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
Change
Change
2025
Sales
2024
Sales
Consolidated (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 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 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 1
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations - unaudited
(In thousands, except for per share data)
Quarter Ended*
March 1, 2025
March 2, 2024
Percent of
Percent of
Amount
Net Sales
Amount
Net 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 2
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
Assets
March 1, 2025
November 30, 2024
Current 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
9,242
Total 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
7,908
Total long-term assets
117,538
122,584
Total 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
9,410
Total 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
1,163
Total 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
793
Total stockholders' equity
166,798
167,327
Total liabilities and stockholders’ equity
$
335,786
$
341,170
Table 3
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - unaudited
(In thousands)
Three Months Ended*
March 1, 2025
March 2, 2024
Operating 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. Morrison Vice President of Communications (276) 629-6450 – Media
