Bassett Reports Fiscal First Quarter Results
Rhea-AI Summary
Bassett Furniture Industries (NASDAQ: BSET) reported fiscal Q1 ended Feb. 28, 2026: consolidated net sales $80.34M, down 2.2% year-over-year. Gross margin was 56.2% (down 80 bps). Operating income was $1.2M (1.4% of sales) and diluted EPS was $0.13.
Cash used in operations was about $5.5M; e-commerce sales grew 28%. Management cited weak housing demand, severe January weather, and plans for measured store investments and cost savings of $1.5–$2.0M annually starting late Q2.
Positive
- E-commerce sales +28% in Q1
- Bassett Casegoods sales +12.1%
- Wholesale operating income $8.4M (15.8% margin)
Negative
- Consolidated sales -2.2% year-over-year
- Gross margin down 80 basis points to 56.2%
- Diluted EPS $0.13 versus $0.21 prior year
News Market Reaction – BSET
On the day this news was published, BSET declined 1.23%, reflecting a mild negative market reaction. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $122.85M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
BSET slipped 0.42% with modest volume. Among close peers, price moves were mixed, and only HBB appeared in momentum scans, moving down ~1.01% without related news, pointing to a stock-specific reaction rather than a coordinated sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 23 | Conference call notice | Neutral | +0.6% | Scheduled Q1 2026 conference call and release timing details. |
| Mar 12 | Dividend declaration | Positive | -0.2% | Announced regular quarterly dividend of $0.20 per share. |
| Feb 04 | Earnings results | Neutral | -0.3% | Reported Q4 2025 results with higher sales but lower EPS. |
| Jan 26 | Conference call notice | Neutral | -0.1% | Announced timing for Q4 2025 conference call and release. |
| Jan 15 | Dividend declaration | Positive | +0.2% | Declared regular $0.20 dividend payable in late February. |
Dividend announcements have elicited small, mixed reactions, while earnings-related news has seen modestly negative follow-through.
Over the last six months, Bassett has alternated between routine dividends, conference call notices, and earnings updates. Q4 2025 results showed higher net sales but lower EPS, with only a slight share move of -0.31%. Two regular $0.20 dividends generated limited price response. Conference call announcements around Q4 and Q1 likewise produced very small reactions. Against this backdrop, the Q1 2026 earnings release with lower sales and EPS fits a pattern of modest, often muted trading around fundamental updates.
Market Pulse Summary
This announcement details a softer Q1, with net sales of $80.3M, gross margin of 56.2%, and diluted EPS of $0.13, down from $0.21 a year earlier. Management cites housing market weakness, weather disruptions, and tariff absorption, while highlighting e‑commerce growth of 28% and new store projects. Investors may watch upcoming quarters for margin recovery, cash generation after the $5.5M operating outflow, and progress on cost‑saving initiatives of $1.5–$2.0M annually.
Key Terms
basis points financial
operating leases financial
right of use assets financial
deferred income taxes financial
condensed consolidated balance sheets financial
AI-generated analysis. Not financial advice.
BASSETT, Va., April 01, 2026 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its first quarter ended February 28, 2026.
Q1 Consolidated Business Highlights: [FY 26 vs. FY 25, unless otherwise specified]
- Revenues decreased
2.2% from the prior year quarter. - Operating income was
$1.2 million or1.4% of sales as compared to operating income of$2.5 million or3.0% of sales for the prior year quarter. - Gross margin of
56.2% represented an 80-basis point decrease from the prior year due to lower margins in both the wholesale and retail business. - Selling, general and administrative expenses excluding new store preopening costs were
54.7% of sales, 70 basis points higher than the prior year, reflecting reduced leverage of fixed costs due to lower sales levels. - Diluted earnings per share were
$0.13 as compared to$0.21 per share in the prior year period. - Used
$5.5 million of cash in operating activities as the first quarter is typically the slowest quarter for cash generation due to the historically slow rate of business during the Christmas season, coupled with negative working capital changes which were expected.
Fiscal 2026 First Quarter Overview
(Dollars in millions)
| Sales | Operating Income (Loss) | |||||||||||||||||||||
| 1st Quarter | Dollar | % | 1st Quarter | % of | 1st Quarter | % of | ||||||||||||||||
| 2026 | 2025 | Change | Change | 2026 | Sales | 2025 | Sales | |||||||||||||||
| Consolidated(1) | $ | 80.3 | $ | 82.2 | $ | (1.9 | ) | -2.2 | % | $ | 1.2 | 1.4 | % | $ | 2.5 | 3.0 | % | |||||
| Wholesale | $ | 53.0 | $ | 52.9 | $ | 0.1 | 0.1 | % | $ | 8.4 | 15.8 | % | $ | 8.7 | 16.4 | % | ||||||
| Retail | $ | 52.5 | $ | 53.3 | $ | (0.8 | ) | -1.4 | % | $ | (1.0 | ) | -1.9 | % | $ | - | 0.0 | % | ||||
| Corporate & Other(2) | $ | - | $ | - | $ | - | N/A | $ | (6.1 | ) | N/A | $ | (6.2 | ) | 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 the shared Corporate costs that are benefiting both the Wholesale and Retail segments. | ||||||||||||||||||||||
| benefiting both the Wholesale and Retail segments. | ||||||||||||||||||||||
Comments from Rob Spilman, Bassett Chairman and CEO
“After a solid start to the first seven weeks of fiscal 2026, the pace of business slowed abruptly in mid-January. As a result, consolidated sales declined by
On the macro front, demand continues to suffer from the stubbornly weak residential housing market. Amidst that backdrop, severe weather occurring over the last two weekends of January essentially shut down normal operations at many of our retail stores and warehouses. The timing of the bad weather was especially unfortunate as the back half of January is usually a strong sales period. On the positive side, retail written sales for our President’s Day event rebounded nicely, producing a double-digit sales increase for the promotion. Ultimately, retail written sales were flat for the quarter.
Wholesale margins were down slightly, primarily due to volume declines in our domestic upholstery operations. Bassett Casegoods, on the other hand, posted a
At some point, we believe that the housing market will rebound and drive demand more in line with historical experience. With that in mind, we are making measured cash investments to grow our business. We are committed to our omni-channel model as e-commerce sales increased by
Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on April 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/fpr54xoc. 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
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 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 | |||||||||||
| February 28, 2026 | March 1, 2025 | ||||||||||
| Percent of | Percent of | ||||||||||
| Amount | Net Sales | Amount | Net Sales | ||||||||
| Net sales | $ | 80,340 | 100.0 | % | $ | 82,162 | 100.0 | % | |||
| Cost of goods sold | 35,175 | 43.8 | % | 35,332 | 43.0 | % | |||||
| Gross profit | 45,165 | 56.2 | % | 46,830 | 57.0 | % | |||||
| Selling, general and administrative expenses | 43,913 | 54.7 | % | 44,375 | 54.0 | % | |||||
| New store preopening costs | 95 | 0.1 | % | - | 0.0 | % | |||||
| Income from operations | 1,157 | 1.4 | % | 2,455 | 3.0 | % | |||||
| Interest income | 553 | 0.7 | % | 559 | 0.7 | % | |||||
| Other income, net | (192 | ) | -0.2 | % | (459 | ) | -0.6 | % | |||
| Income before income taxes | 1,518 | 1.9 | % | 2,555 | 3.1 | % | |||||
| Income tax expense | 402 | 0.5 | % | 701 | 0.9 | % | |||||
| Net income | $ | 1,116 | 1.4 | % | $ | 1,854 | 2.3 | % | |||
| Basic and diluted earnings per share | $ | 0.13 | $ | 0.21 | |||||||
| Table 2 | ||||||
| BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| Assets | February 28, 2026 | November 29, 2025 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 32,989 | $ | 41,277 | ||
| Short-term investments | 17,963 | 17,963 | ||||
| Accounts receivable, net | 14,662 | 14,410 | ||||
| Inventories, net | 65,666 | 61,790 | ||||
| Recoverable income taxes | 627 | 2,878 | ||||
| Other current assets | 8,117 | 7,224 | ||||
| Total current assets | 140,024 | 145,542 | ||||
| Property and equipment, net | 72,215 | 73,175 | ||||
| Other long-term assets | ||||||
| Deferred income taxes, net | 6,049 | 5,979 | ||||
| Goodwill | 7,217 | 7,217 | ||||
| Intangible assets | 6,896 | 6,910 | ||||
| Right of use assets under operating leases | 75,230 | 76,727 | ||||
| Other | 8,523 | 8,269 | ||||
| Total long-term assets | 103,915 | 105,102 | ||||
| Total assets | $ | 316,154 | $ | 323,819 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 14,812 | $ | 14,739 | ||
| Accrued compensation and benefits | 6,857 | 10,227 | ||||
| Customer deposits | 24,745 | 24,969 | ||||
| Current portion of operating lease obligations | 17,671 | 19,299 | ||||
| Other accrued expenses | 7,738 | 7,750 | ||||
| Total current liabilities | 71,823 | 76,984 | ||||
| Long-term liabilities | ||||||
| Post employment benefit obligations | 11,629 | 11,379 | ||||
| Long-term portion of operating lease obligations | 67,365 | 69,353 | ||||
| Other long-term liabilities | 891 | 996 | ||||
| Total long-term liabilities | 79,885 | 81,728 | ||||
| Stockholders’ equity | ||||||
| Common stock | 43,249 | 43,256 | ||||
| Retained earnings | 120,484 | 121,128 | ||||
| Additional paid-in-capital | - | - | ||||
| Accumulated other comprehensive income | 713 | 723 | ||||
| Total stockholders' equity | 164,446 | 165,107 | ||||
| Total liabilities and stockholders’ equity | $ | 316,154 | $ | 323,819 | ||
| Table 3 | |||||||||
| BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||
| Consolidated Statements of Cash Flows - unaudited | |||||||||
| (In thousands) | |||||||||
| Three Months Ended | |||||||||
| February 28, 2026 | March 1, 2025 | ||||||||
| Operating activities: | |||||||||
| Net income | $ | 1,116 | $ | 1,854 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) | |||||||||
| operating activities: | |||||||||
| Depreciation and amortization | 2,236 | 2,246 | |||||||
| Deferred income taxes | (70 | ) | 587 | ||||||
| Other, net | 119 | 454 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (252 | ) | (1,037 | ) | |||||
| Inventories | (3,876 | ) | (3,138 | ) | |||||
| Other current and long-term assets | 1,358 | (615 | ) | ||||||
| Right of use assets under operating leases | 4,208 | 4,211 | |||||||
| Customer deposits | (224 | ) | (390 | ) | |||||
| Accounts payable and other liabilities | (3,756 | ) | 709 | ||||||
| Obligations under operating leases | (6,327 | ) | (4,933 | ) | |||||
| Net cash used in operating activities | (5,468 | ) | (52 | ) | |||||
| Investing activities: | |||||||||
| Purchases of property and equipment | (863 | ) | (871 | ) | |||||
| Other | (25 | ) | (11 | ) | |||||
| Net cash used in investing activities | (888 | ) | (882 | ) | |||||
| Financing activities: | |||||||||
| Cash dividends | (1,730 | ) | (1,734 | ) | |||||
| Issuance of common stock | 78 | 80 | |||||||
| Repurchases of common stock | (147 | ) | (721 | ) | |||||
| Taxes paid related to net share settlement of equity awards | (73 | ) | (136 | ) | |||||
| Repayments of finance lease obligations | (60 | ) | (44 | ) | |||||
| Net cash used in financing activities | (1,932 | ) | (2,555 | ) | |||||
| Change in cash and cash equivalents | (8,288 | ) | (3,489 | ) | |||||
| Cash and cash equivalents - beginning of period | 41,277 | 39,551 | |||||||
| Cash and cash equivalents - end of period | $ | 32,989 | $ | 36,062 | |||||
| Table 4 | ||||||||
| BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES | ||||||||
| Segment Information - unaudited | ||||||||
| (In thousands) | ||||||||
| Quarter Ended | ||||||||
| February 28, 2026 | March 1, 2025 | |||||||
| Sales Revenue | ||||||||
| Wholesale sales | $ | 52,961 | $ | 52,927 | ||||
| Less: Sales to retail segment | (25,166 | ) | (24,059 | ) | ||||
| Wholesale sales to external customers | 27,795 | 28,868 | ||||||
| Retail sales | 52,545 | 53,294 | ||||||
| Consolidated net sales | $ | 80,340 | $ | 82,162 | ||||
| Income (Loss) before Income Taxes | ||||||||
| Income (Loss) from Operations | ||||||||
| Wholesale | $ | 8,395 | $ | 8,685 | ||||
| Retail | (1,034 | ) | (48 | ) | ||||
| Corporate and other(1) | (6,118 | ) | (6,226 | ) | ||||
| Consolidated income from operations | 1,157 | 2,455 | ||||||
| Interest income | 553 | 559 | ||||||
| Other loss, net | (192 | ) | (459 | ) | ||||
| Consolidated income before income taxes | $ | 1,518 | $ | 2,555 | ||||
| (1)Corporate and Other includes 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
