Bassett Narrows Loss in First Quarter
April 6, 2012,
BASSETT, Va.-Bassett Furniture Industries posted a net loss of $596,000 in its fiscal first quarter, compared to a net loss of $8.3 million in the first quarter of last year.
The manufacturer/retailer accomplished this in spite of a net-sales drop of 5.1 percent, to $61 million. The key item for the quarter, which ended on Feb. 25, was a reduction in charges for bad debt and notes-receivable valuation of from $6.8 million in the first quarter of last year to $32,000 this year.
Gross margin gained 150 basis points to finish the quarter at 51.9 percent. Selling, general and administrative expenses increased 1.6 percent in dollars and 330 basis points as a percentage of sales, to 50.8 percent.
While noting that Bassett's financials improved in the quarter, Robert Spilman, president and CEO, said the company is still seeking to recover lost sales from the closing of 13 underperforming stores in 2011. "We believe that continued improvement in our store sales, coupled with the execution of several growth initiatives currently under way, will allow us to recapture the sales that were lost in last year's store closings and begin to generate sales growth as a result," Spilman said.
Other Articles By Author
Patti Carpenter Talks Color and its Importance in the Home
HFN's DIGITAL EDITION
2017 State of the Industry Report
Cautious Optimism, Mixed Results
Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.
ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.