Bassett (BSET) Announces Fiscal Second Quarter Earnings Results

Bassett Furniture Industries, Incorporated (BSET) today announced its financial results for the most recent quarter, showcasing a strong performance that exceeded expectations. The company reported earnings per share of $0.22, beating the consensus estimate of $0.13 by a notable margin of $0.09. Additionally, Bassett achieved revenue of $84.3 million, surpassing the anticipated $82.0 million by approximately $2.3 million.

Key Highlights

• Revenues increased by 1.1% year-over-year; a 2.5% increase when excluding sales from Noa Home Inc.
• Operating income improved to $2.5 million (3.0% of sales) compared to a loss of $(8.5) million in the prior year.
• Gross margin improved to 55.6%, a 310 basis point increase from the previous year.
• Selling, general, and administrative expenses decreased to 52.7% of sales, down 330 basis points from the prior year.
• Generated $7.0 million in operating cash flow.
• Diluted earnings per share rose to $0.22 from a loss of $(0.82) in the prior year.

Summary

Bassett Furniture Industries, Inc. reported its fiscal second quarter results for the period ending May 31, 2025, showcasing a modest revenue increase of 1.1% compared to the same quarter last year. Excluding the impact of Noa Home Inc., which ceased operations in late 2024, the revenue growth was more pronounced at 2.5%. The company also turned around its operating income to $2.5 million, a significant improvement from the $(8.5) million loss reported in the prior year, which had been affected by asset impairment and inventory valuation charges. The gross margin saw a notable increase to 55.6%, reflecting improved operational efficiencies.

Chairman and CEO Robert H. Spilman, Jr. expressed satisfaction with the revenue and operating income improvements, despite ongoing challenges such as a weak housing market and trade tariff uncertainties. He emphasized that “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.” Looking ahead, Spilman believes that these advantages, along with Bassett’s strong U.S. manufacturing base, position the company well to serve both wholesale and retail markets for the remainder of fiscal 2025.

Bassett Furniture Industries, Incorporated (BSET) has been navigating a challenging financial landscape, as evidenced by its current price-to-earnings ratio of 44.49, which suggests that investors are paying a premium for its earnings potential. However, the company’s revenue has seen a significant decline, with a two-year compound annual growth rate (CAGR) of -17.25%, raising concerns about its ability to generate consistent sales. Additionally, Bassett’s net profit margin stands at -2.13%, indicating that the company is currently operating at a loss, which could deter potential investors. The return on invested capital is relatively low at 1.63%, further highlighting the struggles the company faces in effectively utilizing its capital. With no recent price changes reported over various time frames, it appears that investor sentiment may be cautious, reflecting the underlying financial challenges. As Bassett Furniture continues to grapple with these metrics, stakeholders will be keenly watching for any signs of recovery or strategic shifts that could improve its financial outlook.

Bassett Furniture Industries, Incorporated engages in the manufacture, marketing, and retail of home furnishings in the United States and internationally. It operates through three segments: Wholesale, Retail –company-owned Stores, and Logistical Services. The company engages in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned retail stores and licensee-owned stores, and independent furniture retailers; and wood and upholstery operations. As of November 27, 2021, it operated a network of 63 company-owned stores and 34 licensee-owned stores. It also provides shipping, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties; and distributes its products through other multi-line furniture stores, Bassett galleries or design centers, mass merchants, and specialty stores, as well as sells its products online. Bassett Furniture Industries, Incorporated was incorporated in 1902 and is based in Bassett, Virginia.