Bassett Posts 1Q Loss

Bassett, VA, April 3, 2007--Bassett Furniture in the first quarter reported a net loss of $4.2 million or $0.35 per share as compared to net income of $2.2 million or $0.18 per share in the first quarter of 2006.

Sales for the first quarter of 2007 were $73.4 million down 15% from the $86.5 million reported in the first quarter of 2006. As previously announced, this shortfall is primarily due to continued soft furniture retail conditions which have impacted both retail sales and wholesale shipments.

The company had announced the sale of its Weiman operation and said it plans to cease operations at its wood manufacturing facility in Bassett. It said it will source the majority of the products currently produced at this facility from overseas suppliers

Net sales in the company’s wholesale segment were $62.3 million for the first quarter of 2007, 18% below first quarter 2006 levels.

Bassett's said its 27 corporate stores continued to experience relatively soft conditions at retail with sales of $21.2 million in the first quarter of 2007 as compared to $21.9 million in 2006.