Bassett Announces Certain Preliminary Financial Results for the Fiscal Third Quarter
06 Setembro 2023 - 10:00AM
September 6, 2023 – Bassett Furniture Industries, Inc. (Nasdaq:
BSET) announced today that consolidated net sales for the quarter
ended August 26, 2023 were approximately $87 million or 26% lower
than the corresponding period in 2022, and that as a result, it
expects to report an operating and net loss for the quarter. While
wholesale shipments dropped by 27% for the quarter, wholesale
orders were only 5% lower than the prior year quarter. In spite of
the expected net loss, the Company will report positive operating
cash flow and a cash and short-term investment balance in excess of
$65 million.
In addition to the lower sales volumes, several
unusual events contributed to the operating loss. First, the
Company closed one store and a clearance center during the quarter
resulting in lower margin clearance sales. In addition, the Company
continued with ongoing discounting of its Club Level inventory. The
Company also temporarily closed its Austin, TX 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, TX is
planned for opening in early 2024.
The Company launched its new website on August
10th, which represented the culmination of many months of
consulting expense and management time. 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 in spite of 12 fewer
Company-owned stores.
Given the Company’s 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.
About Bassett Furniture Industries, Inc. Bassett
Furniture Industries, Inc. (NASDAQ:BSET), is a leading manufacturer
and marketer of high quality home furnishings. With 89 company- and
licensee-owned stores at the time of this release, Bassett has
leveraged its strong brand name in furniture into a network of
corporate and licensed stores that focus on providing consumers
with a friendly environment for buying furniture and accessories.
Bassett’s retail strategy includes stylish, custom-built furniture
that features the latest on-trend furniture styles, free in-home
design visits, and coordinated decorating accessories. Bassett also
has a traditional wholesale business with more than 700 accounts on
the open market, across the United States and internationally and a
logistics business specializing in home furnishings. For more
information, visit the Company’s website at bassettfurniture.com.
(BSET-E)
Certain of the statements in this
release, particularly those preceded by, followed by or including
the words “believes,” “plans,” “expects,” “anticipates,” “intends,”
“should,” “estimates,” or similar expressions, or those relating to
or anticipating financial results or changes in operations for
periods beyond the end of the third fiscal quarter of 2023,
constitute “forward looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended. For those
statements, Bassett claims the protection of the safe harbor for
forward looking statements contained in the Private Securities
Litigation Reform Act of 1995. In many cases, Bassett cannot
predict what factors would cause actual results to differ
materially from those indicated in the forward-looking statements.
Expectations included in the forward-looking statements are based
on preliminary information as well as certain assumptions which
management believes to be reasonable at this time. The following
important factors affect Bassett and could cause actual results to
differ materially from those indicated in the forward looking
statements: the effects of national and global economic or other
conditions and future events on the retail demand for home
furnishings and the ability of Bassett’s customers and consumers to
obtain credit; the success of marketing, logistics, retail and
other initiatives; and the economic, competitive, governmental and
other factors identified in Bassett’s filings with the Securities
and Exchange Commission. Any forward-looking statement that Bassett
makes speaks only as of the date of such statement, and Bassett
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Comparisons of results for current and any prior periods are not
intended to express any future trends or indication of future
performance, unless expressed as such, and should only be viewed as
historical data.
J. Michael Daniel Senior
Vice President and Chief Financial
Officer (276) 629-6614 – Investors
mdaniel@bassettfurniture.com
Peter D. Morrison Vice
President of Communications (276) 629-6450 – Media
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