Preliminary results released Sept. 6 show net sales were 26% lower than the same period in 2022
BASSETT, Va. — Upholstery and case goods manufacturer Bassett Furniture Industries said it expects to report an operating and net loss for the quarter due to a double-digit decline in sales, according to preliminary financial results for its fiscal third quarter ended Aug. 26.
The company said that total consolidated net sales for the quarter were about $87 million, down 26% from the same period last year. It noted that while wholesale shipments fell 27% for the quarter, wholesale orders were only about 5% lower compared to the prior-year quarter.
Despite its expected net loss, it said that it will report positive cash flow and a cash and short-term investment balance of more than $65 million.
Other factors that contributed to the anticipated operating loss include the closing of one store and a clearance center during the quarter that resulted in lower-margin clearance sales. It also continued to discount its Club Level inventory and closed its Austin, Texas, store for an extensive remodeling. A reopening is planned for later this month.
The company added that construction continues on its Tampa, Florida, store, which is planned to open in mid-October. With that opening, the company will have 90 Bassett Home Furnishings stores, some 58 of which will be company owned and operated. It plans to open a new Houston store in early 2024.
The company said that it also launched a new website on Aug. 10, which it said “represented the culmination of many months of consulting expense and management time. Early feedback from customers and in-store designers has been positive and the company looks forward to utilizing the new navigation features, coupled with fresh brand imagery, to drive an enhanced user experience.”
It noted that while Labor Day promotion sales were behind pandemic-era levels, it was pleased that total written volumes were “comfortably ahead of 2019 results in spite of 12 fewer company-owned stores.”
Finally, the company said that it increased its regular quarterly dividend by 12.5% during the quarter, which it attributed to its “positive cash flow and continued strong balance sheet.”
Bassett plans to release its full financial results for the fiscal third quarter on Sept. 28.