BASSETT, Va. (AP) -- Bassett Furniture Industries Inc.'s fiscal third-quarter net income grew more than fivefold on stronger sales and a one-time tax benefit.
The company, based in Bassett, Va., reported Thursday that it earned $2.4 million, or 21 cents per share, for the quarter that ended Aug. 25. That compares with net income of $417,000, or 4 cents per share, in the same quarter last year.
Bassett's revenue increased 8.5 percent to $64.4 million from $59.4 million on stronger wholesale and retail sales.
The company said that its revenue from company-owned stores open at least a year, a key indicator of financial performance as it strips away recently opened or closed stores, increased 9.9 percent.
Bassett said that its improved sales were offset by higher selling, general and administrative costs — which rose 12 percent year over year — due to additional stores. Basset operated 86 company and license-owned stores at the end of the quarter. The company was helped by a $1.9 million tax benefit that helped improve its net income for the period.
Bassett CEO Robert Spilman said the results for the quarter were quite "encouraging." He also said that the company will soon start to see the benefits of a recent partnership with HGTV, which will put HGTV-branded furniture and in-store design centers in its showrooms.
Shares of the company fell 30 cents, or 2.4 percent, to $12.13 in afternoon trading. Its shares remain at the high-end of its 52-week trading range of $6.32 to $12.57.