Bassett posts $8.7 million loss in first fiscal quarter
By Larry Thomas -- Furniture Today, April 13, 2009
BASSETT, Va. — Bassett Furniture Inds. recorded a net loss of $8.7 million in its first fiscal quarter as sales tumbled 27.2%.
Sales for the 13-week period ended Feb. 28 totaled $59.4 million, down from $81.6 million in the 14-week quarter that ended March 1, 2008.
The company said sales were down in all segments of its business, but said the wood furniture business was hit particularly hard by a wave of discounted bedroom and dining room furniture that has hit the market and depressed prices.
“This trend seems to be subsiding, but has nevertheless caused major short-term damage to the wood furniture segment of the industry,” said Rob Spilman, president and CEO. “Upholstery, on the other hand, has been more stable from a pricing standpoint.”
The most recent quarter’s net loss, which equaled 76 cents per share, compares with net income of $518,000 or 4 cents per share in last year’s first fiscal quarter.
Spilman said lower store traffic hampered sales at the 115 Bassett Furniture Direct retail stores, and said same-store sales declined 12.4% at the 34 locations that are company-owned.
“We will aggressively rationalize the store network by working with those dealers that we believe can survive the recession, closing stores that are no longer viable, and acquiring stores in situations where we feel we can improve their current operating performance,” he said.
Spilman said 10 to 12 licensed stores will be closed this year, including four stores where liquidation sales already have begun.
“We are hoping for, but not planning on, a slight rebound in business in the second half of 2009,” he said. “Meanwhile, we will focus on expenses, work to strengthen our licensed store network, improve corporate store results, and continue to introduce new products to help all of our customers spark consumer interest.”
Bassett Furniture Inds.
Owns Bassett Glass, Bassett Motion and Bassett Supply
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.
| 13 weeks ended 2/28 | 2009 | 2008 | Change |
| Sales | $59,368,000 | $81,599,000 | (27.2%) |
| Operating income | (5,564,000) | 412,000 | — |
| Net income | (8,683,000) | 518,000 | — |
| Earnings per share | (0.76) | 0.04 | — |
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Bassett Furniture posts $8.7 million loss in quarter
Apr 10, 2009
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