Bassett Furniture Industries rises, reports higher Q3 profit
Bassett Furniture Industries, Inc. (Nasdaq: BSET) posted an increase in its third-quarter net income despite a drop in sales, the branded home furnishings retailer announced after the close on Thursday.
The net income for the three months ended Aug. 25 was $0.68 million, or $0.06 per share, compared with a net income of $0.06 million, or $0.01 per share, during the same quarter of 2006.
The profit rise was partially due to an increase in gross margins, which were 35%, compared with 30% a year earlier. The Bassett, Va.-based company shifted its product mix from domestic to imported and changed the way it invoices freight on wholesale shipments.
However, third-quarter sales fell 9% to $70.5 million, from $77.6 million a year earlier. Bassett Furniture, which operates a total of 132 stores, blamed the decline on continued soft furniture retail conditions.
“Our industry continues to suffer from sluggish consumer demand coupled with a weak housing market and a growing consumer credit crunch,” said president and CEO Robert Spilman Jr. in a statement.
At closing, Bassett Furniture Industries (BSET) shares had gained $0.66, or 7%, to $10.66. That’s not far from the 52-week low of $10, which was reached on Oct. 4. The 52-week high is $18.80, established on Dec. 15, 2006.
