Bassett Furniture Shares Gain On Strong Q2 Revenue Growth, Profit Turnaround

Bassett Furniture Industries Inc BSET reported second-quarter FY21 revenue of $124.1 million, up 94.51% year-on-year.
The increase in sales was mainly driven by a 172% Y/Y rise in wholesale orders.
Gross margin of 57.4% expanded by 160 basis points, while the operating margin for the quarter was 6.8%.
Net income was $5.9 million, saw a turnaround Y/Y from a loss of $(20.35) million a year ago, translating to an EPS of $0.60.
Bassett’s cash and equivalents totaled $45.8 million as of May 29, 2021.
“Notwithstanding all the complications of the post-pandemic economy, our wholesale team produced a 7.0% operating margin for the period as our wood, upholstery, and outdoor divisions turned in performances significantly better than 2020 and 2019,” said Robert H. Spilman, Jr, Chief Executive Officer.
Price action: BSET shares gained 10.68% at $26.95 on Thursday.

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