BASSETT, VA - Bassett Furniture Industries, Inc. (Nasdaq:BSET) saw third quarter sales rise 1.5 percent to $59.4 million, primarily driven by a 12% increase in retail sales due to additional volume from newly-acquired company-owned stores and a 4.3% increase in comparable store sales.Net income was $400,000, down by $2 million from the year prior.

"The pace of incoming order rates that we enjoyed earlier this year began to slow in April and continued to weaken during our third quarter," said Robert H. Spilman Jr., president and CEO in announcing the earnings report. "The turmoil of closing stores and acquiring underperforming licensees, though still hindering our results, is subsiding. Our accounts receivable is in better shape than the pre 2008 recession period."

Bassett Furniture Industries says it recorded $100,000 in bad debt and notes receivable valuation charges during the third quarter of 2011, down from $1.3 million for the third quarter of 2010, reflecting improved credit positions of its licensees after several quarters of large bad debt and notes receivable valuation charges.