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
Change
Change
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 StatementsCertain 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
Amount
Net Sales
Amount
Net Sales
Amount
Net Sales
Amount
Net 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
