Bassett Furniture 3rd-Quarter Profit Falls 77 Percent Amid Softer Retail Market


BASSETT, Va. (AP) — Home furnishings maker Bassett Furniture Industries Inc. said late Tuesday that its third-quarter profit fell 77 percent, as a softer retail market weighed on its sales.

Net income declined to $433,000, or 4 cents per share, from $1.9 million, or 16 cents per share, a year ago. Results included a $1.1 million, or 9 cent per share after-tax charge related to the acquisition of seven Bassett Furniture Direct stores in Atlanta and upstate New York.

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Revenue fell 6 percent to $77.6 million from $82.7 million last year. Analysts surveyed by Thomson Financial expected earnings of 12 cents per share.

“This was a tough quarter for the company,” said Robert H. Spilman, president and chief executive. “As we previously released, retail conditions continue to be challenging and our focus remains on improving the store program and building the Bassett brand.”

On a wholesale basis, net sales were $67.2 million, down 8.3 percent from the year-ago quarter, while retail sales were $20.1 million, basically flat with third quarter of 2012.

Bassett’s 26 corporate stores saw an operating loss of $3.8 million, compared with near breakeven results for the third quarter of 2012. The company said the losses relate primarily to the 15 stores acquired from three licensees in 2012. Additionally, net sales and margins were lower than planned due to soft retail conditions and its selling of products at clearance prices.