furniture backlog, the specific financial impact of Q1 freight costs, and whether the full-year profitability guidance excludes a one-time gain.
Answer
CEO Glenn Prillaman stated the youth furniture backlog will begin shipping in Q3 with comparable margins, projecting $4-4.5M in sales for the year. PFO Anita Wimmer quantified the incremental freight cost impact at approximately 250 basis points on gross profit and confirmed the full-year profitability forecast is based on operating results, excluding the CDSOA distribution gain.