10-Q - BASSETT FURNITURE INDUSTRIES INC (0000010329) (Filer)

Thu, Jul 11, 12:06 PM (4 days ago)

Bassett Furniture Industries' Q2 2024 financial report shows a notable decline in performance compared to the same period in 2023. Quarterly net sales decreased by 17% to $83,410, primarily driven by a 15% decline in wholesale sales and a 17% drop in retail sales through Company-owned stores. Gross profit fell by 17.2% to $43,760, with gross margins slightly dipping by 10 basis points due to increased inventory valuation charges. SG&A expenses increased by 490 basis points as a percentage of sales due to lower sales volumes. The company reported a net loss of $7,201, compared to a net income of $2,076 in Q2 2023. For the six months ended June 1, 2024, net sales declined by 18.4% to $169,964, with a gross profit decrease of 16.7% to $91,627. The company also recognized non-cash asset impairment charges totaling $5,515, primarily related to underperforming retail stores and the decision to cease operations at Noa Home Inc. Cash flow from operations turned negative, with a $1,919 outflow compared to a $6,413 inflow in the prior year. Cash and cash equivalents stood at $42,646, down from $52,407 at the beginning of the fiscal year. The report indicates uncertainties and challenges ahead, impacting future operations and financial stability.