BASSETT, Va.—Bassett Furniture reported a 24 percent drop in its net income for the fourth quarter, and said it is negotiating to sell its 46.9 percent interest in the International Home Furnishings Center (IHFC).
Fourth-quarter net income totaled $1.9 million on net sales of $66 million, up 11 percent from last year’s fourth quarter. However, selling, general and administrative expenses for the quarter, which ended on Nov. 27, jumped 19 percent in dollars and increased 320 basis points as a percentage of sales, due to the addition of 11 Bassett-owned stores since last year’s fourth quarter. Gross margin gained 180 basis points to finish at 48.3 percent.
Regarding its negotiations to sell the IHFC interest, Robert H. Spilman Jr., Bassett’s president and chief executive officer, said a potential deal “offers us the opportunity to unlock value in a key non-core asset that we believe is not currently fully recognized in the company’s stock price, as well as to significantly strengthen our already strong balance sheet.”
For the fiscal year as a whole, Bassett posted a net loss of $2 million, compared to its net loss in the prior fiscal year of $22.7 million. Net sales finished the fiscal year at $235.3 million, up one percent over the previous fiscal year.