BASSETT, VA - Bassett Furniture Industries, Inc. (Nasdaq:BSET) consolidated sales for the fourth quarter decreased 4.1% to $63.3 million versus the 2010 fourth quarter. Net income declined more than two-thirds, to $0.6 million from $1.9 million, partly due to a $0.9 million increase in income tax expense.
But the residential furnishings manufacturer says sales in its company-owned stores increased 13 percent to $39.4 million, with a 4.9 percent comparable store increase (locations that have been open and operated for all of each comparable reporting period). Traditional and export furniture sales increased 8.4 percent as Bassett added market share.
Wholesale sales declined 11 percent to $43.7 million, as the company moved to close or takover retail outlets that were in arrears. "In order to reduce accounts receivable exposure from underperforming retail licensees, the company ultimately ended 2011 with 15 fewer licensed stores than at year end 2010," says Bassett Furniture CEO Robert H. Spilman Jr.
"The emphasis has now squarely shifted to fine tuning the Company's operating performance," he said in announcing the results. Results were tempered by increased selling, general and administrative spending related to a planned launch of a new HGTV Home Division this fall, and restructuring charges related to closed plant demolition and store closure and relocation costs.
Have something to say? Share your thoughts with us in the comments below.