Overview

• US home furnishings maker's fiscal Q2 revenue fell 0.7% yr/yr

• Diluted EPS for fiscal Q2 rose to $0.24 from $0.22 last year

• Gross margin improved due to higher wholesale margins, partly offset by lower retail margins

Outlook

• Company expects annual expense reductions of $1.5 mln to $2 mln to be fully realized by fiscal year end

• Bassett sees retail sales trends continuing positively into the third quarter

• Company says soft housing market continues to impact business conditions

Result Drivers

• SOFT HOUSING MARKET - Co said continued weakness in the housing market weighed on overall performance

• RETAIL SALES MOMENTUM - Bassett's Memorial Day event drove a 14% increase in written sales and 4% more traffic yr/yr

Company press release: ID:nGNX5GCyWP

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• Wall Street's median 12-month price target for Bassett Furniture Industries Inc is $21.00, about 18.5% above its June 30 closing price of $17.72

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

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