Hooker Furnishings returned to profitability in 2Q27 despite continued soft industry demand, with $63.3M of revenue, $1.3M of operating income and materially improved underlying margins. Reported gross margin reached 31.8% as tariff recoveries provided a significant benefit, although Stonegate estimates consolidated gross margin still improved roughly 70 bps y/y after adjusting for tariff recoveries and customer credits. Backlog increased 6.2% y/y, led by Hooker Branded, while Margaritaville shipments began during the quarter and are expected to build through 2H27 and into FY28. With most restructuring actions complete, the next phase of the recovery increasingly depends on converting stronger order momentum into revenue and sustaining improved profitability without additional tariff support.