Wholesale, retail help Bassett Furniture to nearly 20% sales gain
Larry Thomas -- Furniture Today, October 3, 2013
BASSETT, Va. — Bassett Furniture Inds. said its sales jumped nearly 20% in the quarter ended Aug. 31 as the company's wholesale and retail segments turned in solid performances.
The company said the wholesale segment gained market share with independent dealers, while the company-owned Bassett Home Furnishings stores recorded a 3.9% comparable-store sales gain.
"Our multi-pronged sales strategy continues to bear fruit as we leverage our high level of service and logistics competencies over a broader spectrum of distribution," said Rob Spilman Jr., president and CEO. "While we experienced modest increases in wholesale shipments to our retail network in the quarter, we again gained share with independent furniture dealers and in our juvenile products division."
In addition, Spilman said shipments to the company's open market HGTV dealer network met internal goals for the quarter.
Net sales for the quarter totaled $77.2 million, an increase of 19.7% from $64.4 million in the same quarter last year.
Net income was $556,000 or 5 cents per share. That was down from $2.37 million or 21 cents per share in the comparable quarter. Bassett said last year's third fiscal quarter included a $1.9 million income tax benefit and a reversal of a portion of valuation allowance against certain deferred tax assets.
The company said wholesale shipments were up 18% in the quarter, with its upholstery and case goods businesses reporting similar gains.
Sales at the 55 company-owned retail stores rose 12%. The segment recorded an operating loss of $1.5 million, essentially the same as last year's third fiscal quarter.
The company said it is installing a $3 million retail operating system in its stores that should be complete by the end of the fiscal year in November. In addition, the segment incurred about $200,000 in costs associated with three stores slated to open in the fourth quarter.
For the nine months ended Aug. 31, sales were up 23.5% to $238.2 million.
Nine-month net income totaled $3.5 million or 32 cents per share. That was down from $9.82 million or 88 cents per share in the first nine months of the previous fiscal year. The prior-year period included $9 million in income from antidumping duties under the Continued Dumping and Subsidy Offset Act.