BASSETT, VA -Bassett Furniture's consolidated sales rose to $81.2 million for the second quarter, up 20 percent compared to the same period in 2012.
Bassett Furniture (Nasdaq:BSET) reported a $3.3 million net income for the quarter compared to $10.0 million in 2012. This is due to Bassett's receiving $9 million cash distribution last year from the Continued Dumping and Subsidy Offset Act ("CDSOA") of 2000. Without the CDSOA funds, income for the period would have been $0.9 million.
"This marks the third consecutive quarter in which our revenue grew by at least 20% compared to the prior year, which underscores the fact that we are definitely gaining market share at the moment," Bassett President and CEO Robert Spilman Jr. said in a statement. "Virtually every sales channel, including our Bassett Home Furnishings stores, open market furniture stores, our juvenile division, and the HGTV Home Furniture Collections account base generated meaningful sales increases in the period. While we acknowledge that economic conditions have definitely improved in general, we also believe that we are currently outpacing industry-wide sales trends."
Bassett reported a 17 percent increase in net sales for the period in the wholesale segment, to $53.9 million. "Our wholesale segment continued to post better results in the quarter as both our upholstery and wood operations posted strong growth," Spilman said.
"Our domestic upholstery operations, driven by strong consumer reaction to our assortment, were able to produce at full strength. This enabled our domestic upholstery volume to post a 20 percent increase in revenue and a 45 percent increase in divisional operating profit. We have been able to efficiently manage our labor costs to accommodate these robust work schedules, thus enhancing our profitability.
Spilman added, "On the wood products front, we were again able to post double digit sales growth despite the overall difficulty that the segment is experiencing in the industry. Wood sales increased 16 percent for the period. Divisional operating results, however, were flat. We began trimming our overall wood SKU count to achieve better asset utilization and the corresponding discounts affected our wood profitability in the quarter. We plan to continue this process for the rest of 2013 in order to accomplish our internal inventory turn objective."
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