Bassett Furniture Q2 Revenue Falls 0.7% While EPS Rises to $0.24
BSET•Bassett Furniture reported Q2 revenues of $83.8 million, down 0.7% year-over-year, with operating income of $2.2 million (2.7% of sales) versus $2.5 million (3.0%) prior year. Diluted EPS rose to $0.24 from $0.22 and gross margin expanded 90 basis points to 56.5%.
1. Second Quarter Financial Results
Bassett Furniture reported Q2 revenues of $83.8 million, a 0.7% decline year-over-year, and operating income of $2.2 million, down from $2.5 million in the prior period. Diluted earnings per share increased to $0.24 from $0.22, reflecting modest profitability improvement.
2. Segment Performance
Wholesale segment sales decreased 2.0% to $53.1 million with operating income of $8.2 million (15.4% of sales), while retail sales rose 2.4% to $55.5 million but generated only $0.1 million of operating income (0.2% of sales). Intercompany eliminations account for the gap to consolidated figures.
3. Margin and Expense Analysis
Gross margin improved by 90 basis points to 56.5%, driven primarily by higher wholesale margins offsetting softer retail profitability. Selling, general and administrative expenses excluding new store preopening costs represented 53.3% of sales, an adjusted 20-basis point improvement from last year.
4. Cash Flow and Strategic Initiatives
The company generated $7.4 million of operating cash flow in the quarter and has begun realizing savings from a plan to cut $1.5–$2.0 million in annual expenses by year-end. Ongoing initiatives include omni-channel marketing enhancements, opening-price merchandise launches, and digital user-experience investments.
