Bassett Furniture Industries (NASDAQ: BSET) experienced a decline in its shares after announcing its fiscal first-quarter results on Wednesday. The report revealed earnings per share (EPS) of $0.13, missing the consensus estimate of $0.19. The company's revenue also fell short, coming in at $80.34 million compared to the expected $84.38 million.
The Virginia-based furniture manufacturer reported a 2.2% decrease in revenues compared to the prior year quarter. Operating income also declined, landing at $1.2 million, or 1.4% of sales, compared to $2.5 million, or 3.0% of sales, in the same period last year. The company cited a weak housing market and weather disruptions as factors that pressured demand.
Bassett's management noted a 28% increase in e-commerce sales and ongoing investments in new stores. The company is also implementing cost-cutting initiatives expected to save $1.5 to $2.0 million annually. Despite these efforts, the company's net income fell to $1.1 million, with operating margins slipping from 3.0% to 1.4%.
The furniture industry is currently navigating a challenging economic environment that includes supply chain disruptions, inflation, and changing consumer spending habits. Bassett's results highlight the pressures facing furniture retailers as they adapt their strategies to remain competitive. The company's stock traded at $14.21 in the final minutes on Wednesday, representing a decrease of over 6% in the last 12 months. Bassett Furniture has a dividend yield of 5.6%.
