Bassett Q2'FY14 sales rise 4.9% to $85.2mn

02 Jul '14

3 min read

Bassett Furniture Industries, Inc. announced its results of operations for its fiscal second quarter ended May 31, 2014.

Fiscal 2014 Second Quarter Highlights

-Consolidated sales were $85.2 million for the second quarter of 2014 compared to $81.2 million for the second quarter of 2013, an increase of 4.9%.

-Operating income for the quarter was $3.9 million or 4.6% of sales as compared to $3.4 million or 4.2% of sales for the prior year quarter.

-Wholesale operating profit increased to $4.3 million or 7.6% of sales as compared to $2.8 million or 5.3% of sales for the prior year quarter.

-Net income increased to $2.6 million or $0.24 per diluted share as compared to $2.0 million or $0.18 per diluted share. 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% compared to the prior year quarter with comparable store sales essentially flat.

-Opened one new store in Hartsdale, New York and completed a store reposition in Little Rock, Arkansas.

-Generated $8.5 million in operating cash during the second quarter of 2014.

On a consolidated basis, the Company reported net sales for the second quarter of 2014 of $85.2 million as compared to $81.2 million for the second quarter of 2013, an increase of $4.0 million or 4.9%. Operating income for the quarter increased $0.5 million to $3.9 million, or 4.6% of sales, primarily due to improved gross margins, partially offset by $0.5 million of higher new store related losses (both pre- and post-opening). The Company reported net income of $2.6 million or $0.24 per diluted share for the second quarter of 2014 compared to net income of $2.0 million or $0.18 per diluted share in the second quarter of 2013.

Wholesale Segment

Net sales for the wholesale segment were $56.2 million for the second quarter of 2014 as compared to $53.9 million for the second quarter of 2013, an increase of $2.3 million or 4.3%. Wholesale shipments to the open market (outside the Bassett Home Furnishings store network) increased 17% and shipments to the Bassett Home Furnishings store network decreased by 4.0% compared to the prior year quarter.

The Company continues to gain market share in the traditional furniture store channel as recent product offerings have been well received. Sales to the Bassett Home Furnishings store network have continued to be negatively impacted by slower business during the winter months from inclement weather along with overall softness in the demand for wood furniture. Gross margins for the wholesale segment were 33.9% for the second quarter of 2014 as compared to 32.6% for the second quarter of 2013.

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Bassett

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