BASSETT, Va.-Bassett Furniture Industries posted net sales increases of 8.1 percent for its fourth quarter ending on Nov. 30, and 19.1 percent for its 2013 fiscal year.
Fourth-quarter net sales tallied $83.1 million, bringing the fiscal-year total to $321.3 million. Net income for the quarter was $1.6 million, down 90.5 percent, and for the year it was $5.1 million, down 80.9 percent. The bottom-line results reflected an income tax benefit stemming from the reduction of certain valuation reserves against Bassett’s deferred tax assets.
Robert Spilman, Bassett’s president and CEO, attributed the fourth-quarter and fiscal-year sales increase to gains in wholesale shipments (35 percent for the year) and same-store sales (5.6 percent). Spilman added that the gains were built on the “significant accomplishments” the company made during the year. He noted the $14 million of capital investment to improve the company’s operations and set the stage for future revenue growth, and the integration of its new retail operating system.
Fourth-quarter gross margin rose 80 basis points to 53.1 percent. Selling, general and administrative expenses increased by 7.3 percent in dollars but declined 40 basis points as a percentage of sales, to 48.5 percent.
Spilman said fiscal-year 2014 would carry forward the momentum from 2013. “Our retail sales channel remains the solid foundation upon which we drive the Bassett brand, our marketing and our wholesale sales and profitability,” he said. He added that Bassett will add five new stores and reposition two others in the first half of the year, and reposition three other stores in the second half.