Even though February was a strong month for us, business conditions continue to be fairly tough at retail, especially in certain parts of the country including Texas
Robert H. Spilman Jr., president and CEO

Bassett Furniture Industries Inc. announced sales for its fiscal quarter ended February 26, 2005 were $80.8 million, up 5% from first quarter 2004 levels, fueled by a $9 million or 22% increase in shipments to Bassett Furniture Direct (BFD) stores and greater demand for juvenile products. Offsetting this increase was an approximate $5 million expected sales decrease with traditional furniture stores.

The Bassett Furniture Direct retail store program continues to grow with 120 stores in operation at the end of the first quarter. Licensees opened seven stores during the quarter (three were closed) and the Company continues to expect a total of 20 to 25 new BFD stores will be opened in fiscal 2005.

Margins were up slightly due to an increased sales mix of both upholstery and imported products. SG&A expenses were up slightly due to increases in marketing spending primarily related to the introduction of the John Elway Home Collection.

The Company reported net income for the quarter of $2.4 million or $.20 per share which compares to net income of $2.3 million or .20 per share in the first quarter of 2004.

"We are pleased with our year-over-year sales improvement as our Bassett Furniture Direct growth is now outpacing the expected attrition in our other distribution channels," said Robert H. Spilman Jr., president and chief executive officer. "Our import and upholstery divisions continue to post strong sales and earnings improvement and our investment portfolio had another strong quarter. Even though February was a strong month for us, business conditions continue to be fairly tough at retail, especially in certain parts of the country including Texas. Our primary focus in 2005 continues to be improving every aspect of the BFD store program."