Bassett, VA, September 28, 2006--Bassett Furniture said its third-quarter profit fell 77 percent, as a softer retail market weighed on its sales.
Net income declined to $433,000, or $0.04 per share, from $1.9 million, or $0.16 per share, a year ago. Results included a $1.1 million, or $0.09 per share after-tax charge related to the acquisition of seven Bassett Furniture Direct stores in Atlanta and upstate New York.
Revenue fell 6 percent to $77.6 million from $82.7 million last year. Analysts surveyed by Thomson Financial expected earnings of $0.12 per share.
"This was a tough quarter for the company," said Robert H. Spilman, president and chief executive. "As we previously released, retail conditions continue to be challenging and our focus remains on improving the store program and building the Bassett brand."
On a wholesale basis, net sales were $67.2 million, down 8.3 percent from the year-ago quarter, while retail sales were $20.1 million, basically flat with third quarter of 2005.
Bassett's 26 corporate stores saw an operating loss of $3.8 million, compared with near breakeven results for the third quarter of 2005. The company said the losses relate primarily to the 15 stores acquired from three licensees in 2005. Additionally, net sales and margins were lower than planned due to soft retail conditions and its selling of products at clearance prices.
