Revenue during the quarter went down marginally by 0.92 percent to $105.89 million from $106.87 million in the previous year period. Gross margin for the quarter contracted 28 basis points over the previous year period to 60.43 percent. Total expenses were 95.60 percent of quarterly revenues, up from 94.58 percent for the same period last year. That has resulted in a contraction of 101 basis points in operating margin to 4.40 percent.

Operating income for the quarter was $4.66 million, compared with $5.79 million in the previous year period.

"We produced mixed results in an unpredictable sales environment during the first quarter of 2017," commented Robert H. Spilman, Jr. chairman and chief executive officer. "Coming off a strong Black Friday sale in late November, our year over year sales momentum remained relatively strong for the first three weeks of December in the context of the weak seasonality that we experience each year in the pre-Christmas run up. However, the calendar shift in late December that essentially eliminated the selling days of the last two weekends of the month really hurt us. Despite falling significantly behind last year's sales numbers as a result, our retail team rallied and with a strong finish ended the quarter with a 1.0% delivered and 3.7% written comparable store sales increase. Furthermore, strong shipping at quarter's end also produced a 4.0% gain in wholesale revenue. Unfortunately, weaker levels of non-Bassett outbound freight at our Zenith Freight Lines subsidiary offset these gains and produced the 0.9% decline in consolidated revenue that we are reporting today."

The company has spent $6.04 million cash to meet investing activities during the quarter as against cash outgo of $8.55 million in the last year period.

The company has spent $7.66 million cash to carry out financing activities during the quarter as against cash outgo of $5.03 million in the last year period.

Cash and cash equivalents stood at $23.52 million as on Feb. 25, 2017, down 6.35 percent or $1.59 million from $25.11 million on Feb. 27, 2016.

Working capital decreases marginally
Bassett Furniture Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $60.29 million as at Feb. 25, 2017, down 3.69 percent or $2.31 million from $62.61 million on Feb. 27, 2016. Current ratio was at 1.86 as on Feb. 25, 2017, down from 1.88 on Feb. 27, 2016.

Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 100 days for the last year period. Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 60 days for the quarter compared with 127 days for the previous year period. At the same time, days payable outstanding went down to 43 days for the quarter from 45 for the same period last year.