Friday, April 01, 2022
Bassett Furniture (BSET)
Exceeds Estimates in a Challenging Market
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.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
1Q21 Results. Revenue for the fiscal first quarter ended February 28th was $117.1 million, up 15.9% y-o-y. Wholesale revenue rose 19% to $83.5 million, while Retail revenue rose 3.7% to $64.1 million. Bassett reported net income from continuing operations of $4.3 million, or $0.44 per share, compared to net income from continuing operations of $3.7 million, or $0.37 per share, in the prior year. We had forecast revenue of $110 million and EPS from continuing operations of $0.36.
Orders Remain Strong, Working Off Backlog. Wholesale orders remained relatively strong during 1Q22, although they declined y-o-y due to the Club Motion segment, where there remains a large backlog and shipping challenges have been most impactful. Wholesale backlog ended the quarter at $78 million, down from $90.1 million at fiscal yearend …
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.
