Bassett Furniture Q1 Revenues Dip 2.2%, EPS Falls to $0.13 as Ecommerce Grows 28%
Bassett Furniture reported first quarter revenue of $80.3 million, down 2.2% year-over-year, with operating income of $1.2 million (1.4% of sales) and diluted EPS of $0.13 versus $0.21. E-commerce sales rose 28%, and the company plans new store openings and expects $1.5–2.0 million in annual cost savings.
1. First Quarter Financial Results
Bassett Furniture posted Q1 revenue of $80.3 million, a 2.2% decline from prior year, generating $1.2 million in operating income (1.4% of sales) compared to $2.5 million (3.0%) a year ago, and reported diluted EPS of $0.13 versus $0.21.
2. Segment Performance
Wholesale revenue was $53.0 million, up 0.1%, with operating margin slipping to 15.8% from 16.4%, while retail sales fell 1.4% to $52.5 million, producing a $1.0 million operating loss largely due to absorbed tariffs.
3. Margin and Expense Trends
Gross margin contracted 80 basis points to 56.2% as both wholesale and retail margins softened; SG&A expenses rose to 54.7% of sales, and operating cash usage totaled $5.5 million due to seasonal working capital changes.
4. Strategic Investments and Outlook
E-commerce surged 28%, supporting an omni-channel emphasis; Bassett is building new stores in Cincinnati and Orlando and renovating in High Point, and expects $1.5–2.0 million in annual savings from cost initiatives starting late Q2.