Bassett Furniture sees Q3 revenue $87M, down 26% from last year

Bassett Furniture Industries announced that consolidated net sales for the quarter ended August 26 were approximately $87M or 26% lower than the corresponding period in 2022, and that as a result, it expects to report an operating and net loss for the quarter. While wholesale shipments dropped by 27% for the quarter, wholesale orders were only 5% lower than the prior year quarter. In spite of the expected net loss, the Company will report positive operating cash flow and a cash and short-term investment balance in excess of $65M. In addition to the lower sales volumes, several unusual events contributed to the operating loss. First, the Company closed one store and a clearance center during the quarter resulting in lower margin clearance sales. In addition, the Company continued with ongoing discounting of its Club Level inventory. The Company also temporarily closed its Austin, TX store for an extensive remodeling with a planned reopening later this month. Construction on the new Tampa, FL store proceeded with a planned opening date in mid-October. The Company should end the year with 90 Bassett Home Furnishings stores of which 58 would be Company-owned and operated. Another new store in Houston, TX is planned for opening in early 2024.