Bassett Furniture Industries Reports Strong Third Quarter Results

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Bassett Furniture Industries ($NASDAQ:BSET) reported strong third quarter results, with GAAP EPS of $0.82 and revenue of $118.01M. The company attributed the strong performance to continued focus on execution of its growth strategy, which is driving increased market share and profitability. Bassett’s strong results are a continuation of the positive momentum the company has been experiencing in recent quarters, and position the company well for continued success in the future.

Earnings

This represents a 7.2% increase in total revenue and a 237.2% increase in net income compared to the same period last year. Bassett Furniture Industries has seen significant growth in total revenue over the past three years, increasing from $385.9 million to $521.5 million. This strong performance is a result of the company’s focus on delivering high-quality furniture and excellent customer service. Bassett Furniture Industries is well-positioned for continued success in the future.

Market Price

On Thursday, shares of Bassett Furniture Industries opened at $16.40 and closed at $16.20, representing a 1.8% decline from the prior day’s closing price of $16.50. Bassett Furniture has been struggling lately, with its stock down nearly 30% over the past year. The company has been hurt by weak demand for its products, as well as higher costs associated with tariffs. Bassett Furniture is scheduled to release its fiscal fourth quarter results on Friday, and investors will be closely watching to see if the company can turn things around.

VI Analysis

The company is classified as a “rhino”, meaning it has achieved moderate revenue or earnings growth. This makes it less risky and volatile, as it pursues a sustainable growth rate. The company has a high health score of 8/10, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy.

Summary

“We are very pleased with our results for the third quarter,” said Rob Spilman, Bassett’s CEO. “Our sales and earnings growth was driven by our continued focus on executing our strategic initiatives. We are especially encouraged by the double-digit sales growth in our Direct-to-Consumer channel, which was driven by our continued investments in marketing and technology.” Bassett’s strategic initiatives are designed to increase brand awareness, expand the Company’s Direct-to-Consumer channel, and improve gross margin. These initiatives are expected to result in increased sales and earnings over the long term.

In the near term, these initiatives are expected to continue to pressure operating margins as the Company continues to invest in marketing and technology to drive growth. Bassett Furniture Industries is a leading manufacturer and marketer of branded home furnishings products. Bassett’s products are marketed through an extensive network of independent and corporate licensed retailers, along with a limited number of Bassett stores. For more information, visit the Company’s website at http://www.bassettfurniture.com.