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bset20250709_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) July 9, 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 July 9, 2025, Bassett Furniture Industries issued a news release relating to the second 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

99.1 News release issued by Bassett Furniture Industries, Inc. on July 9, 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.


July 9, 2025	By:	/s/ J. Michael Daniel
		J. Michael Daniel
		Title: Senior Vice President – Chief Financial & Administrative Officer

ex_837478.htm

Exhibit 99.1

	Contacts:
Bassett Furniture Industries, Inc.	J. Michael Daniel
P.O. Box 626	Senior Vice President and
Bassett, VA 24055	Chief Financial Officer
	(276) 629-6620 – Investors
	mdaniel@bassettfurniture.com

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

For immediate release

Bassett Reports Fiscal Second Quarter Results

(Bassett, Va.) – July 9, 2025 – Bassett Furniture Industries, Inc. (Nasdaq: BSET) reported today its results of operations for its second quarter ended May 31, 2025.

Q2 Consolidated Business Highlights: [FY 25 vs. FY 24, unless otherwise specified]

●

Revenues increased 1.1% from the prior year quarter. Excluding sales from Noa Home Inc. which closed in late 2024, consolidated revenues increased 2.5%.

●

Operating income was $2.5 million or 3.0% of sales as compared to a loss of $(8.5) million for the prior year quarter which included $5.5 million of asset impairment charges and $2.7 million of additional inventory valuation charges.

●

Gross margin at 55.6% represented a 310 basis point improvement over the prior year as the Company recorded the above-mentioned inventory valuation charges in the second quarter of 2024. Excluding those charges, gross margin would have been essentially flat to the prior year quarter.

●

Selling, general and administrative expenses were 52.7% of sales, 330 basis points lower than the prior year, reflecting benefits from the prior year restructuring plan and on-going cost containment activities.

●

Generated $7.0 million of operating cash flow.

●

Diluted earnings per share of $0.22 as compared to a loss of $(0.82) in the prior year.

Fiscal 2025 Second Quarter Overview

(Dollars in millions)

	Sales										Operating Income (Loss)
	2nd Qtr				Dollar			%			2nd Qtr			% of			2nd Qtr			% of
	2025		2024		Change			Change			2025			Sales			2024			Sales
Consolidated ⁽¹⁾	$	84.3	$	83.4	$	0.9			1.1	%	$	2.5			3.0	%	$	(8.5	)		-10.1	%

Wholesale	$	54.2	$	52.6	$	1.6			3.1	%	$	8.3			15.3	%	$	5.7			10.8	%

Retail	$	54.2	$	50.5	$	3.7			7.5	%	$	0.5			0.9	%	$	(2.2	)		-4.4	%

Corporate & Other ⁽²⁾	$	-	$	1.1	$	(1.1	)		-100.0	%	$	(6.5	)		N/A		$	(6.9	)		N/A

(1)

Our consolidated results for the quarter include certain intercompany eliminations. Consolidated results for the 2nd quarter of 2024 include asset impairment charges of $5.5 million which are not allocated to our segment operating results. 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 with both revenue and operating income improvements in the second quarter, despite the ongoing challenges affecting consumer confidence and purchasing decisions, including a historically weak housing market and uncertainty about the impact of trade tariffs on the cost of goods,” said Robert H. Spilman, Jr., Bassett Chairman and Chief Executive Officer. “Our rigorous attention to increased operating efficiency, product launches, expanded e-commerce capabilities and more customized marketing helped us weather this tepid home furnishings market. We believe these advantages and our strong US manufacturing base position Bassett well to serve both wholesale and retail markets for the second half of fiscal 2025.”

Conference Call and Webcast

The Company will hold a conference call to discuss its quarterly results on July 10, 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/gcbdwqr7. 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 second 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												Six Months Ended*
	May 31, 2025						June 1, 2024						May 31, 2025						June 1, 2024
				Percent of						Percent of						Percent of						Percent of
	Amount			Net Sales			Amount			Net Sales			Amount			Net Sales			Amount			Net Sales

Net sales of furniture and accessories	$	84,348			100.0	%	$	83,410			100.0	%	$	166,510			100.0	%	$	169,964			100.0	%
Cost of furniture and accessories sold		37,439			44.4	%		39,650			47.5	%		72,771			43.7	%		78,337			46.1	%
Gross profit		46,909			55.6	%		43,760			52.5	%		93,739			56.3	%		91,627			53.9	%

Selling, general and administrative expenses		44,412			52.7	%		46,707			56.0	%		88,787			53.3	%		96,931			57.0	%
Asset impairment charges		-			0.0	%		5,515			6.6	%		-			0.0	%		5,515			3.2	%
Income (loss) from operations		2,497			3.0	%		(8,462	)		-10.1	%		4,952			3.0	%		(10,819	)		-6.4	%

Interest income		521			0.6	%		627			0.8	%		1,080			0.6	%		1,383			0.8	%
Other loss, net		(422	)		-0.5	%		(276	)		-0.3	%		(881	)		-0.5	%		(380	)		-0.2	%
Income (loss) before income taxes		2,596			3.1	%		(8,111	)		-9.7	%		5,151			3.1	%		(9,816	)		-5.8	%

Income tax expense (benefit)		678			0.8	%		(910	)		-1.1	%		1,379			0.8	%		(1,422	)		-0.8	%
Net income (loss)		1,918			2.3	%		(7,201	)		-8.6	%		3,772			2.3	%		(8,394	)		-4.9	%


Basic and diluted earnings (loss) per share	$	0.22					$	(0.82	)				$	0.43					$	(0.96	)

*26 weeks in fiscal 2025 versus 27 weeks in fiscal 2024.

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

	(Unaudited)
Assets	May 31, 2025		November 30, 2024
Current assets
Cash and cash equivalents	$	39,433	$	39,551
Short-term investments		20,385		20,360
Accounts receivable, net		12,883		13,181
Inventories, net		59,362		54,965
Recoverable income taxes		4,607		4,240
Other current assets		7,523		9,242
Total current assets		144,193		141,539

Property and equipment, net		75,088		77,047

Other long-term assets
Deferred income taxes, net		5,493		6,867
Goodwill		7,217		7,217
Intangible assets		6,939		6,968
Right of use assets under operating leases		84,877		93,624
Other		7,526		7,908
Total long-term assets		112,052		122,584
Total assets	$	331,333	$	341,170

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	14,533	$	13,303
Accrued compensation and benefits		7,798		6,898
Customer deposits		24,029		25,742
Current portion of operating lease obligations		19,702		18,050
Other accrued expenses		8,462		9,410
Total current liabilities		74,524		73,403

Long-term liabilities
Post employment benefit obligations		10,814		10,882
Long-term portion of operating lease obligations		78,116		88,395
Other long-term liabilities		1,103		1,163
Total long-term liabilities		90,033		100,440

Stockholders’ equity
Common stock		43,410		43,681
Retained earnings		122,597		122,847
Additional paid-in-capital		-		6
Accumulated other comprehensive income		769		793
Total stockholders' equity		166,776		167,327
Total liabilities and stockholders’ equity	$	331,333	$	341,170

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

	Six Months Ended*
	May 31, 2025			June 1, 2024
Operating activities:
Net income (loss)	$	3,772		$	(8,394	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		4,478			5,291
Asset impairment charges		-			5,515
Inventory valuation charges		1,292			3,879
Deferred income taxes		1,374			(1,440	)
Other, net		642			689
Changes in operating assets and liabilities:
Accounts receivable		298			241
Inventories		(5,689	)		2,228
Other current and long-term assets		1,352			(1,217	)
Right of use assets under operating leases		8,474			8,707
Customer deposits		(1,713	)		233
Accounts payable and other liabilities		978			(6,930	)
Obligations under operating leases		(8,355	)		(10,721	)
Net cash provided by (used in) operating activities		6,903			(1,919	)

Investing activities:
Purchases of property and equipment		(2,275	)		(3,683	)
Other		(74	)		(383	)
Net cash used in investing activities		(2,349	)		(4,066	)

Financing activities:
Cash dividends		(3,476	)		(3,153	)
Other issuance of common stock		165			179
Repurchases of common stock		(1,158	)		(489	)
Taxes paid related to net share settlement of equity awards		(136	)		(161	)
Repayments of finance lease obligations		(67	)		(153	)
Net cash used in financing activities		(4,672	)		(3,777	)
Effect of exchange rate changes on cash and cash equivalents		-			1
Change in cash and cash equivalents		(118	)		(9,761	)
Cash and cash equivalents - beginning of period		39,551			52,407

Cash and cash equivalents - end of period	$	39,433		$	42,646

*26 weeks in fiscal 2025 versus 27 weeks in fiscal 2024.

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

	Quarter Ended						Six Months Ended*
	May 31, 2025			June 1, 2024			May 31, 2025			June 1, 2024
Sales Revenue
Wholesale sales of furniture and accessories	$	54,229		$	52,610		$	107,156		$	107,310
Less: Sales to retail segment		(24,113	)		(20,752	)		(48,172	)		(44,514	)
Wholesale sales to external customers		30,116			31,858			58,984			62,796
Retail sales of furniture and accessories		54,232			50,468			107,526			104,222
Corporate & Other - Noa Home⁽¹⁾		-			1,084			-			2,946
Consolidated net sales of furniture and accessories	$	84,348		$	83,410		$	166,510		$	169,964


Income (Loss) before Income Taxes
Income (Loss) from Operations
Wholesale	$	8,290		$	5,687		$	16,975		$	12,446
Retail		482			(2,222	)		434			(3,834	)
Net expenses - Corporate and other⁽¹⁾		(6,521	)		(6,942	)		(12,747	)		(14,537	)
Inter-company elimination		246			530			290			621
Asset impairment charges		-			(5,515	)		-			(5,515	)
Consolidated income (loss) from operations		2,497			(8,462	)		4,952			(10,819	)

Interest income		521			627			1,080			1,383
Other loss, net		(422	)		(276	)		(881	)		(380	)
Consolidated income (loss) before income taxes	$	2,596		$	(8,111	)	$	5,151		$	(9,816	)

*26 weeks in fiscal 2025 versus 27 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.