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Bassett Reports Fiscal Second Quarter Results

BASSETT, Va., July 09, 2025 (GLOBE NEWSWIRE) — Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its second quarter ended May 31, 2025.

Q2 Consolidated Business Highlights: [FY 25 vs. FY 24, unless otherwise specified]

  • Revenues increased 1.1% from the prior year quarter. Excluding sales from Noa Home Inc. which closed in late 2024, consolidated revenues increased 2.5%.
  • Operating income was $2.5 million or 3.0% of sales as compared to a loss of $(8.5) million for the prior year quarter which included $5.5 million of asset impairment charges and $2.7 million of additional inventory valuation charges.
  • Gross margin at 55.6% represented a 310 basis point improvement over the prior year as the Company recorded the above-mentioned inventory valuation charges in the second quarter of 2024. Excluding those charges, gross margin would have been essentially flat to the prior year quarter.
  • Selling, general and administrative expenses were 52.7% of sales, 330 basis points lower than the prior year, reflecting benefits from the prior year restructuring plan and on-going cost containment activities.
  • Generated $7.0 million of operating cash flow. 
  • Diluted earnings per share of $0.22 as compared to a loss of $(0.82) in the prior year.


Fiscal 2025 Second Quarter Overview

(Dollars in millions)

  Sales Operating Income (Loss)
  2nd Qtr Dollar% 2nd Qtr% of 2nd Qtr% of
   2025 2024 ChangeChange  2025 Sales  2024 Sales
Consolidated (1) $84.3$83.4 $0.9 1.1% $2.5 3.0% $(8.5)-10.1%
             
Wholesale $54.2$52.6 $1.6 3.1% $8.3 15.3% $5.7 10.8%
             
Retail $54.2$50.5 $3.7 7.5% $0.5 0.9% $(2.2)-4.4%
             
Corporate & Other (2) $$1.1 $(1.1)-100.0% $(6.5)N/A  $(6.9)N/A 
             
(1) Our consolidated results for the quarter include certain intercompany eliminations. Consolidated results for the 2nd quarter of 2024 include asset impairment charges of $5.5 million which are not allocated to our segment operating results. See Table 4, “Segment Information” below for an illustration of the effects of these items on our consolidated sales and operating income.
      
(2) Corporate and Other includes the operations of Noa Home Inc. (fiscal 2024 only) along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.
             

“We’re pleased with both revenue and operating income improvements in the second quarter, despite the ongoing challenges affecting consumer confidence and purchasing decisions, including a historically weak housing market and uncertainty about the impact of trade tariffs on the cost of goods,” said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. “Our rigorous attention to increased operating efficiency, product launches, expanded e-commerce capabilities and more customized marketing helped us weather this tepid home furnishings market. We believe these advantages and our strong US manufacturing base position Bassett well to serve both wholesale and retail markets for the second half of fiscal 2025.”

Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on July 10, 2025, at 9:00 am ET. The public is invited to listen to the conference call by webcast, accessible through the Company’s investor relations website, https://investors.bassettfurniture.com/. Participants can also listen to the conference call via https://edge.media-server.com/mmc/p/gcbdwqr7. A replay and transcript of the conference call will be available on demand on the investor relations site.

About Bassett Furniture Industries, Inc.
Bassett Furniture Industries, Inc. (NASDAQ: BSET) is a leading provider of high-quality home furnishings with a wide range of distribution types. Bassett sales approximately 60% of its products through its network of 87 company- and licensee-owned stores which feature the latest on-trend furniture styles, the Company’s capabilities in custom furniture design and manufacturing, free in-home design visits, and coordinated decorating accessories in a professional and friendly environment. Bassett also has a significant traditional wholesale business with more than 1,000 open market accounts. Most of the open market sales are through Bassett Design Centers and Bassett Custom Studios which function as a store within a multi-line store featuring the Company’s custom furniture capabilities. The wholesale business, including the Lane Venture outdoor brand, also services general furniture stores and a growing number of interior design firms. Bassett products are also directly available to consumers at www.bassettfurniture.com. (BSET-E)

Forward-Looking Statements
Certain of the statements in this release, particularly those preceded by, followed by or including the words “believes,” “plans,” “expects,” “anticipates,” “intends,” “should,” “estimates,” or similar expressions, or those relating to or anticipating financial results or changes in operations for periods beyond the end of the second fiscal quarter of 2025, constitute “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Bassett claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. In many cases, Bassett cannot predict what factors would cause actual results to differ materially from those indicated in the forward-looking statements. Expectations included in the forward-looking statements are based on preliminary information, as well as certain assumptions which management believes to be reasonable at this time. The following important factors affect Bassett and could cause actual results to differ materially from those indicated in the forward looking statements: the effects of national and global economic or other conditions and future events on the retail demand for home furnishings and the ability of Bassett’s customers and consumers to obtain credit; the success of marketing, logistics, retail and other initiatives; and the economic, competitive, governmental and other factors identified in Bassett’s filings with the Securities and Exchange Commission. Any forward-looking statement that Bassett makes speaks only as of the date of such statement, and Bassett undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indication of future performance, unless expressed as such, and should only be viewed as historical data.

 
Table 1
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations – unaudited
(In thousands, except for per share data)
             
             
  Quarter Ended Six Months Ended*
  May 31, 2025 June 1, 2024 May 31, 2025 June 1, 2024
   Percent of  Percent of  Percent of  Percent of
  AmountNet Sales AmountNet Sales AmountNet Sales AmountNet Sales
             
Net sales of furniture and accessories $84,348 100.0% $83,410 100.0% $166,510 100.0% $169,964 100.0%
Cost of furniture and accessories sold  37,439 44.4%  39,650 47.5%  72,771 43.7%  78,337 46.1%
     Gross profit  46,909 55.6%  43,760 52.5%  93,739 56.3%  91,627 53.9%
             
Selling, general and administrative expenses  44,412 52.7%  46,707 56.0%  88,787 53.3%  96,931 57.0%
Asset impairment charges   0.0%  5,515 6.6%   0.0%  5,515 3.2%
   Income (loss) from operations  2,497 3.0%  (8,462)-10.1%  4,952 3.0%  (10,819)-6.4%
             
Interest income  521 0.6%  627 0.8%  1,080 0.6%  1,383 0.8%
Other loss, net  (422)-0.5%  (276)-0.3%  (881)-0.5%  (380)-0.2%
Income (loss) before income taxes  2,596 3.1%  (8,111)-9.7%  5,151 3.1%  (9,816)-5.8%
             
Income tax expense (benefit)  678 0.8%  (910)-1.1%  1,379 0.8%  (1,422)-0.8%
Net income (loss)  1,918 2.3%  (7,201)-8.6%  3,772 2.3%  (8,394)-4.9%
             
             
Basic and diluted earnings (loss) per share $0.22   $(0.82)  $0.43   $(0.96) 
             
             
*26 weeks in fiscal 2025 versus 27 weeks in fiscal 2024.           
             

Table 2
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
  (Unaudited)  
Assets May 31, 2025 November 30, 2024
Current assets    
    Cash and cash equivalents $39,433 $39,551
    Short-term investments  20,385  20,360
    Accounts receivable, net  12,883  13,181
    Inventories, net  59,362  54,965
    Recoverable income taxes  4,607  4,240
    Other current assets  7,523  9,242
Total current assets  144,193  141,539
     
Property and equipment, net  75,088  77,047
     
Other long-term assets    
    Deferred income taxes, net  5,493  6,867
    Goodwill  7,217  7,217
    Intangible assets  6,939  6,968
    Right of use assets under operating leases  84,877  93,624
    Other  7,526  7,908
Total long-term assets  112,052  122,584
Total assets $331,333 $341,170
     
Liabilities and Stockholders’ Equity    
Current liabilities    
    Accounts payable $14,533 $13,303
    Accrued compensation and benefits  7,798  6,898
    Customer deposits  24,029  25,742
    Current portion of operating lease obligations  19,702  18,050
    Other accrued expenses  8,462  9,410
Total current liabilities  74,524  73,403
     
Long-term liabilities    
    Post employment benefit obligations  10,814  10,882
    Long-term portion of operating lease obligations  78,116  88,395
    Other long-term liabilities  1,103  1,163
Total long-term liabilities  90,033  100,440
     
     
Stockholders’ equity    
     Common stock  43,410  43,681
     Retained earnings  122,597  122,847
     Additional paid-in-capital    6
     Accumulated other comprehensive income  769  793
Total stockholders’ equity  166,776  167,327
Total liabilities and stockholders’ equity $331,333 $341,170
     

Table 3
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows – unaudited
(In thousands)
     
  Six Months Ended*
  May 31, 2025 June 1, 2024
Operating activities:    
Net income (loss) $3,772  $(8,394)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation and amortization  4,478   5,291 
Asset impairment charges     5,515 
Inventory valuation charges  1,292   3,879 
Deferred income taxes  1,374   (1,440)
Other, net  642   689 
Changes in operating assets and liabilities:    
Accounts receivable  298   241 
Inventories  (5,689)  2,228 
Other current and long-term assets  1,352   (1,217)
Right of use assets under operating leases  8,474   8,707 
Customer deposits  (1,713)  233 
Accounts payable and other liabilities  978   (6,930)
Obligations under operating leases  (8,355)  (10,721)
          Net cash provided by (used in) operating activities  6,903   (1,919)
     
Investing activities:    
Purchases of property and equipment  (2,275)  (3,683)
Other  (74)  (383)
           Net cash used in investing activities  (2,349)  (4,066)
     
Financing activities:     
Cash dividends  (3,476)  (3,153)
Other issuance of common stock  165   179 
Repurchases of common stock  (1,158)  (489)
Taxes paid related to net share settlement of equity awards  (136)  (161)
Repayments of finance lease obligations  (67)  (153)
            Net cash used in financing activities  (4,672)  (3,777)
Effect of exchange rate changes on cash and cash equivalents    1 
Change in cash and cash equivalents  (118)  (9,761)
Cash and cash equivalents – beginning of period  39,551   52,407 
Cash and cash equivalents – end of period $39,433  $42,646 
     
*26 weeks in fiscal 2025 versus 27 weeks in fiscal 2024.    
 

Table 4
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information – unaudited
(In thousands)
         
  Quarter Ended Six Months Ended* 
  May 31, 2025 June 1, 2024 May 31, 2025 June 1, 2024
Sales Revenue        
Wholesale sales of furniture and accessories $ 54,229 $ 52,610 $ 107,156 $ 107,310
Less: Sales to retail segment (24,113) (20,752) (48,172) (44,514)
Wholesale sales to external customers 30,116 31,858 58,984 62,796
Retail sales of furniture and accessories 54,232 50,468 107,526 104,222
Corporate & Other – Noa Home (1)  1,084  2,946
Consolidated net sales of furniture and accessories $ 84,348 $ 83,410 $ 166,510 $ 169,964
         
         
Income (Loss) before Income Taxes        
Income (Loss) from Operations        
Wholesale $ 8,290 $ 5,687 $ 16,975 $ 12,446
Retail 482 (2,222) 434 (3,834)
Net expenses – Corporate and other (1) (6,521) (6,942) (12,747) (14,537)
Inter-company elimination 246 530 290 621
Asset impairment charges  (5,515)  (5,515)
Consolidated income (loss) from operations 2,497 (8,462) 4,952 (10,819)
         
Interest income 521 627 1,080 1,383
Other loss, net (422) (276) (881) (380)
Consolidated income (loss) before income taxes $ 2,596 $ (8,111) $ 5,151 $ (9,816)
         
         
*26 weeks in fiscal 2025 versus 27 weeks in fiscal 2024.        
         
(1) Corporate and Other includes the operations of Noa Home Inc. (fiscal 2024 only) along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.    
          

Contacts:
J. Michael Daniel
Senior Vice President and 
Chief Financial Officer
(276) 629-6620 – Investors
mdaniel@bassettfurniture.com

Peter D. Morrison
Vice President of Communications 
(276) 629-6450 – Media

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