Bassett Reports Fiscal First Quarter Results

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]