From Home Furnishing Business
Bassett Q2 Sales up Almost 5 Percent
Net income for the period ended May 31 rose to $2.6 million, or $0.24 per diluted share, from $2 million in last year's second quarter. The current year quarter included $0.7 million in new store related losses as compared to $0.2 million for the prior year quarter.
Company-owned store delivered sales increased 3.5 percent compared with the prior year quarter, with comparable store sales essentially flat. During the second fiscal quarter, Bassett opened one new store in Hartsdale, N.Y.; and completed a store reposition in Little Rock, Ark.
"Wholesale shipments to customers outside of our store network and sales from new Bassett store locations were the primary drivers behind the 4.9 percent increase in consolidated revenue recorded during the second quarter of fiscal 2014," said Robert H. Spilman Jr., president and CEO. "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. We believe that significant growth opportunities remain in both channels as we further penetrate non-store geography and strategically grow our dedicated store distribution.
"Further, the 15 percent increase in operating income achieved in the quarter came despite bearing the costs associated with an abnormally active period of new store development. Building on the past three years of retail comparable store sales growth, we are excited about expanding our footprint beyond the 60 corporate and 34 licensee-owned stores that were in operation at the end of May. We also look forward to continued improvement in profitability as we move ahead with lower levels of new store opening expenses."
Click here for the complete Bassett second-quarter release.