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Bassett Furniture (BSET) – Call With Management On Business Conditions

Retail and Consumer
0 min read

Monday, August 23, 2021

Bassett Furniture (BSET)
Call With Management On Business Conditions

Bassett Furniture Industries, Inc. is a leading manufacturer and marketer of high-quality home furnishings. With 96 company- and licensee-owned stores located throughout the United States, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett’s retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. The Company also has a traditional wholesale business with more than 700 accounts on the open market and a logistics business specializing in the transport and warehousing of home furnishings. In addition, Bassett sells its products through its website at www.bassettfurniture.com. With revenues in excess of $450 million, approximately 75% of its goods are manufactured, assembled and/or finished in factories located in Virginia, North Carolina and Alabama with the remainder primarily sourced from Asia. The Company was founded in 1902 and is based in Bassett, Virginia.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Management Call. We were able to speak with CFO Michael Daniel regarding the Company’s recent press release on current business conditions. The biggest challenge, one affecting many industries, is finding labor, and then keeping labor. The lack of labor supply is rippling throughout the organization, increasing cost pressure. Bassett also continues to receive additional cost increases from vendors which will negatively impact wholesale margins for the third quarter and likely will result in a fourth price increase this year.

    COVID Rears Again.  In addition, the recent resurgence of COVID in Asia has caused some suppliers to temporarily cease operations. The Company sources a significant amount of its bedroom and formal dining room furniture and certain component parts for manufacturing operations from Asia, particularly Vietnam …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

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