Bassett Reports Fiscal Second Quarter Results

Core Insights - Bassett Furniture Industries, Inc. reported a consolidated revenue increase of 1.1% year-over-year for Q2 2025, reaching $84.3 million, with a notable operating income of $2.5 million compared to a loss of $8.5 million in Q2 2024 [1][5]. Financial Performance - Consolidated sales for Q2 2025 were $84.3 million, up from $83.4 million in Q2 2024, reflecting a 1.1% increase [1]. - Excluding the impact of Noa Home Inc., which closed in late 2024, consolidated revenues increased by 2.5% [5]. - Operating income was $2.5 million, representing 3.0% of sales, a significant recovery from the previous year's loss of $(8.5) million [5][8]. - Gross margin improved to 55.6%, a 310 basis point increase from the prior year, primarily due to the absence of inventory valuation charges that affected the previous year's results [5][8]. - Selling, general, and administrative expenses decreased to 52.7% of sales, down 330 basis points from the prior year, attributed to restructuring and cost containment efforts [5][8]. Segment Performance - Wholesale sales increased to $54.2 million, a 3.1% rise from $52.6 million in the previous year [1][15]. - Retail sales also saw an increase, reaching $54.2 million, up 7.5% from $50.5 million in Q2 2024 [1][15]. - The Corporate & Other segment reported a loss of $(6.5) million, reflecting the closure of Noa Home Inc. [1][15]. Management Commentary - The CEO highlighted improvements in revenue and operating income despite challenges such as a weak housing market and trade tariff uncertainties [3]. - The company emphasized its focus on operational efficiency, product launches, and enhanced e-commerce capabilities as key factors in navigating the current market conditions [3]. Cash Flow and Earnings - The company generated $7.0 million in operating cash flow during the quarter [5]. - Diluted earnings per share were reported at $0.22, a recovery from a loss of $(0.82) in the prior year [5][9]. Balance Sheet Overview - Total assets as of May 31, 2025, were $331.3 million, a decrease from $341.2 million at the end of the previous fiscal year [11][12]. - Current assets increased to $144.2 million, up from $141.5 million [11]. - Total liabilities were reported at $164.6 million, with current liabilities at $74.5 million [12]. Future Outlook - The company is positioned to leverage its strong U.S. manufacturing base to serve both wholesale and retail markets effectively in the second half of fiscal 2025 [3].