Bassett Reports Fiscal Third Quarter Results

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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	Change		Change			2026		Sales			2025		Sales
Consolidated(1)	$	82.8	$	80.1	$	2.7	3.4	%	$	2.8		3.4	%	$	0.6		0.7	%

Wholesale	$	53.7	$	50.8	$	2.9	5.7	%	$	9.3		17.3	%	$	8.1		15.9	%

Retail	$	54.2	$	51.9	$	2.3	4.5	%	$	(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 1
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed 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
	Amount			Net Sales		Amount		Net Sales		Amount			Net Sales		Amount			Net Sales

Net sales	$	82,838		100.0	%	$	80,103	100.0	%	$	246,931		100.0	%	$	246,613		100.0	%
Cost of goods sold		35,222		42.5	%		35,109	43.8	%		106,803		43.3	%		107,880		43.7	%
Gross profit		47,616		57.5	%		44,994	56.2	%		140,128		56.7	%		138,733		56.3	%

Selling, general and administrative expenses		44,690		53.9	%		44,401	55.4	%		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	%		593	0.7	%		6,182		2.5	%		5,545		2.2	%

Interest income		480		0.6	%		472	0.6	%		1,479		0.6	%		1,552		0.6	%
Other income (loss), net		(375	)	-0.5	%		30	0.0	%		(480	)	-0.2	%		(851	)	-0.3	%
Income before income taxes		2,887		3.5	%		1,095	1.4	%		7,181		2.9	%		6,246		2.5	%

Income tax expense		786		0.9	%		294	0.4	%		1,925		0.8	%		1,673		0.7	%
Net income	$	2,101		2.5	%	$	801	1.0	%		5,256		2.1	%		4,573		1.9	%


Basic and diluted earnings per share	$	0.24				$	0.09			$	0.61				$	0.53

Table 2
BASSETT FURNITURE INDUSTRIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
	(Unaudited)
Assets	August 29, 2026		November 29, 2025
Current assets
Cash and cash equivalents	$	35,372	$	41,277
Short-term investments		18,023		17,963
Accounts receivable, net		14,273		14,410
Inventories, net		59,279		61,790
Recoverable income taxes		424		2,878
Other current assets		7,899		7,224
Total current assets		135,270		145,542

Property and equipment, net		73,441		73,175

Other long-term assets
Deferred income taxes, net		6,267		5,979
Goodwill		7,664		7,217
Intangible assets		6,867		6,910
Right of use assets under operating leases		73,194		76,727
Other		9,438		8,269
Total long-term assets		103,430		105,102
Total assets	$	312,141	$	323,819

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	12,461	$	14,739
Accrued compensation and benefits		6,878		10,227
Customer deposits		23,848		24,969
Current portion of operating lease obligations		17,661		19,299
Other accrued expenses		8,515		7,750
Total current liabilities		69,363		76,984

Long-term liabilities
Post employment benefit obligations		12,238		11,379
Long-term portion of operating lease obligations		65,052		69,353
Other long-term liabilities		560		996
Total long-term liabilities		77,850		81,728


Stockholders’ equity
Common stock		43,198		43,256
Retained earnings		120,982		121,128
Additional paid-in-capital		56		-
Accumulated other comprehensive income		692		723
Total stockholders' equity		164,928		165,107
Total liabilities and stockholders’ equity	$	312,141	$	323,819

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

	Nine Months Ended
	August 29, 2026			August 30, 2025
Operating 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.