Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On September 4, 2024, Hooker Furnishings Corporation (the "Company") and Tod R. Phelps, Senior Vice-President-Operations and Chief Information Officer, reached an agreement separating Mr. Phelps from the Company effective immediately. Consistent with the terms of separation "without cause" as outlined in the Company's Proxy Statement filed on Schedule 14A on May 3, 2024, Mr. Phelps will receive a cash severance equal to twelve (12) months of salary ($330,000) and the value of his restricted stock units as of the date of termination on a pro-rated basis ($109,000).

"We are making this change as part of a larger cost savings project, originally announced in June 2024. This project is aimed at reducing operating costs and improving profitability and is driven by persistent low demand in the home furnishings industry caused by the current poor macro-economic environment," said Jeremy Hoff, CEO of Hooker Furnishings Corporation.

"Tod has been an integral part of Hooker for over seven years and has served in key roles during his tenure. He joined the Company as Chief Information Officer (CIO) in 2017 and was named Senior Vice President - Operations and CIO in February 2021. He led the Company's recent ERP implementation project which was completed in our Legacy Hooker divisions last year," Hoff said. "We thank him for his service and wish him well in his future endeavors," Hoff concluded.