Bassett Furniture Industries, Inc. (BSET) Q3 2025 Financial Results Summary
Bassett Furniture Industries, Inc. (Nasdaq: BSET) released its financial results for the third quarter of fiscal year 2025 on October 8, 2025. The results showed positive trends in revenues, operating income, and gross margins, highlighting the company’s adaptability in a challenging retail environment.
Q3 Consolidated Business Highlights (FY 25 vs. FY 24)
- Revenues:
- Total Revenue: Increased 5.9% from $75.6 million to $80.1 million.
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Excluding sales from Noa Home Inc.: Revenues increased by 7.3%.
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Operating Income:
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Reported operating income of $0.6 million (0.7% of sales), a significant improvement compared to an operating loss of $(6.4) million in the prior year quarter.
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Gross Margin:
- Improved to 56.2% from 53.0%, marking a 320-basis point improvement.
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Prior year’s figure was impacted by $0.6 million in wages during a cyber incident.
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Expenses:
- Selling, General and Administrative Expenses (SG&A): Decreased to 55.4% of sales, down 420 basis points from the previous year.
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Cost reductions attributed to restructuring and better management amidst increasing sales.
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Earnings Per Share:
- Diluted earnings per share of $0.09, versus a loss of $(0.52) in the same quarter last year.
Fiscal 2025 Third Quarter Overview
- Sales Performance:
- Wholesale Sales: Up 6.2% to $50.8 million from $47.8 million.
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Retail Sales: Increased 9.8% to $51.9 million from $47.3 million.
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Sector Performance:
- Operating income for the wholesale segment was $8.1 million (15.9% of sales), up from $4.4 million (9.2% of sales).
- Retail segment reported an operating loss of $(0.3) million (-0.6% of sales), an improvement from a loss of $(2.8) million (-5.9% of sales) in the same quarter last year.
Cash Flow and Dividend Information
- Net Income: Increased to $801,000 (1.0% of sales) compared to a net loss of $(4.5) million (-6.0%).
- Cash Dividends: The company declared cash dividends totaling $5.2 million, compared to $4.9 million in the prior year, indicating a growth of 6.1%.
- Share Repurchases: The company repurchased common stock totaling $1.5 million, up from $1.1 million in Q3 FY 2024.
Balance Sheet Highlights
- Current Assets: $141.0 million, slightly decreased from $141.5 million in November 2024.
- Total Liabilities: Remains stable, with total liabilities at $158.5 million.
- Stockholders’ Equity: Decreased to $165.7 million from $167.3 million, indicating a drop of 0.9%.
Outlook
The CEO, Robert H. Spilman, Jr., expressed confidence in handling market challenges. The company continues to innovate its product offerings and enhance marketing strategies to bolster revenue while maintaining efficient cost management.
Conclusion
Overall, Bassett Furniture Industries, Inc. demonstrated resilience in its Q3 2025 performance with notable improvement across several key metrics, contributing to a more robust financial standing compared to the previous year. The company continues to focus on adapting to market conditions and achieving sustainable growth.
| Amount | Nine Months Ended August 30, 2025 | % of Net Sales | Nine Months Ended August 31, 2024 | % of Net Sales |
|---|---|---|---|---|
| Net sales of furniture and accessories | $ 80,103 | 100.0 % | $ 75,619 | 100.0 % |
| Cost of furniture and accessories sold | 35,109 | 43.8 % | 35,526 | 47.0 % |
| Gross profit | 44,994 | 56.2 % | 40,093 | 53.0 % |
| Selling, general and administrative expenses | 44,401 | 55.4 % | 45,210 | 59.8 % |
| Loss on contract abandonment | – | 0.0 % | 1,240 | 1.6 % |
| Asset impairment charges | – | 0.0 % | – | 0.0 % |
| Income (loss) from operations | 593 | 0.7 % | (6,357) | -8.4 % |
| Interest income | 472 | 0.6 % | 692 | 0.9 % |
| Other income (loss), net | 30 | 0.0 % | (109) | -0.1 % |
| Income (loss) before income taxes | 1,095 | 1.4 % | (5,774) | -7.6 % |
| Income tax expense (benefit) | 294 | 0.4 % | (1,269) | -1.7 % |
| Net income (loss) | 801 | 1.0 % | (4,505) | -6.0 % |
| Basic and diluted earnings (loss) per share | $ 0.09 | $ (0.52) |
*39 weeks in fiscal 2025 versus 40 weeks in fiscal 2024.
| August 30, 2025 | November 30, 2024 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 34,413 | $ 39,551 |
| Short-term investments | 20,221 | 20,360 |
| Accounts receivable, net | 13,135 | 13,181 |
| Inventories, net | 61,459 | 54,965 |
| Recoverable income taxes | 4,255 | 4,240 |
| Other current assets | 7,537 | 9,242 |
| Total current assets | 141,020 | 141,539 |
| Property and equipment, net | 74,665 | 77,047 |
| Other long-term assets | ||
| Deferred income taxes, net | 5,560 | 6,867 |
| Goodwill | 7,217 | 7,217 |
| Intangible assets | 6,924 | 6,968 |
| Right of use assets under operating leases | 80,587 | 93,624 |
| Other | 8,268 | 7,908 |
| Total long-term assets | 108,556 | 122,584 |
| Total assets | $ 324,241 | $ 341,170 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities | ||
| Accounts payable | $ 14,425 | $ 13,303 |
| Accrued compensation and benefits | 8,497 | 6,898 |
| Customer deposits | 23,149 | 25,742 |
| Current portion of operating lease obligations | 19,548 | 18,050 |
| Other accrued expenses | 7,656 | 9,410 |
| Total current liabilities | 73,275 | 73,403 |
| Long-term liabilities | ||
| Post employment benefit obligations | 11,087 | 10,882 |
| Long-term portion of operating lease obligations | 73,198 | 88,395 |
| Other long-term liabilities | 963 | 1,163 |
| Total long-term liabilities | 85,248 | 100,440 |
| Stockholders’ equity | ||
| Common stock | 43,378 | 43,681 |
| Retained earnings | 121,583 | 122,847 |
| Additional paid-in-capital | – | 6 |
| Accumulated other comprehensive income | 757 | 793 |
| Total stockholders’ equity | 165,718 | 167,327 |
| Total liabilities and stockholders’ equity | $ 324,241 | $ 341,170 |
