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 SalesConsolidated (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 1BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed 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 2BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands) (Unaudited) Assets May 31, 2025 November 30, 2024Current 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 9,242Total 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 7,908Total long-term assets 112,052 122,584Total 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 9,410Total 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 1,163Total 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 793Total stockholders' equity 166,776 167,327Total liabilities and stockholders’ equity $331,333 $341,170 Table 3BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows - unaudited(In thousands) Six Months Ended* May 31, 2025 June 1, 2024Operating 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 4BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESSegment Information - unaudited(In thousands) Quarter Ended Six Months Ended* May 31, 2025 June 1, 2024 May 31, 2025 June 1, 2024Sales Revenue Wholesale sales of furniture and accessories $ 54,229 $ 52,610 $ 107,156 $ 107,310Less: Sales to retail segment (24,113) (20,752) (48,172) (44,514)Wholesale sales to external customers 30,116 31,858 58,984 62,796Retail sales of furniture and accessories 54,232 50,468 107,526 104,222Corporate & Other - Noa Home (1) - 1,084 - 2,946Consolidated 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 $ 12,446Retail 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 621Asset 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 1,383Other 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 DanielSenior Vice President and Chief Financial Officer(276) 629-6620 – Investorsmdaniel@bassettfurniture.com Peter D. MorrisonVice President of Communications (276) 629-6450 – Media

Bassett Reports Fiscal Second Quarter Results

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