Bassett Reports Fiscal Year 2025 Third Quarter Results

BASSETT, Va., Oct. 08, 2025 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its third quarter ended August 30, 2025.

Q3 Consolidated Business Highlights: [FY 25 vs. FY 24, unless otherwise specified]

Revenues increased 5.9% from the prior year quarter. Excluding sales from Noa Home Inc., which closed in late 2024, consolidated revenues increased 7.3%.Operating income was $0.6 million, or 0.7% of sales as compared to a loss of $(6.4) million for the prior year quarter, which included a $1.2 million loss on a logistical services contract which the Company abandoned, and various costs associated with a cyber incident that suspended all financial systems and manufacturing for 7 days.Gross margin at 56.2% represented a 320-basis point improvement over the prior year primarily due to improved margins in the wholesale business and the fact that the prior year quarter included approximately $0.6 million of manufacturing wages paid during the above-mentioned cyber shutdown.Selling, general and administrative expenses were 55.4% of sales, 420 basis points lower than the prior year, reflecting benefits from the prior year restructuring plan and ongoing cost containment activities, greater leverage of fixed costs from higher sales levels, as well as the costs associated with the cyber incident in the prior year period.Diluted earnings per share of $0.09, compared to a loss of $(0.52) in the prior year.

Fiscal 2025 Third Quarter Overview
(Dollars in millions)

Sales Operating Income (Loss) 3rd Qtr Dollar% 3rd Qtr% of 3rd Qtr% of 2025 2024 ChangeChange 2025 Sales 2024 SalesConsolidated(1)$80.1$75.6 $4.5 5.9% $0.6 0.7% $(6.4)-8.4% Wholesale$50.8$47.8 $3.0 6.2% $8.1 15.9% $4.4 9.2% Retail$51.9$47.3 $4.6 9.8% $(0.3)-0.6% $(2.8)-5.9% Corporate & Other(2)$-$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.

“We’re pleased to report increases in revenue, operating income and gross margin this quarter, despite a continued challenging environment for home furnishings sales,” said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. “We remain nimble in managing Bassett’s business by introducing new products that are resonating with the consumer, becoming more aggressive in marketing and e-commerce, and adjusting to the difficult circumstances affecting components in the supply chain. Our US manufacturing base positions us well to serve wholesale and retail customers with custom furniture and design services.”

Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on October 9, 2025, 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/n628wkii. 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 third 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 1BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Operations - unaudited(In thousands, except for per share data) Quarter Ended Nine Months Ended* August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Percent of Percent of Percent of Percent of AmountNet SalesAmountNet SalesAmountNet Sales AmountNet Sales Net sales of furniture and accessories$80,103100.0% $75,619 100.0% $246,613 100.0% $245,583 100.0%Cost of furniture and accessories sold 35,10943.8% 35,526 47.0% 107,880 43.7% 113,863 46.4%Gross profit 44,99456.2% 40,093 53.0% 138,733 56.3% 131,720 53.6% Selling, general and administrative expenses 44,40155.4% 45,210 59.8% 133,188 54.0% 142,141 57.9%Loss on contract abandonment -0.0% 1,240 1.6% - 0.0% 1,240 0.5%Asset impairment charges -0.0% - 0.0% - 0.0% 5,515 2.2%Income (loss) from operations 5930.7% (6,357)-8.4% 5,545 2.2% (17,176)-7.0% Interest income 4720.6% 692 0.9% 1,552 0.6% 2,075 0.8%Other income (loss), net 300.0% (109)-0.1% (851)-0.3% (489)-0.2%Income (loss) before income taxes 1,0951.4% (5,774)-7.6% 6,246 2.5% (15,590)-6.3% Income tax expense (benefit) 2940.4% (1,269)-1.7% 1,673 0.7% (2,691)-1.1%Net income (loss) 8011.0% (4,505)-6.0% 4,573 1.9% (12,899)-5.3% Basic and diluted earnings (loss) per share$0.09 $(0.52) $0.53 $(1.48) *39 weeks in fiscal 2025 versus 40 weeks in fiscal 2024.

Table 2BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands) (Unaudited) Assets August 30, 2025 November 30, 2024Current assets Cash and cash equivalents $34,413 $39,551Short-term investments 20,221 20,360Accounts receivable, net 13,135 13,181Inventories, net 61,459 54,965Recoverable income taxes 4,255 4,240Other current assets 7,537 9,242Total current assets 141,020 141,539 Property and equipment, net 74,665 77,047 Other long-term assets Deferred income taxes, net 5,560 6,867Goodwill 7,217 7,217Intangible assets 6,924 6,968Right of use assets under operating leases 80,587 93,624Other 8,268 7,908Total long-term assets 108,556 122,584Total assets $324,241 $341,170 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $14,425 $13,303Accrued compensation and benefits 8,497 6,898Customer deposits 23,149 25,742Current portion of operating lease obligations 19,548 18,050Other accrued expenses 7,656 9,410Total current liabilities 73,275 73,403 Long-term liabilities Post employment benefit obligations 11,087 10,882Long-term portion of operating lease obligations 73,198 88,395Other long-term liabilities 963 1,163Total long-term liabilities 85,248 100,440 Stockholders’ equity Common stock 43,378 43,681Retained earnings 121,583 122,847Additional paid-in-capital - 6Accumulated other comprehensive income 757 793Total stockholders' equity 165,718 167,327Total liabilities and stockholders’ equity $324,241 $341,170

Table 3BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows - unaudited(In thousands) Nine Months Ended* August 30, 2025 August 31, 2024Operating activities: Net income (loss) $4,573 $(12,899)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 6,626 7,613 Asset impairment charges - 5,515 Inventory valuation charges 1,726 4,954 Deferred income taxes 1,307 (2,765)Other, net 841 937 Changes in operating assets and liabilities: Accounts receivable 46 762 Inventories (8,220) 1,890 Other current and long-term assets 1,690 (1,213)Right of use assets under operating leases 12,768 13,029 Customer deposits (2,593) 912 Accounts payable and other liabilities 393 (5,364)Obligations under operating leases (13,431) (15,694)Net cash provided by (used in) operating activities 5,726 (2,323) Investing activities: Purchases of property and equipment (3,737) (4,720)Other (408) (909)Net cash used in investing activities (4,145) (5,629) Financing activities: Cash dividends (5,210) (4,909)Other issuance of common stock 249 275 Repurchases of common stock (1,522) (1,127)Taxes paid related to net share settlement of equity awards (136) (161)Repayments of finance lease obligations (100) (210)Net cash used in financing activities (6,719) (6,132)Effect of exchange rate changes on cash and cash equivalents - 6 Change in cash and cash equivalents (5,138) (14,078)Cash and cash equivalents - beginning of period 39,551 52,407 Cash and cash equivalents - end of period $34,413 $38,329 *39 weeks in fiscal 2025 versus 40 weeks in fiscal 2024.

Table 4 BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES Segment Information - unaudited (In thousands) Quarter Ended Nine Months Ended* August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024 Sales Revenue Wholesale sales of furniture and accessories $ 50,787 $ 47,828 $ 157,943 $ 155,138 Less: Sales to retail segment (22,575) (20,453) (70,747) (64,967)Wholesale sales to external customers 28,212 27,375 87,196 90,171 Retail sales of furniture and accessories 51,891 47,256 159,417 151,478 Corporate & Other - Noa Home(1) - 988 - 3,934 Consolidated net sales of furniture and accessories $ 80,103 $ 75,619 $ 246,613 $ 245,583 Income (Loss) before Income Taxes Income (Loss) from Operations Wholesale $ 8,055 $ 4,440 $ 25,030 $ 16,886 Retail (333) (2,840) 101 (6,674) Net expenses - Corporate and other(1) (7,419) (6,963) (20,166) (21,500) Inter-company elimination 290 246 580 867 Loss on contract abandonment - (1,240) - (1,240) Asset impairment charges - - - (5,515) Consolidated income (loss) from operations 593 (6,357) 5,545 (17,176) Interest income 472 692 1,552 2,075 Other loss, net 30 (109) (851) (489) Consolidated income (loss) before income taxes $ 1,095 $ (5,774) $ 6,246 $ (15,590) *39 weeks in fiscal 2025 versus 40 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) 629-6620 – Investors
[email protected]

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