Citing a challenging sales environment, Bassett Furniture Industries Inc. reported a fiscal first-quarter loss of $1.2 million, after reporting a profit in the same period a year earlier.

The Bassett, Virginia-based company said it continues to explore cost-cutting strategies that would still allow it to be competitive in the marketplace.

The FDMC 300-ranked company posted revenue of $86.6 million in the period and said it had a loss of 14 cents per share. In 2023, the company reported $107.7 million in the first quarter.

"As we once again compared to the inflated sales of the pandemic period, our consolidated sales dropped by 19.6% (14 weeks vs. 13 weeks) in the first quarter of fiscal 2024 compared to the first quarter of 2023," said Robert H. Spilman, Jr., Chairman and CEO, in the company's quarterly report released April 3. "We do expect easier comparisons starting with our second quarter of 2024."

The company said the company was operated in a "challenging sales environment" and reported .it produced an operating loss of $2.4 million and a net loss of $1.2 million in the quarter.

Its consolidated gross margin of 55.3% was at an all-time high but spending reductions were not enough to generate profitability at the reported level of sales. 

"We continue to explore expense reduction strategies that will not be detrimental to gaining market share in the competitive furniture industry landscape," said Spillman.

Other highlights:

• Inventory levels are stable and are appropriate for the current pace of business. 
• Total headcount in our wholesale segment has been reduc:ed by 26% since the peak of the pandemic booms in 2022. 
• The corporate retail organization is 44% leaner than February 2020, the last month before the world changed. 
• The balance sheet is well built and provides stability as it focuses on improving results in anticipation of a better macro-economic environment in the future.

For the details on the earnings report, click here.