Bassett Posts Profit in Second Quarter
BASSETT, Va.--Bassett Furniture Industries reported net income of $117,000 for the second quarter, compared to a net loss of $9.9 million in the second quarter of 2009.
The company's bottom-line improvement was driven mostly by a 580 basis-point jump in its gross margin, to 49.2 percent, which resulted from the retail segment's increased share in the overall sales mix. Margins from the Bassett-owned stores and the wholesale operation also rose, according to a company statement. Total net sales rose 0.2 percent to $57.8 million.
Robert Spilman, president and chief executive officer, said the higher gross margin reflected the "progress" Bassett made in strengthening its balance sheet in the second quarter. Spilman also said cash flow was positive for the fifth consecutive quarter, enabling the company to reduce its debt.
Selling, general and administrative expenses increased 5.8 percent in the quarter. Bassett said this included bad-debt expense of $1.1 million, a decrease of 81 percent from last year's second quarter.