BASSETT, Va. -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced that consolidated net sales for the quarter ended August 26, 2023 were approximately $87 million or 26% lower than the corresponding period in 2022, and that as a result, it expects to report an operating and net loss for the quarter. While wholesale shipments dropped by 27% for the quarter, wholesale orders were only 5% lower than the prior year quarter. In spite of the expected net loss, the Company will report positive operating cash flow and a cash and short-term investment balance in excess of $65 million.
In addition to the lower sales volumes, several unusual events contributed to the operating loss. First, the Company closed one store and a clearance center during the quarter resulting in lower margin clearance sales. In addition, the Company continued with ongoing discounting of its Club Level inventory. The Company also temporarily closed its Austin, TX store for an extensive remodeling with a planned reopening later this month. Construction on the new Tampa, FL store proceeded with a planned opening date in mid-October. The Company should end the year with 90 Bassett Home Furnishings stores of which 58 would be Company-owned and operated. Another new store in Houston, TX is planned for opening in early 2024.
The Company launched its new website on August 10th, which represented the culmination of many months of consulting expense and management time. Early feedback from customers and in-store designers has been positive and the Company looks forward to utilizing the new navigation features, coupled with fresh brand imagery, to drive an enhanced user experience. Finally, while the Labor Day promotion sales were behind pandemic-era levels, the Company was pleased that total written volumes were comfortably ahead of 2019 results in spite of 12 fewer Company-owned stores.
Given the Company’s positive cash flow and continued strong balance sheet, the Board of Directors also increased the Company’s regular quarterly dividend by 12.5% during the quarter.
The Company plans to issue a final press release for the third quarter before the market opens on September 28, 2023.