Bassett Furniture Industries Stock Earnings Reports

Bassett reported modestly lower consolidated revenue of $83.8M for Q2 FY26 while adjusted operating profit improved. Retail written sales showed encouraging momentum (up 9.5% for the quarter and Memorial Day written sales up 14% with +4% traffic), and web/channel investments drove written web sales up 40% (AOV +24%). Wholesale orders rose 5.2% but shipments were down ~2% due to back‑end loading. Consolidated gross margin expanded 90 bps to 56.5%, driven by stronger Wholesale margins, while Retail gross margin declined 120 bps; management plans a mid‑July Retail margin improvement of 200–250 bps. SG&A remains elevated as a percentage of sales but management reiterated targeted additional cost reductions of $1.5M–$2M annually. Liquidity is healthy with $53.9M cash and short‑term investments and $7.4M cash from operations in the quarter. Capex guidance rose to $10–$12M for 2026 (vs $4.5M prior year). Growth initiatives highlighted: new stores (Cincinnati opened, Orlando to open in October, Melville planned), conversion of licensed to corporate where appropriate, continued omnichannel/e‑commerce investments, product introductions at opening price points launching ahead of Labor Day, expanded focus on design trade and a nascent Hospitality division. EPS was $0.24 (vs $0.22 prior year). Management emphasized they are driving sales and margin improvements proactively rather than waiting on housing recovery.