Bassett Reports Fiscal Third Quarter Results

BASSETT, Va., Sept. 30, 2026 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its third quarter ended August 29, 2026.

Q3 Consolidated Business Highlights: [FY 26 vs. FY 25, unless otherwise specified]

• Revenues increased 3.4% over the prior year quarter.
• Received $2.8 million in tariff refunds from U.S. Customs and Border Protection as a result of the U.S. Supreme Court’s February 2026 decision invalidating the tariffs imposed by the President in 2025 under The International Emergency Economic Powers Act of 1977 ("IEEPA"). Of this amount, $1.0 million was recorded as an increase in gross profit for the quarter, with additional amounts to be recorded primarily in the fourth quarter of 2026. Tariff costs are capitalized into inventory at the time they are incurred and subsequently recorded in the income statement when those goods are sold to a third party. The high tariff costs recognized in the quarter were substantially offset by the refund income that the Company recorded. Bassett imports less than 25% of its products.
• Operating income was $2.8 million or 3.4% of sales as compared to operating income of $0.6 million or 0.7% of sales for the prior year quarter.
• Gross margin of 57.5% represented a 130-basis point increase over the prior year due primarily to higher margins in the wholesale business from the previously discussed IEEPA tariff refund, partially offset by lower margins in the retail business.
• Selling, general and administrative (SG&A) expenses excluding new store pre-opening costs, were 53.9% of sales, 150 basis points lower than the prior year.
• Diluted earnings per share were $0.24 compared to $0.09 per share in the prior year period.
• Generated $6.1 million of cash from operating activities for the quarter.
  

Fiscal 2026 Third Quarter Overview
(Dollars in millions)

 Sales Operating Income (Loss) 3rd Quarter Dollar% 3rd Quarter% of 3rd Quarter% of  2026 2025 ChangeChange  2026 Sales  2025 SalesConsolidated(1)$82.8$80.1 $2.73.4% $2.8 3.4% $0.6 0.7%            Wholesale$53.7$50.8 $2.95.7% $9.3 17.3% $8.1 15.9%            Retail$54.2$51.9 $2.34.5% $(0.3)-0.6% $(0.3)-0.6%            Corporate & Other(2)$-$- $-N/A $(6.6)N/A $(7.4)N/A            (1) Our consolidated results for the quarter include certain intercompany eliminations. See Table 4, "Segment Information" below for an illustration of the effects of these items on our consolidated sales and operating income.                (2) Corporate and Other includes the shared Corporate costs that are benefiting both the Wholesale and Retail segments.   

Comments from Rob Spilman, Bassett Chairman and CEO
“We are pleased to report a 3.4% increase in consolidated revenue bolstered by increases in both retail and wholesale sales. Operating profit showed nice improvement thanks to sales increases in key product categories, improved expense control, and tariff refunds that offset tariff costs that were embedded in our balance sheet. SG&A expenses as a percentage of sales, excluding new store pre-opening costs associated with the Orlando store planned to open this week, decreased 150 basis points.

Written retail sales increased 4.4%, continuing the positive momentum from the second quarter in spite of one less week of the Labor Day promotion in the quarter compared to last year. We were especially pleased that for the full four-week Labor Day promotion, written sales increased 9% over last year, which kicked off a good start to the fourth quarter.   Wholesale orders were up nicely, showing a 7.9% increase. All wholesale channels showed a sales increase, with the Lane Venture brand up almost 29%.

Our marketing team continues to optimize various activities to improve the omni-channel experience. We had excellent response to our 84-page fall catalog. We’ve improved the navigation and visual presentation of our products on the website. Continuing the trend of double-digit increases in the past two years, e-commerce written sales were up 48% this quarter.

We are very excited to debut our new 44,000-square-foot showroom at the High Point Market on October 15th. This significant investment showcases the style and relevance of the Bassett brand, and our goal is to grow our business across all channels by inspiring customers with a broad range of new products. Key among them is a new collection created in partnership with Birmingham-based interior decorator and textile designer Heather Chadduck, featuring 30 furniture pieces in five finishes and 70 in-line fabrics that she personally curated.

Looking forward, we’re continuing to execute our plan that is focused on growing sales and profitability, as well as improving operating efficiency. We plan to be more aggressive on Black Friday promotions to drive traffic at retail and via the website. As for challenges, housing slowness and even higher mortgage rates remain a drag on our industry. We’re watching the impact of global issues on our business and are optimistic that we can effectively manage through these challenges in the fourth quarter.”

Conference Call and Webcast
The Company will hold a conference call to discuss its quarterly results on October 1, 2026, at 9:00 am ET. The public is invited to listen to the conference call by webcast, accessible through the Company’s investor relations website, https://investors.bassettfurniture.com/. Participants can also listen to the conference call via https://edge.media-server.com/mmc/p/rre7zxb2/. A replay and transcript of the conference call will be available on demand on the investor relations site.

About Bassett Furniture Industries, Inc.
Bassett Furniture Industries, Inc. (NASDAQ: BSET) is a leading provider of high-quality home furnishings with a wide range of distribution types. Bassett sales approximately 60% of its products through its network of 87 company- and licensee-owned stores which feature the latest on-trend furniture styles, the Company’s capabilities in custom furniture design and manufacturing, free in-home design visits, and coordinated decorating accessories in a professional and friendly environment. Bassett also has a significant traditional wholesale business with more than 1,000 open market accounts. Most of the open market sales are through Bassett Design Centers and Bassett Custom Studios which function as a store within a multi-line store featuring the Company’s custom furniture capabilities. The wholesale business, including the Lane Venture outdoor brand, also services general furniture stores and a growing number of interior design firms. Bassett products are also directly available to consumers at www.bassettfurniture.com. (BSET-E)

Forward-Looking Statements

Certain of the statements in this release, particularly those preceded by, followed by or including the words “believes,” “plans,” “expects,” “anticipates,” “intends,” “should,” “estimates,” or similar expressions, or those relating to or anticipating financial results or changes in operations for periods beyond the end of the third fiscal quarter of 2026, constitute “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Bassett claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. In many cases, Bassett cannot predict what factors would cause actual results to differ materially from those indicated in the forward-looking statements. Expectations included in the forward-looking statements are based on preliminary information, as well as certain assumptions which management believes to be reasonable at this time. The following important factors affect Bassett and could cause actual results to differ materially from those indicated in the forward looking statements: the effects of national and global economic or other conditions and future events on the retail demand for home furnishings and the ability of Bassett’s customers and consumers to obtain credit; the success of marketing, logistics, retail and other initiatives; and the economic, competitive, governmental and other factors identified in Bassett’s filings with the Securities and Exchange Commission. Any forward-looking statement that Bassett makes speaks only as of the date of such statement, and Bassett undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indication of future performance, unless expressed as such, and should only be viewed as historical data.

Table 1BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Income - unaudited(In thousands, except for per share data)                         Quarter Ended Nine Months Ended August 29, 2026 August 30, 2025 August 29, 2026 August 30, 2025  Percent of
  Percent of
  Percent of Percent of AmountNet Sales
 AmountNet Sales
 AmountNet Sales AmountNet Sales            Net sales$82,838 100.0% $80,103100.0% $246,931 100.0% $246,613 100.0%Cost of goods sold 35,222 42.5%  35,10943.8%  106,803 43.3%  107,880 43.7%     Gross profit 47,616 57.5%  44,99456.2%  140,128 56.7%  138,733 56.3%            Selling, general and administrative expenses 44,690 53.9%  44,40155.4%  133,234 54.0%  133,188 54.0%New store preopening costs 144 0.2%  -0.0%  712 0.3%  - 0.0%   Income from operations 2,782 3.4%  5930.7%  6,182 2.5%  5,545 2.2%            Interest income 480 0.6%  4720.6%  1,479 0.6%  1,552 0.6%Other income (loss), net (375)-0.5%  300.0%  (480)-0.2%  (851)-0.3%Income before income taxes 2,887 3.5%  1,0951.4%  7,181 2.9%  6,246 2.5%            Income tax expense 786 0.9%  2940.4%  1,925 0.8%  1,673 0.7%Net income$2,101 2.5% $8011.0%  5,256 2.1%  4,573 1.9%                        Basic and diluted earnings per share$0.24   $0.09  $0.61   $0.53              

Table 2BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands)  (Unaudited)  Assets August 29, 2026 November 29, 2025Current assets    Cash and cash equivalents $35,372 $41,277Short-term investments  18,023  17,963Accounts receivable, net  14,273  14,410Inventories, net  59,279  61,790Recoverable income taxes  424  2,878Other current assets  7,899  7,224Total current assets  135,270  145,542     Property and equipment, net  73,441  73,175     Other long-term assets    Deferred income taxes, net  6,267  5,979Goodwill  7,664  7,217Intangible assets  6,867  6,910Right of use assets under operating leases  73,194  76,727Other  9,438  8,269Total long-term assets  103,430  105,102Total assets $312,141 $323,819     Liabilities and Stockholders’ Equity    Current liabilities    Accounts payable $12,461 $14,739Accrued compensation and benefits  6,878  10,227Customer deposits  23,848  24,969Current portion of operating lease obligations  17,661  19,299Other accrued expenses  8,515  7,750Total current liabilities  69,363  76,984     Long-term liabilities    Post employment benefit obligations  12,238  11,379Long-term portion of operating lease obligations  65,052  69,353Other long-term liabilities  560  996Total long-term liabilities  77,850  81,728          Stockholders’ equity    Common stock  43,198  43,256Retained earnings  120,982  121,128Additional paid-in-capital  56  -Accumulated other comprehensive income  692  723Total stockholders' equity  164,928  165,107Total liabilities and stockholders’ equity $312,141 $323,819     

Table 3BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIESConsolidated Statements of Cash Flows - unaudited(In thousands)       Nine Months Ended  August 29, 2026 August 30, 2025Operating activities:    Net income $5,256  $4,573 Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization  6,747   6,626 Deferred income taxes  (288)  1,307 Other, net  509   841 Changes in operating assets and liabilities:    Accounts receivable  137   46 Inventories  2,581   (6,494)Recoverable income taxes and other current assets  1,779   1,690 Right of use assets under operating leases  12,769   12,768 Customer deposits  (1,143)  (2,593)Accounts payable and other liabilities  (5,243)  393 Obligations under operating leases  (15,091)  (13,431)Net provided by operating activities  8,013   5,726      Investing activities:    Purchases of property and equipment  (6,875)  (3,737)Cash paid for licensee acquisition  (470)  - Other  (621)  (408)Net cash used in investing activities  (7,966)  (4,145)     Financing activities:    Cash dividends  (5,179)  (5,210)Issuance of common stock  265   249 Repurchases of common stock  (779)  (1,522)Taxes paid related to net share settlement of equity awards  (76)  (136)Repayments of finance lease obligations  (183)  (100)Net cash used in financing activities  (5,952)  (6,719)Change in cash and cash equivalents  (5,905)  (5,138)Cash and cash equivalents - beginning of period  41,277   39,551      Cash and cash equivalents - end of period $35,372  $34,413      

Table 4 BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES Segment Information - unaudited (In thousands)                     Quarter Ended   Nine Months Ended    August 29, 2026   August 30, 2025   August 29, 2026   August 30, 2025 Sales Revenue                Wholesale sales $ 53,692  $ 50,787  $ 159,800  $ 157,943 Less: Sales to retail segment  (25,089)  (22,575)  (75,196)  (70,747) Wholesale sales to external customers  28,603   28,212   84,604   87,196 Retail sales  54,235   51,891   162,327   159,417 Consolidated net sales $ 82,838  $ 80,103  $ 246,931  $ 246,613                                   Income (Loss) before Income Taxes                Income (Loss) from Operations                Wholesale $ 9,317  $ 8,055  $ 25,940  $ 25,030 Retail excluding new store pre-opening costs  (109)  (333)  (906)  101 New store pre-opening costs  (144)  -   (712)  - Corporate and other(1)  (6,620)  (7,419)  (18,797)  (20,166) Inter-company elimination  338   290   657   580 Consolidated income from operations  2,782   593   6,182   5,545                  Interest income  480   472   1,479   1,552 Other income (loss), net  (375)  30   (480)  (851) Consolidated income before income taxes $ 2,887  $ 1,095  $ 7,181  $ 6,246                  (1)Corporate and Other includes the shared Corporate costs that are benefiting both the Wholesale and Retail segments.       

Contacts:

J. Michael Daniel
Senior Vice President and 
Chief Financial Officer
(276) 629-6000 – Investors
[email protected] 

Peter D. Morrison
Vice President of Communications
(276) 629-6450 – Media