Regions Southern Virginia

Bassett Furniture posts profit for its third quarter

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Bassett Furniture Industries Inc. posted a profit of $400,000, or 4 cents a diluted share, for the third quarter of its fiscal year after losing money during the same period last year.

Consolidated sales for the quarter ended Aug. 27 were $59.4 million, up 1.5 percent from $58.5 million for the same quarter last year.

The sales increase was primarily driven by a 12 percent increase in retail sales. This increase was partially offset by a 4.3 percent drop in wholesale sales.

The company had a net loss of $2.4 million, or 21 cents per diluted share, for the quarter ending Aug. 28, 2010.

Gross margins for the third quarter of 2011 and 2010 were 49.2 percent and 45.5 percent, respectively.

“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. “Nevertheless, we were able to improve our operating performance compared to last year, particularly in our retail division. 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. And, of course, the positive effects of the IHFC transaction on our entire balance sheet position the Company to focus on growing the top line and improving results.

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