In This Article:
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Total Consolidated Revenue: Declined $10.4 million or 11% in Q4 2024 compared to Q4 2023.
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Wholesale Sales: Decreased 14% in Q4 2024.
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Retail Sales: Decreased 8.4% in Q4 2024 through company-owned stores.
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Consolidated Gross Margins: Increased 230 basis points in Q4 2024.
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Operating Income: $900,000 in Q4 2024 compared to a loss of $4.5 million in Q4 2023.
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Wholesale Backlog: $21.8 million at the end of Q4 2024.
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Retail Backlog: $37.1 million at the end of Q4 2024.
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Operating Cash Flow: Generated $6.4 million in Q4 2024.
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Cash and Short-term Investments: $59.9 million at the end of Q4 2024.
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Capital Expenditure: $5.2 million in fiscal 2024.
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Projected Capital Investment for 2025: Between $8 million and $12 million.
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Dividends and Share Buybacks: $4.9 million in dividends and $1.4 million in share buybacks during 2024.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bassett Furniture Industries Inc (NASDAQ:BSET) introduced three new collections, including the successful Copenhagen collection, which are expected to transform retail merchandising.
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E-commerce revenue is growing, with seven consecutive months of sales increases and a 27% annual increase in order values.
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The company has strengthened its marketing program, with positive early responses to its price and value messaging.
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The Bassett Custom Studio program is showing promise, with several dealers expanding their dedicated space, indicating strong sales potential.
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Bassett Furniture Industries Inc (NASDAQ:BSET) was named Best Custom Upholstery Company in the industry, highlighting its strong reputation and quality.
Negative Points
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Total consolidated revenue declined by 11% in the fourth quarter, with wholesale sales down 14% and retail sales down 8.4%.
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The company experienced a challenging year in 2024, with significant restructuring and a reduction of 11% in its workforce.
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Margins are expected to moderate in 2025 due to more aggressive pricing strategies in retail.
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Natural disasters, such as hurricanes and wildfires, impacted operations and dealer business in affected areas.
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Despite cost reductions, SG&A expenses as a percentage of sales increased due to the deleverage of fixed costs from lower sales volumes.
Q & A Highlights
Q: Can you provide an update on the trends in written sales and overall business performance since the election and into the first two months of the new fiscal year? A: Robert Spilman, CEO, noted that there was a brief period of increased activity around Black Friday following the election. However, since then, sales have settled back to previous levels, with a slight improvement. December sales were up mid-single digits, indicating a modest positive trend.