by Consolidated sales were driven by strong performance in the retail and wholesales sides of its business
BASSETT, Va. – For its third fiscal quarter ended Aug. 30, Bassett Furniture reported an increase in sales and net income, reflecting ongoing improvements in its business amid ongoing challenges with housing and the overall economy.
The company reported consolidated sales of $80.1 million, up 5.9% from $75.6 million the same period last year. Excluding sales from its Noa Home e-commerce division that closed late last year, it said, consolidated revenues rose 7.3%.
It also reported net income of $801,000, or 9 cents per share, compared with a net loss of $4.5 million, or 52 cents per share last year.
Its retail and wholesale segments both reported increases in revenue during the period, with retail sales rising 9.8% to $51.9 million, from $47.3 million and wholesale sales rising 6.2% to $50.8 million, from $47.8 million.
The company reported $600,000 in operating income during the quarter, which was .7% of sales, compared with a loss of $6.4 million the same period last year. The company said the loss last year was because of a $1.2 million loss on an abandoned logistical services contract along with other costs associated with a cyber incident last year that suspended all financial and manufacturing operations for seven days.
It reported gross profit of $45 million, or 56.2% of net sales, compared with $40.1 million or 53% of net sales the same period last year. It said this was a 320-basis point improvement in gross margin over last year related to improved margins in the wholesale side of the business along with $600,000 in manufacturing wages paid during last year’s cyber shutdown.
Meanwhile SG&A totaled $44.4 million, or 55.4% of sales for the quarter compared with $45.2 million, or 59.8% of sales the same period last year. The company said this was 420 basis points lower than the prior year, “reflecting benefits from the prior year restructuring plan and ongoing cost containment activities, greater leverage of fixed costs from higher sales levels, as well as the costs associated with the cyber incident in the prior year period.”
“We’re pleased to report increases in revenue, operating income and gross margin this quarter, despite a continued challenging environment for home furnishings sales,” said Robert H. Spilman, Jr., chairman and chief executive officer. “We remain nimble in managing Bassett’s business by introducing new products that are resonating with the consumer, becoming more aggressive in marketing and e-commerce, and adjusting to the difficult circumstances affecting components in the supply chain. Our US manufacturing base positions us well to serve wholesale and retail customers with custom furniture and design services.”
