by Wholesale segment of business also reports a boost in operating income representing 16.4% of sales
BASSETT, Va. — Bassett Furniture reported a 5.1% drop in Q1 revenues, but also marked its second sequential quarter of profitability following last year’s restructuring.
For the quarter ended March 1, it reported net sales of $82.2 million, down from $86.6 million the same period last year. It noted that the prior year’s quarter also had an additional week, and accounting for this, its net sales increased 2.2% from the same period last year.
However, it also reported $1.8 million, or 21 cents per share, in net income compared with a net loss of $1.2 million, or 14 cents per share, the same period last year.
It also reported operating income of $2.6 million, or 3% of sales, compared with a loss of $2.4 million the prior year.
On the retail side of its business, sales for the quarter totaled $53.3 million, down .5% from $53.8 million last year. The wholesale side of the business reported $52.9 million in sales, down 1.8% from $54.7 million the same period last year.
While the retail side of the business reported no operating income, compared to a loss of $1.6 million last year, the wholesale side of the business reported operating income of $8.7 million, or 16.4% of sales, compared with $6.8 million in operating income, or 12.4% of sales last year. The company said that this drove its gross margin to 57%, a 170 basis point increase over last year.
Selling, general and administrative expenses were 54% of sales, which it said was 400 basis points lower over the prior year.
“We’re pleased that with consolidated margin improvements in the first quarter, Bassett delivered diluted earnings per share of $0.21,” said Robert H. Spilman Jr., chairman and chief executive officer. “We reduced our cost structure to operate with greater efficiency while we accelerate product innovation to drive higher sales. Our strategic plan for 2025 is designed to weather another year of tepid demand for home furnishings and keep us focused on growth initiatives, including new collections across all categories and e-commerce sales. We believe we’ve taken the right steps to position us very competitively for 2025.”
