Financial Data and Key Metrics Changes - Consolidated sales decreased by 5.1% for the first quarter, primarily due to a comparison of 13 weeks this year to 14 weeks in the previous fiscal year [11][26] - On a normalized basis, sales revenue for the first quarter increased by 2.2% [12][27] - Consolidated gross margins increased by 170 basis points, primarily due to better margins in the wholesale segment [27] - Consolidated operating income was $2.5 million compared to a loss of $2.4 million in the previous year [28] Business Line Data and Key Metrics Changes - Wholesale orders decreased by 8.4% for the quarter, or 1.4% normalized for the extra week [13] - Orders from the store network increased by 4.2% on a normalized basis [13] - Retail gross margins fell modestly, but cost reductions contributed to improved results [15] - E-commerce sales increased by 36% due to investments in BassettFurniture.com [16] Market Data and Key Metrics Changes - The sales environment was more challenging in February, with the President's Day promotional event not as successful as last year [12][13] - Orders from the traditional wholesale business decreased by 10% on a normalized basis, with February being the slowest month of the quarter [14] Company Strategy and Development Direction - The strategic plan for 2025 aims to weather slow housing sales and maintain a disciplined focus on growth [10] - The company is incorporating more technology into the customer experience and fine-tuning marketing efforts [10] - Investments in omnichannel strategies are expected to drive growth in traffic and conversions [17] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence has been declining, impacting business trends [11][40] - The company is preparing to address the implications of new tariffs on materials and products [23][24] - Management expressed confidence in the steps taken to run efficiently through the current economic challenges [11][36] Other Important Information - The board of directors approved a regular quarterly dividend of 20 cents per share [25] - The company plans to invest between $8 million and $12 million in capital expenditures for store remodels and technology [35] Q&A Session Summary Question: Changes in business trends due to consumer confidence drop - Management observed a spike in sales post-election but noted a return to last year's pace as the year progressed [40] Question: Health of inventory and impact of tariffs - Increased inventory was driven by new collections rather than a conscious effort to stockpile against tariffs [43][44] Question: Sustainability of gross margins - Management indicated that current gross margins are among the highest achieved but do not expect them to increase further in the short term [55] Question: Plans for addressing tariffs - The company is considering various strategies, including potential price increases, but has not finalized a plan [57] Question: New store openings and design studios - Management sees significant growth potential in the design studio program and is working on new store leases [60][66]

Core Insights - Bassett Furniture Industries, Inc. reported a decrease in consolidated sales of 5.1% for Q1 FY 2025 compared to Q1 FY 2024, with sales of $82.2 million versus $86.6 million. However, when normalizing for the additional week in the prior year, sales increased by 2.2% [1][5] - The company achieved an operating income of $2.5 million, representing 3.0% of sales, a significant improvement from a loss of $(2.4) million in the prior year [5][14] - Diluted earnings per share for the quarter were $0.21, compared to a loss of $(0.14) in the same quarter last year [5][3] Financial Performance - Total sales for Q1 FY 2025 were $82.2 million, down from $86.6 million in Q1 FY 2024, reflecting a decrease of $4.4 million or 5.1% [1][8] - Wholesale sales decreased by 3.3% to $52.9 million, while retail sales saw a slight decline of 0.9% to $53.3 million [1][14] - Gross profit margin improved to 57.0%, up 170 basis points from the previous year, driven by better wholesale margins [5][8] Cost Management - Selling, general, and administrative expenses were reduced to 54.0% of sales, a decrease of 400 basis points compared to the prior year, despite the decline in sales [5][8] - The company continues to benefit from its restructuring plan initiated in 2024, which has contributed to improved operational efficiency [5][3] Strategic Initiatives - The company is focusing on product innovation and growth initiatives, including new collections and e-commerce sales, to navigate the challenging demand environment for home furnishings in 2025 [3][5] - Bassett's strategic plan aims to position the company competitively for the upcoming year, emphasizing efficiency and innovation [3][5] Segment Performance - Wholesale segment income increased to $8.7 million, while the retail segment reported a loss of $(0.05) million [14] - Corporate and other expenses, which include operations from Noa Home Inc., showed a reduction in losses, indicating improved cost management [14][15]

Core Viewpoint - Bassett Furniture Industries, Incorporated (BSET) is expected to report its first-quarter fiscal 2025 results on April 2, with mixed indicators regarding earnings and revenue performance [1]. Financial Performance - In the last reported quarter, BSET's earnings exceeded the Zacks Consensus Estimate by 660% and increased by 153.3% year over year, while net sales were 1.8% above consensus but down 11% from the previous year [2]. - The Zacks Consensus Estimate for BSET's fiscal first-quarter earnings per share remains at 2 cents, indicating a 114.3% increase from the same period last year. Revenue is estimated at $79.2 million, reflecting an 8.5% year-over-year decline [3]. Market Conditions - The anticipated decline in BSET's top line is attributed to a challenging sales environment for home furnishings, driven by ongoing weakness in the U.S. housing market and fluctuations in mortgage rates, which have pressured consumer spending [4]. Strategic Initiatives - The company is focusing on organic growth through Bassett-branded retail locations, new product offerings, e-commerce expansion, and marketing improvements, which are expected to support performance in the upcoming quarter [5]. - BSET has made significant progress on its restructuring plan aimed at reducing costs, strengthening operations, and driving long-term revenue growth and profitability through expense reduction and investment in new products and services [6]. Earnings Prediction - The current model does not predict an earnings beat for BSET, as the company has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), indicating lower odds for a positive earnings surprise [7][8].

Group 1 - Bassett Furniture Industries, Inc. will host a conference call on April 3, 2025, at 9:00 a.m. ET to discuss its Q1 2025 financial results [1] - The earnings release will be issued after market close on April 2, 2025 [1] - The call will be hosted by Chairman and CEO Rob Spilman and CFO Mike Daniel [1] Group 2 - The public can listen to the conference call via webcast on the Company's investor relations website or through a specific media server link [2] - The conference call will be archived for replay on the Company's investor site [2] Group 3 - Bassett Furniture Industries, Inc. is a leading provider of high-quality home furnishings with 87 company- and licensee-owned stores accounting for approximately 60% of its wholesale business [3] - The company offers custom furniture design and manufacturing, free in-home design visits, and coordinated decorating accessories [3] - Bassett has a significant traditional wholesale business with over 1000 open market accounts, including Bassett Design Centers and Bassett Custom Studios [3]

Company Announcement - Bassett Furniture Industries, Inc. will host a conference call on April 3, 2025, at 9:00 a.m. ET to discuss its fourth quarter 2024 financial results [1] - The earnings release will be issued after the market closes on April 2, 2025 [1] Conference Call Access - The public can listen to the conference call via webcast on the Company's investor relations website or through a specific media server link [2] - The conference call will be archived for replay on the Company's investor site [2] Company Overview - Bassett Furniture Industries, Inc. is a leading provider of high-quality home furnishings with a network of 87 company- and licensee-owned Bassett Home Furnishings stores, accounting for approximately 60% of its wholesale business [3] - The stores offer on-trend furniture styles, custom furniture design and manufacturing, free in-home design visits, and coordinated decorating accessories [3] - The Company also has a significant traditional wholesale business with over 1000 open market accounts, including Bassett Design Centers and Bassett Custom Studios [3] - Bassett products are available directly to consumers through its website [3]

Financial Performance - Net sales revenue for the year ended November 30, 2024, decreased by $60,213, or approximately 15% from the prior year, primarily due to decreases in wholesale shipments and retail delivered sales [114]. - Gross profit for fiscal 2024 was $179,415, representing a gross margin of 54.4%, which increased by 150 basis points from 2023 [115]. - SG&A expenses for fiscal 2024 were $187,527, accounting for 56.8% of sales, an increase of 420 basis points from the previous year due to lower sales volumes [116]. - The net sales of furniture and accessories for the year ended November 30, 2024, were $329,923, with a gross profit of $179,415 [125]. - The wholesale segment generated net sales of $207,462, while the retail segment (Company-owned stores) reported net sales of $204,563 for the year ended November 30, 2024 [125]. - Net sales for fiscal 2024 decreased by $41,449 million or 17% compared to fiscal 2023, primarily due to a 19% decrease in shipments to the open market [129]. - Operating income for fiscal 2024 was $25,357 million, a decrease of $5,342 million or 17.4% from fiscal 2023 [127]. - Net sales for the retail segment decreased by $31,377 million or 13.3% in fiscal 2024 compared to fiscal 2023, with total net sales of $204,563 million [131]. - Corporate and other segment net sales declined by $3,885 million or 44.1% to $4,919 million in fiscal 2024 [136]. - The logistical services segment reported zero revenue in fiscal 2024, a decrease of $16,776 million or 100% from fiscal 2023 [138]. E-commerce and Customer Engagement - E-commerce sales increased by over 20% in the latter half of the fiscal year, although they remain small compared to in-store sales [101]. - The new web platform launched in late 2023 has led to increased customer engagement, with more page views and time spent on the site [101]. Asset Impairment and Restructuring - The company recognized non-cash charges totaling $2,401 related to the impairment of Noa Home's assets and a charge of $962 associated with cumulative translation losses [102]. - In fiscal 2024, the company recognized asset impairment charges totaling $5,515, a contract abandonment charge of $1,240, cumulative translation losses of $962, and a restructuring charge of $440, which is expected to yield annual savings of approximately $2,500 starting in 2025 [117]. - The company recorded asset impairment charges totaling $2,887 million in the retail segment and $727 million in the wholesale segment [128]. - The company recognized a charge of $1,827 to fully impair the Noa Home trade name intangible asset during fiscal 2024 [168]. - Noa Home, acquired on September 2, 2022, was determined not likely to achieve profitability and ceased operations as of November 30, 2024, with sales primarily generated outside the United States [121]. Cash Flow and Capital Expenditures - Cash provided by operations decreased by $14,674 million to $4,050 million in fiscal 2024, primarily due to changes in working capital [146]. - The overall cash position declined by $12,993 million during fiscal 2024, with cash and cash equivalents totaling $59,911 million as of November 30, 2024 [147]. - The company spent $5,211 million on property and equipment, including new store openings and remodels during fiscal 2024 [147]. - Total capital expenditures for fiscal 2025 are anticipated to be between $8 million and $12 million, focusing on store remodeling and IT investments [152]. Debt and Credit Facilities - The company entered into a Credit Facility with a line of credit of up to $25,000, with $6,013 outstanding under standby letters of credit as of November 30, 2024 [148]. - The company must maintain a Consolidated Minimum Tangible Net Worth of at least $120,000 under the terms of the Credit Facility [148]. Inventory and Reserves - The allowance for credit losses was $1,097 as of November 30, 2024, representing 7.7% of gross accounts receivable [162]. - Reserves for excess and obsolete inventory were $5,395 as of November 30, 2024, representing 8.9% of inventories on a LIFO basis [163]. Market Risks - The company is exposed to market risk from changes in the cost of raw materials, particularly wood, woven fabric, and foam products [174]. - The company manages exposure to diesel fuel price risk through the application of fuel surcharges to customers [175]. - The company is not significantly exposed to foreign currency market risk for purchases outside North America, as most are denominated in U.S. dollars [173].

Financial Performance - Bassett Furniture (BSET) reported quarterly earnings of $0.38 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, and up from $0.15 per share a year ago, representing an earnings surprise of 660% [1] - The company posted revenues of $84.34 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 1.80%, but down from year-ago revenues of $94.7 million [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $79.24 million, and for the current fiscal year, it is $0.80 on revenues of $335.69 million [7] - The estimate revisions trend for Bassett is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Furniture industry, to which Bassett belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Bassett's stock performance [5]

Core Insights - Bassett Furniture Industries, Inc. reported a consolidated sales decline of 11% in Q4 2024 compared to Q4 2023, with total sales of $84.3 million [1][5] - The company returned to profitability in Q4 2024, achieving diluted earnings per share of $0.38, compared to a loss of $0.47 in the same quarter of the previous year [3][5] - Gross margin improved to 56.6%, driven primarily by better margins in the wholesale segment [5][6] Financial Performance - Consolidated sales for Q4 2024 were $84.3 million, down from $94.7 million in Q4 2023, reflecting a decrease of $10.4 million or 11% [1][16] - Operating income for Q4 2024 was $0.9 million, which included a $1.0 million charge for cumulative translation losses and a $0.4 million restructuring charge [1][5] - The wholesale segment saw sales of $52.3 million, down 13.7% from $60.6 million in Q4 2023, while retail sales were $53.1 million, down 8.3% from $57.9 million [1][16] Strategic Initiatives - The company undertook a restructuring plan aimed at right-sizing the business, which contributed to the return to profitability [3] - Bassett is focusing on operating efficiency, cost structure optimization, and innovation in product lines and marketing strategies to enhance customer value [3][5] - The company is positioning itself for future growth, anticipating a turnaround in the housing industry [3] Segment Information - Wholesale sales to external customers were $30.3 million in Q4 2024, down from $35.0 million in Q4 2023 [16] - Retail sales for the same period were $53.1 million, compared to $57.9 million in the previous year [16] - Corporate and Other segment, which includes Noa Home Inc., reported sales of $1.0 million, down from $1.8 million [1][16] Cash Flow and Balance Sheet - The company generated $6.4 million in operating cash flow during the quarter [5] - Total assets decreased to $341.2 million as of November 30, 2024, down from $370.4 million a year earlier [11][13] - Cash and cash equivalents at the end of the period were $39.6 million, compared to $52.4 million at the end of the previous year [11][14]

Bassett Furniture Industries, Incorporated’s (BSET) fourth-quarter fiscal 2024 earnings and revenues are expected to have decreased on a year-over-year basis, owing to an industry-wide soft demand for home furnishings.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 52.9% and declined 73.3% year over year. Net sales lagged the consensus mark by 3.8% and decreased 13.3% from the prior-year level. ...

BASSETT, Va., Jan. 22, 2025 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) today announced it will host a conference call with management on Thursday, January 30, 2025, at 9:00 a.m. ET to discuss its fourth quarter 2024 financial results. The Company will issue its earnings release after the market closes on Wednesday, January 29, 2025. Chairman and CEO Rob Spilman will host the call, along with CFO Mike Daniel. The public is invited to listen to the conference call by webcast, access ...