Bassett Q2 Net Climbs 30.6 Percent
Posted on July 2, 2014 by
BASSETT, Va.-Thanks to sales gains from both its wholesale and retail operations, Bassett Furniture Industries posted a 30.6 percent jump in second-quarter net income, to $2.6 million.
Total net sales in the quarter, which ended on May 31, increased 4.9 percent to $85.2 million. Sales in the wholesale segment rose 4.3 percent, with shipments to customers outside of Bassett's store network reporting a gain of 17 percent. Sales in the retail segment were up 3.5 percent, primarily from the opening of seven new stores in the past 12 months, according to a Bassett statement. Sales in Bassett's upholstery segment rose 8.1 percent, while sales in its wood division declined 3.1 percent.
The bottom line also got a boost from a 170-basis-point rise in gross margin, which finished the quarter at 53.2 percent. Selling, general and administrative expenses increased 6.6 percent in dollars and 80 basis points as a percentage of sales, to 48 percent.
Robert Spilman, Bassett's president and CEO, said the company is looking to expand its retail footprint beyond the 60 corporate- and 34 licensee-owned stores that were in operation at the end of the quarter.
"Our ongoing efforts to grow open-market sales continue to pay off while we are in the midst of targeted expansion and repositioning of the Bassett Home Furnishings store network," Spilman said. "We believe that significant growth opportunities remain in both channels as we further penetrate non-store geography and strategically grow our dedicated store distribution."