Bassett Announces Fiscal Second Quarter Results

About this update from Bassett Furniture Industries, Incorporated

[{"type":"text","content":"BASSETT, Va., June 29, 2023 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced today its results of operations for its second quarter ended May 27, 2023. Fiscal 2023 Second Quarter Highlights (Dollars in millions) Sales Operating Income (Loss) 2nd Qtr Dollar% 2nd Qtr% of 2nd Qtr% of 2023 2022 ChangeChange 2023 Sales 2022 Sales Consolidated (1)$100.5 $128.7 $(28.2)-21.9% $2.5 2.5% $11.0 8.5% Wholesale$61.8 $87.5 $(25.7)-29.4% $7.0 11.3% $11.5 13.1% Retail$60.8 $75.6 $(14.8)-19.6% $0.8 1.3% $7.3 9.7% Corporate & Other (2)$2.3 $- $2.3 100.0% $(6.9)N/A $(7.5)N/A (1)Our consolidated results include certain intercompany eliminations. See Table 4, “Segment Information” below for an illustration of the effects of these items on our consolidated sales and operating income.(2)Corporate and Other includes the operations of Noa Home Inc. for 2023 along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments. This represents a change in our segment presentation from prior year periods. Previously, those shared Corporate costs had been included in the Wholesale segment and the operations of Noa Home Inc. were included in the Retail segment. Prior period results have been restated to conform to the current presentation. While our operating results were challenged by industry-wide soft demand, we successfully managed our balance sheet and maintained profitability during the second quarter. We are uncertain as to when the current sales environment will markedly improve, but we believe that our dedicated distribution strategy, domestic manufacturing platform, forthcoming e-commerce enhancements, and strong financial position will enable us to steadily grow revenue and shareholder returns as time goes on. Consolidated revenue declined by 22% compared to last year but was 4.9% greater than the comparable period in 2019. Wholesale orders declined by 18% on a year-over-year basis. Operating cash flow of $5.8 million was fueled by an 11% reduction in total inventory. Operating income of $2.5 million included a $1.0 million valuation adjustment associated with contingent consideration as part of last year’s acquisition of e-commerce retailer Noa Home. Operating income was negatively impacted by a $1.1 million write-down of our Club Level motion product. A significant portion of the existin...

More updates from Bassett Furniture Industries, Incorporated