Bassett Furniture Q3 sales down 9%
The shortfall in sales was primarily due to continued soft furniture retail conditions, which have impacted both retail sales and wholesale shipments. Gross margins for the third quarter were 35% compared to 30% for the third quarter of 2006, primarily due to a shift in product mix from domestic to imported, improved retail margins and a change in classification of invoiced freight on wholesale shipments. The company reported net income of $0.7 million, or $0.06 per share, as compared to net income of $0.1 million, or $0.01 per share, in the third quarter of 2006. Robert Spilman Jr, president and CEO, said: "Our industry continues to suffer from sluggish consumer demand coupled with a weak housing market and a growing consumer credit crunch. Industry conditions remain difficult and our results for the third quarter reflect that." Although business conditions are tough, we are excited about our recently announced retail strategies. Our dealers' reception of our new lines introduced in September have been extremely positive. We also believe that the new prototype recently introduced in Atlanta and Charlotte will reinforce both our commitment to elevating the visual appeal of our stores while highlighting our custom furniture capabilities."