Bassett Quarterly Sales Decline Slightly

October 9, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on October 2008 Bassett Furniture Industries reported Thursday that sales in its third quarter totaled $70.2 million—a decline of $338,000 from the same period of 2007. It recorded a net loss of $2.7 million versus net income of $676,000 during 2007’s third quarter.

For the 40-week period that ended Aug. 30, Bassett’s sales increased 3 percent to $226.6 million, with a net loss of $2.5 million versus a $5.9 million loss a year earlier. The company, which operates a network of about 120 stores, said it opened three stores and closed 13 under-performing stores in the first nine months of this year and expects to close three to five by the end of the year.

Sales in the company’s retail segment increased to $24 million from $22.2 million in the third quarter, according to the announcement, which did not provide a comparable store sales figure.

“Despite our overall disappointing results, we believe that progress was made in key areas of our operations,’’ said Robert H. Spilman, Bassett’s president and CEO. “We continue to show improved gross margins in both the wholesale and retail divisions over 2007, and our new product introductions have been well-received. We also have been successful in reducing our overall cost structure through targeted spending reductions. We remain encouraged by the sales results from our new retail store prototype despite the ongoing difficult home furnishings environment. Sales per square foot in the new format continue to meet our expectations and to noticeably outperform our existing fleet average.”

In addition to closing under-performing stores, he said the company is reducing inventory to improve cash flow and “right-sizing our expense structure” in both the retail and wholesale divisions.

He said the company also is making investments in store prototype conversions and working with licensees to improve their operating results.

“With the improvements in our retail program and our strong balance sheet, we are well positioned to not only survive these turbulent times, but also to gain market share as come of our competitors exit the industry,” Spilman said.