Bassett Furniture Industries Reports Mixed Revenue Performance in Latest Quarter
Segments of Revenue
In the latest quarter, Bassett Furniture Industries reported revenue from different segments as follows:
Bassett Furniture Industries demonstrated strength in its Custom Upholstery segment, which generated the highest revenue of $223.01 million in the latest quarter. This represents an increase from the previous year's revenue of $163.76 million. The company's management attributed this growth to strong demand for custom upholstery products.
Additionally, the Accessories, Mattresses, and Other segment also showed promising performance with revenue of $39.81 million. Although there was no comparative data provided, this segment's revenue indicates a significant contribution to the company's overall revenue.
Bassett Furniture Industries faced challenges in its Leather and Casegoods segments. The Leather segment reported revenue of $28.65 million, which declined from the previous year's revenue of $37.66 million. The company cited higher ocean freight costs and weaker product demand as factors impacting this segment's performance. However, management expects margins for the Bassett Leather product to improve in the third quarter of 2024.
Similarly, the Casegoods segment reported revenue of $44.58 million, down from $55.01 million in the previous year. The company attributed this decline to the realization of high freight costs incurred in mid-2022. Despite this, margins in the Casegoods business improved over the latter half of 2023, with the fourth quarter's margins comparable to the same period in 2022.
It is noteworthy that Bassett Furniture Industries experienced lower margins in its Custom Wood segment due to lower sales volume in 2023 compared to the previous year. Additionally, the company's selling, general, and administrative expenses as a percentage of sales increased by 110 basis points, primarily due to reduced leverage of fixed costs resulting from decreased sales.
Bassett Furniture Industries reported mixed revenue performance in the latest quarter. While the Custom Upholstery and Accessories, Mattresses, and Other segments showed strength, the Leather and Casegoods segments faced challenges. The decline in revenue for the Leather segment was attributed to higher freight costs and weaker product demand, while the Casegoods segment was impacted by high freight costs incurred in mid-2022. However, the company expects improvements in margins for the Leather segment in the third quarter of 2024. Overall, Bassett Furniture Industries will need to address these challenges and focus on leveraging its strengths to drive future revenue growth.