Bassett 2Q Sales Jump 15%

July 6, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on July 7, 2011

Bassett Furniture Inds. (NASDAQ: BSET) reported second-quarter 2011 sales of $66.3 million, a 15 percent increase over the prior-year period.

The company attributed the sales increase to a 25 percent jump in sales at retail due primarily to additional company-owned stores and a 4 percent increase in comparable store sales, coupled with a 6.8 percent increase in wholesale sales.

Net income for the period ended May 28 increased 94.4 percent over second-quarter 2010 to $62.5 million. Bassett received cash proceeds of $67.8 million during the quarter from the sale of IHFC. As a result, the company has elected to retire certain debt and other long-term obligations, settle various obligations related to closed stores and idle facilities, and resume paying a quarterly dividend and buying back stock. In addition Bassett also might use its strengthened cash position to meet future working capital needs and making modest investments in new or repositioned company-owned stores.

Year to date, Bassett's sales of $130.5 million are up 17.9 percent from the same point last year. Net income stands at $54.3 million, compared with a loss of $1.6 million through the first half of 2010.

"Our second quarter featured several significant developments that will positively impact the company's future," said Robert H. Spilman Jr., president and CEO of Bassett, Bassett, Va. "Most notable, of course, was the closing of the IHFC transaction. As a result, we initiated a series of actions that included store closings, licensee takeovers, and debt settlements that will put an end to the past few years of dealing with these issues. By the end of the third quarter, the Company will operate over 50 percent of all Bassett Home Furnishings stores, and the remaining licensee fleet is a much healthier network than we have been working with since the housing bubble burst in 2007-2008. In light of the progress that we are making in our corporate retail division, our team is excited to be able to focus its full attention on improving performance of the remaining stores and to adding new ones to the group."

Currently, there are 90 Bassett Furniture Direct stores, 46 corporate-owned. Eleven locations have closed since November 27, 2010.

Click here for the complete release from Bassett Furniture.