Bassett Q2 Net Totals $2 Million
Posted on July 9, 2013 by
BASSETT, Va.-Bassett Furniture Industries posted net income of $2 million for its fiscal second quarter ending on June 1.
The net total was down 75.7 percent from last year's second quarter, which included $9 million of income relating to the cash distribution from the Continued Dumping and Subsidy Offset Act, which involved the company's support of an anti-dumping petition against producers of wood furniture in China. Bassett's operating income for the quarter, before the effect of this extra income, rose 110.4 percent.
Net sales rose 20.4 percent to $81.2 million, including a 20 percent gain in sales from Bassett's retail segment and an increase of 17 percent from its wholesale sector. Same-store sales from the retail operation were up 9.3 percent. In the wholesale area, Robert Spilman, president and CEO, attributed the gain to "strong growth" from both its upholstery and wood operations.
Gross margin declined 140 basis points to 51.5 percent. Selling, general and administrative expenses were up 14.9 percent in dollars but fell 230 basis points as a percentage of sales, to 47.3 percent.
Spilman said the quarter for Bassett brought "meaningful improvement in our quest to become a more profitable company. As we operate through the historically weaker third quarter, we will continue to closely monitor the relationship between our revenues and expenses."