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Basset Furniture Disappointing Q2

USA: Basset Furniture Industries Inc reported a quarterly revenue decline for their Q2, due to declining sales at a slowing retail industry.

“In reviewing the quarter’s results, it has been difficult to pinpoint specific macro factors that slowed our sales momentum,” said Chief Executive, Robert H. Spilman Jr. Basset shares fell to $23.93 with a 13 percent drop in afternoon trading while their stock fell 26 percent in Q2.

The sales at the company’s retail and wholesale segments have deteriorated according to a report by Market Watch. Basset also reported weak sales in its Texas stores amid economies impacted by volatile oil prices.

According to Mr. Spilman, the company will be remodeling old stores, opening new stores and closing underperforming stores. Basset will be planning to open four new stores by the end of the year.

In the comprehensive report, Basset had a profit of $3.4million, 31 cents per share for the second quarter, a drop from the previous year’s profit of $4.5 million, 42 cents per share. Revenue for the company fell 4.4 percent to $106.7 million, below the average expectation of $118 million. Basset suffered a decrease of 3.6 percent at its comparable-store sales and total retail sales decline from $63.9 million to $61.9 million in the weak Texas economy.

The sales from Basset’s wholesale segment dropped 10 percent to $59 million. The company blamed the overall lethargic retail industry that slowed down shipments. Basset said that sales in the quarter were hurt by three stores closing, weak comparable store performance and discontinuation of the HGTV Home Collection brand in 2015.