The recent U.S. Department of Commerce
preliminary ruling imposing anti-dumping duties on imports of
Chinese wood bedroom furniture would result in an assessment
of duties in the range of 8 to 11% on product sourced by
Bassett Furniture Industries Inc. (BSET)
announced that sales for the second quarter of 2004 were $80.4 million, up 4.5% from second
quarter 2003 levels. The growth was primarily
fueled by increased shipments to Bassett Furniture Direct stores (BFDs) and
greater demand for juvenile products.
Year-to-date shipments into the BFD channel were up 11% over 2003.
The Bassett Furniture Direct retail store program continues to grow with 104
stores currently in operation. The Company expects licensees to open six stores
in the third quarter and eight in the fourth quarter ending fiscal year 2004
with 118 stores. Sales to BFD stores were 57% of total wholesale shipments in
the first half of 2004 compared to 52% in the first half of 2003.
The approximately one and a half percentage point reduction in selling, general
and administrative expenses for both the quarter and six month results as
compared to 2003 was primarily due to actions taken in 2003 which lowered the
expense structure of the Company-owned retail stores.
"We are pleased with our year-over-year sales growth and improved operating
earnings," said Robert H. Spilman Jr., president and chief executive
officer. "However, we continue efforts to improve operating margins with a
primary focus on the profitability of our Wood Division. Our Upholstery and
Import Divisions both experienced encouraging results for the quarter.
Additionally, our Company-owned retail stores in Texas continued their positive results from
the first quarter to the second quarter."
The recent U.S. Department of Commerce preliminary ruling imposing anti-dumping
duties on imports of Chinese wood bedroom furniture would result in an
assessment of duties in the range of 8 to 11% on product sourced by the Company
from Chinese vendors. Mr. Spilman said, "We were fairly satisfied with the
preliminary ruling by the Department of Commerce and do not believe this ruling
will have a significant impact on our overall results. We do hope the ruling
will help deter further price deflation in our industry."
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