StockNews.AI
BSET
StockNews.AI
139 days

Bassett Reports Fiscal First Quarter Results

1. BSET's revenues decreased 5.1%, yet increased 2.2% when normalized. 2. Operating income surged to $2.5 million, previous loss was $(2.4) million. 3. Gross margin improved to 57.0%, benefiting from restructuring efforts. 4. Diluted earnings per share of $0.21, a significant recovery from a loss. 5. Management emphasizes strategic focus on growth despite tepid demand.

Earnings
-1.54%Current Return
VS
-4.94%S&P 500
$15.6204/02 04:06 PM EDTEvent Start
$15.3804/03 10:48 PM EDTLatest Updated
14m saved
Insight
Article

FAQ

Why Bullish?

Despite a revenue decrease, positive earnings and improved margins could attract investors. Previous instances where companies reported improved profitability despite revenue drops often led to positive stock responses.

How important is it?

The strong recovery in earnings and margins, coupled with strategic initiatives, indicates a positive outlook for BSET amidst short-term revenue concerns.

Why Short Term?

The effects of Q1 results may quickly influence stock prices, particularly leading up to the conference call. Stocks often react promptly to quarterly earnings news, especially when earnings beat expectations.

Related Companies

HVTKIRK
BASSETT, Va., April 02, 2025 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its first quarter ended March 1, 2025. The first quarter for the Company’s Fiscal Year 25 had 13 weeks as compared to 14 weeks in Fiscal Year 24. Q1 Consolidated Business Highlights: [FY 25 vs. FY 24, unless otherwise specified] Revenues decreased 5.1% from the prior year quarter, which contained an additional week. Normalizing the first fiscal quarter of 2024 to adjust for the additional week, sales revenue for the first quarter of fiscal 2025 increased 2.2%.Operating income was $2.5 million or 3.0% of sales as compared to a loss of $(2.4) million for the prior year quarter.Improved wholesale margins in the quarter drove Company gross margin to 57.0%, a 170 basis point increase over the prior year.Selling, general and administrative expenses came in at 54.0% of sales which was 400 basis points lower than the prior year.  This was despite a 5.1% sales decrease as the Company continues to realize the benefits from its 2024 restructuring plan.Diluted earnings per share of $0.21 vs. a loss of $(0.14). Fiscal 2025 First Quarter Overview (Dollars in millions)  Sales Operating Income (Loss) 1st Qtr Dollar% 1st Qtr% of 1st Qtr% of  2025 2024 ChangeChange  2025 Sales  2024 SalesConsolidated (1)$82.2$86.6 $(4.4)-5.1% $2.6 3.0% $(2.4)-2.8%            Wholesale$52.9$54.7 $(1.8)-3.3% $8.7 16.4% $6.8 12.4%            Retail$53.3$53.8 $(0.5)-0.9% $- 0.0% $(1.6)-3.0%            Corporate & Other (2)$-$1.9 $(1.9)-100.0% $(6.2)N/A $(7.6)N/A            (1) Our consolidated results for the quarter include certain intercompany eliminations. 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 that with consolidated margin improvements in the first quarter, Bassett delivered diluted earnings per share of $0.21,” said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. “We reduced our cost structure to operate with greater efficiency while we accelerate product innovation to drive higher sales. Our strategic plan for 2025 is designed to weather another year of tepid demand for home furnishings and keep us focused on growth initiatives, including new collections across all categories and e-commerce sales. We believe we’ve taken the right steps to position us very competitively for 2025.” Conference Call and Webcast The Company will hold a conference call to discuss its quarterly results on April 3, 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/b3vchwmf. 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 first 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 1BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Operations - unaudited(In thousands, except for per share data)             Quarter Ended* March 1, 2025 March 2, 2024  Percent of Percent of AmountNet SalesAmountNet Sales      Net sales of furniture and accessories$82,162 100.0% $86,554 100.0%Cost of furniture and accessories sold 35,332 43.0%  38,687 44.7%     Gross profit 46,830 57.0%  47,867 55.3%      Selling, general and administrative expenses 44,375 54.0%  50,224 58.0%   Income (loss) from operations 2,455 3.0%  (2,357)-2.7%      Interest income 559 0.7%  756 0.9%Other loss, net (459)-0.6%  (104)-0.1%Income (loss) before income taxes 2,555 3.1%  (1,705)-2.0%      Income tax expense (benefit) 701 0.9%  (512)-0.6%Net income (loss) 1,854 2.3%  (1,193)-1.4%            Basic and diluted earnings (loss) per share$0.21   $(0.14)             *13 weeks in fiscal 2025 versus 14 weeks in fiscal 2024.            Table 2BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands)  (Unaudited)  Assets March 1, 2025 November 30, 2024Current assets        Cash and cash equivalents $36,062 $39,551    Short-term investments  20,360  20,360    Accounts receivable, net  14,218  13,181    Inventories, net  58,103  54,965    Recoverable income taxes  4,240  4,240    Other current assets  9,857  9,242Total current assets  142,840  141,539     Property and equipment, net  75,408  77,047     Other long-term assets        Deferred income taxes, net  6,280  6,867    Goodwill and other intangible assets  14,170  14,185    Right of use assets under operating leases  89,413  93,624    Other  7,675  7,908Total long-term assets  117,538  122,584Total assets $335,786 $341,170     Liabilities and Stockholders’ Equity    Current liabilities        Accounts payable $14,682 $13,303    Accrued compensation and benefits  6,721  6,898    Customer deposits  25,352  25,742    Current portion of operating lease obligations  18,141  18,050    Other accrued expenses  8,841  9,410Total current liabilities  73,737  73,403     Long-term liabilities        Post employment benefit obligations  10,958  10,882    Long-term portion of operating lease obligations  83,371  88,395    Other long-term liabilities  922  1,163Total long-term liabilities  95,251  100,440          Stockholders’ equity         Common stock  43,462  43,681     Retained earnings  122,555  122,847     Additional paid-in-capital  -  6     Accumulated other comprehensive income  781  793Total stockholders' equity  166,798  167,327Total liabilities and stockholders’ equity $335,786 $341,170      Table 3BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows - unaudited(In thousands)       Three Months Ended*  March 1, 2025 March 2, 2024Operating activities:    Net income (loss) $1,854  $(1,193)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      Depreciation and amortization  2,246   2,664 Deferred income taxes  587   (922)Other, net  454   302 Changes in operating assets and liabilities:    Accounts receivable  (1,037)  (206)Inventories  (3,138)  25 Other current and long-term assets  (615)  (3,167)Right of use assets under operating leases  4,211   4,375 Customer deposits  (390)  (24)Accounts payable and other liabilities  709   (3,374)Obligations under operating leases  (4,933)  (6,219)          Net cash used in operating activities  (52)  (7,739)     Investing activities:    Purchases of property and equipment  (871)  (2,076)Other  (11)  (270)           Net cash used in investing activities  (882)  (2,346)     Financing activities:     Cash dividends  (1,734)  (1,573)Other issuance of common stock  80   86 Repurchases of common stock  (721)  - Taxes paid related to net share settlement of equity awards  (136)  (161)Repayments of finance lease obligations  (44)  (74)            Net cash used in financing activities  (2,555)  (1,722)Effect of exchange rate changes on cash and cash equivalents -   9 Change in cash and cash equivalents  (3,489)  (11,798)Cash and cash equivalents - beginning of period  39,551   52,407 Cash and cash equivalents - end of period $36,062  $40,609      *13 weeks in fiscal 2025 versus 14 weeks in fiscal 2024.          Table 4 BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES Segment Information - unaudited (In thousands)         Quarter Ended*    March 1, 2025 March 2, 2024 Sales Revenue     Wholesale sales of furniture and accessories $ 52,927 $ 54,700 Less: Sales to retail segment (24,059) (23,762) Wholesale sales to external customers 28,868 30,938 Retail sales of furniture and accessories 53,294 53,754 Corporate & Other - Noa Home (1) - 1,862 Consolidated net sales of furniture and accessories $ 82,162 $ 86,554             Income (Loss) before Income Taxes     Income (Loss) from Operations     Wholesale $ 8,685 $ 6,760 Retail (48) (1,612) Net expenses - Corporate and other (1) (6,226) (7,595) Inter-company elimination 44 90 Consolidated income (loss) from operations 2,455 (2,357)       Interest income 559 756 Other loss, net (459) (104) Consolidated income (loss) before income taxes $ 2,555 $ (1,705)       *13 weeks in fiscal 2025 versus 14 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) 629-6260 – Investors mdaniel@bassettfurniture.com  Peter D. MorrisonVice President of Communications(276) 629-6450 – Media

Related News