Bassett-based Bassett Furniture Industries Inc. reported that its fourth quarter net income dropped 67 percent because of income tax expense.
The company said it recorded a profit of $633,000 during the quarter, which ended Nov. 26. It had a net income of
$1.9 million during the same period in 2010.
The company said the decline was caused by a $900,000 increase in income tax expense.
Consolidated sales for the fourth quarter declined 4.1 percent to $63.3 million from $66 million the year before.
Company owned store delivered sales rose 13 percent to $39.4 million. Comparable-store sales (sales at locations operating in comparable reporting periods) increased 4.9 percent.
Wholesale sales, however, declined 11 percent to $43.7 million.
Gross margins increased to 52.6 percent of sales, up from 48.3 percent from the fourth quarter of 2010.
Bassett should expect more of the same with their abysmal customer service. They get failing grades in Products, Service and Honesty. Until they fix these critical components of any successful business, shareholders should brace themselves for more disappointing results. http://wp.me/pSCE3-fM
--andy_mcf
Jan. 26, 2012 at 10:00 AM