Bassett Posts Profit in Second Quarter
July 9, 2010,
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.
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.