Sep 8, 2023

BASSETT, Va.– Bassett Furniture Industries Inc.’s preliminary results for the quarter ended August 26, 2023, showed that consolidated net sales were approximately $87 million or 26% lower than the corresponding period in 2022. As a result, the furniture maker expects to report an operating and net loss for the quarter. Wholesale shipments dropped by 27% for the quarter, and wholesale orders were “only” 5% lower than the prior-year quarter.  Bassett is an FDMC300-listed company. In the latest ranking of top North American wood products companies, Bassett came in #38 with $325,6 million in sales and employs approximately 2,100 workers. Despite the expected net loss, the company will report positive operating cash flow and a cash and short-term investment balance of more than $65 million. In addition to the lower sales volumes, several unusual events contributed to the operating loss. These events included the closure of one store and a clearance center during the quarter resulting in lower-margin clearance sales.  In addition, Bassett continued with ongoing discounting of its Club Level inventory. The company also temporarily closed its Austin, Texas, 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 is planned for opening in early 2024. The company launched its new website on August 10, which represented the culmination of many months of consulting expenses and management time.  According to the company’s press release, early feedback from customers and in-store designers has been positive and the company looks forward to utilizing the new navigation features, coupled with fresh brand imagery, to drive an enhanced user experience.  Finally, while the Labor Day promotion sales were behind pandemic-era levels, the company was pleased that total written volumes were comfortably ahead of 2019 results despite 12 fewer company-owned stores. Given its positive cash flow and continued strong balance sheet, the Board of Directors also increased the Company’s regular quarterly dividend by 12.5% during the quarter. The company plans to issue a final press release for the third quarter before the market opens on September 28, 2023.