Bassett Reports Fiscal Fourth Quarter Results

GlobeNewswire | Bassett Furniture Industries, Incorporated
Today at 9:01pm UTC

BASSETT, Va., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its fourth quarter ended November 29, 2025.

Q4 Consolidated Business Highlights: [FY 25 vs. FY 24, unless otherwise specified]

  • Revenues increased 5.1% from the prior year quarter. Excluding sales from Noa Home Inc., which closed in late 2024, consolidated revenues increased 6.4%.
  • Operating income was $2.3 million or 2.6% of sales as compared to operating income of $0.9 million or 1.1% of sales for the prior year quarter. Excluding the asset impairment charge of $0.5 million in the current year quarter, operating income would have been $2.8 million or 3.2% of sales. Excluding the loss on the realization of cumulative translation adjustments associated with Noa Home Inc. of $1.0 million and the restructuring charge of $0.4 million in the prior year quarter, operating income would have been $2.3 million or 2.8% of prior year sales.
  • Gross margin of 56.3% represented a 30-basis point decrease over the prior year primarily due to lower margins in the retail business, partially offset by improved margins in the wholesale business.
  • Selling, general and administrative expenses were 53.2% of sales, 60 basis points lower than the prior year, reflecting benefits from the prior year restructuring plan and on-going cost containment activities coupled with greater leverage of fixed costs from higher sales levels.
  • Diluted earnings per share was $0.18 as compared to $0.38 per share in the prior year period. The prior year period included a $2.6 million tax benefit related to the capital loss associated with our cumulative investment in Noa Home Inc. in 2022. Excluding this tax benefit, the prior year earnings per share would have been $0.08.
  • Generated $7.8 million in operating cash flow.

Fiscal 2025 Fourth Quarter Overview
(Dollars in millions)

 Sales Operating Income (Loss)
 4th Quarter Dollar% 4th Quarter% of 4th Quarter% of
 20252024 ChangeChange  2025 Sales  2024 Sales
Consolidated(1)$88.7$84.3 $4.4 5.1% $2.3 2.6% $0.9 1.1%
            
Wholesale$56.7$52.3 $4.4 8.3% $9.8 17.3% $8.5 16.3%
            
Retail$57.3$53.1 $4.2 7.9% $0.3 0.5% $0.1 0.2%
            
Corporate & Other(2)$-$1.0 $(1.0)-100.0% $(7.5)N/A  $(7.0)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.

“Bassett finished the year with a solid fourth quarter, increasing consolidated revenue and operating profit,” said Rob Spilman, Bassett Chairman and CEO. “Likewise, we ended the full year with improved results, and we remain committed to that trajectory for this year. We’re still in the restructuring mindset – taking costs out, driving operating efficiencies, integrating technology, emphasizing new product innovation and adapting to a changing marketplace. Our well-defined strategic plan for 2026 is designed to grow and take market share in an environment where housing activity is projected to remain slow and discretionary demand has moderated.”

“Two years ago, we committed to driving innovation in Bassett Casegoods as our wood business needed to be reinvented,” said Spilman. “We are pleased with our progress, with sales up over 50% for the quarter. Our upholstery business continued to be solid, with our True Custom and Magnificent Motion programs posting nice gains.”

“We recently formed the Bassett Hospitality Division, hiring a leader with extensive experience selling to country clubs, senior living facilities, boutique hotels, and related commercial areas,” continued Spilman. “This is a natural extension of our brand where we can offer quick custom solutions from our domestic manufacturing facilities. We are excited about this new venture but recognize it will take some time for it to be the contributor to our wholesale sales that we expect.

“Our leaner organization and business model position us well to weather the current marketplace and ongoing challenges with housing,” Spilman concluded. “We’re investing smartly and evolving to meet the needs of both the trade and consumers.”

Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on February 5, 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/jru7fi2w. 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 86 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 fourth 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 Year Ended*
 November 29, 2025 November 30, 2024 November 29, 2025 November 30, 2024
  Percent of  Percent of  Percent of  Percent of
 AmountNet Sales AmountNet Sales AmountNet Sales AmountNet Sales
            
Net sales$88,667 100.0% $84,340 100.0% $335,280 100.0% $329,923 100.0%
Cost of goods sold 38,718 43.7%  36,645 43.4%  146,598 43.7%  150,508 45.6%
Gross profit 49,949 56.3%  47,695 56.6%  188,682 56.3%  179,415 54.4%
            
Selling, general and administrative expenses 47,167 53.2%  45,386 53.8%  180,357 53.8%  187,527 56.8%
Asset impairment charges 498 0.6%  - 0.0%  498 0.1%  5,515 1.7%
Loss on contract abandonment - 0.0%  - 0.0%  - 0.0%  1,240 0.4%
Loss upon realization of cumulative translation adjustment - 0.0%  962 1.1%  - 0.0%  962 0.3%
Restructuring charges - 0.0%  440 0.5%  - 0.0%  440 0.1%
Income (loss) from operations 2,284 2.6%  907 1.1%  7,827 2.3%  (16,269)-4.9%
            
Interest income 427 0.5%  598 0.7%  1,979 0.6%  2,673 0.8%
Other income (loss), net (195)-0.2%  (285)-0.3%  (1,046)-0.3%  (774)-0.2%
Income (loss) before income taxes 2,516 2.8%  1,220 1.4%  8,760 2.6%  (14,370)-4.4%
            
Income tax expense (benefit) 987 1.1%  (1,984)-2.4%  2,660 0.8%  (4,675)-1.4%
Net income (loss) 1,529 1.7%  3,204 3.8%  6,100 1.8%  (9,695)-2.9%
            
            
Basic and diluted earnings (loss) per share$0.18   $0.38   $0.70   $(1.11) 
            

*52 weeks in fiscal 2025 versus 53 weeks in fiscal 2024.

Table 2
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
  (Unaudited)  
Assets November 29, 2025 November 30, 2024
Current assets    
Cash and cash equivalents $41,277 $39,551
Short-term investments  17,963  20,360
Accounts receivable, net  14,410  13,181
Inventories, net  61,790  54,965
Recoverable income taxes  2,878  4,240
Other current assets  7,224  9,242
Total current assets  145,542  141,539
     
Property and equipment, net  73,175  77,047
     
Other long-term assets    
Deferred income taxes, net  5,979  6,867
Goodwill  7,217  7,217
Intangible assets  6,910  6,968
Right of use assets under operating leases  76,727  93,624
Other  8,269  7,908
Total long-term assets  105,102  122,584
Total assets $323,819 $341,170
     
Liabilities and Stockholders’ Equity    
Current liabilities    
Accounts payable $14,739 $13,303
Accrued compensation and benefits  10,227  6,898
Customer deposits  24,969  25,742
Current portion of operating lease obligations  19,299  18,050
Other accrued expenses  7,750  9,410
Total current liabilities  76,984  73,403
     
Long-term liabilities    
Post employment benefit obligations  11,379  10,882
Long-term portion of operating lease obligations  69,353  88,395
Other long-term liabilities  996  1,163
Total long-term liabilities  81,728  100,440
     
     
Stockholders’ equity    
Common stock  43,256  43,681
Retained earnings  121,128  122,847
Additional paid-in-capital  -  6
Accumulated other comprehensive income  723  793
Total stockholders' equity  165,107  167,327
Total liabilities and stockholders’ equity $323,819 $341,170
       


Table 3
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - unaudited
(In thousands)
     
  Year Ended*
  November 29, 2025 November 30, 2024
Operating activities:    
Net income (loss) $6,100  $(9,695)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization  8,801   9,918 
Asset impairment charges  498   5,515 
Inventory valuation charges  2,389   5,001 
Deferred income taxes  912   (2,442)
Other, net  1,308   2,284 
Changes in operating assets and liabilities:    
Accounts receivable  (1,229)  555 
Inventories  (9,214)  3,016 
Other current and long-term assets  3,380   (2,427)
Right of use assets under operating leases  17,114   17,254 
Customer deposits  (773)  2,954 
Accounts payable and other liabilities  2,713   (7,246)
Obligations under operating leases  (18,508)  (20,637)
Net cash provided by (used in) operating activities  13,491   4,050 
     
Investing activities:    
Purchases of property and equipment  (4,530)  (5,211)
Investment in certificates of deposit  (316)  (2,585)
Proceeds from maturities and sales of investments  2,713   - 
Other  (597)  (972)
Net cash used in investing activities  (2,730)  (8,768)
     
Financing activities:    
Cash dividends  (6,939)  (6,654)
Issuance of common stock  335   371 
Repurchases of common stock  (2,150)  (1,420)
Taxes paid related to net share settlement of equity awards  (136)  (161)
Repayments of finance lease obligations  (145)  (253)
Net cash used in financing activities  (9,035)  (8,117)
Effect of exchange rate changes on cash and cash equivalents  -   (21)
Change in cash and cash equivalents  1,726   (12,856)
Cash and cash equivalents - beginning of period  39,551   52,407 
     
Cash and cash equivalents - end of period $41,277  $39,551 
     

*52 weeks in fiscal 2025 versus 53 weeks in fiscal 2024.

Table 4
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information - unaudited
(In thousands)
         
  Quarter Ended Year Ended*
  November 29, 2025 November 30, 2024 November 29, 2025 November 30, 2024
Sales Revenue        
Wholesale sales $56,670  $52,324  $214,614  $207,462 
Less: Sales to retail segment  (25,267)  (22,054)  (96,015)  (87,021)
Wholesale sales to external customers  31,403   30,270   118,599   120,441 
Retail sales  57,264   53,085   216,681   204,563 
Corporate & Other - Noa Home(1)  -   985   -   4,919 
Consolidated net sales $88,667  $84,340  $335,280  $329,923 
         
         
Income (Loss) before Income Taxes        
Income (Loss) from Operations        
Wholesale $9,838  $8,471  $34,861  $25,357 
Retail  306   70   407   (6,604)
Net expenses - Corporate and other(1)  (7,494)  (6,956)  (27,652)  (28,456)
Inter-company elimination  132   724   709   1,591 
Asset impairment charges  (498)  -   (498)  (5,515)
Loss on contract abandonment  -   -   -   (1,240)
Loss upon realization of cumulative translation adjustment  -   (962)  -   (962)
Restructuring charges  -   (440)  -   (440)
Consolidated income (loss) from operations  2,284   907   7,827   (16,269)
         
Interest income  427   598   1,979   2,673 
Other loss, net  (195)  (285)  (1,046)  (774)
Consolidated income (loss) before income taxes $2,516  $1,220  $8,760  $(14,370)
         

*52 weeks in fiscal 2025 versus 53 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) 629-6000 – Investors 
mdaniel@bassettfurniture.com

Peter D. Morrison
Vice President of Communications
(276) 629-6450 – Media 


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