Wholesale, retail gains push Bassett sales up 8.5% in quarter

Larry Thomas -- Furniture Today, September 27, 2012

BASSETT, Va. — Bassett Furniture Inds. said improvements in its wholesale and retail businesses led to a third-quarter sales gain of 8.5%.

The company said sales at its company-owned retail stores jumped 22.5% - including a comparable-store sales increase of 9.9% - and the retail segment cut its operating loss by $300,000 to $1.5 million.

Total sales for the quarter ended Aug. 25 were $64.4 million, up from $59.4 million in last year's third fiscal quarter.

Net income, including a $1.9 million federal tax refund, totaled $2.37 million or 21 cents per share. In the same quarter last year, net income was $417,000 or 4 cents per share.

"The achievement of solid growth in both our wholesale and retail segments in our fiscal third quarter was encouraging," said Rob Spilman, president and CEO. "New product introductions, comparable corporate retail sales gains, and greater penetration with open market independent retailers contributed to the 8.5% consolidated revenue growth that the company generated during the period."

Sales in the wholesale segment were up 6.9% to $44.8 million, while sales at company-owned stores totaled $41.2 million. That was a 22.5% increase from $33.6 million in the same quarter last year.

Bassett ended the quarter with 51 company-owned stores and 35 owned by licensees.

Spilman said he's optimistic about the fourth quarter as the company's HGTV Home branded furniture line begins to hit the sales floors of independent retailers. The design centers inside the Bassett Home Furnishings retail stores already have been co-branded with HGTV, he pointed out.

"As we move into what has generally been a stronger selling season for our industry, we believe this partnership will drive additional sales," said Spilman.

For the nine months ended Aug. 25, sales totaled $192.9 million, an increase of 1.5% from $189.9 million in the first nine months of the previous fiscal year.

Nine-month net income totaled $9.82 million or 82 cents per share. In the first nine months of the previous year, net income was $54. 7 million or $4.72 per share. That figure included a gain of more than $85 million on the sale of Bassett's stake in the International Home Furnishings Center.