Bassett Posts Q3 Sales Gain of 19.7 Percent; Net Falls on 2012 Income Tax Benefit
BASSETT, Va.-Bassett Furniture Industries recorded its fourth consecutive quarter of double-digit sales growth in its fiscal third quarter ending on Aug. 31. Net sales totaled $77.2 million, up 19.7 percent.
Because of a favorable provision related to its 2011 federal tax return recorded in last year's third quarter, the company's net income in the quarter fell 76.5 percent to $556,000. Without that tax benefit, Bassett's net increased 31.7 percent.
Bassett received double-digit sales increases from both its wholesale and retail segments, with the former's sales rising 18 percent and the latter posting a 12 percent gain. Robert Spilman Jr., president and CEO, said the company achieved sales over a "broader spectrum of distribution" and gained market share with independent furniture dealers and in its juvenile products division.
Gross margin in the quarter was slimmed by 230 basis points to 50.2 percent. Selling, general and administrative expenses rose 14.7 percent in dollars but were down 220 basis points as a percentage of sales, to 49.1 percent.
Spilman said Bassett still needs to bolster its bottom line, in particular with its retail segment, which reported an operating loss in the quarter. He said the company is putting in place a new retail operating system that will enable its stores to operate more efficiently. He also said the company remains "focused and optimistic that we will continue to further improve our operating results as we move forward."