Core Insights - Bassett Furniture Industries reported a consolidated revenue increase of $4.4 million, or 5.1%, compared to the prior-year quarter, with a 6.4% increase when excluding Noa Home sales [1][7] - The company emphasized a flexible sourcing model as essential for resilience amid tariff stabilization [1] - Despite slow housing sales impacting the home furnishings category, the company achieved increased sales and profits in the fourth quarter [3][4] Financial Performance - In Q4, operating income rose to $2.3 million, representing 2.6% of sales, while diluted EPS was $0.18, down from $0.38 a year earlier due to a prior-year tax benefit [7][8] - Wholesale revenue increased by $4.4 million, or 8.3%, driven by a 14% increase in shipments to retail stores [9] - Retail net sales grew by $4.2 million, or 7.9%, although retail gross margin declined by 150 basis points due to delayed price adjustments [12] Cost Management and Efficiency - The company has maintained a "restructuring mindset" to drive cost reductions and operational efficiencies, with SG&A down 60 basis points [2][10] - Headcount was reduced by 11% last year, with an additional 4% reduction recently to create a leaner organization [18] - Bassett ended the year with $59.2 million in cash and no debt, generating $7.8 million in operating cash flow during the quarter [19] Product and Market Initiatives - Case-goods sales increased over 50%, and custom leather sales rose by 19%, indicating strong product momentum [5][13][14] - E-commerce sales grew by 14% in Q4 and 27% for the full year, with plans to enhance marketing efforts [15] - The company plans to open new stores in Cincinnati and Orlando and relocate its Long Island store [16] Future Outlook - Management forecasts capital expenditures of $8 million to $12 million for fiscal 2026, reflecting planned store activities [20] - Early demand trends in fiscal 2026 showed strong written sales, although winter weather caused disruptions [21] - The company aims to continue focusing on operating discipline while pursuing growth through retail expansion and new initiatives [22]