UPDATE 1-Hooker Furniture profit down on sales slump

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ATLANTA, June 6 (Reuters) - Hooker Furniture Corp. (HOFT.O) reported a 27 percent drop in first-quarter earnings on Wednesday, hurt by an industry sales slump.

The furniture maker said it expected sluggish retail conditions to continue through the summer, but added that profitability should improve during the current year, which ends Feb. 3, 2008, because of cost cuts and lower expenses.

Net income for the 13 weeks ended April 29 was $4.3 million, or 33 cents a share, down from $5.8 million, or 49 cents a share, for the three-months year-earlier period.

Analysts expected 35 cents a share, according to Reuters Estimates.

Sales fell 15 percent to $77.3 million, below analysts' estimates of $80.39 million as tracked by Reuters Estimates.

Over the last year, the Martinsville, Virginia, company has ended its employee stock ownership plans and improved distribution. Earlier this year, it closed its last U.S. wood furniture plant, a move expected to cut fixed costs by as much as $3.5 million a year.

Hooker also said it authorized a $10 million boost in the company's stock repurchase program, bringing the total to $30 million.

Hooker shares closed down 16 cents to $23.92 on the Nasdaq Stock Market. The stock has risen about 52 percent this year.