| Contacts: | |
| Bassett Furniture Industries, Inc. P.O. Box 626 Bassett, VA 24055 | (276) 629-6000 – Investors mdaniel@bassettfurniture.com |
Peter D. Morrison Vice President of Communications (276) 629-6450 – Media |
Bassett Reports Fiscal Second Quarter Results
(Bassett, Va.) – July 1, 2026 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its second quarter ended May 30, 2026.
Q2 Consolidated Business Highlights: [FY 26 vs. FY 25, unless otherwise specified]
Revenues decreased 0.7% from the prior year quarter.
Operating income was $2.2 million or 2.7% of sales as compared to operating income of $2.5 million or 3.0% of sales for the prior year quarter. Included in the prior year’s operating income was a $0.7 million gain from the receipt of insurance proceeds for a business interruption claim arising from a cyber incident that occurred in 2024. Excluding that gain, operating income for 2025 would have been $1.8 million or 2.1% of sales.
Gross margin of 56.5% represented a 90-basis point increase from the prior year due primarily to higher margins in the wholesale business, partially offset by lower margins in the retail business.
Selling, general and administrative (SG&A) expenses excluding new store preopening costs were 53.3% of sales, 60 basis points higher than the prior year. Excluding the previously mentioned gain in 2025 from the cyber claim proceeds that was recorded as a reduction of SG&A expenses, SG&A expenses as a percentage of sales would have been 53.5% in 2025, showing a 20-basis point improvement on an adjusted basis.
Diluted earnings per share were $0.24 compared to $0.22 per share in the prior year period.
Generated $7.4 million of cash from operating activities for the quarter.
Fiscal 2026 Second Quarter Overview
(Dollars in millions)
Sales | Operating Income (Loss) |
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2nd Quarter | Dollar | % | 2nd Quarter | % of | 2nd Quarter | % of |
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2026 | 2025 | Change | Change | 2026 | Sales | 2025 | Sales |
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Consolidated (1) | $ | 83.8 | $ | 84.3 | $ | (0.5 | ) | -0.7 | % | $ | 2.2 | 2.7 | % | $ | 2.5 | 3.0 | % |
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Wholesale | $ | 53.1 | $ | 54.2 | $ | (1.1 | ) | -2.0 | % | $ | 8.2 | 15.4 | % | $ | 8.3 | 15.3 | % |
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Retail | $ | 55.5 | $ | 54.2 | $ | 1.3 | 2.4 | % | $ | 0.1 | 0.2 | % | $ | 0.5 | 0.9 | % |
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Corporate & Other (2) | $ | - | $ | - | $ | - | N/A | $ | (6.1 | ) | N/A | $ | (6.5 | ) | N/A |
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Our consolidated results for the quarter include certain intercompany eliminations for an illustration of the effects of these items on our consolidated sales and operating income.. See Table 4, "Segment Information" below
Corporate and Other includes the shared Corporate costs that are benefiting both the Wholesale and Retail segments.
Comments from Rob Spilman, Bassett Chairman and CEO
“We remain focused on implementing meaningful strategies to strengthen Bassett’s performance while we weather the continued soft housing market. Operating profit on an adjusted basis improved in the second quarter on slightly lower consolidated revenue. Retail business was stronger as we moved through the quarter, and Bassett’s Memorial Day event resulted in a 14% increase in written sales and 4% more traffic than last year. We saw these retail trends continue into June, which is a good start for the third quarter. Total written sales were up 9.5% and wholesale orders rose 5.2% for the second quarter.
A key priority is to improve operating efficiency and run a leaner operation. On an adjusted basis, SG&A expenses were down 20 basis points from last year’s quarter. We began to realize savings late in the quarter on our previously announced plan to reduce annual expenses by $1.5 million to $2 million. These reductions will be fully realized by fiscal year end.
We’re continuing to execute on our five key 2026 initiatives to grow Bassett’s business, starting with generating higher sales and margins from our store network. Increased efficiency in digital marketing and direct mail was instrumental in driving traffic to stores and our website. The opening-price point collections launched at the April market will be in stores for Labor Day, and these complete our good-better-best merchandise strategy.
Investments in our website continue to improve the user experience for navigation and customization. E-commerce written sales rose 40%, with the average order value increasing 24%. Customers are responding to Bassett’s fully integrated omni-channel experience, with the first positive web traffic since last year’s second quarter. This represents seven out of the last eight quarters where e-commerce sales grew by more than 20%. We’ve undertaken a number of data research projects, including the use of AI, to identify and target new key customer segments, especially younger, more affluent shoppers than our core customers.
Throughout our rich 124-year history, we’ve navigated many economic and housing cycles. By accelerating innovation in design and manufacturing, we remain committed to producing quality home furnishings. We’re investing for stronger customer engagement through an omni-channel experience and working hard to expand markets in retail and wholesale. Continued execution of our key initiatives is essential to enhancing profitability and operational efficiency.”
Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on July 2, 2026, 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/ef8tw32q. 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 second fiscal quarter of 2026, 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 Income - unaudited
(In thousands, except for per share data)
Quarter Ended | Six Months Ended |
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May 30, 2026 | May 31, 2025 | May 30, 2026 | May 31, 2025 |
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Percent of | Percent of | Percent of | Percent of |
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Amount | Net Sales | Amount | Net Sales | Amount | Net Sales | Amount | Net Sales |
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Net sales | $ | 83,753 | 100.0 | % | $ | 84,348 | 100.0 | % | $ | 164,093 | 100.0 | % | $ | 166,510 | 100.0 | % |
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Cost of goods sold | 36,406 | 43.5 | % | 37,439 | 44.4 | % | 71,581 | 43.6 | % | 72,771 | 43.7 | % |
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Gross profit | 47,347 | 56.5 | % | 46,909 | 55.6 | % | 92,512 | 56.4 | % | 93,739 | 56.3 | % |
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Selling, general and administrative expenses | 44,631 | 53.3 | % | 44,412 | 52.7 | % | 88,544 | 54.0 | % | 88,787 | 53.3 | % |
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New store preopening costs | 0.6 | % | - | 0.0 | % | 0.3 | % | - | 0.0 | % |
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Income from operations | 2,243 | 2.7 | % | 2,497 | 3.0 | % | 3,400 | 2.1 | % | 4,952 | 3.0 | % |
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Interest income | 0.5 | % | 0.6 | % | 0.6 | % | 1,080 | 0.6 | % |
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Other income (loss), net | 0.1 | % | (422 | ) | -0.5 | % | (105 | ) | -0.1 | % | (881 | ) | -0.5 | % |
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Income before income taxes | 2,776 | 3.3 | % | 2,596 | 3.1 | % | 4,294 | 2.6 | % | 5,151 | 3.1 | % |
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Income tax expense | 0.9 | % | 0.8 | % | 1,139 | 0.7 | % | 1,379 | 0.8 | % |
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Net income | $ | 2,039 | 2.4 | % | $ | 1,918 | 2.3 | % | 3,155 | 1.9 | % | 3,772 | 2.3 | % |
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Basic and diluted earnings per share | $ | 0.24 | $ | 0.22 | $ | 0.37 | $ | 0.43 |
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Table 2
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited) |
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Assets | May 30, 2026 | November 29, 2025 |
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Current assets |
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Cash and cash equivalents | $ | 35,902 | $ | 41,277 |
Short-term investments | 17,988 | 17,963 |
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Accounts receivable, net | 12,559 | 14,410 |
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Inventories, net | 64,631 | 61,790 |
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Recoverable income taxes | 2,878 |
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Other current assets | 6,924 | 7,224 |
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Total current assets | 138,414 | 145,542 |
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Property and equipment, net | 71,930 | 73,175 |
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Other long-term assets |
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Deferred income taxes, net | 6,180 | 5,979 |
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Goodwill | 7,664 | 7,217 |
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Intangible assets | 6,881 | 6,910 |
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Right of use assets under operating leases | 77,488 | 76,727 |
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Other | 8,928 | 8,269 |
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Total long-term assets | 107,141 | 105,102 |
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Total assets | $ | 317,485 | $ | 323,819 |
Liabilities and Stockholders’ Equity |
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Current liabilities |
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Accounts payable | $ | 12,068 | $ | 14,739 |
Accrued compensation and benefits | 6,772 | 10,227 |
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Customer deposits | 25,568 | 24,969 |
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Current portion of operating lease obligations | 17,689 | 19,299 |
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Other accrued expenses | 8,006 | 7,750 |
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Total current liabilities | 70,103 | 76,984 |
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Long-term liabilities |
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Post employment benefit obligations | 12,048 | 11,379 |
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Long-term portion of operating lease obligations | 70,132 | 69,353 |
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Other long-term liabilities |
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Total long-term liabilities | 82,906 | 81,728 |
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Stockholders’ equity |
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Common stock | 43,157 | 43,256 |
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Retained earnings | 120,617 | 121,128 |
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Additional paid-in-capital | - | - |
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Accumulated other comprehensive income |
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Total stockholders' equity | 164,476 | 165,107 |
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Total liabilities and stockholders’ equity | $ | 317,485 | $ | 323,819 |
Table 3
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - unaudited
(In thousands)
Six Months Ended |
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May 30, 2026 | May 31, 2025 |
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Operating activities: |
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Net income | $ | 3,155 | $ | 3,772 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization | 4,517 | 4,478 |
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Deferred income taxes | (201 | ) | 1,374 |
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Other, net |
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Changes in operating assets and liabilities: |
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Accounts receivable | 1,851 |
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Inventories | (2,771 | ) | (4,397 | ) |
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Recoverable income taxes and other current assets | 2,768 | 1,352 |
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Right of use assets under operating leases | 8,475 | 8,474 |
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Customer deposits | (1,713 | ) |
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Accounts payable and other liabilities | (6,692 | ) |
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Obligations under operating leases | (9,983 | ) | (8,355 | ) |
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Net provided by operating activities | 1,896 | 6,903 |
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Investing activities: |
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Purchases of property and equipment | (2,592 | ) | (2,275 | ) |
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Cash paid for licensee acquisition | (470 | ) | - |
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Other | (88 | ) | (74 | ) |
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Net cash used in investing activities | (3,150 | ) | (2,349 | ) |
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Financing activities: |
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Cash dividends | (3,443 | ) | (3,476 | ) |
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Issuance of common stock |
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Repurchases of common stock | (653 | ) | (1,158 | ) |
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Taxes paid related to net share settlement of equity awards | (76 | ) | (136 | ) |
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Repayments of finance lease obligations | (122 | ) | (67 | ) |
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Net cash used in financing activities | (4,121 | ) | (4,672 | ) |
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Change in cash and cash equivalents | (5,375 | ) | (118 | ) |
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Cash and cash equivalents - beginning of period | 41,277 | 39,551 |
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Cash and cash equivalents - end of period | $ | 35,902 | $ | 39,433 |
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Table 4
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information - unaudited
(In thousands)
Quarter Ended | Six Months Ended |
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May 30, 2026 | May 31, 2025 | May 30, 2026 | May 31, 2025 |
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Sales Revenue |
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Wholesale sales | $ | 53,147 | $ | 54,229 | $ | 106,108 | $ | 107,156 |
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Less: Sales to retail segment | (24,942 | ) | (24,113 | ) | (50,108 | ) | (48,172 | ) |
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Wholesale sales to external customers | 28,205 | 30,116 | 56,000 | 58,984 |
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Retail sales | 55,548 | 54,232 | 108,093 | 107,526 |
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Consolidated net sales | $ | 83,753 | $ | 84,348 | $ | 164,093 | $ | 166,510 |
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Income (Loss) before Income Taxes |
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Income (Loss) from Operations |
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Wholesale | $ | 8,231 | $ | 8,290 | $ | 16,627 | $ | 16,975 |
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Retail excluding new store pre-opening costs | (796 | ) |
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New store pre-opening costs | (473 | ) | - | (568 | ) | - |
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Corporate and other (1) | (6,059 | ) | (6,521 | ) | (12,176 | ) | (12,747 | ) |
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Inter-company elimination |
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Consolidated income from operations | 2,243 | 2,497 | 3,400 | 4,952 |
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Interest income | 1,080 |
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Other income (loss), net | (422 | ) | (105 | ) | (881 | ) |
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Consolidated income before income taxes | $ | 2,776 | $ | 2,596 | $ | 4,294 | $ | 5,151 |
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(1) Corporate and Other includes the shared Corporate costs that are benefiting both the Wholesale and Retail segments.