BSET 8-K
Bassett Furniture Industries Inc (BSET)
(State or other jurisdiction of incorporation or organization) | (Commission File No.) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of exchange on which registered |
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Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
99.1 |
104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
September 30, 2026 | By: /s/ J. Michael Daniel |
J. Michael Daniel Title: Senior Vice President – Chief Financial & Administrative Officer |
Exhibit 99.1
Bassett Furniture Industries, Inc. P.O. Box 626 Bassett, VA 24055 |
Contacts: J. Michael Daniel Senior Vice President and Chief Financial Officer (276) 629-6000 – Investors
Peter D. Morrison Vice President of Communications (276) 629-6450 – Media |
For immediate release
Bassett Reports Fiscal Third Quarter Results
(Bassett, Va.) – September 30, 2026 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its third quarter ended August 29, 2026.
Q3 Consolidated Business Highlights: [FY 26 vs. FY 25, unless otherwise specified]
| ● | Revenues increased 3.4% over the prior year quarter. |
| ● | Received $2.8 million in tariff refunds from U.S. Customs and Border Protection as a result of the U.S. Supreme Court’s February 2026 decision invalidating the tariffs imposed by the President in 2025 under The International Emergency Economic Powers Act of 1977 ("IEEPA"). Of this amount, $1.0 million was recorded as an increase in gross profit for the quarter, with additional amounts to be recorded primarily in the fourth quarter of 2026. Tariff costs are capitalized into inventory at the time they are incurred and subsequently recorded in the income statement when those goods are sold to a third party. The high tariff costs recognized in the quarter were substantially offset by the refund income that the Company recorded. Bassett imports less than 25% of its products. |
| ● | Operating income was $2.8 million or 3.4% of sales as compared to operating income of $0.6 million or 0.7% of sales for the prior year quarter. |
| ● | Gross margin of 57.5% represented a 130-basis point increase over the prior year due primarily to higher margins in the wholesale business from the previously discussed IEEPA tariff refund, partially offset by lower margins in the retail business. |
| ● | Selling, general and administrative (SG&A) expenses excluding new store pre-opening costs, were 53.9% of sales, 150 basis points lower than the prior year. |
| ● | Diluted earnings per share were $0.24 compared to $0.09 per share in the prior year period. |
| ● | Generated $6.1 million of cash from operating activities for the quarter. |
Fiscal 2026 Third Quarter Overview
(Dollars in millions)
| | Sales | | | Operating Income (Loss) | |
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| | 3rd Quarter | | | Dollar | | | % | | | 3rd Quarter | | | % of | | | 3rd Quarter | | | % of | |
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| | 2026 | | | 2025 | | | Change | | | Change | | | 2026 | | | Sales | | | 2025 | | | Sales | |
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Consolidated (1) | | $ | 82.8 | | | $ | 80.1 | | | $ | 2.7 | | | | 3.4 | % | | $ | 2.8 | | | | 3.4 | % | | $ | 0.6 | | | | 0.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wholesale | | $ | 53.7 | | | $ | 50.8 | | | $ | 2.9 | | | | 5.7 | % | | $ | 9.3 | | | | 17.3 | % | | $ | 8.1 | | | | 15.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail | | $ | 54.2 | | | $ | 51.9 | | | $ | 2.3 | | | | 4.5 | % | | $ | (0.3 | ) | | | -0.6 | % | | $ | (0.3 | ) | | | -0.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate & Other (2) | | $ | - | | | $ | - | | | $ | - | | | | N/A | | | $ | (6.6 | ) | | | N/A | | | $ | (7.4 | ) | | | 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 shared Corporate costs that are benefiting both the Wholesale and Retail segments. |
Comments from Rob Spilman, Bassett Chairman and CEO
“We are pleased to report a 3.4% increase in consolidated revenue bolstered by increases in both retail and wholesale sales. Operating profit showed nice improvement thanks to sales increases in key product categories, improved expense control, and tariff refunds that offset tariff costs that were embedded in our balance sheet. SG&A expenses as a percentage of sales, excluding new store pre-opening costs associated with the Orlando store planned to open this week, decreased 150 basis points.
Written retail sales increased 4.4%, continuing the positive momentum from the second quarter in spite of one less week of the Labor Day promotion in the quarter compared to last year. We were especially pleased that for the full four-week Labor Day promotion, written sales increased 9% over last year, which kicked off a good start to the fourth quarter. Wholesale orders were up nicely, showing a 7.9% increase. All wholesale channels showed a sales increase, with the Lane Venture brand up almost 29%.
Our marketing team continues to optimize various activities to improve the omni-channel experience. We had excellent response to our 84-page fall catalog. We’ve improved the navigation and visual presentation of our products on the website. Continuing the trend of double-digit increases in the past two years, e-commerce written sales were up 48% this quarter.
We are very excited to debut our new 44,000-square-foot showroom at the High Point Market on October 15th. This significant investment showcases the style and relevance of the Bassett brand, and our goal is to grow our business across all channels by inspiring customers with a broad range of new products. Key among them is a new collection created in partnership with Birmingham-based interior decorator and textile designer Heather Chadduck, featuring 30 furniture pieces in five finishes and 70 in-line fabrics that she personally curated.
Looking forward, we’re continuing to execute our plan that is focused on growing sales and profitability, as well as improving operating efficiency. We plan to be more aggressive on Black Friday promotions to drive traffic at retail and via the website. As for challenges, housing slowness and even higher mortgage rates remain a drag on our industry. We’re watching the impact of global issues on our business and are optimistic that we can effectively manage through these challenges in the fourth quarter.”
Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on October 1, 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/rre7zxb2/. 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 87 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 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 |
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BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES |
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Condensed Consolidated Statements of Income - unaudited |
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(In thousands, except for per share data) |
| | Quarter Ended | | | Nine Months Ended | |
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| | August 29, 2026 | | | August 30, 2025 | | | August 29, 2026 | | | August 30, 2025 | |
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| | | | | | Percent of | | | | | | | Percent of | | | | | | | Percent of | | | | | | | Percent of | |
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| | Amount | | | Net Sales | | | Amount | | | Net Sales | | | Amount | | | Net Sales | | | Amount | | | Net Sales | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | 82,838 | | | | 100.0 | % | | $ | 80,103 | | | | 100.0 | % | | $ | 246,931 | | | | 100.0 | % | | $ | 246,613 | | | | 100.0 | % |
Cost of goods sold | | | 35,222 | | | | 42.5 | % | | | 35,109 | | | | 43.8 | % | | | 106,803 | | | | 43.3 | % | | | 107,880 | | | | 43.7 | % |
Gross profit | | | 47,616 | | | | 57.5 | % | | | 44,994 | | | | 56.2 | % | | | 140,128 | | | | 56.7 | % | | | 138,733 | | | | 56.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | | 44,690 | | | | 53.9 | % | | | 44,401 | | | | 55.4 | % | | | 133,234 | | | | 54.0 | % | | | 133,188 | | | | 54.0 | % |
New store preopening costs | | | 144 | | | | 0.2 | % | | | - | | | | 0.0 | % | | | 712 | | | | 0.3 | % | | | - | | | | 0.0 | % |
Income from operations | | | 2,782 | | | | 3.4 | % | | | 593 | | | | 0.7 | % | | | 6,182 | | | | 2.5 | % | | | 5,545 | | | | 2.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | 480 | | | | 0.6 | % | | | 472 | | | | 0.6 | % | | | 1,479 | | | | 0.6 | % | | | 1,552 | | | | 0.6 | % |
Other income (loss), net | | | (375 | ) | | | -0.5 | % | | | 30 | | | | 0.0 | % | | | (480 | ) | | | -0.2 | % | | | (851 | ) | | | -0.3 | % |
Income before income taxes | | | 2,887 | | | | 3.5 | % | | | 1,095 | | | | 1.4 | % | | | 7,181 | | | | 2.9 | % | | | 6,246 | | | | 2.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense | | | 786 | | | | 0.9 | % | | | 294 | | | | 0.4 | % | | | 1,925 | | | | 0.8 | % | | | 1,673 | | | | 0.7 | % |
Net income | | $ | 2,101 | | | | 2.5 | % | | $ | 801 | | | | 1.0 | % | | | 5,256 | | | | 2.1 | % | | | 4,573 | | | | 1.9 | % |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted earnings per share | | $ | 0.24 | | | | | | | $ | 0.09 | | | | | | | $ | 0.61 | | | | | | | $ | 0.53 | | | | | |
Table 2 |
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BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES |
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Condensed Consolidated Balance Sheets |
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(In thousands) |
| | (Unaudited) | | | | | |
|
| | August 29, 2026 | | | November 29, 2025 | |
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Assets | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 35,372 | | | $ | 41,277 | |
Short-term investments | | | 18,023 | | | | 17,963 | |
Accounts receivable, net | | | 14,273 | | | | 14,410 | |
Inventories, net | | | 59,279 | | | | 61,790 | |
Recoverable income taxes | | | 424 | | | | 2,878 | |
Other current assets | | | 7,899 | | | | 7,224 | |
Total current assets | | | 135,270 | | | | 145,542 | |
| | | | | | | | |
Property and equipment, net | | | 73,441 | | | | 73,175 | |
| | | | | | | | |
Other long-term assets | | | | | | | | |
Deferred income taxes, net | | | 6,267 | | | | 5,979 | |
Goodwill | | | 7,664 | | | | 7,217 | |
Intangible assets | | | 6,867 | | | | 6,910 | |
Right of use assets under operating leases | | | 73,194 | | | | 76,727 | |
Other | | | 9,438 | | | | 8,269 | |
Total long-term assets | | | 103,430 | | | | 105,102 | |
Total assets | | $ | 312,141 | | | $ | 323,819 | |
| | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable | | $ | 12,461 | | | $ | 14,739 | |
Accrued compensation and benefits | | | 6,878 | | | | 10,227 | |
Customer deposits | | | 23,848 | | | | 24,969 | |
Current portion of operating lease obligations | | | 17,661 | | | | 19,299 | |
Other accrued expenses | | | 8,515 | | | | 7,750 | |
Total current liabilities | | | 69,363 | | | | 76,984 | |
| | | | | | | | |
Long-term liabilities | | | | | | | | |
Post employment benefit obligations | | | 12,238 | | | | 11,379 | |
Long-term portion of operating lease obligations | | | 65,052 | | | | 69,353 | |
Other long-term liabilities | | | 560 | | | | 996 | |
Total long-term liabilities | | | 77,850 | | | | 81,728 | |
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| | | | | | | | |
Stockholders’ equity | | | | | | | | |
Common stock | | | 43,198 | | | | 43,256 | |
Retained earnings | | | 120,982 | | | | 121,128 | |
Additional paid-in-capital | | | 56 | | | | - | |
Accumulated other comprehensive income | | | 692 | | | | 723 | |
Total stockholders' equity | | | 164,928 | | | | 165,107 | |
Total liabilities and stockholders’ equity | | $ | 312,141 | | | $ | 323,819 | |
Table 3 |
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BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES |
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Consolidated Statements of Cash Flows - unaudited |
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(In thousands) |
| | Nine Months Ended | |
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| | August 29, 2026 | | | August 30, 2025 | |
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Operating activities: | | | | | | | | |
Net income | | $ | 5,256 | | | $ | 4,573 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | |
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Depreciation and amortization | | | 6,747 | | | | 6,626 | |
Deferred income taxes | | | (288 | ) | | | 1,307 | |
Other, net | | | 509 | | | | 841 | |
Changes in operating assets and liabilities: | | | | | | | | |
Accounts receivable | | | 137 | | | | 46 | |
Inventories | | | 2,581 | | | | (6,494 | ) |
Recoverable income taxes and other current assets | | | 1,779 | | | | 1,690 | |
Right of use assets under operating leases | | | 12,769 | | | | 12,768 | |
Customer deposits | | | (1,143 | ) | | | (2,593 | ) |
Accounts payable and other liabilities | | | (5,243 | ) | | | 393 | |
Obligations under operating leases | | | (15,091 | ) | | | (13,431 | ) |
Net provided by operating activities | | | 8,013 | | | | 5,726 | |
| | | | | | | | |
Investing activities: | | | | | | | | |
Purchases of property and equipment | | | (6,875 | ) | | | (3,737 | ) |
Cash paid for licensee acquisition | | | (470 | ) | | | - | |
Other | | | (621 | ) | | | (408 | ) |
Net cash used in investing activities | | | (7,966 | ) | | | (4,145 | ) |
| | | | | | | | |
Financing activities: | | | | | | | | |
Cash dividends | | | (5,179 | ) | | | (5,210 | ) |
Issuance of common stock | | | 265 | | | | 249 | |
Repurchases of common stock | | | (779 | ) | | | (1,522 | ) |
Taxes paid related to net share settlement of equity awards | | | (76 | ) | | | (136 | ) |
Repayments of finance lease obligations | | | (183 | ) | | | (100 | ) |
Net cash used in financing activities | | | (5,952 | ) | | | (6,719 | ) |
Change in cash and cash equivalents | | | (5,905 | ) | | | (5,138 | ) |
Cash and cash equivalents - beginning of period | | | 41,277 | | | | 39,551 | |
Cash and cash equivalents - end of period | | $ | 35,372 | | | $ | 34,413 | |
Table 4 |
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BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES |
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Segment Information - unaudited |
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(In thousands) |
| | Quarter Ended | | | Nine Months Ended | |
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| | August 29, 2026 | | | August 30, 2025 | | | August 29, 2026 | | | August 30, 2025 | |
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Sales Revenue | | | | | | | | | | | | | | | | |
Wholesale sales | | $ | 53,692 | | | $ | 50,787 | | | $ | 159,800 | | | $ | 157,943 | |
Less: Sales to retail segment | | | (25,089 | ) | | | (22,575 | ) | | | (75,196 | ) | | | (70,747 | ) |
Wholesale sales to external customers | | | 28,603 | | | | 28,212 | | | | 84,604 | | | | 87,196 | |
Retail sales | | | 54,235 | | | | 51,891 | | | | 162,327 | | | | 159,417 | |
Consolidated net sales | | $ | 82,838 | | | $ | 80,103 | | | $ | 246,931 | | | $ | 246,613 | |
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| | | | | | | | | | | | | | | | |
Income (Loss) before Income Taxes | | | | | | | | | | | | | | | | |
Income (Loss) from Operations | | | | | | | | | | | | | | | | |
Wholesale | | $ | 9,317 | | | $ | 8,055 | | | $ | 25,940 | | | $ | 25,030 | |
Retail excluding new store pre-opening costs | | | (109 | ) | | | (333 | ) | | | (906 | ) | | | 101 | |
New store pre-opening costs | | | (144 | ) | | | - | | | | (712 | ) | | | - | |
Corporate and other (1) | | | (6,620 | ) | | | (7,419 | ) | | | (18,797 | ) | | | (20,166 | ) |
Inter-company elimination | | | 338 | | | | 290 | | | | 657 | | | | 580 | |
Consolidated income from operations | | | 2,782 | | | | 593 | | | | 6,182 | | | | 5,545 | |
| | | | | | | | | | | | | | | | |
Interest income | | | 480 | | | | 472 | | | | 1,479 | | | | 1,552 | |
Other income (loss), net | | | (375 | ) | | | 30 | | | | (480 | ) | | | (851 | ) |
Consolidated income before income taxes | | $ | 2,887 | | | $ | 1,095 | | | $ | 7,181 | | | $ | 6,246 | |
(1) | Corporate and Other includes the shared Corporate costs that are benefiting both the Wholesale and Retail segments. |