Bassett 2Q Sales, Earnings Up

June 27, 2006  by in UnCategorized   

By Home Furnishings Business in Upholstery on June 2006 Full-line major supplier Bassett Furniture Inds. reported sales of $87.7 million and net income of $2.9 million for second-quarter 2006. Sales were up 5.5 percent from the prior-year period, while net income was almost triple.

Year-to-date sales were up 6 percent to $174.2 million, and net income up 53 percent to $5.2 million.

Bassett credited its improved sales and earnings performance to an increased number of corporate-owned Bassett Furniture Direct stores--the network currently has 136 stores, 25 owned by the company--and a better mix of imported goods in the product line.

Bassett’s wholesale second-quarter sales of $75.4 million were essentially flat, with the BFD network accounting for around two-thirds of shipments. Imports accounted for 43 percent of shipments versus 32 percent the prior-year period.

Bassett’s corporate retail sales in second-quarter 2006 totaled $20.9 million, tripling prior-year numbers; and up to $42.8 million year-to-date, compared to $16 million at the same point in 2005. The company credited those increases almost entirely to the acquisition of 15 BFD stores in 2005.

Bassett closed two corporate stores during the second quarter, located in Texas and Georgia, and had an operating loss of $2.5 million in its stores during the period.

“We are pleased with the continued earnings progress of our wholesale segment,” said Rob Spilman, president and chief executive officer of Bassett. “Actions taken over the past several years to restructure our wholesale business have resulted in better returns, and we expect continued improvement.”

Spilman added that Bassett has developed a financial plan to reduce retail losses to a break-even level over the next 12 to 18 months.