Bassett Furniture Reports Revenue Growth Amid Economic Challenges

BASSETT, Va. – In a recent financial update for the third fiscal quarter ending August 30, Bassett Furniture has showcased remarkable revenue growth despite ongoing challenges in the housing market and economic landscape. The company reported consolidated sales of $80.1 million, reflecting a notable 5.9% increase from $75.6 million in the same quarter last year. Excluding the previously closed Noa Home e-commerce division, consolidated revenues experienced a 7.3% surge.

Financial Highlights

• Net Income: Bassett Furniture achieved net income of $801,000, equating to 9 cents per share. This marks a significant recovery from the net loss of $4.5 million or 52 cents per share reported the previous year.
• Retail and Wholesale Performance: Both retail and wholesale segments contributed to the revenue increase:
  • Retail Sales: Rose by 9.8%, reaching $51.9 million compared to $47.3 million last year.
  • Wholesale Sales: Increased by 6.2%, totaling $50.8 million, up from $47.8 million.

Operating Income and Cost Management

Bassett reported operating income of $600,000, representing 0.7% of sales. This is a stark contrast to a loss of $6.4 million in the same quarter last year, primarily due to a $1.2 million loss from an abandoned logistical services contract, alongside costs related to a cyber incident that temporarily halted operations for seven days.

• Gross Profit: The company reported a gross profit of $45 million, equivalent to 56.2% of net sales, up from $40.1 million or 53% the previous year. This improvement reflects a 320-basis point increase in gross margin, driven by enhanced profitability in the wholesale sector and adjusted manufacturing costs linked to last year’s incident.

• Selling, General, and Administrative (SG&A) Expenses: SG&A totaled $44.4 million, or 55.4% of sales, down from $45.2 million, or 59.8% a year prior. The reduction of 420 basis points was attributed to the benefits of a previous restructuring plan, ongoing cost containment efforts, and increased fixed-cost leverage from higher sales.

CEO’s Remarks on Future Outlook

In his statement, Robert H. Spilman Jr., Chairman and CEO, expressed optimism: “We’re pleased to report increases in revenue, operating income, and gross margin this quarter, despite a continued challenging environment for home furnishings sales.” He emphasized the company’s agility in navigating business conditions by introducing innovative products, ramping up marketing and e-commerce efforts, and effectively managing supply chain challenges. “Our U.S. manufacturing base positions us well to serve wholesale and retail customers with custom furniture and design services,” Spilman concluded.

Conclusion

Bassett Furniture’s recent performance underscores its resilience in facing economic hurdles. With significant revenue growth across retail and wholesale segments, alongside effective management of operational challenges, the company is well-positioned for continued success in the competitive home furnishings market. For further insights into the latest developments in the furniture industry, visit our blog on ChatbiHouse.

This overview provides a clear picture of Bassett Furniture’s financial health and strategic initiatives that aim to bolster its market presence during uncertain times.