SEC Filing | Bassett Furniture Industries

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bset20250402_8k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) April 2, 2025

BASSETT FURNITURE INDUSTRIES, INCORPORATED

(Exact name of registrant as specified in its charter)

Virginia		000-00209		54-0135270
(State or other jurisdiction of incorporation or organization)		(Commission File No.)		(I.R.S. Employer Identification No.)

3525 Fairystone Park Highway Bassett, Virginia		24055
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (276) 629-6000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of exchange on which registered
Common Stock ($5.00 par value)		BSET		NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01

Other Events

On April 2, 2025, Bassett Furniture Industries issued a news release relating to the first quarter financial results for the fiscal year ending November 29, 2025. A copy of the news release announcing this information is attached to this report as Exhibit 99.1.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

99	News release issued by Bassett Furniture Industries, Inc. on April 2, 2025.

104	Cover Page Interactive Data File (embedded within the inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

April 2, 2025	By:	/s/ J. Michael Daniel
		J. Michael Daniel
		Title:	Senior Vice President – Chief Financial & Administrative Officer

ex_798275.htm

Exhibit 99


		Contacts:
Bassett Furniture Industries, Inc.		J. Michael Daniel
P.O. Box 626		Senior Vice President and
Bassett, VA 24055		Chief Financial Officer
		(276) 629-6260 – Investors
		mdaniel@bassettfurniture.com

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

For immediate release

Bassett Reports Fiscal First Quarter Results

(Bassett, Va.) – April 2, 2025 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its first quarter ended March 1, 2025. The first quarter for the Company’s Fiscal Year 25 had 13 weeks as compared to 14 weeks in Fiscal Year 24.

Q1 Consolidated Business Highlights: [FY 25 vs. FY 24, unless otherwise specified]

●

Revenues decreased 5.1% from the prior year quarter, which contained an additional week. Normalizing the first fiscal quarter of 2024 to adjust for the additional week, sales revenue for the first quarter of fiscal 2025 increased 2.2%.

●

Operating income was $2.5 million or 3.0% of sales as compared to a loss of $(2.4) million for the prior year quarter.

●

Improved wholesale margins in the quarter drove Company gross margin to 57.0%, a 170 basis point increase over the prior year.

●

Selling, general and administrative expenses came in at 54.0% of sales which was 400 basis points lower than the prior year. This was despite a 5.1% sales decrease as the Company continues to realize the benefits from its 2024 restructuring plan.

●

Diluted earnings per share of $0.21 vs. a loss of $(0.14).

Fiscal 2025 First Quarter Overview

(Dollars in millions)

	Sales										Operating Income (Loss)
	1st Qtr				Dollar			%			1st Qtr			% of			1st Qtr			% of
	2025		2024		Change			Change			2025			Sales			2024			Sales
Consolidated ⁽¹⁾	$	82.2	$	86.6	$	(4.4	)		-5.1	%	$	2.6			3.0	%	$	(2.4	)		-2.8	%

Wholesale	$	52.9	$	54.7	$	(1.8	)		-3.3	%	$	8.7			16.4	%	$	6.8			12.4	%

Retail	$	53.3	$	53.8	$	(0.5	)		-0.9	%	$	-			0.0	%	$	(1.6	)		-3.0	%

Corporate & Other ⁽²⁾	$	-	$	1.9	$	(1.9	)		-100.0	%	$	(6.2	)		N/A		$	(7.6	)		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 operations of Noa Home Inc. (fiscal 2024 only) along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.

“We’re pleased that with consolidated margin improvements in the first quarter, Bassett delivered diluted earnings per share of $0.21,” said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. “We reduced our cost structure to operate with greater efficiency while we accelerate product innovation to drive higher sales. Our strategic plan for 2025 is designed to weather another year of tepid demand for home furnishings and keep us focused on growth initiatives, including new collections across all categories and e-commerce sales. We believe we’ve taken the right steps to position us very competitively for 2025.”

Conference Call and Webcast

The Company will hold a conference call to discuss its quarterly results on April 3, 2025, 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/b3vchwmf. 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 first fiscal quarter of 2025, 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 1
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations - unaudited
(In thousands, except for per share data)

	Quarter Ended*
	March 1, 2025						March 2, 2024
				Percent of						Percent of
	Amount			Net Sales			Amount			Net Sales

Net sales of furniture and accessories	$	82,162			100.0	%	$	86,554			100.0	%
Cost of furniture and accessories sold		35,332			43.0	%		38,687			44.7	%
Gross profit		46,830			57.0	%		47,867			55.3	%

Selling, general and administrative expenses		44,375			54.0	%		50,224			58.0	%
Income (loss) from operations		2,455			3.0	%		(2,357	)		-2.7	%

Interest income		559			0.7	%		756			0.9	%
Other loss, net		(459	)		-0.6	%		(104	)		-0.1	%
Income (loss) before income taxes		2,555			3.1	%		(1,705	)		-2.0	%

Income tax expense (benefit)		701			0.9	%		(512	)		-0.6	%
Net income (loss)		1,854			2.3	%		(1,193	)		-1.4	%


Basic and diluted earnings (loss) per share	$	0.21					$	(0.14	)

*13 weeks in fiscal 2025 versus 14 weeks in fiscal 2024.

Table 2
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)

	(Unaudited)
	March 1, 2025		November 30, 2024
Assets
Current assets
Cash and cash equivalents	$	36,062	$	39,551
Short-term investments		20,360		20,360
Accounts receivable, net		14,218		13,181
Inventories, net		58,103		54,965
Recoverable income taxes		4,240		4,240
Other current assets		9,857		9,242
Total current assets		142,840		141,539

Property and equipment, net		75,408		77,047

Other long-term assets
Deferred income taxes, net		6,280		6,867
Goodwill and other intangible assets		14,170		14,185
Right of use assets under operating leases		89,413		93,624
Other		7,675		7,908
Total long-term assets		117,538		122,584
Total assets	$	335,786	$	341,170

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	14,682	$	13,303
Accrued compensation and benefits		6,721		6,898
Customer deposits		25,352		25,742
Current portion of operating lease obligations		18,141		18,050
Other accrued expenses		8,841		9,410
Total current liabilities		73,737		73,403

Long-term liabilities
Post employment benefit obligations		10,958		10,882
Long-term portion of operating lease obligations		83,371		88,395
Other long-term liabilities		922		1,163
Total long-term liabilities		95,251		100,440


Stockholders’ equity
Common stock		43,462		43,681
Retained earnings		122,555		122,847
Additional paid-in-capital		-		6
Accumulated other comprehensive income		781		793
Total stockholders' equity		166,798		167,327
Total liabilities and stockholders’ equity	$	335,786	$	341,170

Table 3
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows - unaudited
(In thousands)

	Three Months Ended*
	March 1, 2025			March 2, 2024
Operating activities:
Net income (loss)	$	1,854		$	(1,193	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		2,246			2,664
Deferred income taxes		587			(922	)
Other, net		454			302
Changes in operating assets and liabilities:
Accounts receivable		(1,037	)		(206	)
Inventories		(3,138	)		25
Other current and long-term assets		(615	)		(3,167	)
Right of use assets under operating leases		4,211			4,375
Customer deposits		(390	)		(24	)
Accounts payable and other liabilities		709			(3,374	)
Obligations under operating leases		(4,933	)		(6,219	)
Net cash used in operating activities		(52	)		(7,739	)

Investing activities:
Purchases of property and equipment		(871	)		(2,076	)
Other		(11	)		(270	)
Net cash used in investing activities		(882	)		(2,346	)

Financing activities:
Cash dividends		(1,734	)		(1,573	)
Other issuance of common stock		80			86
Repurchases of common stock		(721	)		-
Taxes paid related to net share settlement of equity awards		(136	)		(161	)
Repayments of finance lease obligations		(44	)		(74	)
Net cash used in financing activities		(2,555	)		(1,722	)
Effect of exchange rate changes on cash and cash equivalents		-			9
Change in cash and cash equivalents		(3,489	)		(11,798	)
Cash and cash equivalents - beginning of period		39,551			52,407
Cash and cash equivalents - end of period	$	36,062		$	40,609

*13 weeks in fiscal 2025 versus 14 weeks in fiscal 2024.

Table 4
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Segment Information - unaudited
(In thousands)

	Quarter Ended*
	March 1, 2025			March 2, 2024
Sales Revenue
Wholesale sales of furniture and accessories	$	52,927		$	54,700
Less: Sales to retail segment		(24,059	)		(23,762	)
Wholesale sales to external customers		28,868			30,938
Retail sales of furniture and accessories		53,294			53,754
Corporate & Other - Noa Home⁽¹⁾		-			1,862
Consolidated net sales of furniture and accessories	$	82,162		$	86,554


Income (Loss) before Income Taxes
Income (Loss) from Operations
Wholesale	$	8,685		$	6,760
Retail		(48	)		(1,612	)
Net expenses - Corporate and other⁽¹⁾		(6,226	)		(7,595	)
Inter-company elimination		44			90
Consolidated income (loss) from operations		2,455			(2,357	)

Interest income		559			756
Other loss, net		(459	)		(104	)
Consolidated income (loss) before income taxes	$	2,555		$	(1,705	)

*13 weeks in fiscal 2025 versus 14 weeks in fiscal 2024.

⁽¹⁾ Corporate and Other includes the operations of Noa Home Inc. (fiscal 2024 only) along with the shared Corporate costs that are benefiting both the Wholesale and Retail segments.