Bassett Goes from Loss to Profit in Q1
BASSETT, Va.-A 31 percent jump in net sales helped Bassett Furniture Industries to transform its first-quarter bottom line from a $596,000 net loss to net income of $980,000.
Net sales totaled $79.8 million. Robert Spilman, Bassett's president and CEO, said the company had gained some momentum on its top line at the end of last year, which continued into the first quarter, which ended on March 2. Sales improved in Bassett Home Furnishings stores, and the company gained market share from its independent retailers, Spilman said.
Sales at the stores were up 29 percent in total and included a 16 percent pickup in same-store sales. Wholesale sales registered a gain of 27 percent.
Gross margin declined 10 basis points to 51.8 percent. Selling, general and administrative expenses jumped 25.7 percent in dollars, but fell 210 basis points as a percentage of sales to 48.8 percent.
While giving credit to a number of aspects, Spilman noted that Bassett's HGTV partnership--which includes advertising, promotions and the conversion of its in-store design centers to HGTV Design Studios--is resonating with shoppers. "Consumers...are buying more with each transaction, signifying growth in our in-home makeover capability, a key point of differentiation for Bassett stores," he said.