Friday, September 30, 2022
Bassett Furniture Industries, Incorporated manufactures, markets, and retails home furnishings in the United States. The company operates in three segments: Wholesale, Retail, and Logistical Services. It is involved in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned and licensee-owned Bassett Home Furnishings (BHF) retail stores, as well as independent furniture retailers; and wood and upholstery operations. As of September 16, 2017, the company operated a network of 91 company-and licensee-owned stores. It also provides shipping, delivery, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties. It also distributes its products through other multi-line furniture stores, Bassett galleries or design centers, specialty stores, and mass merchants. Bassett Furniture Industries was founded in 1902 and is based in Bassett, Virginia.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q22 Results. Revenue for the fiscal third quarter ended August 27, 2022 was $118 million, up 12.5% over the prior year period. Wholesale revenue rose 8.3% to $79 million, while Retail revenue rose 21.0% to $70.9 million. Excluding a $4.6 million one-time gain, operating income was $6.1 million, up 22.1%. Bassett reported net income from continuing operations of $7.8 million, or $0.84 per share, compared to net income from continuing operations of $3.4 million, or $0.35 per share, in the prior year. We had forecast revenue of $120 million and EPS from continuing operations of $0.65.
Retail the Star. Once again, Bassett’s retail network was the quarter’s star performer, with “best ever” third quarter deliveries of $70.9 million and $4.5 million of operating profit. Segment operating profits in the first nine months exceed any full year performance to date.
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.