Bassett(US:BSET)2025-07-10 14:02Financial Data and Key Metrics Changes - Consolidated sales increased by 1.1% year-over-year, with ongoing business revenue rising by 2.5% after excluding Noah Home, Inc [7][20] - Operating income reached $2.5 million, or 3% of sales, compared to a loss of $8.5 million in the previous year [21] - Diluted earnings per share improved to $0.22 from a loss of $0.82 [21] Business Line Data and Key Metrics Changes - Wholesale net sales increased by $1.6 million, or 3%, driven by a 12.6% increase in shipments to Bassett retail stores, while shipments to the open market decreased by 2.6% [21] - Retail net sales rose by $3.8 million, or 7.5%, although written sales declined by 0.8% [23] Market Data and Key Metrics Changes - Orders to the combined corporate and licensed store network grew by 9.6%, while wholesale business from the open market declined by 6.6% [11] - Written sales at bassetfurniture.com increased by 31% in the second quarter compared to the previous year [15] Company Strategy and Development Direction - The company is focused on a five-point restructuring strategy aimed at growth and profitability, including product innovation and cost reduction [5][6] - Plans to open new stores in Cincinnati and Orlando, with construction expected to start in the fall [19][70] Management's Comments on Operating Environment and Future Outlook - The management highlighted a challenging sales environment due to a weak housing market and high interest rates, impacting consumer confidence [6][8] - The company remains optimistic about the impact of its strategic investments and restructuring efforts on future performance [70] Other Important Information - The company plans to continue paying dividends and opportunistically repurchase shares, with a quarterly cash dividend of $0.20 per share under consideration [19][25] - The liquidity position is solid, with $59.8 million in cash and short-term investments and no outstanding debt [24] Q&A Session Summary Question: Update on design studios and future plans - The company currently has 54 design studios and expects to maintain a pace of opening six to eight studios per quarter [28][31] Question: Metrics on design studios' performance - While specific metrics are not shared externally, the dealer base is pleased with the performance of the design studios [32][33] Question: Impact of tariffs on design trade versus retail - Tariffs have had less impact on the design trade compared to retail, which is more cost-conscious [39] Question: Shipment timing and expectations for the third quarter - The decline in Lane Venture shipments was seen as an anomaly, and improvements are expected in the third quarter [44][46] Question: Future margin impacts from discounting - The company is focused on cleaning inventory, which may slightly affect margins but is seen as a prudent exercise [56][58] Question: Plans for new store openings and market strategy - The company aims to grow its store base conservatively, with a focus on leveraging existing infrastructure [60][62]